However, in the defense of hard money lenders they do play an important role in the careers of many investors. If you have ample capital, good prospects for selling or renting the home they can be an indispensable asset to experienced investors. Experienced investors are prepared for and can even anticipate delays in construction, renovations and slow rental markets. For new investors we suggest buying a home through traditional channels to begin with. Once you have ample reserves and some experience you can move to the bridge loans and hard money loans.

There are many other pitfalls to look out for but these three seem to be the top three I see new investors making. For fast mortgage closings and peace of mind we suggest that you find a good mortgage company that you trust and stay loyal. Building good relationships with builders, mortgage companies, and realtors can go a long way to helping the new investor survive in today’s real estate market.

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