Hard Money Loans
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 apply for a second mortgage, using real estate equity as collateral, but bad credit can make things difficult here. If a home owner has missed a few mortgage payments, the banks may refuse to provide more financing – hard money might be the only option in this case.
The limit for hard money loans typically hover at about 60 to 70 per cent of a property’s quick sale value, defined as the price a lender could reasonably expect to realize if the borrower defaulted on the loan, and the property was liquidated fast. The interest rate for a hard money loan is usually in the 15 to 25 per cent range.
Investors can take out hard money loans to buy a property, as long as they provide acceptable collateral – in this case it could even be the property they’re buying. The strategy here is to find a pre-foreclosure property, or any real estate with an owner prepared to sell below below market value as long as the sale is fast. If the investor can re-sell the property at full market value, before too much interest is paid on the hard money loan, he or she can make a significant profit. Hard money loans have helped many successful investors get started in real estate.
The CO HomeFinder website has every resource for your next Denver real estate purchase or sale. There you’ll find extensive service information for buyers and sellers, a local home search, and information on markets throughout the metro area, including Brighton Colorado real estate.
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Investing and Hard Money Loans
Author: Real Estate Investor, Category: Private Loans
In the world of real estate investing, people are always on the look out for different ways to make an investment purchase. Typically the property would simply be bought & mortgaged in the traditional manner but as home values increase and the cost of living rises buyers are seeking out other ways of making the down payment on properties. One way that this can be accomplished is through the use of hard money loans. Now, one must be careful in purchasing with a hard money loan as interest can stack up quickly as most interest rates range between 10 and 16%. In comparison to a normal mortgage this is a fairly high rate. The best way to make this kind of loan work is on a home where the owner is looking for a quick sale and the property has the potential to sell for greater than the purchase price.
The most attractive aspect of a hard money loan is the fact that it can allow a buyer to act quickly to take advantage of a particular home sale. An investor will have to plan carefully and be intelligent and educated about the terms of the loan and the value and viability of the property. An investor should be sure about the attraction of the property as with a higher interest loan the whole point is the flip the property quickly before the payments start to pile up. Additionally the loan should be designed to comprehensively cover the costs of purchase and renovation if necessary or desired. in such a situation the buyer will need to have everything organized ahead of time in terms of renovations or construction to the home and should have a definite timeline as to when things should be complete and the home can be listed. This will also take an intricate understanding of the local real estate market and the trends that dictate it. There are certain times when the market will be hot and times when it will be cooler and the sale of the home will have to be a planned event that takes advantage of the peaks of the market.
In planning a purchase with a hard money loan, be sure to sit down with your realtor and explore all the available options before taking the plunge. They are the best suited individuals to help plan the purchase and subsequent sale of the property. They will also be able to direct a investor to loan professionals that are reputable and honest. With such a wealth of dishonest mortgage companies as this country has seen in the past years, it is essential that an investor has a good amount of background on the lender that they choose to deal with. Good Luck!
Jake Marsh is an experienced, professional real estate agent with a degree in marketing, who specializes in Denver, Colorado real estate For access to Denver MLS listings, contact Jake today
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Can U.S. Luxury Real Estate Markets Sustain Home Prices?
Author: Real Estate Investor, Category: Real Estate Investment analysis
Top 10 Luxury Home Markets To Watch for Price Increases or Reductions
The Unique Homes Magazine has listed 25 luxury home markets to watch in 2007 in its January issue. According to the Unique Homes report the 25 luxury markets will indicate where the luxury real estate market is heading to. These markets along with features that make them stand out from the rest are worth watching out for.
The following is a brief report on the top 10 luxury home markets to watch for price increases or reductions in 2007.
1. Annapolis, Maryland. The waterfront city located on Chesapeake Bay offers excellent boating and affordable prices compared to Washington’s luxury enclaves. With Washington and Baltimore within reasonable commute, this city is highly desirable.
2. Asheville, North Carolina. An eclectic ambiance and low-key lifestyle attracts people to Asheville which continues to remain one of the hottest places for luxury home buyers.
3. Aspen, Colorado. From a ski enclave this luxury market has grown into a platinum location. With its four-season appeal and restrictive zoning policies, Aspen is still a highly-sought after destination.
4. Atlanta, Georgia. The city offers several new upscale communities, numerous lifestyle amenities, retreats and much sought after waterfront luxury homes.
