Hard Money Loans

Ottawa, Ontario, Canada (AHN) – The Liberal Party of Canada is still hoping to push for a spring election as the Canadian Parliament deliberates on the budget this month. The Liberals said they are open to a no-confidence vote option following Ottawa’s refusal to provide details about the corporate tax cuts and cost of crime bills being pushed by the Tories.

The key to a possible federal election is a decision by House Speaker Peter Milliken whether the Conservatives were in contempt of Parliament for refusing to disclose the information. A ruling of contempt could lead the Liberals to table a motion of no confidence, which needs the support of another opposition party.

Liberal MP John McKay sought to have the Tories declared in contempt over accusations that International Cooperation Minister Bev Oda misled the Parliament and doctored a document. Liberal MP Scot Brison also made the same request over the Conservatives’ refusal to provide details of the government crime bills.

The tabling of the 2011 federal budget is scheduled March 22.

Pollster Harris-Decima has cautioned the Liberals from pushing for an election over the budget because surveys indicate the Tories got high approval rating over economic management. However, the pollster also charged the Tories made a lot of mistakes recently that could make voters side with the opposition.

Based on historical data, however, chances of a no-confidence vote succeeding are slim. In Canada’s 144 years, the sitting government has lost a confidence vote in the House of Commons only five times – twice in 1974 and 1979 and once in 1926.

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Washington, DC, United States (AHN) – A retired Coast Guard admiral has warned that the United States is not well equipped to deal with another major oil catastrophe in Alaska just months after a massive oil spill in the Gulf of Mexico.

Talking to reporters, retired Adm. Thad Allen said that of the three icebreakers that the U.S. Coast Guard has, only one was operational and would be able to respond if any disaster occurs on the northern coast of Alaska, which is covered with ice much of the year.

Former Alaska Lt. Gov. Fran Ulmer suggested that Washington must invest in the Coast Guard before considering drilling in the Arctic. “It’s not an option; it’s a mandatory next step for our country to take,” said Ulmer. He was a member of a presidential commission that last month called for the government to take more efforts to prevent another Gulf of Mexico disaster in the future.

The Republicans, who are eyeing drilling off oil-rich Alaska’s coast, are unlikely to spend much on expensive icebreakers following their win at the House of Representatives over their pledge to cut expenditures.

Interior Secretary Ken Salazar last year imposed a ban on new drilling in the Atlantic and the eastern Gulf until 2017. However, he imposed no bans on the drilling in the Arctic.

Royal Dutch Shell, which sought permission to drill off the Alaska coast, announced a delay in exploration last week in the absence of required permits. Environmental groups appreciated the delay, while Alaska politicians such as Republican Gov. Sean Parnell criticized it and blamed the federal government for killing jobs and making the U.S. more dependent on Middle East economies for oil.

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Ottawa, Ontario, Canada (AHN) – Canadian Finance Minister Jim Flaherty announced Monday that Ottawa has amended three rules governing mortgages to curb rising household debts.

Under the new regulations, the maximum amortization period for government-backed insured mortgages was reduced to 30 years from 35 years. These are for mortgages with loan-to-value ratios of more than 80 percent.

Ottawa also cut the maximum amount that residents could borrow to refinance their mortgages to 85 percent from 90 percent of their homes’ value. The government also withdrew government insurance backing on lines of credit secured by homes.

With the changes, the amortization of an average Canadian resale house sold for $344,551 with an minimum 5 percent down payment of $17,227 would increase the monthly amortization by $110 to $1,555.

Although Canada has less than 1 percent mortgage default rate, Flaherty said the federal government wants to reduce borrowing with the average level of household debts rising to 148 percent of disposable income.

Flaherty said in a statement, “Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession.”

He added, “The prudent measures announced build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

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People who have the opportunity to invest in property, may need a hard money loan to proceed with the purchase. This type of mortgage is a financing tool these people use to acquire the house or multiple housing units so that they can buy, and then resell it. A hard money loan has many important features.

