Know about how private money lenders enable the non cash-rich investors to make a healthy investment in foreclosed properties

1. Foreclosed properties are indeed a lucrative option for investing money. Foreclosed properties are now
available at deeply discounted prices ranging from
10-40%. It is indeed a profitable deal to purchase the
house at huge discounts, undertake some repairs and
rehab and then flip the same at the prevailing market
price.
However, you cannot forget that a foreclosed or
distressed property demands immediate
rehabilitation and regular maintenance of the same.
Furthermore, foreclosed properties are sold on a
“cash-on-sale” basis. Additionally, one needs to incur the rehab and repairs expenses immediately after
purchase. Can a person with limited financial resources opt for this “quick money” and lucrative
investment?
Yes, he can, but with the help of private money lenders. Even though you have financial limitations, you
can opt for hard money loans, otherwise known as bridge money or real estate investment loans and
repay after the property sale.
Why hard money loans? While the number of foreclosures is soaring high, banks and conventional
money lenders are already burdened with unpaid loans and foreclosed properties. To avoid further
burden, they do not easily provide loans for foreclosed property investment. In such a case, private
money lenders are the best option for real estate investors. These lenders provide real estate
investment loans for investors wishing to invest in foreclosed properties. Furthermore, the good news is
that their loan amount not only covers the purchase price, but also includes the repair and rehab
charges.
Although the interest rate of hard money loans are higher than conventional financing rates, their
services and quick availability of the loan amount is worth it. While conventional financers process the
loan in about 30-40 days, private money lenders process the loan in week or even in 48 hours in case of
emergency. In case of foreclosed property investment, timely availability of the loan can make or break
the investment. A huge crowd is waiting to cash in on this promising investment. The property goes to
the one who has ready finance. Only private money lenders can make this possible.
Additionally, they have a number of loan programs available,
based on market research and customer requirement. Thus,
they have an apt loan program for all. The expert loan officer
first sits with you, understands your requirement and then
chalks out your loan in tandem with your financial limitations.

2. Yet another benefit of hard money loans is their terms of payment. Often, hard money loans are
provided with monthly interest payment and a balloon payment at the end of the term. Paying a meagre
interest every month may not be tight for you. You can pay the final amount at the end of the term; i.e.
after the property sale.
Hard money loans are mostly short term loans that extend from a period of six months to one year.
Rehab and repairs work often takes a period of 3-4 months for completion. Once this is done, you can
sell the property and make the balloon payment with the sale proceeds. As the loan term is short, the
interest burden on your shoulders is also low.
Therefore, we can rightly say that private money lenders come to our rescue where conventional
financers fail.
Sherman Bridge Lending
4600 Fuller Drive
Suite 200B
Irving, TX 75038
Phone: 866-912-0622
Fax: 817-796-2742
Email: info@shermanbridge.com
Website: http://www.shermanbridge.com