Hard Money Loans
Pitbull Mortgage School Offers Loan Officer Training on Hard Money
Author: Real Estate Investor, Category: Private Loans
I’m also known as the Pitbull which is a name I was given many years ago by my friends and competitors due to my tenacious business approach. Somehow the name stuck throughout the years and I accepted it as part of my persona. My business career has spanned over 30 years. In the 80’s I was an anchor on the Financial News Network. Perhaps you remember me from my nightly reports. After the network was sold to CNBC I was offered to host The Leonard Rosen Show, which was nationally syndicated. In the 90’s I became the CEO of a large medical group. We specialized in the treatment of chronic obesity. Our focus was to provide medical services to our patients and provide a hard money loan to finance their treatment. This was a huge [...] Continue Reading…
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Hard Money is Private Money Lending
Author: Real Estate Investor, Category: Private Loans
Who knows the term hard money? Hard money is private money lending, money you will receive from individuals that will loan you their money against your real estate, hard money lender is the bank and the bank will Loan you their money and put a lien against your real estate, the same with hard money lenders.What is the difference between the hard money lender’s programs and the bank across the street?1. Hard money lenders can help investors with large loan amounts, while banks will make it very difficult on the borrower to loan these large amount, so the loan would probably end up with an insurance company to loan the money and the requirements are high.2. Hard money lenders can fund any hard money loan within a week, while for the banks it will take [...] Continue Reading…
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Hard Money Loans-Easy To Borrow
Author: Steve A Clark, Category: Private Loans
Hard money loans are the amount being borrowed to solve some urgent financial problems. The term hard signifies it’s quite Herculean to obtain because these loans are not provided by banks or financial institutions rather they are disbursed by private financial groups or lenders known as hard moneylenders. Hard can also be interpreted in different manner as there is high upfront cost involved and exorbitant interest rates are being charged. These loans also have high origination fees and cost more than an average mortgage (in some cases going as high as twice that of average mortgage).Hard money loan is generally explored as the last resort. It should be understood like if one is willing to sale his/her business venture or the property and he/she thinks with a little bit of renovation and repairs the money generated can be quite high then hard money loans can be the best suited [...] Continue Reading…
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Survival Tactic – Commercial Hard Money
Author: Real Estate Investor, Category: Private Loans
Commercial hard money should only be thought of as an option after you have exhausted all other sources and have come to the conclusion that you just won’t qualify for a conventional loan. The choice, though hard for many borrowers, is normally simple. Either lose your business or building or accept the terms offered by the hard money lender. It’s a survival tactic. You’re giving yourself something very valuable in exchange for the expense of the loan – time. Time to repair, time to restore whatever the issues are. Whether it’s getting the business back to profitability, paying down debt, time to continue leasing out the property, restore personal credit, etc. We see so many borrowers let the egos get in the way and end up turning this into something it’s not. What [...] Continue Reading…
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Hard Money Commercial Loans, What are They Thinking?
Author: Real Estate Investor, Category: Private Loans
Why would any borrower accept 15% rates and 5% on the front of a hard money commercial loan? Because their other options are worse. For example they may lose a substantial amount of equity out right or have to take on a partner that may take a higher percentage of their equity than a hard money lender would charge in fees. Also the commercial hard money loans are easier and more reliable to attain than finding, negotiating and bringing on a partner or waiting months for a conventional loan to close (assuming the borrower qualifies). Partners also have the high potential of creating legal issues if the project does not work out as planned. Hard Money Commercial Loans For borrowers seriously considering going with a hard money commercial lender it [...] Continue Reading…
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Hard Money Lenders
Author: Real Estate Investor, Category: Private Loans
America is going through tough financial times; it is no secret that many Americans have fallen victim to unscrupulous lending practices and that the most important terms and conditions were not disclosed during the negotiation of a home loan. We are going through a financial bubble and because of reforms to lending practices home owners are desperate because they no longer qualify for readjustments with their current lender.
As the saying goes, desperate times call for desperate measures but, that measures that most people are taking are definitely not the best ones. A few years ago property owners counted with their home equity to bail them out of any financial problem but because of the current situation properties have partially lost value and there might not be enough equity to refinance a loan; unfortunately for home [...] Continue Reading…
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Getting Comfortable With Hard Money Investing
Author: Real Estate Investor, Category: Private Loans
Many real estate investors overlook hard money loans as a strategy for acquiring property. That’s because these loans are typically used by desperate property owners looking for a way out of the real estate market, rather than into it. But hard money can work for anyone, and it can be particularly useful if you’re a new investor looking to build your portfolio quickly.
Hard money loans can generally be described as high interest loans available to borrowers with any credit rating, as long as they can can provide solid collateral – usually equity in real estate, such as a home. These loans are almost never issued by banks or deposit institutions, but rather by private lenders who specialize in short term lending at high interest.
Normally a home owner in need of a big loan would [...] Continue Reading…
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Residential Hard Money Lenders
Author: Real Estate Investor, Category: Private Loans
It would be an understatement to say that the decline in the real estate market changed the lending environment. Lenders who used to allow stated income loans no longer offer them, or they may claim to offer them but decline 99% of the stated loan submissions offered. This is extremely bad for investors who have made their incomes solely from real estate investing, or other self employed endeavors.Primarily because when they do their taxes they have a lot of items to deduct from their income, and so their tax returns do not effect the true gross income that they earn. W2 employees do not have this problem, as they are qualified based on their full gross income and even if they do write off their incomes, the tax returns are hardly ever requested when W2’s [...] Continue Reading…
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Knowing the Cons of Hard Money Loan
Author: Real Estate Investor, Category: Private Loans
There is the always the “cost associated” with the hard money loan. In comparison to a traditional business loan, a hard money loan will be much more costly. You can expect to pay a fair amount more in interest rate in exchange for having the money faster. Consider the higher interest rate as the cost you pay for the convenience. As an addition, up-front fees will add to the cost of the loan overall and it may do so considerably. This can end up making the loan financially debilitating in the long run. Extensions are hard to get on hard money loans. If you get to the end of your interest term and need an extension, you may not get it. In that case, the entire balance of your loan will be due immediately. If [...] Continue Reading…
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