Hard Money Loans » equity

Derivatives Dynamo Societe Generale Seeks to Make M&A Inroads

Real Estate Investor — Fri, 20 May 2011 04:00:02 +0000

Societe Generale SA, the world’s leader in equity derivatives, is striking into a business the French bank once eschewed for its paltrier profits: mergers and acquisitions.

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The Man Trying to Purchase American Idol

Real Estate Investor — Sat, 09 Apr 2011 04:03:11 +0000

Alec Gores, who made his money in tech, aims a private equity fund at media and fashion plays

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No Buyers for Barnes & Noble at 60 Cents on Dollar

Real Estate Investor — Sat, 26 Mar 2011 04:02:00 +0000

With Barnes & Noble piling money into its Nook reader to compete with the Kindle and iPad, private equity is backing away

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BNP Paribas Said to Hire Credit Suisse’s Okazawa for Equities

Real Estate Investor — Thu, 03 Mar 2011 03:59:44 +0000

BNP Paribas SA, Europe’s biggest bank, will hire Kyoya Okazawa, former head of Japan equities at Credit Suisse Group AG, to expand its equity business, two people with knowledge of the matter said.

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Emerging Stocks Retreat on JPMorgan Forecast, Bahrain Protests

Real Estate Investor — Wed, 16 Feb 2011 03:59:26 +0000

Emerging-market stocks fell for the first time in three days after JPMorgan Chase & Co. reduced its outlook for equity gains and as protests in Bahrain escalated.

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S. Korea Wrap Accounts May Double, Advisory Firm Says

Real Estate Investor — Tue, 25 Jan 2011 03:59:20 +0000

Individually tailored equity portfolios may double in South Korea this year as investors shift cash from index-tracking mutual funds, advisory firm Korea Creative Investment said.

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Monterey’s Japan Hedge Fund Returned 19% in 2010, Beating Peers

Real Estate Investor — Fri, 21 Jan 2011 04:01:37 +0000

Monterey Capital Management Pte’s Japan-focused equity hedge fund gained 19 percent in 2010, more than double rivals’ returns, on investments in stocks including Skymark Airlines Inc. and consumer finance companies.

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Hard Money Lenders and Hard Money Loans

Fri, 24 Dec 2010 22:27:58 +0000

Why A Hard Money Loan.

The reason real estate investors choose to use hard money loans is that they are a source to purchase and rehab property to make a substantial profit that they may not have without the use of this expensive money. These short term loans are expensive and even if they were legal for a home owner to borrow from the private lenders offering these loans it would never be advisable. So how hard are these short term loans, you ask? The answer is threefold. They are restrictive in loan to value, they are high in rate and high in fees.

Restrictive in Loan to Value.

The maximum loan to value for most private loans range from 50% to 75%. No deals are done at the higher loan to value for two reasons. First the hard money lender requires lots of equity in case of default they can list and sell the property quickly because they will in theory be below market value. The reason I say in theory is because there are so many REO’s, Short Sales and foreclosure properties on the market today that what was normally considered an exceptional deal is common place. Therefore, private lenders are more particular about the properties, borrowers and loans they choose to fund.

Secondly, any real estate investment that has less than 30% equity are not good investments for the investors unless they are purchasing the property for the cash flow. In that case they are long term investments and not suitable for the short term nature of these expensive bridge loans.

High Interest Rates.

Whether as n real estate investor buying and or rehabbing commercial or residential investment real estate the interest rates are much higher than conventional commercial or residential investment lending. The rates are higher much because the risks are much higher and there source of these funds are limited. Risk and Reward. Supply and Demand. The risks are higher because these loans are not underwritten based on the standard conventional guidelines and there is a very limited or no secondary market for private bridge loans. This is generally not an issue because the borrowers know these are only short term loans. The terms range typically from 3 to 24 months. Therefore, the higher interest rate is of minimum importance because both lenders and borrowers know that the borrowers have an exit strategy to quickly payoff these high interest rate loans. Most lenders require a viable and verifiable exit strategy before they make will the loans.

Higher Points.

Because these loans are short term in nature the hard money lenders always charge discount points. They may charge 1 to 5 points. In addition the private money brokers will charge 2 to 5 points. An average a borrower will 5 to 10 points. Plus closing costs. These are high fees. They only make sense when an real estate investor will make substantially more money and they have no other way to fund the deals.

Why Use Hard Money Lenders.

Simply to make money. As a real estate investor you have choices in financing your deals. You can choose conventional financing that requires at 30% to 35% down payment for properties that are in good shape. There are many other conventional mortgage criteria including credit, cash reserves, seasoning of funds and property. These all make conventional financing almost impossible.

Another option is to use your own funds and not finance a deal at all. But, most astute real estate investors know that if they can make a net profit of $25,000, $50,000, $100,000 or more using a hard money loan they do not like the fees but they we pay them versus not making any money because of lack of financing.

