Are you interested in going into commercial real estate? It’s important you become well-acquainted with commercial real estate investing basics. More and more Americans are seeking to buy homes or seek out different living options, with hard money rehab loans and secured short term loans some of the most common choices for those looking to buy smart. Your job is to make a complex and vast industry accessible to first-time buyers and repeat buyers alike, offering them hard money rehab loans or teaching them about mortgage rates at their behest.
What Are Homeowning Concerns?
There are a few concerns that first-time home buyers and frequent home buyers both share when browsing the real estate market. Studies have shown nearly 33% of people looking to buy a house are doing so for the first time, making that almost a third of your potential client base. Additional studies have shown 60% of home buyers of all backgrounds and budgets wished they understood the ins and outs of their mortgage contract better. Last, but not least, no one loan is perfect for everyone. Hard money rehab loans, even now, are a much-preferred choice for investor and home buyer alike.
What Are The Difference Between Loans?
It’s important to know the difference between different types of loans so you can offer the widest amount of variety possible, check out http://www.adl-usa.com. Offer higher interest rates and lower loan to value ratios than other models — these interest rates can be as low as 15% and as high as 18% to 20%, depending on the situation at hand. The duration (or payment period) for private loans are shorter than that of traditional loans, which can go anywhere from one year to 50. Private loans are only granted with a duration of up to five years.
What Should I Expect?
While you should always be prepared for whatever comes through your door, there are certain trends to be aware of. The median amount of home equity for people under the age of 35 generally reaches or exceeds $20,000. The majority of people will buy their homes with either a 15-year or 30-year mortgage, regardless of budgets, and home equity increases as homeowners get older. This is direct correlation to the continuing rise of home prices.
What Are Ongoing Trends I Should Be Aware Of?
The real estate market is changing. The year 2011 saw the population growth in urban areas starting to exceed the ones in American suburbs for the first time in a century, with some estimates expecting this to remain constant for quite a few years to come. The year 2014, as well, saw over 327,000 home repossessions. Real estate investment lenders, as a result, have to adjust their methods to keep up with the changing times.
What Should I Know About Hard Money Rehab Loans?
Hard money rehab loans are fast becoming the ideal option for both investors and buyers. They’re sought after for their quick turnaround period (no longer than two weeks) and are flexible and straightforward. Keep in mind that a typical bank loan borrower looking to acquire a business loan needs to have been in the business for two years and have at least $250,000 of yearly revenue — additional requirements include good personal credit, good business credit and positive cash flow. With investing basics on your side, no challenge is too grand or too strange for investment mortgage lenders.