Hard Money Loans

Are you in emergency and thinking about from where money will come? Don’t be unnerved, you can go for the short term payday loans. These loans are designed with the objective of short term requirements. You can’t use these loans with the objectives of long term. There are many options for you in the market. Terms, rate of interest also vary from lender to lender. You should search the market thoroughly, you will definitely find a cheap loan for you. These loans have nothing to do with the past credit history of a borrower. If you have regular monthly income then these loans are not that much difficult to get. Lenders are trying hard to tap the potential short term profitable market. These loans are generally comes at a higher interest rate. But they surely help you while you are in money problem.

Generally these Payday loans are processed through the internet so very fast. You can get a loan amount in your account within an hour of application. You can also use these loan amount in any purposes. You can use these loans to shopping or if your paycheck is late and you need to do payment of something then you can think of these loans. Though these loans are basically aimed at salaried people and to fulfill the requirements of the gap period between the two paychecks. These loans are not specified for anything. You can also take it to medical treatments.

The banking technology has evolved beyond our imaginations. You can now avail the services of banks from your bed room. Almost all the lenders are providing the on line facilities. The on line banking is not only convenient but also less time consuming. You can apply for the loan with out paper works and taking a leave from office. For more information you can go to the websites of the bank. There are many lenders in the UK market providing loans in a lucrative terms, find out the best one.

High Risk Unsecured extremely Bad Credit Personal Loans are totally for the people who are out of pocket and they are pain from bad credit record, other than need cash to meet unexpected expenses or to clear off the present debts. They can obtain High Risk Unsecured Very Bad Credit Personal Loans without difficulty being as well bad credit record. There are lots of lenders ready to get high risk on your credit record because the lenders provide this loan Very Bad Credit Personal Loans keeping good credit record in their mind.

Due to unsecured personal loans the lenders will indict high interest rate On your High Risk Unsecured Very Bad Credit Personal Loans. This loan is the ideal answer for the borrowers who are under default arrears; CCJs, IVA or bankruptcy and they are in urgent want of cash. At that condition provision for the money is become hard and fast for you for the reason that on your bad credit record a lot of lenders or credit agencies will not desire to risk to provide loans other than numerous lenders of this loan are set to give you High Risk Unsecured Very Bad Credit Personal Loans on your bad credit history, off course, it is risky for the lenders.

The main reason of the lenders is to approval to the customer. You can obtain up to $25000 within few hours by filling up a these loans form. High Risk Unsecured Very Bad Credit Personal Loans are usually not processed by banks or credit combinations. Nowadays, High Risk Unsecured Very Bad Credit Personal Loans are provided numerous lenders above Internet.

Availing this loan over internet you are to fill up an online request form and rest of the will be completed by the lenders, after the confirmation this loan will be transferred honestly into your account by the flexible. You can make use of High Risk Unsecured Personal Loans for various purposes similar to pay the health check bill or other unexpected bills and house improvement, vehicle repair, pay off the last debt, discharge the wedding expenses etc. you can as well varied your credit record bad to good. If you have High Risk Unsecured Very Bad Credit Personal Loans, you can clear off all the unexpected urgent situations without difficulty.

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.

BofA joins Chase in eliminating brokers, blamed for many toxic loans.

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Nothing is certain in our economy these days. Many people and businesses are still in quite good shape, but plenty of others haven’t been so lucky, and have had to close their businesses, and have filed bankruptcy or been foreclosed upon. And now, unfortunately, sub-prime mortgages aren’t available for assistance they way they used to be, due to the recent subprime mortgage crisis. It’s become much more difficult to know where to turn when it’s your financial future at stake.

If you’re one of the many, stuck between a financial rock and a hard place (or a foreclosure and a bankruptcy, as the case may be), it may be advantageous for you to look into taking out a hard money loan. Hard money loans are utilized by many people facing foreclosure or similar financial disaster, as the criteria for lending is more relaxed than a conventional loan. While your credit history is still taken into consideration by the lender, it’s typically not judged as harshly because the loan is given based on the value of real estate property you already own. Due to the slightly higher risk to the lender when dealing with hard money loans, they are not provided by banks but rather by private lenders, and as such, the interest rates of these loans aren’t based on bank rates. Typically the interest rate on a hard money loan will range from 15% – 25% (a little less for bridge loans, which are similar, but not necessarily used in times of financial hardship), which means that you probably don’t want to look to hard money loans as sources of long-term financing. The term is, in fact, often fairly short. Decide carefully if you’ll be able to afford the loan, as interest rates upon default may increase to the state limits, as high as 25% to 29%.

Typically the value of a hard money loan is about 65% – 70% of the value of the property. This is known as the LTV (Loan-To-Value). The LTV, on average used to be a bit higher than it currently is, but due to property value overestimation in the 1980s and 1990s, the LTV was lowered, and interest rates raised. Hard money lenders do usually want to be in “first lien” position (this means that their lien would take priority over any others) on a property, so if the value of that property isn’t enough to cover your existing mortgage, the loan would need to be cross-collateralized with another one of your properties. Often, these cases are called “blanket mortgages.”