Louis Jeffries has been a Mortgage Banker for over 20 years. A Investor Rehab Specialist Louis will help you fund you next rehab or construction project. Contact Louis louisj@alldominionmortgage.com 708-299-3244 Visit The Blogs Investor Rehab
Hard Money

Author: Louis Jeffries
Article Source: EzineArticles.com
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When Mortgage Times Get Tough, Seek Hard Money Loans

Wed, 22 Dec 2010 20:15:25 +0000

With residential foreclosures on the rise in the US, many homeowners are finding themselves in situations they never though they would be in. With adjustable rate mortgages coming out of their fixed period, the opportunity to refinance into a secure loan has diminished as lenient lending policies have become a thing of the past. Additionally, individuals who have been previously classified as “sub prime borrowers” are now finding it more difficult than ever to refinance.

With borrowers who have previously provided little or no documentation, where would they go today when times get tough? Mortgage banks today are being extra cautious even with borrowers who achieved levels of creditworthiness. Private lending companies are emerging to satisfy clients who fall into these cases.

Hard money loans traditionally carry higher interest rates than loans made from banks. Many times they require that the borrower have a certain amount of equity in the home. Many hard money and private lenders will tailor the contract and agreement to make it a beneficial solution for all parties involved.

Hard money lenders in the past have developed a negative reputation for “loan sharking” money at high interest rates and seizing properties should the borrower fail to make a payment. Today, a hard money loan might make the difference in being able to stay in a property and prevent a potential foreclosure.

When used properly, a private mortgage loan can buy a borrower the time to make necessary life and financial changes to prevent a foreclosure from happening. A hard money loan today can be a very useful tool and a life saver for a sub prime borrower from losing their home.

Before accepting a hard money loan, keep the following in mind:

1) Research a few hard money lenders in your area and discuss your situation and the terms of the loans being offered to get a sense of the market and how you fit in.

2) See what a few lenders are offering you and be prepared to negotiate. Every dollar and fee is important and needs to be understood. Remember, these loans are negotiable as it is mutually beneficial for both parties.

3) Do not accept a loan amount greater than you need. You will be more likely to spend that money (which comes at a much higher interest rate) and have to pay it back over the life of the loan.

4) Involve your accountant and real estate attorney. They may put you in touch with a reliable company that will not put you in a more difficult situation if things should turn for the worst. Their relationships and referral volume may end up getting you a great deal.

5) Private lending is a profitable business and lenders are always looking to mitigate their risks while helping others. Be honest and upfront with the loan officer regarding your situation. It may be the difference in getting a loan with a lower interest rate and more favorable terms.

Your story is important to the loan officer so being truthful is key. As borrowers are approaching foreclosure many feel their pride is at stake and are embarrassed and ashamed about their situation. Being proactive and honest as a borrower is the first step on the road to financial recovery and hard money lending today is becoming a popular and useful solution.

Nicholas Cuttonaro is a successful mortgage professional and publisher of http://www.MortgageLoanDetails.com

Author: Nicholas Cuttonaro
Article Source: EzineArticles.com
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Equity Release Loan–The Smart Answer to The Financial Needs Of The Aged Persons

Real Estate Investor — Wed, 20 Oct 2010 19:13:45 +0000

The equity release loan can be accessed by the persons aged over 55years. Such loan is available against one’s property. The release of equities is a great idea to supplement the insufficient income of the elderly persons. Flushing out money using one’s home is an enticing scheme in the modern age when the rate of interest in the banks and other financial institutions is continuously dipping down.
The retired persons are really frustrated with the low rate of interest and this has played a vital role in pushing up the demand for the equity release loan. There is a large gang of the aged persons taking resort to such loan to supplement their scanty incomes. The flow of the prospective borrowers will surely rise in the near future.
The prices of the necessary goods are spiraling up at a rapid pace and there is hardly anything in vision to put an end to such a rise. The elderly persons find it hard to make the both ends meet. If they are the homeowners, they can adopt the equity release loan to fund their needs. If the person is not willing to move out of the house, he or she can live there till the end of the life. They only need to extract the requisite money in exchange of the equities tied up in the property for a long time. They can ensure getting the lump sum amount once the deal is closed or can avail the partly flow of cash as long as they live. The combination of both the schemes is also available. Such a mix policy of getting the equity release loan can finely complement the scanty income of the pension holders.
It is not mandatory for the borrowers to use the amount to meet the monthly expenses only. They can use it for a holiday trip or buying a car or sending their grandchildren abroad for the higher studies. Whatever be the purpose, the equity release loan fits everyone’s needs. Whenever you release equity on house, you have to maintain a systematic and sequential procedure. It is very tedious process to get the equity release loan sanctioned and the whole procedure is replete with too many intricacies too. So the borrowers must consult an expert advisor to guide them through the entire procedure and make them avail the best deals available in the market. The equity release loan is a great plan to avail a goodly sum in times of financial quagmire in the last phase of one’s life.

About Author
Jim Wright is a content writer on various equity release providers. He keeps good knowledge on the different equity release companies. For more information he always recommends you to http://www.therightequityrelease.co.u/