1. A private money mortgage is one where investors gain access to the funds to purchase a property for resale. NLD Settlement Corp also known as the “hardmoneyman” is one such lender. The idea is to make a profit, but in many cases is not to live in the home. Yet, a hard money loan can help a home owner because it can allow an investor to purchase their home when they desperately need to sell it quickly.

2. A hard money loan can only be based on collateral. The collateral is the home or housing units. What is more, because of the risky nature of the venture, only approximately 50% to 60% of the normal property value will ever be covered by a hard money loan. This is because the value being considered in the loan is based on the immediate purchase price, which refers to the amount of money the seller could get if he was forced to sell within a one to three month period.

3. To get an investment property loan, you do not have to have good credit. The important considerations are whether you will be able to pay back the loan, whether the property is worth the money being lent, and whether you have a sizeable down payment.

4. You should never expect to have an early payment clause on a hard money investment property loan. This is because the very nature of the funding product is that the money is just being lent for a short time. No one expects you to keep the loan in the long term. You are not legally bound to pay off the loan immediately, but the expectation is that you will.

5. A private money loan has a higher rate of interest than prime mortgage rates. However, it is much riskier for the lender. The person usually has worse credit and probably does not live in the home. The people who take out a hard money loan often would not even qualify for a regular mortgage. By getting a hard money loan, they can take advantage of an opportunity they might not otherwise be able to fund, and therefore be able to make some money.

Ken Vesely
NLD Settlement Corp
http://www.hardmoneyman.com
516-526-8445

Author: Ken Vesely
Article Source: EzineArticles.com
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What is a Hard Money Loan?

Hard money loans are a specialized type of real estate backed loans. Hard money lenders or private lenders provide short-term loans based on the value of real estate that has been collateralized for the loan.

Hard money loans typically have a much higher interest rate than bank loans because they fund deals that do not conform to bank standards and have higher risks. Hard money loans are more expensive than traditional loans because they are not based upon traditional credit guidelines. Hard money lenders may not require the income verification, credit score, etc. that typical lenders do, but their interest rate and points are higher.

“Points” on a hard money loan vary widely, some lenders may charge 1 to 3 points, while other lenders may charge up to 7 or 8 points. Some lenders base the points charged on the rehab experience of the borrower with regular clients getting reduced points the more business they do.

New rehabbers should not do more than 1 project at a time, especially in this economy. You don’t want to be stuck with a couple of houses when you do not have the finances to maintain them until they are sold. Also, as a new rehabber, you should get yourself registered (qualified) with a Hard Money Lender first so you can act fast when you find a house to rehab. You will able to get a “proof of funds” letter quickly from your Hard Money Lender to be qualified as a cash buyer. It is important to be a cash buyer since the sellers of foreclosed or distressed properties want fast deals. In fact, most ads or MLS listings require a pre-approved buyer and request the proof of funds letter to be submitted with the purchase contract. With most Hard Money Lenders, it is not difficult to get qualified. Usually it takes a simple application, a bit of information about your experience or lack thereof and some personal information.

The advantages of using Hard Money Loans are:

1. No Credit history, tax returns, W-2′s or job history
2. You can make All Cash Offers
3. The property value is used to determine the loan, not your income.
4. Close in a very short time frame.
5. Purchase the property and have the funds available to rehab it in one loan.
6. The Hard Money Lender understands all aspects of rehabbing and can, if necessary, be flexible on their programs.

THINGS YOU NEED TO THINK ABOUT WHEN PURCHASING A HOUSE FOR REHAB

Pricing your home is one of the most important aspects of your rehabbing. You should determine a selling price when you purchase the property. However, sometimes things change and the original price you calculated to sell it is not longer an option. Always remember that you make a profit when you BUY the property, not when you SELL it!! This means that if you do not make a wise and well thought out purchase, there is no way you are going to make money. It just doesn’t happen because you want it to happen. This is a process that needs to be calculated to the end and that includes the SALE of the property after it has been rehabbed.

