Los Angeles Real Estate Investors say, one of the most sought after course of action when financing with no money down is a hard money loan.

A non conventional loan is not given by a bank.

These type of loans are given from individuals and businesses aimed at financing an investments.

Los Angeles Real Estate Investors – To Loan Or Not To Loan?

Los Angeles Real Estate Investors say, hard money loans have their own set of criteria.

When going over the loans you see that they include more fees and higher interest rates.

If you go the non conventional loan route, something to look into is to find homes that can be purchased at 50 cents on the dollar.

Hard Money Loan – Private Money Loan

Loan Breakdown:

  • Hard Money: Hard money will come with fees in the form of points. They range from three to five points. These points represent an upfront percentage fee that is added to the borrowed amount. Interest rates for hard money lenders tend to be high. They can range between 10 and 18 %.
  • Private Money: These type of loans are similar to hard money, they bring speed and efficiency to every deal. Normally, they costs investors about 6 and 12 percent of interest on the money borrowed.

Real Estate Wholesaling

Los Angeles Real Estate Investors say, real estate wholesalers require neither a high credit score or large money down.

Wholesaling means putting the right numbers in place.

At its core, it consist of searching for discounted properties.

You have to be able to assign the contract to a potential home buyer and get paid in the process.

Real Estate Partnerships

Los Angeles Real Estate Investors say, a very common path in real estate is made through a partnerships of some sort.

Real Estate Investing partnerships allow one partner to find a distressed property at a discounted price, while the other partner uses their credit score and working capital on finances.

Everyone brings something to the table.

Since your in the business of dealing with goals, risk, roles, and returns, everything should be discussed beforehand.

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