Residential Hard Money Lenders – What Is A Good Deal?

Have you heard about the owner-occupied deal? Being a real estate investor I understand the importance of this deal. Generally it is a property that is already occupied and a hard money lender prefers to stay away from these types of deals.

The major reason why hard money lenders do not prefer owner occupied deal is that it has completely different and complicated rules and regulations. Most of the residential hard money lenders are not willing to fund this type of deal because there is a lot of paperwork involved in it. You can check hard money lenders Houston online to find out how you can get cash instantly.

Make sure you consider both the pros and cons before planning of remodeling an owner-occupied property. Sometimes it can be quite difficult to get capital for such kind of deal. Most of the hard money lenders do not possess financial assistance. Most of the time paperwork is not involved in their deals because they have to manage everything on their own. Hard money lenders always prefer to close a deal within a short period of time (i.e. within six months) without any disturbance.

As I have mentioned earlier, the owner-occupied property takes more time in documentation work and in renovation. Sometimes these deals are not as profitable as it is expected. Furthermore, renovation of these properties takes so much time and ultimately it goes into foreclosure. In other words, we can say that owner-occupied is not a profitable deal.

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