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.

Tuesday, August 30, 2016

How to Assess Your Finances for a Real Estate Investment

Real estate investing is quite different as compared to investing in other industries and business sectors. Same goes with the case of assessing your finances, which is a very important part when it comes to a property investment. The assessment helps you in figuring out the amount required for purchasing the property, as well as if you need to raise funds from external sources for making an investment.

Assess your funds
Any property in real estate sector requires some amount of money, so you will need to be sure of what your pocket holds. Answer questions such as: Are you in debt? If yes, then how much debt do you incur? What are your savings? How much discretionary income do you tend to save at the end of each month?
If you already hold a nice amount, then you wouldn’t need to worry about financing needs. Also, obtaining a loan becomes quite easy if you have a good credit score and history to show. However, if there is shortage of required funds for investment, then you need to come up with different ways to raise a capital or look for property that does not eat a huge lot of money.

Assess your ability to raise funds
One great thing about real estate investment is that you do not need to hold the purchase price all to yourself. The element of leverage is always there which assists you in affording the property. There are several options through which you can obtain some finance such as applying for a loan from conventional banks, hard and private money lenders, or even from the seller.

However, each external source of finance presents its own requirements to fulfil. Banks check if you have a reliable credit history, your business plan that states the purpose for getting a loan, your FICO credit score to evaluate the riskiness of lending, etc.

If it gets difficult to obtain loan from conventional banks, then you can always use seller financing deals and other little-to-no down payment strategies. Alternatives like private and hard money lenders, close friends, and family can also be approached.

Do you have a secure cushion?One important point from a security point of view is that what cushion you have in case your investment fails. Clearly answer questions such as: Are you putting your every penny in the investment? How much risk-averse or risk-taking are you? Do you have enough money to cover up expenses like mortgage payments, taxes, insurance, till the time your property is occupied? Can you afford to see through the property if you fail to find tenants?

Keep the facts in mind that if you do not have enough funds in reserve, then your credit can be heavily damaged with late mortgage payments, a foreclosure, as well as run the risk of losing the property.

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