5. Austin, Texas. A strong real estate market that saw record gains in 2006, the reputable University of Texas, the scenic lakes and the great music attracts buyers to this hill country.
6. Bellevue/Medina, Washington. With prices going up at 28 percent, the market has still not peaked and several upscale neighborhoods are available at a lower price range when compared to other markets.
7. Beverly Hills, California. One of the top ranked luxury markets that is perpetually in demand, Beverly Hills continues to be untarnished and idolized as the Mecca for luxury. Hollywood Hills is currently a hot market for buyers.
8. Idaho. The growing resort markets in the state garner attention for the state that is making its presence felt in the luxury home market.
9. Jupiter, Florida. The boom has arrived here after Tiger Woods’ purchase of a 10-acre estate for $38 m. The market continues to surge on this exclusive island.
10. Manhattan Uptown, downtown, midtown. The luxury market is upbeat with record sales of more than $5 m in 2006 accelerated by Wall Streeters. Co-ops and town houses are favorites among buyers here.
If you are interested in buying or selling a home, condo or any other type of real estate in any of these markets, be sure to seek out the services of a real estate agent to advise you about current local market conditions.
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2006: Most Active Real Estate Foreclosure Markets
Author: Real Estate Investor, Category: Real Estate Investment analysis
The foreclosure market is an attractive option for buyers wanting to invest in real estate. A foreclosed property is a mortgaged property that has been taken over by the lender due to non-payment of the mortgage. The lender then sells the property in order to recover the money, often at below market prices. Foreclosed homes, condos and other properties can for make excellent investments and is a popular choice for those entering the real estate market.
The October 2006 issue of Business 2.0 Magazine ranks the top 10 foreclosure markets in the United States. Greeley in Colorado tops the list followed by Detroit in Michigan, Miami in Florida, Indianapolis in Indiana, Ft. Lauderdale in Florida, Denver in Colorado, Dayton in Ohio, Dallas and Fort Worth in Texas, and Atlanta in Georgia.
Greeley, CO, has the largest number of foreclosure households in the country, with 0.59% of homes falling in the category, an increase by 14.7% since January 2006. The report holds aggressive residential development, risky underwriting practices and stagnant wages as the main causes.
Detroit, MI, stands next with 0.51% of the households in foreclosure. The badly performing auto industry and the resulting impact to autoworkers’ incomes has contributed to number of homes in foreclosure in this city.
Third on the list is Miami, FL, where 0.37% of the households are in foreclosure, a staggering 91% increase since January 2006. The report states a weakening economy, higher property insurance premiums, and rising energy and interest rates, as the reasons for this rapid increase.
The fourth among the top ten foreclosure markets is Indianapolis, IN. Although the foreclosure rates are slightly lower from last year, still the portion of households in foreclosure stands at 0.35%. Setbacks and layoffs in the city’s auto industry together with falling home prices have contributed to foreclosure rates in this city.
Fort Lauderdale, FL, stands fifth with 0.34% of households entering foreclosure, which is up by a whopping 118.5% since January 2006.
Denver (with 0.33% of households in foreclosure), Dayton (with 0.33% of households in foreclosure), Dallas (with 0.31% of households in foreclosures), Fort Worth (with 0.31% of households in foreclosure) and Atlanta (with 0.31% of households in foreclosures) round out the top 10 foreclosure markets.
If you are looking to invest in the foreclosure market, consult a real estate agent who can help you clinch the best deal on the foreclosure property of your choice.
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2006: Best U.S. Cities To Buy Real Estate And Homes
Author: Real Estate Investor, Category: Real Estate Investment analysis
Eager to know the top cites in America where one can safely invest? Here are the best real estate markets in the entire country according to a recent report from Business 2.0 Magazine. The November 2006 edition of the magazine lists the top ten cities that are ideal to buy a home. These are – Panama City and Vero Beach in Florida, Bridgeport in Connecticut, Lakeland in Florida, McAllen in Texas, San Luis Obispo in California, Wilmington in North Carolina, Manchester in New Hampshire, Fort Collins in Colorado and Atlanta in Georgia. The report cites the appreciation rates of home prices projected over a period of five years.
