Recently, Housingwire.com published an article indicating that now, it was possible for investors to finance 100% of real estate purchases.This article is a little misleading and also causes some concerns about the financial sense in these sorts of loans. Typically, a hard money lender will loan the lessor of 100% of the cost of the real estate, or up to 70% of the Loan to Value.The article goes on to say that an investor can get their hard money loan from a hard money lender, then go to a source such as SoFi and get a personal loan for the remainder, making up a 100% loan for the project.
Chris Jameson, Founder and CEO of Freedom Private Money, has been in the real estate investment business for a long time, and learned his way around the entire process. One of the biggest questions he hears from potential investors is how to handle contractors. When it comes to your investment team, your contractors can be a source of insecurity and headaches. In the building trades, turnover of employees is high, and things like weather or even other jobs the contractors have going can stall your progress.