Flipping Beach Houses

We were recently at the beach, Salvo, NC to be more specific, and talked with Eddie of Sun Realty about the proposition of buying some real estate at the beach. Lizzie and I got lots of info from Eddie,  but at the current time we are not going to be investing in a piece of property at the beach.

Eddie’s advice, which was very doable,  was that we look at building a new beach house, because in ten years when we would be ready to retire, if we had purchased an older property,  it would be really really old by time we were ready to retire. Who want to retire to a house that needs to be fixed up.

	While were there we noticed quite a few distressed properties that might make decent prospects for flipping. This property is a house that Lizzie actually rented several years ago.
Here is a darker house that was actually for sale while were down in Salvo, NC. It is on the beach side of rt 12 across from Wind Over Waves, which is the community that our beach house was located.
	Our remarkable Salvo Rental that we were upgraded to. We originally were scheduled for a place similar to the two above, but due to a scheduling conflict we were upgraded to this sound side property.

Check out all of my OBX Pictures and my Real Estate photo sets.

If you are in the market for some beach property, check out Eddie and Sun Realty and see if they can help you out. Who knows, maybe if we find some private money to invest with us, maybe you will see us down in Salvo enjoying the beach.

Hard Money Loan Info

I was just doing a search for hard money info and came across Wikipedia page on hard money. Some pretty indepth information here with section headings of hard money loan,

“Loan Structure“, “History“(of hard money), “Cross Collateralizing a Hard Money Loan“, “Commercial Hard Money“, “Legal & Regulatory Issues“, “Commercial Lending Industry“, “Hard Money Rate” which deals with the interest and points.

Quite a bit of information for me to digest at the moment, so I will have to go back and digest when I can. Perhaps hard money info on the page is a bit too technical for me. Perhaps for the general public at that. The information for the wikipedia article was provided by Avatarfinancial. I would give them a link, but they are huge in the industry so it would be a waste of a good link.

Private Money Info

I am a little clearer on the definition about “private money” since I first started this blog. Private money is a still considered a type of hard money. However, a hard money loan that is made with “private money” is money that is loaned out to a person who would like to buy a piece of real estate as a hard money loan, but not made by a financial organization such as a mortgage company or a bank. There are people or groups of investors out there that look for situations to invest their funds in order to get a nice return on their investment. A private hard money lender, as with a hard money loan that is made from a financial organization, will also have conditions for repayment of the loan.

So I am out jogging one fine day on a street in my neighborhood or an nearby neighborhood, when I notice a guy put out a for sale sign on a piece of property that is a bit run down, and not looking quite as nice as the other houses in the neighborhood. So I stop and talk with the guy, whose name is Bob. Bob has to sell it really quick due to some extenuating circumstances. This would be a perfect opportunity for someone who would like to purchase a house to do a little cosmetic work and then flip the house as a real estate investment.

I am not an established real estate investor and do not have an established line of credit for Hard Money loans, so where do I go? Finding a private money investor who is willing to do a hard money loan would be my goal. Where do I go? The best place I could think to connect with to gain access to a private hard money lender would be the site Rehabhardmoney.com , which is a site that not only has “information for those seeking a hard money loan”, but it also has “information for those interested in becoming a hard money lender”. This site is the sister site for the webs premier flipping houses information site Rehablist.com, which has been dealing with hard money lenders for well over a decade.

Apparently the first hard money loan is the “hardest” to get and may take a little more time once established. A loan can be made once pre-qualified in as short as two days, but up to 7 days. Subsequent hard money loans would then have a shorter approval time because of a pre-established lending relationship that is established with the first loan.

Visit the above sites for more information about getting a private hard money loan. If you know of any other sites that deal with privat money loans or if my private money information needs adjusting, please leave a comment.

Collateral for Hard Money

So I have a property I want to buy (hypothetically)that really could be a great investment. Fixing it up and selling it would be a way to make a great profit. Where do I get the money to not only buy the property, but to also implement the improvements so that I can sell it?  Does all the money for this project come from the Hard Money Loan, and am I using the property as the collarteral for the Hard Money loan?  Is that how the theory works? All good questions which my research will hopefully answer.