Pricing: Realize that because of the economy and the current housing market conditions, there are many properties on the market. Some are in great shape, some need a little work and some need a lot of work. Also there are a lot of pre-foreclosures, foreclosures and short sales. Ask yourself some questions:

1. Would I buy this rehabbed home before buying a pre-foreclosure, foreclosure or short sale (distressed properties)?
2. How is the new buyer’s appraiser going to evaluate the home; equal to the distressed properties in the neighborhood or better? Sometimes appraisers don’t look at the upgrades you may have put in to your project. A “budget” buyer might buy the short sale or foreclosed house that needs a little work for less money than what you are asking.

Test the neighborhood:

1. Are there many distressed properties in the area?

2. Are there a lot of vacant lots?

3. Do the neighbors keep up their properties?

4. Are there schools nearby?

5. Are shopping areas convenient? Within walking distance?

6. Are there streetlights and sidewalks?

7. What about transportation? Bus lines? Train Lines?

8. Do comps in the neighborhood. Have your Realtor pull rehabbed properties in the same area that have recently sold (within 6 months), or do drive-bys yourself and look up the comparables with www.zillow.com or www.realtytrac.com. These sites will give you approximate values and can help you make the decision whether this is the right house to buy for rehab. Don’t fudge the numbers. Make sure you comps are similar size, number of bedrooms and baths, design, frame or brick, etc. If one or more of your “test items” does not work out, then move on to another property.

All of this must be considered when making a purchase for rehab.

The actual funding of the deal, the paperwork and how it works will be discussed in my next article.

I have ten years experience in Real Estate Investing. As a Real Estate Broker with my own company, I have personally rehabbed properties and wholesaled single family and two-flats in the Chicago area.

I am currently writing E-Books on Real Estate as an Investment, Hard Money Lending and Rehabbing for Profit that will be available on my website at http://www.RealEstateRehabProfits.com. Hard Money Lending criteria is available on the website http://www.zdeinvestments.com

I will also continue contributing shorter articles on many subjects pertaining to Real Estate.

Author: Rebecca A Miller
Article Source: EzineArticles.com
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Washington, D.C., United States (AHN) – Rep. John Boehner said Wednesday he plans to use the new political power he would gain as Speaker of the House to continue tax cuts for middle-income and wealthy Americans.

Boehner spoke at a press conference in the U.S. Capitol to update the news media on how the House of Representatives is transitioning to a Republican majority.

“Extending all of the current tax rates and making them permanent will reduce the uncertainty” about the economy, Boehner said.

Tax cuts instituted by the Bush Administration are set to expire at the end of this year.

President Barack Obama said he agrees the tax cuts should be extended for middle-income Americans but is reluctant to extend them for the wealthy.

A permanent extension of the tax cuts is “the most important thing we can do,” said Boehner, an Ohio Republican.

He is set to become the new Speaker of the House after the midterm elections gave Republicans the House majority they need to replace Democratic Speaker of the House Nancy Pelosi.

Boehner plans to meet with Obama next week to discuss the tax cuts and other transition issues.

The cuts lowered taxes for individuals earning less than $200,000 a year and families earning less than $250,000. The two categories include 98 percent of Americans.

Obama said recently in a “60 Minutes” television interview the U.S. Treasury would lose $700 billion over the next decade if tax cuts for Americans earning more than $250,000 per year remain in effect.

Boehner took a jab at Pelosi during his press conference in the Capitol when he said he would continue to commute between Washington, D.C., and his home district in Ohio by commercial aircraft.

Pelosi uses military aircraft to fly home to California.

Meanwhile, Boehner’s Republican colleagues are pressuring him to abandon the traditional seniority system in assigning leaders to House committees.

Committee leaders are appointed by the Speaker of the House. Traditionally, the most senior members of committees are given the chairmanships.

Republican congressmen Jerry Lewis of California and Hal Rogers of Kentucky said recently that Arizona Republican Jeff Flake should be given a prominent role on the House Appropriations Committee.

Lewis and Rogers both have seniority over Flake on the Appropriations Committee.

However, Flake is known as a conservative budget-cutter and tax break advocate.

The Appropriations Committee designates how tax revenue is allocated among House committees.

