Hard Money Funding 100% Financing-Scams

Ok, let’s talk about 100% financing from hard cash lenders. Many people have become accustomed to a hundred percent LTV loans ( and higher ) over the last couple of years. Sadly, many lenders and banks have been terribly unreliable in how they lend cash and we are starting to see the nasty effects of these policies today. Banks are starting to shut up shop, lenders and investors who have purchased loan packages on the secondary market are going after banks and mortgage brokers, and even Congress is holding hearings. What many of us do not understand is that tough cash banks typically are way more conservative when underwriting a loan. Why is this? Straightforward, non-public money lenders need to make sure the collateral is good and that in the even they have to take a property back, they are secure and can sell the property in an efficient fashion. Most banks use a property valuation that guesstimates a 6 month to 1 year market time for selling a property, a personal equity lender has to sell the property in 90 days or less often.
How does all of this relate to 100% financing? Straightforward, 100% financing does not exist ( to the best of our information ) in the hard cash / personal money world at least not unless your elders are ready to loan you all of the money. While we do not know of anyone who will supply 100% hard cash / non-public cash financing here are 2 vital items when you are out there looking for any sort of hard cash purchase loan :

1. You want some ‘Skin in the Game’ – you need to have a major quantity of money going into the deal if this is a purchase exchange. Why? Straightforward, we need to know that you aren’t going to just run away from the deal provided it actually is not the deal of the century or you get in over your head. This is the most significant item people looking out for a purchase loan or ARV purchase loan. This is a price off purchase price loan.
2. Some banks will let you use some of the equity of the deal sort of like a jv partner on the deal. The bank will look at the ass is price and go off this instead of the purchase price and this type of loan is a purchase off as is price not purchase price deal.

The commonest of the 2 is the 1st choice being that no-one wants to risk very much in this economy. But they’re both out there.

This isn’t meant as a joke. This is something that 80% of the people that call us every day are on the lookout for and can not wrap their heads around. Lenders need to see that borrowers are prepared to back up claims that they have the deal of the century. The most effective way to do that is to show them that you/the borrower believes it’s the deal of the century by putting their own greenbacks into the deal also. If you’re ready to do this put a good info package together on the deal, what quantity of money you are searching for, how the funds will be used, and some information on the exit technique. Or Simply fill out the fast form on our site and we are going to see if there are any options for you out there! http://www.hardmoney-list.net/quick-form-2/

We hope we hear from you and wish you luck.