If you're an investor in real estate or investor, you will be aware of what an owner-occupied property is. In essence, it's an apartment that is already in use and the hard money lender prefers to avoid these types of deals.
To get hard money loans, you can also consult with a hard money lender in South Florida.
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The main reason for this is that there are distinct and complicated rules and regulations to be followed for the owner-occupied home when compared to a vacant one. So, residential hard money lenders won't finance such transactions because there will be much paperwork to be completed.
If, for instance, you're an investor who is thinking of renovating an owner-occupied house It is advisable to take a look at your options since you will find it extremely difficult to raise funds to finance such an investment.
The reason for not allowing the properties listed above is that the majority of the lenders who are hard money aren't very large. They do not have financial support and are forced to manage everything by themselves. Therefore, they favor short-term loans where they can complete a deal in just six months, with not too much trouble.
The owner-occupied homes are more complicated than filing paperwork and remodeling, and, ultimately, they're not efficient either. Sometimes, the renovation of these properties is delayed so much that they eventually end up in foreclosure, something that nobody likes.
Hard money residential lenders prefer single-family homes, particularly because they are quick to renovate and the margin for profit is very substantial. They also have the capability of renovating triplexes, duplexes, or fourplexes; they prefer single-family homes.