You’ve heard us speak about hard money lenders and private money loans as a financing option, and several of you have written us asking just what is a private money loan and how you might get one. Some of you have asked us how to get in touch with a hard money lender, and what requisites you need to have to get funded for a real estate deal.

We recently sat down with Jim MacArthur, owner of JMAC Funding and its website thehardmoneypros.com.

On April 2nd the federal government announced a change to the definition of a foreclosure. The change is meant to invigorate the not-quite-so-vibrant Neighborhood Stabilization Program rolled out in 2009.

Once you find a bargain home on our site, make and offer and close the deal, it will be time to get the place in shape.

The home you chose might need a little work, or a lot. Either way, planning your home improvement wisely will keep your costs down and preserve your margin.

Limit your scope

When buying a foreclosure or other distressed real estate, oftentimes, household appliances need replacing. This can be an expensive addition to the move-in process, however some relief can now be found.

Remember not too long ago we saw people racing to dealerships to trade their old cars in?. The reason for the rush: the Cash for Clunkers incentive program from the federal government.

As you look for properties on HUDforeclosed.com, you will find plenty of great deals. But it may also seem a bit overwhelming to see the sheer quantity of homes, areas to search through, and types of homes you can buy.

How to make a decision?

Short sales on Fannie Mae and Freddie Mac homes (that's 57% of U.S. mortgages) nearly quadrupled in the first nine months of 2009 compared with the same period in 2008. At the nation's largest mortgage servicers, short sales soared 165% to 74,513 in the first nine months of 2009 from the year-earlier period.

Resistance is softening. Banks and investors are increasingly willing to agree to a short sale as a less costly option to foreclosure.

A prefabricated home for $2.5 million? Believe it or not, not only do they exist, but the market for these modular mansions is booming.

Buying a short sale can be tremendously profitable, and the current condition of the market makes it a great time to buy.

A "short sale" is a home sale where the selling price is below the amount owed to the lender on the home. Lenders may agree to such a sale if foreclosure seems imminent.

Location, location, location.
We're all heard that song before, haven't we?

So the question becomes, how DO you choose the right neighborhood when looking for a new home? Sometimes the choice is made for you - Grandma lives in Lancaster, the wife wants to be near Mom, and Lancaster it is for the family. Or a job opportunity takes you to Chicago, in which case your options are still many - as long as they're within 40 miles of downtown.

Sometimes though, the options are wide open.

Why wait? Buy a home now!

Seriously, this is one of those times. You'll be kicking yourself down the road if you don't.

First of all, interest rates, currently at an all-time low in decades, are very likely to start creeping up later this year. The reason for this is that the Federal Reserve has been able to keep rates low by buying debt and mortgage-backed securities from Fannie Mae and Freddie Mac - but that won't go on forever. Most likely is will stop after March, and then we'll see rates go up.