Hard Money Loans

For those who are new to real estate investing, it often seems as though there’s an “inner circle” of deal makers-the people who know where the deals are, how to get the money to buy them, and always get there first. It’s no accident that the same real estate investors work with the same hard money lenders and private lenders again and again. They’ve built a successful relationship based on helping each other to make money-and anyone can do this!

Seasoned pros who have built incredible wealth through investing in real estate know that their relationships with hard money lenders is key to finding the good deals before everyone else, and having a ready source of private money to borrow to purchase those properties. Here’s how even the biggest novice at real estate investing can forge relationships that lead to more and more successful real estate transactions:

Have lunch with your hard money lender. Once you have found a good, seasoned hard money lender, invite him or her to lunch once every few weeks. And you can do this with a few lenders. Get to know them personally, as well as their restaurant preferences, and always pick up the tab. Over lunch, you can discuss what deals they’re working on, what you’re looking for-and you might even pick up a deal!

Of course, it might take several months of these lunches to produce any deals. But you’ll get to know more about their business (their lending criteria and what kind of deals they work on most often) and they’ll get to know your business structure too (for example, whether you invest as an entity or an individual, and whether you prefer to “flip” investment properties for a quick profit or “rehab” them before selling).

Share the wealth with your hard money lender. Once you know your hard money lender(s) well, you can refer real estate investment deals to them that fit their criteria. They’ll appreciate it, and most likely, they’ll remember that they “owe you one.”

Make the hard money lender’s job a little easier. You can do this by submitting a professional, organized loan package with compelling information about why the investment is a good idea and what your plans are-and why the lender should make a loan to you with confidence. Anticipate questions that the hard money lender or private lenders might ask, and answer them in the loan package. read more…

Whether you have lots of money and great credit starting out, or no money and lousy credit starting out, either way, if you truly want to make a serious bid at building a property empire then you cannot discount the importance of learning how to find investor partners and equally how to find private lenders to help fund your real estate investing. As you go along in your real estate investing career, as long as you pay attention and get educated about real estate investing, you will find that the skill you possess in spotting value and valuable money-making opportunities in real estate will far, Far, FAR surpass your ability to get all the money you need to do all these many deals you come across- UNLESS…

You learn how to find investor partners and find private lenders and get your money sources in place AS YOU GO ALONG and BEFORE YOU NEED THEM.

How to Find Investor Partners and Private Lenders

Creative investing techniques aside, sometimes you need real cold cash to do a deal. And sometimes it can be very frustrating not to have it to hand. For that reason, available financing money tends to be the biggest challenge for many real estate investors, new and experienced both. If you can’t get the financing, sometimes there’s just no deal.

John Wooden once said “Don’t let what you can’t do stop you from doing what you CAN do”. Keep that in mind now as I lay out what you should do, if for example you do have little money or a poor credit situation. And if you don’t then you’ll still find more access to money than you might have ever though you needed (yet) when you apply these strategies. read more…

Whether you’re at the planning stages, or more seasoned in your business, you may be intimidated at the process of obtaining working capital. Maybe your mind is boggled down with all types of questions about what “they”-the big bad financial institutions- may need to see from you, know about you, know about your business, etc. While you should know the eligibility requirements before you apply for any type of funding, don’t be intimidated. You have some power in this too. Not only are they making a decision about you, but you’re deciding too. That means there are questions you should ask first before even submitting an application.

For the purpose of this article, we’ll focus on what to ask before applying for unsecured business lines of credit. Here are 3 key questions to consider:

1.) What makes you the expert? This is a simple way of saying what can you help me with that I can’t do on my own. Many companies can do more harm to your credit than anything, which of course, will affect all business dealings in the future. Anyone can fill out some applications, send them out blindly, and sit on their hands waiting for a response. What you want is an expert with professional networks, know-how, and a history of creating positive results without negatively affecting their clients’ credit.

2.) What are the benefits of working with your firm? As you can see, there are many firms offering to help you obtain funds. So what makes one company stand apart from another? Well it depends on your needs and preferences. For instance, if your credit is in need of restoration, then choosing a company that can help you in that way, as well, may be beneficial to you.

3.) What are the upfront fees?Notice, that we didn’t say “Are there any fees?” The truth is, some firms charge upfront “fees” for different reasons, but be careful. Exceptions are, typically, application and consulting fees, which many firms legally and ethically charge. However, in most cases, it is better to go with a firm that receives the majority of their revenue from approved loans. This shows confidence, experience, and is no risk to you. read more…

Living up to my promise on being an “Apartment Investment Resource, Who Is Determined To Create Value”…I have an amazing opportunity for you to get financing for your investments.

Today, it takes more than just a well ran business to bring in the capital for desired investments or expansion. A key element is having a properly established corporate financial profile distinctly separate from your personal credit profile.

I am a representative of a unique company called Corp. Credit Concepts (CCC). They came to inception by a group of investors looking to combine resources to expand multiple business ventures and investments. Upon their quest for reliable corporate financial enhancement and specialized business consulting services, they discovered that the industry harbored many companies primarily providing education.