The American Conservative Union is circulating a petition on Capitol Hill that urges Boehner to search for new talent in committee leadership rather than relying on seniority.

Appointing committee chairmen based on seniority “would be a signal to the millions of independents and members of the Tea Party movement who took a chance on Republicans in the election, that you have ignored their message of change, and that instead it will be business as usual in Washington,” the petition says.

Any decisions on how Boehner will choose Republican Party leaders in Congress is likely to come out of the transition team meetings that continued Wednesday.

The 22-member transition team is meeting to set rules they will follow during the move into a new Republican majority in Congress.

“Our goal is to look at how we can make the U.S. House of Representatives more open, more transparent, more accessible to the American people … in terms of how to improve legislative policy, how we can get to job number one, which is creating jobs, and how we can get at reducing deficit spending,” Rep. Greg Walden (R-Ore.), chairman of the transition team, said during a press conference.

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Washington, D.C., United States (AHN) – American authorities say packages intercepted overseas contained explosives destined for the United States. President Barack Obama was alerted late Thursday night, according to the White House, and ordered security officials to be on alert.

“Last night, intelligence and law enforcement agencies discovered potential suspicious packages on two planes in transit to the United States,” White House Press Secretary Robert Gibbs said. Based on close cooperation among U.S. government agencies and with our foreign allies and partners, authorities were able to identify and examine two suspicious packages, one in East Midlands, United Kingdom and one in Dubai.”

“Both of these packages originated from Yemen. As a result of security precautions triggered by this threat, the additional measures were taken regarding the flights at Newark Liberty and Philadelphia International Airports,” Gibbs added.

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If you don’t have enough money saved for a down payment on that home you want to buy, don’t miss this opportunity because you can qualify for no money down loans
. This financial aid is made to finance the purchase price of a home or car. Many large lending institutions select this option for buying their dream things. The no money down loans makes it possible for you to be home owner. Any eligible loan applicant may use this benefit for one house at a time. The house obtained with this loan should be used as a primary place of residence. If you are paying rent you are pretty much throwing your money away. It is possible to get this financial service, but you will be paying something called mortgage insurance.

There are many people who are unable to make down payment before buying one. For them no money down loan is the solution. These loans offer finance for second hand, new cars too. With the introduction this financial help you don’t need to pay down payment to the company. No money down loans provider eliminate the need for this otherwise evil. If you have better credit score you can qualify for low interest rate .No matter how horrible your credit looks on paper thousands of borrowers are approved everyday for no money down loans that give them one hundred percent financing to purchase the car , home , truck or other vehicle that they need it. This kind of loan means that the buyer borrows the full purchase price of the property and doesn’t put down any deposit.

This type of financial aid has been popular in the commercial real estate sector for a while and is becoming popular in the residential sector. To obtain this loan buyers need a reliable source of income. If you meet lending company requirements, they will finance 100% purchase price. Once you have the lenders approval, you can start looking for homes. So getting a new home doesn’t have to be hard.

London, England, United Kingdom (AHN) – To purchase a house, a Briton buying a unit for the first time would need $105,000 (70,000 pounds) savings to qualify for a mortgage. The amount is three times the average salary of British workers.

It is also $30,000 (20,000 pounds) more than the deposit required just four years ago after mortgage firms increased the required deposit to 43 percent in September, which is up from 30 percent in December 2006.

The move makes it even more difficult for first-time home buyers to acquire a house and reinforces a Bank of England warning issued last week that banks are implementing stricter rules before lending money because of fears more home owners would default on their loans as workers are laid off.

Because property prices in Britain remaining are so high and tax breaks to encourage first-time home buyers arenot sufficient to prevent another downturn in the real estate market, the International Monetary Fund warned of a double dip in the country’s property market.

The IMF pointed out a decline in property purchases after the stamp duty holiday on properties worth up to $262,500 (175,000 pounds) expired on December 2009. Former British Chancellor Alistair Darling replaced the stamp duty holiday in the March budget with a two-year exemption for first-time home buyers up to $375,000 (250,000 pounds).

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