New Real Estate Investors Tip
This post is especially for NEW INVESTORS. However, any investor who plans to fund a deal with a hard money loan will benefit from the information here.
A Hard Money Loan for Your First Deal
Your first deal as a real estate investor is the most important deal of your career.
It’s the deal that gets your foot in the door of the real estate investing game.
For most new investors, the success of that first deal is going to depend on whether or not you get a hard money loan to fund it.
“Why a Hard Money Loan for My First Deal?”
That’s a great question!
Answer: Hard money loans are almost always the only type of loan that new investors can get for their first deal or two until they build some capital.
That being said about using a hard money loan for your first deal . . . I suggest that you think like a tourist when you invest.
New Investors Should Think Like Tourists
“C’mon, Ryan. Think like a tourist? Is this another one of your dumb analogies?”
Yes. It is. And I’m going to explain why it makes perfect sense.
Going on vacation involves a lot of planning, and the most important part to figure out before you go on vacation is where to go.
Planning your first REI deal is exactly the same. Where you invest is the most important part of your planning.
The reason? Just like with your vacation, you want to make sure that you get the most bang for your buck when you invest. We’re all probably well-aware that some places are hotter for real estate investing than others because of market conditions. So, that’s the first part of it.
The other part may not be as familiar to you . . .
Did you know that some states are better than others for getting approved for a hard money loan?
It’s true. Most of it has to do with lending and real estate laws that differ from state to state. Some of these laws are hostile to the real estate investing and hard money lending processes — stuff we can blame our congressmen/women for.
So even if you find a really killer deal in some states, you could end up flat on your face with no way to get the funding you need, unless you know the best places to invest in real estate when it comes to hard money loan approval.
The Best Places to Invest in Real Estate
Simply put, the best places for new investors to invest are states where the markets are good and where you have the best chances to get approved for your hard money loan.Fortunately we lend in 45 states and DC – so we have funding options for you.