Friday, July 7, 2017

Simple Tips to Find Incredible Real Estate Investment Properties


Whether it is shopping for your clothes or buying a real estate property, one always wants to get his hands on a great deal and save as much money as possible. For other commodities, this is quite easy to achieve through frequent discounts and garage sales but for real estate, it is not so easy to do so. Here are some tips which can help in getting a good deal on real estate investment properties in Houston TX or anywhere in the world:

Consider Buying a Foreclosed Property

When someone fails to pay the mortgage for an extended period of time, the bank (or the lender) automatically gets the possession of the property making the occupants vacate it. This property is then sold for a considerably less amount than its actual value making the buyer get some hefty discounts. At times the foreclosure process takes several years and because of this, the property might require some repairing or updating. But there are some properties which require just a bit of upgrading and are in completely fine working conditions.

Be the First or Be the Last

Quite often, it is not the highest price on the property that gets accepted rather, it is simply the first one. If you are looking for a great deal then never give up on the search process and as soon as you come across a property, be the first potential buyer. It is better to get a pre-approval from the bank or from a private money lender so that there is no delay in getting the cash.

Conversely, you can also go looking for a property which has been in the market for a longer period of time and the sellers just want to get rid of it. The property might require some repairs but you can always get the cost cut from the final value of the property.

Privately Approach the Absentee Owners

A large number of people are looking for homes so finding a great property is actually pretty hard. A house might get a dozen offers within a few days of offering it for sale. Therefore, one needs to gain familiarity with the right tactics and strategies to be on the stronger side. One such way is to look outside the multiple listing services and contact the owner directly before anyone else does. Absentee owners are the best people to contact. They are the ones who actually do not live in that very house and have either rented the house to tenants. They can also be the people who have inherited the house and are still unsure what to do with it. Directly coming in contact with them is a good strategy and must be done before other buyers reach them.

You need to be upfront in your search and cannot think of letting any property go. After skimming through numerous deals, you’ll be able to find the right one and get a great discount on the perfect real estate investment property.

Monday, April 24, 2017

5 Things You Did Not Know About Hard Money Loans

There are many concepts about hard money loans with some of them being true while other being entirely false. It is always better to do all the research yourself and get sufficient knowledge pertaining to them. The majority of the new investors have no idea about the hard money loans and they overlook certain specifications and benefits which are involved in them.

Here is a list of some of the important things about hard money loans in Houston Texas or anywhere in the united states which most of the people are unaware of:

Hard Money Is a Legitimate Business

Hard money lenders are business people who lend money to other people for their own business purposes. This means that they are no different than a bank because, in essence, they actually do what the banks do, they lend money. It is a mere misconception that these people are involved in some sort of illegal activities and are not reliable whereas, in reality, they are only running a business.

Hard Money Means The Loan Is Backed By a Hard Asset

The word hard only implies to an asset and nothing else. When you borrow money from a hard money lender, he secures his investment by asking for a collateral which is actually a hard asset. Most of the time, this hard asset is real estate. When you actually think about it, the banks also lend money in a similar way and the difference between the two lies in their policies.

There Is a Reason Why the Interest Rates Are High

Many people complain about the high rates of these loans but they have a strong reason for it. The people coming to them won’t get a loan from the bank because of not being able to provide a source of income to them or not having a great credit history. Such individuals then resort to the hard money lenders and if these lenders are putting their trust in them, they definitely need something in return.

Real Businesses Function Through These Loans

There are many reasons people do not go for banks and it is not necessary that their credit history is bad because they have been up to something fishy. Certain people are reluctant to tie themselves to the strict policies of the bank and need flexible working conditions. Thus, they resort to hard money loans. Additionally, the time period for these loans is also limited giving another reason to the borrowers to choose these loans over the bank loans.

Hard Money Lenders Won’t Do 100% Financing

Most hard money lenders would want an assurance that you have the skills and expertise to carry out the business you are starting. This is the reason that they might not give you all the money required but if they can see that you have skin in the game, they might consider financing your business entirely.

Many people only have negative perceptions about hard money loans but they are a convenient option for a lot of investors.

Tuesday, March 21, 2017

Consider These Factors Before Finalizing Your Investment Decisions

Before we make investment decisions in any industry, it is always better to have a thorough and honest look at our financial condition. This is especially important if you have never seen or made a financial plan before. Although no investment decision is 100% certain and has its own pros and cons, there are some important factors we need to consider before we lock our investment in any particular field.

1.Draft a Personal Financial Road Map

The core most step is clearly recognizing your goals and risk affordability. You can evaluate this either by yourself or hire a finance pro to do the job. Then again no investment guarantees mounting profits, but if gone through careful planning and investment management techniques, there is a high probability of acquiring an acceptable level of financial stability with benefits from your investments.

2.What is Your Comfort Zone in Terms of Risk?

Any investment poses a certain degree of risk. For instance, investing in bonds, stocks, or mutual funds is a high-risk game as you can lose some or all of your money or principal amount invested.

