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3 Things You Need to Know About Appraisals for Your Real Estate Investment

Just like banks who provide mortgages for people buying a home to live in, most private lenders, who finance real estate investors, require an appraisal on a property before making a loan. The appraisal is used to protect the lender – it helps them evaluate if it’s a good deal for the investor and the appraised value is also usually used to set the maximum loan amount. I have been doing appraisals for private lenders for over 10 years. During that time on many occasions the appraisal has differed significantly from the borrower’s estimate of value. Often times this is because the investor does not fully understand how appraisers select the comparable sales used to value the property. If you understand these three things about appraisals, it will help you evaluate your deals…

June 30, 2022 by
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3 Common Myths About Hard Money Lenders

When I joined Rock East Funding about five years ago and started meeting investors, I got one of two reactions when I met investors. The first reaction was “Oh great, you’re a lender. Tell me about your terms.” The other reaction was the opposite – “ohhh….you’re a hard money lender.” That reaction was from people who felt it’s a “shady” business where investors get “ripped off.”

Like any industry, unfortunately, there certainly are unscrupulous players in the Hard Money industry. However, if you are working with a reputable lender, Hard Money can be key to fueling your growth and success.

So, let’s dispel some of the Hard Money Myths.

May 25, 2022 by

Top Strategies to Limit Real Estate Investor Tax Liabilities

When lenders are deciding whether to make a loan to real estate investors, they really only want to know one thing – am I putting my money in a project that is likely to succeed?  Everything a lender asks you is designed to answer that question.

As one of the most experienced Hard Money lenders in the industry, we know what questions to ask to determine if a deal is likely to be successful. In fact, we know the questions most other lenders will ask as well.

Below are the five questions we always ask about the investor and their deal. By knowing these questions ahead of time, you can be prepared before you reach out to a lender. And when you do talk to a lender, you’ll demonstrate that you are prepared for the investment and increase your chances of getting the funding you need!

February 18, 2022 by
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5 Questions Hard Money Lenders Ask Their Real Estate Investor Clients

When lenders are deciding whether to make a loan to real estate investors, they really only want to know one thing – am I putting my money in a project that is likely to succeed?  Everything a lender asks you is designed to answer that question.

As one of the most experienced Hard Money lenders in the industry, we know what questions to ask to determine if a deal is likely to be successful. In fact, we know the questions most other lenders will ask as well.

Below are the five questions we always ask about the investor and their deal. By knowing these questions ahead of time, you can be prepared before you reach out to a lender. And when you do talk to a lender, you’ll demonstrate that you are prepared for the investment and increase your chances of getting the funding you need!

January 27, 2022 by
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How to Achieve Your Real Estate Investing Goals in 2022

Becky Nova is a Cancer Researcher by day, Real Estate Investor. After taking time away from the hospital, Becky lived in Spain and Portugal where she owned a Tour Company and then a bar, respectively. Unfortunately, she lost the bar and moved back to the States penniless. It was then that she met her now husband, Emilio. Emilio had immigrated to the United States a few years before and dreamt of Homeownership. In an attempt to not live mortgage payment to mortgage payment, Becky suggested they purchase a multifamily.
Although finding an investment property can be difficult right now, it’s also an opportunity to make big profits – multiple sources including Bloomberg, CNBC, and Forbes report profits on flips are at a record high. And it’s an especially good opportunity for those who have insider’s knowledge like contractors and realtors. I know first-hand –  as an investor and contractor, I have renovated and flipped more than 180 properties in my career.

December 10, 2021 by