Ways To Attract Private Money Lenders | Rehab Loan

Real estate investors who are searching for an effective way to finance real estate deals should pay special attention to this article. Generally speaking there are three different types of things that a investment property mortgage company or rehab loan company will require in order to loan money. All investment deals require that you know the after repaired value, the fixup costs and the purchase price.

Initially you will want to make sure you know the after repaired value is based on a 30 day sales price. The 30 day sales price should be based on a fixed up the value of the house based on the active comps pending sales and under contracts. The reason you want to determine this is it actually establishes the supply and demand in the area.

Next you need to take a close look at how much it will cost to fix the property a this is considered the construction or fixup costs. It is critical that you work with a qualified and experienced general contractor who can give you a bit on the repairs. Later in your career after completing several projects you can fill free to do the estimate of repairs on your own. But remember you must always work with a qualified general contractor.

And finally your private money lender or rehab loan company will want to know what the purchase price is. Every successful real estate investor has a specific buying formula that they follow when buying investment properties to ensure a profitable project. Normally any moderately strong market if you follow the formula of the after repaired value minus the fixup costs and you multiply this number which is the as is number times 65 to 70% you will have more than enough profit in the deal.

We have prepared a free report at www.attractprivatemoney.com. In this report we will share with you seven tips and tricks on how to effectively attract private money into your real estate investment business for income property mortgages and rehab’s. Go ahead and visit the website now and take a look at our free report on how to attract private money.

Learn more about rehab loans. Stop by Travis Bontrager’s site where you can find out all about getting a private money loan and what it can do for you.

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