But let’s not forget the fact the higher the risk, the higher the potential of greater returns. If you have a defined financial plan mapped for a long-term, you can make thick money by carefully opting assets with high-risks such as stocks, bonds, etc., rather than limiting yourself to low-risk investments like cash equivalents. Although low-risk investments are ideal if you want to stay with short-term goals. One big risk associated with low-risk investment is inflation, which can eat up your returns without leaving you much to enjoy.

3.Be Vigilant When Looking to Invest in Shares of Individual or Employer’s Stock

Diversifying an investment portfolio is a great way to lessen the risk on your capital. Its common sense: If you try to put all the food in one plate, it has a high chance of falling off! By choosing a number of carefully selected investment choices, you will not only be able to minimize the potential of risks but would also control the fluctuations on returns.

While investing in shares employed by your employer’s stock or an individual stock calls for huge risks on your money. If the stock performs badly or the company goes bankrupt for whatever reasons, then you’ll probably lose a thick chunk of your capital invested.

4.Have An Emergency Fund as a Backup

Intelligent investors tend to save a considerable amount of their capital, just in case immediately required like sudden unemployment. It is better to stock a capital that could last you around 6 months or more in situations when you are out of any means of earning.

5.Pay Off High Interest Credit Card Debt

An investment strategy is fruitless if it fails to pay off all your high interest debts you may have incurred. In case of owing high interest credit card debts, it is advised to pay off the whole amount as soon as possible and then starting to think about your investment moves.

Visit http://www.4smartmoney.com/ and find Real Estate Investment Properties in Houston TX

Thursday, February 9, 2017

Types of Loan Programs Offered By Your Bank

Getting a new setup? Starting a new business? Buying a new home? New beginnings can be exciting and risky at the same time. Getting frustrated and exhausted during the start of a new venture is bound to happen. And when you find yourself short of money it can be quite a challenge. Applying for a loan or borrowing money in situations like these is understandable. Though here are a few kinds of loans you should know about before walking into a bank and getting a loan.

1.    Working-Capital Loans:

If you are starting a small business or already have one and need some money to keep it up and running, working-capital loans are for you. It offers short term solutions, if god forbid your business isn’t working to its full potential, the loan you will get will fix the mess until the set up starts generating enough revenue on its own. However, be warned that they are often associated with ridiculously high interest rates and have limited time for repayment.

2.    Equipment Loans:

Every business needs some kind of equipment be it a computer, a copy machine, a cash register, etc. Equipment loans offer just that. Small business can get their own machinery by applying for this kind of loan. Monthly payments can be made if you negotiate the terms and conditions with your lenders.

3.    Lines of Credit:

Similar to working capital loans, lines of credit are short term as short as 90 days. The program provides loan to small businesses for regular issues and cash flow maintenance. They are not suggested for making large investments or purchases. This enables you to buy only what you need, and investments are made only on the items you use. Comparatively to others, they have longer repayment timeline. The only issue here is that they charge additional fee and if interests are not made in time you could find yourself in a lot of debt.

4.    Professional Practice Loans:

These loans are specifically for people in the practice sector, for example, medicinal like doctors and dentists, mental health professionals, lawyers, insurance officers, accountants, engineers, architects, real estate, etc. These loans are usually used for buying a space, renovating the office or buying appropriate furniture or equipment.

5.    Franchise Startup Loans:

If you are or you know an entrepreneur who needs financial help for launching their own start up, this is the appropriate choice to go for. Buying a franchise, building an office or restaurant or store, and buying equipment comes under the description.

Looking for Hard Money Loans in Houston Texas visit http://4smartmoney.com/

Wednesday, November 9, 2016

The Era Of Private Money

What is your dream, the aspiration that you want to achieve in the near future? You may have answer to that question; every individual has planned out at least one goal of their life that they want to achieve. For some it may be to start a business, for some it may be to open a food restaurant while some think of becoming a stock exchange expert or as simple as to buy a house. There is at least one dream that everyone hopes to achieve but what they lack like most is the finances to achieve this dream.

To achieve the dream that you have been planning for ages, the need for finances arises and to conjure the amount of cash is a bit difficult at the age you want to achieve the dream. To ease this hinder to the dream there exist a loan officer. These private money lenders provide you with the finance that you require to achieve your dream and would earn through the interest they charge you. The article that follows discusses on the methods of applying for this kind of money and the places they finances.

SEEK THE HELP OF A BANK:

Banks are the best place to look up these private investors as there are times when the request for a loan from the bank is declined owing to certain policies. That is where this department of private money lenders come in, they place their information with certain individuals at the bank, who provide the clientele with their information. These individuals, sometimes, work in affiliation with the bank as the bank cannot entertain every request for a grant but they lenders can at an interest rate.

USE THE WEB:

An old school method is to research them on the web as they provide their details on it for the willing takers. Though the situation may not seem safe to some but the provision is authorized by an overseeing authority to assure the transaction takes place. A direct meeting is arranged for both parties to make certain of the transaction, with a document that is approved by a legal agent. Thus the transaction is approved and guaranteed by the law as well.