CCC found itself spending thousands of dollars on educational material which seemed to lack the detail in order to create a successful plan of action. They continued seeking individuals or companies with specialized knowledge and unique financial services only to find limited or non-existent results. They also spent the next several years vigorously researching and developing their own programs to meet it’s own investment needs. Soon they realized that what they had created was cutting-edge programs and solutions which other entrepreneurs and investors could successfully utilize in their quest to financial success. It was at this point CCC put into motion a plan of action to offer its innovative services to the public and other industry professionals alike. Through dedication and utmost integrity CCC has been consistent at providing its clients with successful solutions. read more…

Well according to some so-called facts appearing in a recent New York Times article (by B. Stein), that meltdown is just is not happening. It is all a mass hallucination experienced by a falsely alarmed and grossly misinformed public. The article declares that of the ten-plus trillion dollars in outstanding mortgage loans, only less than fifteen percent of them (less than 1.5 trillion bucks worth) are subprime loans. [I.e., Subprime: Loans offered at an interest rate above prime to those unfortunates who are less than qualified for prime rate borrowing, in other words, sub prime borrowers, not sub prime loans.]

Subprime mortgages may carry interest rates of perhaps only 0.1% to 0.6% higher than prime, which seemingly tiny difference translates to thousands of dollars in additional costs to borrowers and higher profits to lenders). The bulk of all mortgage loans, the article goes on to insist are not subprime and therefore have a much lower foreclosure rate. I guess the conclusion drawn here is that if only half of the sub prime loans are in, or headed for, foreclosure…why worry about a measly little forty or fifty billion dollars being ripped from the country’s coffers?

Nevertheless, that dinky little number is growing because of the folly of so many greedy lenders during the market boom of the first part of the new millennia. That is: “Hey guys, let’s loan out 90%, 100% and 125% of the borrower’s home equity value and charge exorbitant rates, that can be hidden by low entry-rate payments, which will consume the borrower when the rates adjust and plow mercilessly into their life savings and pocket books in a few years.”

Well those “few years” are up now and the market is down, and the number of naïve borrowers walking away from their mortgages is at an alarming high. Who can blame them? Why pay off a $300,000 loan on a house you don’t want or need that may be worth only $250,000 today and less next week? Moreover, is it any secret as to who gets jammed into bankruptcy and/or foreclosure first in this kind of economy? Of course not: it’s the disenfranchised that have the least financial wherewithal and recoverability. None-the-less, financial wherewithal notwithstanding, as time chugs on, as it is wont to do, the higher echelon homeowners, breathing freely for now will feel the sting as well, as they soon come to realize the mortgage situations they to have gotten themselves into for the same reasons.

So? read more…

Is There Anyone Who Is Not Worried About The Sub Prime Mortgage Lending Meltdown?Well according to some so-called facts appearing in a recent New York Times article (by B. Stein), that meltdown is just is not happening. It is all a mass hallucination experienced by a falsely alarmed and grossly misinformed public. The article declares that of the ten-plus trillion dollars in outstanding mortgage loans, only less than fifteen percent of them (less than 1.5 trillion bucks worth) are subprime loans. [I.e., Subprime: Loans offered at an interest rate above prime to those unfortunates who are less than qualified for prime rate borrowing, in other words, sub prime borrowers, not sub prime loans.]

Subprime mortgages may carry interest rates of perhaps only 0.1% to 0.6% higher than prime, which seemingly tiny difference translates to thousands of dollars in additional costs to borrowers and higher profits to lenders). The bulk of all mortgage loans, the article goes on to insist are not subprime and therefore have a much lower foreclosure rate. I guess the conclusion drawn here is that if only half of the sub prime loans are in, or headed for, foreclosure…why worry about a measly little forty or fifty billion dollars being ripped from the country’s coffers? read more…

Inner city regeneration projects are becoming easier to fund with property development finance as the mainstream lenders are starting to realise that the profit levels on these types of scheme can be very high.

Regeneration opportunities are usually found in central locations and if selected carefully can represent up to 20% discount in similar property in fully developed areas. The most competitive property development finance is available for good quality regeneration schemes surrounded by good quality housing stock and local amenities. However investors still need to do some careful research and check there is a well-funded renewal plan in place.

Areas such as Stratford East in London, parts of Manchester and inner city areas of Cardiff all have regeneration schemes in place and are proving irresistible to investors and buyers. A good example of the perfect regeneration project would be an area like Stratford in London with the 2012 Olympics being hosted in the area. The levels of applications for property development finance, specifically for regeneration areas are exceeding all records.

There is no doubt that developers are realising that brownfield sites represent the best opportunity. This is because it is far easier to develop a brownfield site than go through all the hassle of applying for planning permission to develop a greenfield site. Finance for property development in regeneration areas is often calculated based on the anticipated increase in overall value once the whole scheme is complete. read more…

One of the most frequent questions we are asked is “Can you really get homes for $1.00-10.00 down?

The answer is Yes!

It seems that most folks have a hard time believing that this is really possible and we can definitely understand that.

