EXTRA $8,000 for buying bank owned properties

[RachelRey]

How to get that Extra $ 8000 when you buy bank owned properties...?

[Toby Lane]

What is this about? Is it just a Salt Lake incentive or are you referring to the $8,000 tax credit?

[SEO Nick]

Pretty sure this is spam.

Rachel, I just want to make you aware, self promotion is against the rules here.

Please make yourself familiar with the rules (they were sent to you when you first joined).

[VAInvestor]

Unless she is just referring to first-time homebuyers buying foreclosed property for primary residence, i don't see what else it could be. Pretty lame post if you ask me...

[SELLITNOW]

vainvestor - any information on hard money lenders?

[VAInvestor]

Sellitnow - Nice to see a Richmond guy on here! What kind of info in particular do you need on hard money lenders?

[SELLITNOW]

Perhaps some of the basics -- to better understand this realm.

Specifically, I have a prospect who is looking to find a commercial mortgage lender or a hard money lender for a 70% ltv to buy out the owner of a currently operating business . . . I am really just trying to put to two parties together as this prospect has already done a purchase contract (so I don't get paid as a Realtor) but I did tell him that I would check around to see if I could find someone to help him get to the finish line

[VAInvestor]

What sort of business is it? Is the real estate the main bulk of the purchase?

There is a fairly large difference between typical commercial real estate lenders and hard money lenders, so you really need to take the time to figure out where to send your client to. A typical hard money lender is a short-term, high points, high interest lender. If your client is looking to hold this investment for a while, then hard money is probably not the way to go unless he just needs short-term financing while he manages to line up long-term money.

Hard money, at least how I and other investors I know use it, is primarily for rehabbing properties. The loan is very short term, typically under a year, comes with a lot of points and a pretty high rate. Work on the property is done, you get it reappraised, refinance into a regular mortgage or sell the property, thereby paying off the hard money lender.

I hope this helps - let me know.