We all know that the subprime market has come to its eventual resting place, the graveyard.  However, this meltdown presents a great opportunity for investors to buy properties from these failing lenders who are in the process of foreclosure or have foreclosed already.  Take advantage of this opportunity by making agressive offers to these institutions.  Use hard money to offer a quick close for the seller.  Their loss can be your gain.

It happens with regularity to hard money lenders that they will receive an application from someone who wants to purchase a house using hard money for funding purchase and rehab.  However, the borrower will want a higher loan to value than is typically achievable using hard money lenders.  Most hard money lenders target to loan between 65% and 70% of the after-repaired-value (ARV) of a property.  Using these loans to value, the borrower and the hard money lender are both protected.  If you can purchase a property and get your repairs done in one loan for less than 70% of ARV, you are usually going to make money.  Going above that loan to value, puts those profits at risk.  Borrowers should seek to maximize their profits and protect themselves against potential pitfalls on a project by adhering to a loan to value that makes sense to them and their lender.

It happens with regularity to hard money lenders that they will receive an application from someone who wants to purchase a house using hard money for funding purchase and rehab.  However, the borrower will want a higher loan to value than is typically achievable using hard money lenders.  Most hard money lenders target to loan between 65% and 70% of the after-repaired-value (ARV) of a property.  Using these loans to value, the borrower and the hard money lender are both protected.  If you can purchase a property and get your repairs done in one loan for less than 70% of ARV, you are usually going to make money.  Going above that loan to value, puts those profits at risk.  Borrowers should seek to maximize their profits and protect themselves against potential pitfalls on a project by adhering to a loan to value that makes sense to them and their lender.

Onward Financial does not write hard money loans for a person’s primary residence.  However, there are a number of companies out there that do.  If you are looking for a hard money loan on a primary residence, try a sub-prime lender first.  Their rates and terms may actually be better than a “traditional hard money lender”. 

Onward Financial does not write hard money loans for a person’s primary residence.  However, there are a number of companies out there that do.  If you are looking for a hard money loan on a primary residence, try a sub-prime lender first.  Their rates and terms may actually be better than a “traditional hard money lender”. 

It never ceases to amaze me how rigid banks are in their underwriting of real estate loans.  They have their little box that the property and the borrower must fit in for the loan to happen.  If the loan doesn’t fit in their box, the banker has no idea what to do.  It’s hard for a banker to wrap his head around the fact that the borrower has substaintial equity in a property and ignore or pay less attention to the borrower’s credit or DTI ratios.  That is why hard money lenders exist and why they play an important role in the real estate finance marketplace.  We recognize that the vast majority of real estate backed loans will fall into the banker’s box.  However, hard money lenders are there to fill the gap when they don’t.

When someone inquires about a hard money loan, don’t be suprised to get the question back, “what is the exit?”.  Hard money lenders want to know how you are going to pay them off.  They want the borrower to explain what their strategy is for paying off the hard money loan.  Are you going to refinance the property?  If so, can you qualify based on your income, credit score, income, etc.  Are you going to sell the property?  If so, you need to plan on doing more than just putting up a pretty for sale sign in the yard.  Successful real estate investors spend time thinking about their exit strategy before buying a property.  And remember, always have a backup plan!

Applying for a hard money loan is easy with Onward Financial.  Generally, Onward Financial lends money to purchase and rehab residential properties based on two factors, the property and the borrower. Borrowers should submit a loan application by either downloading one or filling out our online application at https://secure-onward.blueinksoftware.com/loan_form.htm

We approve our borrowers in less than 24 hours and you only need to apply once with us. 

Investing in residential real estate can be financially rewarding if you approach it with the right  financial mindset and a bit of patience. 

Too often we hear about people buying residential real estate for investment and rehabbing the property as if it were going to be the next Taj Mahal.  Know the neighborhood that you are investing in and rehab accordingly.  If the neighborhood calls for granite countertops, then by all means but in granite but don’t make the mistake of over or under shooting the market.

As with all investments, things don’t always work out as planned.  Have some patience and always have a plan b in place, that way you will always know where the exit is and the best way to get there.  Investor rehab loans are our specialty, call us to find out more…

Well, it didn’t come as a suprise to wall street but the new fed chairman raised the fed funds rate again yesterday.  We know this hurts short-term but hopefully this inflation fighting stance will help keep long-term rates relatively low.  Only time will tell what type of impact continued rate increases will have on the housing market.  For now housing markets continue to hold their own, although new home sales were off significantly. 

How does this impact you the individual investor?  For now, it will not have much of an impact.  Most hard money lenders will keep their rates the same or raise them slightly.  Onward Financial will continue to provide hard money financing at market competitive rates.  We believe in our customers and want to see their continued success. 

Finding hard money for residential investment properties is a challenge.  Onward Financial is committed to simplifying the process and procedures for obtaining a residential hard money loan for investment property.  Onward Financial is a hard money lender that lends on residential investment property.   We provide both purchase and repair money to help investors realize their dreams of building wealth through real estate. 

 Onward Financial.   Hard Money.  Simplified.

Investor rehab loans are used by real estate investors to residential properties that are in need of money for repair or updates.  Investor rehab loans from a company like Onward Financial gives borrowers the funds to both purchase and rehab properties.  Instead of coming out of pocket for the repairs, investors can use a investor rehab loan to make the necessary improvements to a property.  These improvements often result in an increase in value and substaintial equity to the investor.