Funding RE Investments

PERSONAL FUNDING

• Fixed, low interest lines of credit
  You can usually find lines of credit at any bank but you may be able to get a break on the rate if you go through the bank that provides your savings and checking accounts.  The amounts you can borrow and the loan rates will vary from bank to bank and you will need to provide collateral for the loan.
• Home equity loans
  This is a useful source of credit because you can borrow at relatively low interest rates while using your home as collateral for the loan.  Depending on your creditworthiness you may be able to borrow up to 85% of the appraised value of your home.  Contact different lenders, compare options, and select the home equity loan that is best suited for your needs.

PRIVATE FUNDING

• Investment fund with family and friends
  An investment fund with family and friends is just that.  It's having a list of family and/or friends who want to lend their money to you as an investment as well as the amount that they are capable of lending on a short term basis.  In return for borrowing their money, you agree to terms (3, 6, or 12 months), paying points, interest (10, 12, or 15%), etc., design a terms package that makes it an attractive short-term investment for them.  

You can minimize their risk twofold:

• Add a stipulation that includes an increase in the interest rate if you hold their money longer than you had originally agreed
• Agree not to borrow more than 70-80% of the ARV (after repair value), assuring them that their investment will be protected by the equity 
• It is strongly recommended that a legal document be created by a legal professional to show the lenders obligations and the borrower's obligations with the terms clearly specified to cover both parties in the case of a dispute or argument.

• Market Analysis Template
  When applying for financing it is vital to have a professional report that shows that you have done your due diligence in researching and analyzing the property for which you are applying for financing.  Our Market Analysis Report will help you organize your information in a format that is easy to read while providing all of the details necessary.
  
  As a subscriber to ForeclosuresNH, you can download our Market Analysis template for free; click here to become a member today.  This document is not copyrighted and we want you to use it to help in obtaining financing for your potential investments.

Hard Money Lenders
Hard money lenders (HML) are private lenders who will lend you money but at a premium, their terms vary but are usually high.  HML's vary on their requirements, applications, fees, closings, etc., which is why we recommend doing your due diligence prior to borrowing from a hard money lender. 

ForeclosuresNH.com does not endorse and of the private lenders listed to the right, they are provided as a resource only.  Below each HML is some brief information about their terms.