WHAT THEY FINANCE:

The lenders, that run privately, have little demands of what the individual should do with the taken money, however an initial plan is required to be shown what the money is to be used for and how would the amount be recovered to pay off the debt. The financing through such methods can be done for buying a house, starting a business or taking a tour of the world, all can be done with only the guarantee of returning the money.

METHODS OF RETURN A PAYMENT:

The provision of the loaned money is given on the basis of a return amount in the near future. An interest rate is charged to supplement the investment of loaner, while the duration of the return payment depends primarily on the amount that is taken. A usual of 5 year time period is given to return the amount but may vary with amount taken.

Article Source By : Real Estate Investor Loans Houston TX

Thursday, October 20, 2016

Commercial Hard Money- A Quick Fix to Your Commercial Property Funding Issues

What is hard money?

Hard money is basically a term which is used to describe a short-term corporate loan taken from a private lender or company rather than the bank. They are called commercial hard money lenders. They give out funds on commercial property. The individual acquiring the loan is someone who doesn’t usually fit the credibility criteria required for traditional bank loans. However, they do have assets which may be used as collateral by the loan lenders.

This is seen as a good substitute or alternative to the loans that are normally taken from banks. This option works best when an individual needs quick financial help on a short-term basis. The terms and conditions for these loans usually go up to 12 months to maximum 5 years.

Hard Money Lenders VS Traditional Financial Institutions

Unlike the conventional funding from banks, hard money lenders have more to do with the property being used as collateral. Banks, on the other hand, are more concerned with borrower’s credit score and ability to repay the loan.

Hard money loans can be generated more quickly within a span of few days whereas it might take a full month when dealing with a bank.

Why Opt for Hard Money Loans?

While obtaining funds from a bank may seem like the perfect idea, borrowing from commercial money lenders may altogether be a better option due to multiple reasons. Some of the key reasons are:

Fast-paced

Since commercial hard money lenders are more interested in the collateral, less time is spent on going through the financial history and records of the borrower. This means that the loans will come through quicker than usual. Hence, approval of loans is faster, sometimes even within 24 hours.

Flexible in Nature

There are no strict rules in the case of hard money lending and borrowing. These lenders do not follow a predetermined or fixed set of procedures like a traditional financial institutional would do. The loans are not subject to rules and regulations, making it easier and convenient for you to attain them.

More Options for Collateral Assets

Hard money lenders are flexible when it comes to accepting assets to be kept as collateral from the borrowers. They are willing to keep different kinds of properties to secure the loan as long as the potential return on those assets is noteworthy. In a few cases, some of them might even readily accept the future returns on the property involved than keeping a collateral asset.

Availability of Commercial Hard Money

Private money lenders can prove to be more easily accessible than banks. They are readily available almost everywhere and can work real fast for people who seek financial assistance. They will also make the whole process of borrowing and lending less painful for you than a traditional method would do.
If you are a borrower seeking quick financial help on a short-term basis to acquire commercial property, hard money loan is the answer.

Related Article

How to Find a Reliable Hard Money Lender?

Friday, September 16, 2016

How to Find a Reliable Hard Money Lender?



Hard money loans are generally acquired by borrowers who are looking to capitalize on real estate opportunities and are lent by private investors rather than traditional process of banks. These loans work best for borrowers who do not have an adequate level of credit score to qualify for a loan from the bank. Let’s not forget that finding a reliable and trusted hard money lender is equally important as it is to utilize the loan for a real estate opportunity.

1.Research Appropriate Lenders in Your Area

When being rejected for a loan from a bank, it is quite normal for borrowers to get their hands on the first hard lender they come across in order to quickly acquire the loan. It is advised to resist the rush and conduct a patient research first. There may be some lenders who might be sincerely interested in your project but others may be a little more than just some loan sharks. So before finalizing a potential lender, ask yourself the following questions:

•How well is the lender with his or her investors? Is the lender currently running through any major lawsuits from its investors pertaining over bad loans or foreclosures?

•Does the lender have an authentic website? Do note that some lenders have websites that tend to collect information only to forward it to a third party. Avoid such lenders.

•The lender has financed which type of projects in the past? For instance, a lender who has a record of financing engineering projects may not feel confident in providing loans for a real estate project due to its diverse nature and complications involved.

•Does the lender have a fellow colleague you can contact? Some lenders do operate at national level, but its better you should prefer who has a proven record of operating in your local state. Many lenders are interested in seeing your property firsthand you are planning to purchase.

2.Identify the Benefits and Risks Associated with Hard Money Loans

A hard money loan is ideally designed for short-term investments with a general time period lasting for around 12 months. Ask yourself if you can refinance the amount back within the time period. Do note these loans charge high interest rates as compared to long-term loans, generally ranging from around 12 to 20%. Also note that they come with closing and other costs that borrower must bear.

3.Evaluate Your Loan’s Time Frame

These loans are normally granted much quickly and simply as opposed to bank loans with complex requirements. The bank’s loan takes longer due to considerations of information and underwriting process, whereas, the hard money lender will forward you the loan within two weeks. If you want to avail a real estate opportunity as quickly as possible, then hard money loans would be the most feasible option for you.