The purchase price is extremely fair, and with the ideal upgrades and advance with bad credit, the house could be resold at a significant profit. Sounds great, but suddenly you realize: how do I buy the house and fix it up? Enter a hard money loan. This is an excellent alternative if you want to quickly secure the funds to complete a significant real estate purchase. It is in your best interest to take some time and consider how you plan to present your work to a hard money lender, as there are specific steps that must be taken when applying for a hard money loan.
Use a Complete Financial Statement
Personal lenders in Los Angeles and elsewhere in California are usually not concerned about your eligibility ratio because of a conventional bank. However, it doesn’t hurt to demonstrate to the lender that you can be repaying the borrowed capital. When creating your financial report, be sure to take a look at your credit score and credit report to be aware of any potential problems or red flags.