If you are a real estate investor, then you will know which deal is owner-occupied. Basically, it is a property, which had been occupied by some person. Hard money lenders prefer to stay away from this kind of deal.
The basic reason behind this is that there are different rules and regulations for the property that is owner-occupied as compared to the property that is empty. Therefore, residential hard money lenders are not willing to fund such an agreement because there will be a lot of paperwork involved in it. You can also find more about hard money lenders through https://www.baymountaincapital.com/.
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So, if you are planning a renovation of the owner-occupied property, then it is better to weigh the pros and cons again because you will find it very difficult to get funding for this kind of deal.
The reason behind avoiding this is that most hard money lenders are not so great. They do not have the financial support and they have to do everything by themselves. So, they prefer short-term loans, which they can close within six months, without a lot of hassle.
Meanwhile, the owner-occupied properties take more time on paperwork as well as renovation. Moreover, they are not very profitable as well. Sometimes, the renovation of these properties gets so much delayed that they eventually went into foreclosure, which is like nothing.
Residential hard money lenders are more interested in single-family homes because they are quick to remodel and have very high-profit margins.