Before I begin this post a warning it may lean towards a venting of the industry.  (Please consider yourself warned)  As many of my readers know I work with many Hard Money / Private Money Investors so naturally I receive many phone calls from perspective clients who read my blogs. 

It seems right now with our economy in the state that it is in many people are trying to figure out how to make a fast buck.  This is why more and more of these late night infomercials are popping up telling the consumer for 3 simple payments of ------ they can learn how to buy property that are undervalued and use creative financing to help you buy with no money down.

OK!!!!!

Yes, traditionaly what they are telling you is the truth. Hard Money and Private Money only uses the appraised value and then a set amount Loan to Value (LTV) and if you are purchasing the property way undervalue you might be able to purchase with little to NO money down.  HOWEVER, as anyone can tell you we are not living in the past in Florida.  I know of NO Hard Money / Private Money investors giving a 100% on property anymore unless the person has great credit and in that case lets face facts you can go traditional financing and do not need Hard Money.

In Florida for example you are purchasing a home that is appraised at $300,000 and your purchase price is $200,000 yes on paper you are getting a great deal. However, the way most Hard Money Investors are looking at this is the propety is really only worth 200,000 because that is what it is worth in your mind and therefore that is the real value. Now please keep in mind I do have some investors that will still use the appraised value but what those wonderful Infomercials don't tell you is that these programs come with several points upfront and the rates are usally starting at the low double digits.  This money does not come cheap.

In closing, before you rush out and spend your hard earned money on a quick rich sceme in Florida why not ask your true Mortgage professional questions.  Remember there is never a charge for a question.

For more Mortgage Information: Mortgage Advice in South Florida