Hard Money Lending Chicago

Hard Money Lending Chicago For Commercial Real Estate

Gustan Cho Associates are mortgage brokers licensed in 48 states

This blog will cover hard money lending Chicago guidelines for real estate investors. Investors have a preference for where they like to invest their money. This includes lenders of hard money lending Chicago.  Gustan Cho Associates are mortgage lenders licensed in 48 states,  including Washington, DC, Puerto Rico, and the U.S. Virgin Islands (Not Yet Licensed in MA and  NY). We have a national reputation for being a one-stop mortgage lending shop. Gustan Cho Associates offers commercial lending through its sister company, Lending  Network, LLC.

Lending  Network is ahead of the competition because we offer 100% LTV hard money loans, 100% LTV  equipment financing, and countless commercial and business loan options for business owners and commercial real estate investors.

There are no SAFE ACT/Dodd-Frank mortgage regulations on commercial loans.  There are all types of hard money lenders. You can have a mom-and-pop hard money lender or a  large financial institution like a giant hedge fund or insurance giant lender hard money loans. Small one-person investors can become lenders of hard money lending Chicago. Investors of stocks, bonds, or real estate, and investors can also diversify and become a hard money lenders and take one or two projects and see how the returns are. Smart investors diversify and place their money to work. The return varies on risk factors that investors are willing to take as an investor.

What Is Private Money Investing in Real Estate?

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Private money investors who invest in real estate investors need to be comfortable about which property to lend in. Finding a niche to lend in is a great start to start thinking about. Anyone can become a private money investor. Experienced real estate investor who knows the ins and outs of commercial real estate investing can make a nice return on their money on hard money and private money investing. Hard money lending Chicago is a great field where you can get a lot of return on your money. This article will discuss and cover using hard money loans for real estate.

Niche Private Money Lending 

As a Private Hard Money Investor, Investors have the ability to control a bit more of what they wish to participate in within that realm. There are numerous scenarios for hard money lending Chicago investors to review and determine the return on investment. This can be from simple single-family residences to complex commercial deals. There are even opportunities to play around the construction arena. I want to start going through them so investors understand what each can offer. There are factors you can consider when reviewing that kind of opportunity and finding a niche to lend in.

Finding a Niche To Lend In on Single Family Homes

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Let’s start with the easiest of them all; the Single Family Residence. This one-family use home can produce a return over time of about 6-10% per year. Of course, there are factors investors need to consider before becoming a lender on an opportunity like this. Some of these are fairly obvious such as the property’s value versus the loan amount requested (LTV). Alex Carlucci, a senior loan officer at Gustan Cho Associates, explains the following about hard money lending Chicago:

This is a great place to start lending when looking into becoming a private lender. It is a single borrower, one unit, so there is not much to review. It is easier to see your way to profit in short to medium-term time. It’s work, no doubt (Unless it’s your brother or cousin. It’s up to you and how you deal with your blood relatives).

The current condition of the property, tenants, if any, their role in the property and what considerations they may or may not have, lease agreements (how long are the tenants there?). Tenant condition (Are they on time with payments, taking care of the property, etc.). Are there any existing liens or loans on the property? Is the Borrower borrowing money, or do they have other obligations on the property, such as taxes or mechanics liens on the title? All are relevant factors you should know while reviewing an opportunity.

Investing In Single Family Homes Versus Multi-Unit Properties

On single-family residences or SFRs, you can control factors more easily than a multi-unit or commercial opportunity. The ease of determining whether the title is clear is easier to acquire. The property value is easily established via the Broker’s Price Opinion (BPO) or appraisal. The loan terms are easier to set as it’s one title to deal with, with no leases per se to renegotiate. An assignment of leases and rents handles that…simple doc. Lastly, you can see profit immediately via prepaid interest or getting your payments starting the 1st of the next month.

Best Mortgage Lenders For Investment Property Mortgage Loans

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Gustan Cho Associates is a mortgage broker licensed in 48 states with a national reputation for being able to do mortgage loans other lenders cannot do. Over 75% of our borrowers could not qualify at other lenders due to overlays, stress, last-minute loan denial, or not having the mortgage products. John Strange of Gustan Cho Associates shares his thoughts on the type of risks hard money lenders take:
You do not need an experienced, savvy real estate investor to invest in multi-family investment homes. Single-family residences are not without their pitfalls, but if investors are experienced enough and savvy, hard money lenders can avoid the horror stories we’ve heard.
At Gustan Cho Associates, we only market existing mortgage loans that are possible at competitive rates. Besides government and conventional loans with no lender overlays, we offer hundreds of non-prime mortgage programs, including non-QM and non-prime mortgages. Most closings get closed and funded in two weeks from the time of the private money loan borrower’s signed mortgage application and the receipt of mortgage docs.  Contact us if you want to become a hard money investor or mortgage loan borrower.

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