http://www.lendinguniverse.com find tools to keep track of all the requests and and all the negotiations. You will also find a large list of private investors in your area who can potentially arrange the loan. You will need to check the internet, friends and business associates for additional resources and the website will guide you exactly on each step of the w
Consider a hard money loan if you have at least 65% equity in the real estate and a good exist strategy. If a loan has to be funded quickly, the Loan to Value is a factor which determines how quickly the loan could be funded. (Not the only factor but a factor). Private Money lenders are obviously more conservative with loan to value now than a year ago. Particularly on less desirable properties such as undeveloped land or half-finished homes, the loan to value requirements are getting to be not higher than 25%-50%.
In California for example, raw land is restricted to between 25-35% loan to value. Improved land (utilities, water, power, road), is maxed at around 40% loan to value. Only properties with completed structures are able to attract 50%-70% loan to value and higher. And obviously income producing properties are able to obtain the highest loan to value.
However, depending on the characteristics of the subject property, these percentages are flexible.
Carefully considering your loan to value in your initial loan request is crucial in the swiftness of the loan being funded. If you submit a request with a loan to value that is too high for your property type or characteristics, lenders (private investors) will not even look at the loan request. The trick is to put your a loan request in front of the investor nose.
1. Your first goal is to get as many investors as possible to read your request
2. Your second goal is have the investors look at the property
3. Only then you can start real negotiation on terms
4. select the lender who offer you the best loan for your needs. (it may not be the cheapest offer but maybe with more cash , longer terms etc.)
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