It seems most folks think that we are calling up home owners and saying “Hi, my name is TC, and I am a really nice person and I was wondering, would you be interested in selling your home to me for $1-10.00 down?”

If we did that we would be laughed at and probably hung up on!

Now understand that doing 1-10 dollar deals is like a recipe, similar to a food recipe.

For example, if you were going to bake a cake, there is a recipe that not only gives you the ingredients but also the steps you must take to successfully bake that cake.

If you decided to add the eggs anytime you wanted to, say after the cake was baked in the oven for 45 minutes, would you have a successful cake?

No you would not!

The same thing applies to $1-10.00 down!

There is a sequence to be followed and a reason that it is incredibly effective when you use it.

Now let’s get this straight… This does not work on every home that is for sale! But as we have discussed before, it does not have to work with every home for sale!

We will not discuss the exact recipe in this article but let us say this…You must put something down on a contract for it to be legal and binding.

It is often referred to as “Financial Consideration”. read more…

Since the beginning of time, land has been the primary source of wealth and power. Today, land continues to be one of the most prize and prudent investments, if it is careful researched and astutely managed. Creating extraordinary value has always been the result of extraordinary vision and hard work. Finding the right land investment takes a little of both.

History has shown that cities tend to grown in one predominant direction. Bu studying the history of a city as well as current demographics, it becomes apparent where the future growth will occur.

For our company the ideal land investment is that which exists in a growth corridor that will be developed within three to five years. Such a parcel is called predevelopment land.

In the United States predevelopment land is a stable investment. Its profit potential is consistently and significantly greater than any potential risk. It can be one of the best investments for the patient, sophisticated investor. But for the land to realize its maximum potential value, it must exist in a rapidly growing metropolitan area, be thoroughly researched, correctly purchased, actively managed, and aggressively marketed at the appropriate time.

Philosophy of Dan Tomlin Investments

Our company’s philosophy is this; put the investor’s interests first, and make every effort to minimize risk and maximize profit. Minimizing risk is the key. Risk factors can be minimized by initiating in-depth property research and analysis prior to acquisition. Then, with creative land management and an energetic resale program, risks can be reduced even further.

Our company believes property should be acquired in growth areas with a proven ability to sustain growth. Land investment principles can be applied to any city. But our company believes the necessary development momentum is only found I cities with a population of two million or more.

A small town’s population may grow up to 15 percent per year, but only a small amount of acreage is required to fulfill its development needs. Conversely, the major growth markets of the United States develop thousands of acres on annual basis. This provides less risk, shorter holding periods, higher returns, and greater liquidity for the cautious investor.

Only the most vital properties within a growth corridor should be purchased. Such properties should have access to sewer and water and should contain no major physical problems. Ultimately, these properties can be purchased for between 25 percent and 30 percent of the price a developer will pay when the tract is ready for development.

Also, on-site professional management leads to minimizing risks and maximizing profits. Such management provides the company with an intimate knowledge of activity and marketplace trends.

The role of research

Research within a specific metropolitan area begins with a study of past rends: the why, where, and when of a city’s growth and evolution. What has been the historical absorption of land? Where did it take place? Why did it occur where it did? Was it because of the access provided by major thoroughfares? Did the availability or lack of utilities play a role? How did the development relate to employment and shopping centers and schools? Were physical restrictions and barriers, such as rivers, mountains, swampy areas, railroads, or highways, involved? Detailed knowledge of past trends indicates where future growth will occur and provides an understanding of historical land value trends. read more…

What is a land contract or contract for deed?

A contract used in a sale of real property whereby title to the property remains vested in the seller until the buyer who receives the right to possession has paid in installments over a long period of time a preset amount or all of the purchase price and upon default by the buyer all payments may be forfeited. Also known as a Conditional sales contract, an Installment sales contract and a Real property sales contract.

I’ve used land contracts to buy apartment buildings, single family homes and land. I do recommend buying real estate on land contracts but not selling on them. Using a land contract allows you to use leverage when you are buying a piece of real estate. This strategy gives you time to come up with the rest of the money needed to pay for the property, since normally you’d only have to come up with 10-20% down and most land contract transactions don’t require a person to have good credit.

If you decide to sell property on a land contract, beware of the fact that if the buyer does not honor his end of the deal, you will have to foreclose on them. This will NOT be a simple eviction out of the property. This is because, when you’re doing a land contract, you are giving the buyer equitable title. As the buyer makes payments, he actually owns equity in your property, thus requiring you to foreclose in order to legally separate them from the equity that they have paid for. Not a good strategy for selling, unless it’s a property that you simply can’t sell to anyone, for some reason.

It is important to note that a land contract is really a mortgage on the property. It’s a seller-financed mortgage, which can be refinanced, just like a regular mortgage. Land contracts these days are for much shorter terms than in past decades. The average term for a land contract is anywhere from 2-5 years with a low interest rate, but is totally up to the parties involved. I always go for the longest possible term. This give time to get the property, make improvements and decide if I want to refinance or flip. read more…