If you are a real estate investor, then you could know what an owner occupied offer is. Basically, its home, which will be already inhabited and a hard money lender wants to stay away from such deals. The fundamental reason for this is there are regulations and different and really complicated rules for an owner occupied house when compared with the empty one. Thus, residential hard money lenders are not willing to fund for such option as there is going to be considered a large amount of paperwork involved. Therefore, if you are an investor and are planning of remodeling an owner occupied property, then it is easier to weigh the pros and cons again as you find it very difficult to get funding for such option.
The explanation for preventing these qualities is the fact that all the hard money lenders are not that big. They do not really have any financial support and they want to do everything independently. Therefore, they choose temporary credit, where they can shut a deal within 6 months, without much hassle. Whereas, the owner occupied homes take a lot more time in paper work as well as in remodeling and eventually, they are not to successful as well. Sometimes, remodeling of the qualities get so much delayed that it eventually adopts foreclosure, which no one wants. Residential hard Money Lender Singapore are far more interested in single family houses specially, since they are fast to remodel as well as the profit margin is truly high. While, in addition they work for remodeling duplexes, triplexes or four lexes but they prefer single family homes.
The others are called long term lenders, that may provide money for 3 5 years but they are very difficult to find. The complete concept behind a hard money loan would be to help somebody, who is prepared to obtain rehabilitation and a property it but does not have money to do it or is unable to get a loan from traditional credit. Private money loans are best for them if taken for a little while of time but these are advantageous to the consumers and lenders equally. Everyone within the real estate investment enterprise is looking for revenue and nobody wants to take risks and so do the residential hard money lenders. Your property serves as a security deposit enemy their money. Due to their property background, they can comprehend, which property is worthy enough to lend.