Private Money

What is Private Money? What does it have to do with Hard Money? Is private money a type of loan that is recieved from a private investor, using property as collateral? Or is private money just another word for name for “hard money”? I was looking for an exact definition as to what private money is, and the sites that I came across wanted me to sign up for a lesson on how to get private money. I also gathered that it is a way to invest in real estate without having any of your own money. Sounds interesting. Private money will be a subject of further exploration.

I just found a definition that said that hard money loans are loans that are privately placed instead of institutionally placed. I am still a bit confused about Private Money.

Why Study Hard Money?

I first became aware of hard money when I did a site review for a Hard Money Lender on a directory blog. The site that I reviewed, Rehabhardmoney.com is the sister site of Rehablist.com, which a site that has a primary focus of flipping houses. The subject of flipping property will also be discussed in this blog as well since the acquistion of hard money loans is primarily for buying real estate to flip.

There is also another type of Hard Money which I will try not to discuss, and that is the type of Hard Money that politicians get for their campaigns. This type of hard money is a hot topic, but best left for other blogs that focus on Political Hard Money.

Hard Money Information (current)

My Hard Money knowledge thus far is a rudimentary knowledge of Hard Money. When someone needs a loan in a hurry, most commonly in order to buy real estate, they will apply for a hard money loan using something for collateral for the loan. The most common form of collateral is Real Estate, which the borrower will put up. In addition to the collateral, the hard money loan has very high interest rates, and there are also percentage points added on to the loan amount as well.

 

Reasons to Acquire a Hard Money Loan.

There are personal reasons that a hard money loan may be made. For instance, you might have a house and you want a loan to start a business, so you use your house as collateral to finance the business. Not the best way to fund a business. If your business goes under, you loose your house. But then again that gives you extra motivation to do well at your business. Definitely gives meaning to the phrase “all in”.

I have also heard of people taking money out on a house to buy stock when there is an ISO (initial stock offering). I remember when Agere was split off from Lucent, and was offering going to offer stock. People were taking out loans on there homes to buy the stock which was expected to split. Well, were exactly is Agere now? Not a great use of assets.

The most common reason to acquire a hard money loan and the type that this blog will concentrate on, is to buy real estate as an investment. You are an investor, and you have just scoped out a piece of hot real estate and done all the real estate research, due diligence, to qualify it as a great candidate to be flipped. Hot meaning it is new on the market and will most certainly be scooped up quickly. In order to be able to purchase the property before another investor, you need a loan quickly. So the hard money loan is the type of loan you will need to acquire.

Hard Money Resources

This page contains resources that contain information or links to other Hard Money sites, or real estate related sites, to include blogs, directories, and commercial hard money lending sites. If you know of a site that should be on the list, make a comment and I will add it to the list if approved.

• http://www.deeplylinked.com/financial-services/investing/
• http://www.koolar.com/Category/List.asp?Cat=2&LID=65&page=2
• http://www.pixelheadonline.com/index.php?c=104
• Free Blogs & Blog Directory
• He-Directory
• Rankland.com
• Linkisle.com
• Webcalibration.com
• Theclassifieds.org
• Vivadirectory.com
• Allthelist.com
• Toprss.net
• The Best Mortgage Links Directory
• Real Estate Directory Realtyreferenceonline.com, with lots of real estate resources.
• Real Estate Directory
• Realty.uanix.net
• Industry Blogs
• The Blog Party Network
• Bloggerhq.net
• Blogging Abroad
• Topweblog.com business category
• Very Helpful software from Pcpropertymanager.com which can help to handle the financial aspects of managing a portfolio of investment properties. This site also has a directory with a Hard Money Category. What a great hard money resource.
• A selection of real estate shopping resources on a shopping resources blog.
• Real estate sub category of General directory Alldotnet.com . Alldotnet has well over 21,000 cached pages. Quite impressive.
• CBgred Internet Resources
• http://www.best-net-sites.com/Business-and-Finance/Investment-and-Finance
• European directory,LinkDirectory.eu Real Estate sub category.