Florida enjoys the status of having three of the top four cities to invest in. Panama City, which tops the list of best places to buy real estate is expected to have a real estate appreciation of 72% over the next five years. Major real estate development projects such as the building of a new airport and low property prices are expected to boost the economy and the housing market.
Vero Beach, projected to have an appreciation of 64%, comes second for its excellent weather, low property taxes and a lower cost of living. Lakeland, with a 59% projected gain in home prices is a tempting option with homes selling for a fifth less than the national median price.
Buying a home in Bridgeport, CT is a bargain now with median home prices at a very low $280,000 compared to the rest of the Fairfield County. Home prices in McAllen, TX which holds the fifth place, are expected to soar by 57%.
It is estimated that homes in the McAllen, TX area may appreciate 57 percent with an increase in the median home price from $70,000 to $109,000.
Homeowners making an investment in San Luis Obispo, California, today, are expected to get a good appreciation (40%) on their homes over the next five years.
The median home price in Wilmington, NC is expected to increase to $297,000 by 2011, up from the current price of $217,000, an increase by 37%.
Manchester, NH, which has twice been rated as the ‘best place to live’ in America by Money Magazine, sits at eighth place with an expected appreciation of 35%.
Fort Collins and Atlanta follow in the ninth and tenth places of top cities for real estate investment in the USA. Fort Collins, one of the most popular cities in America, has been ranked as the ‘No.1 small city’ this year by Money Magazine. Recent price reductions in the housing market makes ‘now’ the best time to buy a home or condo in this city with an estimated property appreciation of 28%. Atlanta is poised for a significant appreciation too with an expected rise of up to 24% in home prices over the next five years.
So, if you are a prospective homebuyer set to take a plunge into any of the top ten real estate markets, it is the right time to enlist the services of a good real estate agent who can guide you through the complicated home buying process.
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Ready to Buy Mountain Property for Sale in Colorado?
Author: Real Estate Investor, Category: Closing in your Investment Deal
Denver, Colorado is an ideal place if you are looking for a home of your dreams where you and your family can stay most comfortably. If you wish to get a peaceful house in the mountains then you need to take a look at all of the amazing mountain property for sale in Colorado. You will be amazed to see the wide range of beautiful properties from which you will surely get one that suits your family size and your specific requirements. When purchasing a property, focus at what you require for your upcoming years and know precisely what it is that you want. Are you looking for a place with a house, or do you want to look for a property where you can build your dream home exactly the way you like it? Searching for a place with a home already located on the property? However, you must check for several factors before you decide to buy one. Primarily, think about the number of bedrooms and bathrooms that you require in a home. Moreover, you also need to think about the efforts and time that you will have to invest for renovating the present house or you will have to make a good search till you get the perfect house you want. If you require to find one that needs no work, then you will need to be quite specific about what you are looking for and work with the real estate agent to really lessen the list of homes to look at. When you are looking out for homes for sale in Denver, Colorado, you will surely get a huge choice of homes to select from and you wont need any professional guidance for all this. Finding the right real estate agent can really be a lifesaver in your hunt for your new home. And if you want to search a property where you can build the house you always dreamt of, you need to consider some other factors. First of all, you will have to check out the area and see if it offers all that you require in a place to reside. Don’t believe all that you hear, like you may be offered a huge built up area, be practical, it will take several years to materialize, and this will truly leave you nowhere and confused to look out for other amenities. Search for a place that you like that has nice schools if you have or are thinking on having children and things like grocery stores and gas stations close by. If you like any particular area, you must start searching for a perfect property that may be available there. There are many various kinds of mountain property for sale in Colorado so if you are more of the adventurous kind and would like to be bounded by woods, then you will definitely get the property that you require. Once you make a genuine search for homes for sale in Denver, Colorado, you will get all sorts of properties no matter if you are looking for a property to build your own home or looking for a ready home, thus you have lots of choices. If you are looking for anything right in town, or any mountain property for sale in Colorado, you are confident to get what you require. You need to be confident about the real estate agent who is going to search a perfect property for you on your behalf and provides you all that you need. Purchasing a property is a huge step in your life and you need to be confident to do it correct and find the best place to call home.
Mountain property for sale in Colorado is abundant and located in some very beautiful places. Discover Colorado can help you find homes for sale, Denver, Colorado.
Article Source:http://www.articlesbase.com/real-estate-articles/ready-to-buy-mountain-property-for-sale-in-colorado-1605727.html
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