Primarily a question here for those familiar with the hard money lending arena. Lenders, please!
In the past, here in the Chicago area, several investor clients of mine have tapped hard money loans, from private investors, for buy, rehab, and flip projects. If the properties flipped quickly, in an appreciating market, higher than market fees and increased rates could be absorbed. Sometimes, if they had to hold, or in a stable or slightly down market, they got stung.
The hard-money option helped many investors that would have otherwise would not have been able to use conventional financing. Some clients were considering exotic, off-shore or European banks for financing - but we never closed a deal using one of those mortgage loans.
An article in the January 13th Edition of the Chicago Tribune, by Wall Street Journal Reporter John D. Opdyke, indicates growing interest in private-money, or hard money, financing. He sees relevance as well for certain individual home buyers - perhaps those going no-doc, or those rehabbing distressed property for themselves, later planning to re-finance at a more competitive rate. We also have a posting discussing this on our BlogChicagoHomes.com Chicago Real Estate Blog Center.
Would love your thoughts and referrals here!
DEAN & DEAN'S TEAM CHICAGO
Comments(4)