Hard Money With Low Credit Score??
Would hard money investors invest in you eventhough you're credit score might be below 550?? I've heard sometimes equity far exceeds credit score but i'd like all of your input from prior experience.. I would like to start rehabbing in the Houston, TX area........... any input would really be appreciated
Hard money lenders do not care what your credit score is, if there is equity to protect their investment/loan.
Hard money lenders are concerned with the equity in the property. Credit score is less important than showing the ability to sustain the payments. Nobody wants to loan to own! I work for a hard money lender that does deals in Houston. Email me and I will get back to you.
Aaron DeCollibus
If I had no experience, I would rather worry about learning the construction/rehab business then thinking about my credit score in regards to Hard Money Lenders. Hard Money lenders are not interested in your credit but in the fmv value of the real estate property/collateral that protects their investment and on which they usually want to have the first position, (unless their money is used for a bridge loan.)
You are worrying about the wrong problem:
If I had no experience, I would rather worry about learning the construction/rehab business then thinking about my credit score in regards to Hard Money Lenders. Hard Money lenders are not interested in your credit but in the fmv value of the real estate property/collateral that protects their investment and on which they usually want to have the first position, (unless their money is used for a bridge loan.)
What private/hard money lenders care about is the equity in the www.property.Most hml's will at most lend only about a max of 65% of fmv after repairs.Your credit rating is a secondary issue.You have to remember not all hml's have the same requirements.
Thanks for your replies...... Really helped in understanding that private hard money lenders have their money protected with the equity of the home. I do have some experience in rehabbing since we rehabbed our present historic home plus i got to meet a few people who are experienced in rehabbing who offered their help with reasonable prices. thanks and i think i'm going to jump into this great venture.......