As REO property is placed with REO Agents  for sale, a new breed of investors is snapping up these properties at virtually ludicrously low prices.  The LTV’s on some of these properties are as low as 25% of the market value and are being sold primarily to investors who are using private hard money lenders.  Although homebuyers are purchasing some of the REO properties which are now held by banks, it is apparent that the banks opt to sell the properties at discount to investors because the closing and financial support times are much quicker, fashioning it easier for banks to recoup some of their losses.

Seasoned and beginning private investors are submitting loan package requests to private rehab hard money lenders for funding based on the value of the property LTV.  Hard money lenders are ready to loan because the extremely low LTV values advantageously reduce the risks associated with such types of loans.  Since rehab hard money lenders are primarily asset based lenders, it is a perfect fit for real estate investors, primarily in the residential arena. However, it is expected that we will see more private hard money loans being made in the commercial arena as well in the near foreseeable future. The bank, governement and financial institution REO property has been bought and resolde at wholesale prices, reducing further levels in the housing stock list.

We can expect to see more private hard money loans to to fund these types of deals as more and more hard money lenders enter the market.  Private money is raised from investors seeking a well above average return by having the funds loaned out on property that is securing the loan.  The private hard money lenders programs differ from conventional bank loans in that the loans are made quicker, less emphasis is placed on a buyer’s credit and most emphasis is placed on the value of the property asset and ultimately what the investor’s plans are with the property whether it be buy and sell or rehab and sell.

The Private Money Lenders Source is an indespensible resource for a private real estate inestor because it contains virtually all of the best lenders in the nation who loan on residential and commercial investing property.  These loans are being made nationwide, regionally, and locally by these private lenders and enable the real estate investor to deal direct.  www.OPMCredit has been providing resources to real estate investors since 2006, and as the market has changed dramatically, new resources have been developed including the Hard Money Loan Blueprint, the Ultimate REO Report, and even a strategy to attract motivated buyers seeking immediate housing, whether it be homebuyers or wholesale buyers as well.  

Equipped with these resources, real estate investors can approach hard money lenders with confidence, knowledgeable that their loan packages are propertly prepared.  More loans are approved when a lender receives a complete loan package that is prepared according to the standards for private hard money lenders.  The Hard Money Loan Blueprint was developed by studying the programs of 300 private hard money lenders in order to assist real estate investors in submitting a better loan package.  According to private hard money lenders, it is estimated that 50% to 70% of loan packages submitted by private investors are incomplete and lacking the documentation necessary for loan approval.  The Hard Money Loan Blueprint has enabled more real estate investors to simply do more profitable deals .