It’s important to review your financial situation thoroughly when considering taking out a hard money loan, and it might benefit you to talk to a certified mortgage planner before you make the choice to do so. In the right circumstances however, a hard money loan may be what it takes to tide you over, and keep your business from going under.

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 is wise to only use a source that has been referred to borrowers by an experienced, unbiased third party.   This segment of the industry is filled with unethical people that have the bad habit of taking $15,000 good faith deposits with no intention of funding loans.  For many borrowers this $15,000 may be their last chunk of cash and they can’t make the mistake of going with the wrong commercial hard money lender.   Borrowers have almost no recourse either as most have to sign agreements stating that the fee is non refundable and the Letter of Intent is only a letter of “interest”.   Which of course, relieves the hard money lender of funding the deal. 

There are different standards and strategies that real estate investor’s use when evaluating properties. In order for us to get involved with a property, the following standards are judged for the worthiness of any rehab project:
“You should look for the worst house on a decent block”
1) Whether your strategy is to “flip” properties, or to hold them for their rental cash flow, it’s important to be able to draw potential buyers, or strong potential tenants, as quickly as possible. With this in mind, you should look at properties on streets that are maintained properly. This does not limit you to higher end homes. There are many “blue collar” areas that properly maintain the condition of their homes and yards. However, a street that has poorly maintained properties or many vacancies do not lend themselves to fast turn around sales or well suited tenants.
Always remember that this is an investment. You take on a large risk, and a lot of work as a rehabber. No matter how much loving care you put into your property, you can do nothing about the condition of your neighbor’s property.
2) Make certain that there is no structural damage to the property. This could be a fatal blow to your investment!
“You make your money when you buy a property, not when you sell it!”
Purchasing Formula
There are many formulas used for the successful purchase of a rehab project. It’s important to use one. There must always be a comfortable cushion between the purchase price and the selling price of investment property. This cushion price will help you achieve a successful investment, even if you have repair cost over-runs, or hold on to the property longer than you had anticipated. Remember, every day that the property is not sold or rented comes right off your bottom line. The interest, taxes, insurance, and utility bills compound each day. Buying the property at the right price will protect you from Murphy’s Law.
Our Funding formula:
1) Establish an after repair value for your property.
(Get “area comps” and view each one. Pick out the property that has a street that is most similar to your house’s street, and a structure that is closest to your house’s structure, and then compare the square footage, amount of bedrooms and bathrooms that are all listed on the “comps.” This will help establish a real fair market value for your property).

2) Multiply the ARV x .65 (After Repair Value)
(This will give you 65% of the ARV).
3) Establish a comprehensive and accurate list of repairs that you plan to do to the property, and estimate the costs for each repair.
(This is important. If you are knowledgeable and experienced in doing repair work, you may not need help. If you are not experienced or skilled in this, find someone who is and have them draw up a plan. Even if it costs you a little money to get them out there, this could save you thousands of dollars).
4) Subtract the cost of repairs from the 65% value of the ARV. (After Repair Value) This should be the maximum price that you pay for the property! This is a conservative formula, and it usually works well. Remember, anyone can buy a property at close to fair market value, but with your costs and risks, you must do better!
Written by Jim Olivero

Foreclosure rates are on the increase all over the country, causing alarm. The market has also seen an increase in defaults and higher loan-to-value ratios are making it more difficult than ever before for borrowers to find refinancing. However, no matter how bleak things seem, there is still an alternative to foreclosure in the form of hard-money loans. Also referred to as bridge loans, since they provide temporary financing for credit repair and property seasoning purposes, hard money loans can help to stop a foreclosure.

Homeowners who have been out of work and have now found a job may still be unable to meet the full payment demanded by the bank. But, due to improved circumstances, they will be able to make their regular monthly payments. A home foreclosure at this stage would ruin their credit rating and their current ability to make payments, seems like an unnecessary and extreme step. However, the lender may not be willing to accept anything less than the payment in full, leaving the homeowner with very few options. This is a typical situation where a hard money loan can be of help.

Depending on the amount of equity in the house and its current worth, some homeowners can qualify for a hard money loan. Such loans are generally offered by specific lenders and in spite of no special costs being involved, these lenders can close on a loan quite quickly. Hard money loans are available from groups of private investors, pooling their money to invest in real estate. These loans are used when the borrower has limited time left to close a loan. Alternatively, they can be used when the borrower does not want to give out their credit history or when they plan to keep the property only for a limited period of time or when there is already a plan to refinance in a short while after closing.

Real estate is the collateral asset in hard money loans and the lender assumes a lien on the property. The size of the loan, its rate and the term is based on the equity, the marketability of the property and the financial standing of the borrower can be used quickly by homeowners running out of time and options, to stop a foreclosure. There are myths about these loans, based on the impression that they have soaring interest rates and low loan-to-value ratios. In truth, hard money loans do carry a higher interest rate, but they are generally in the 12% range rather than the 18% range. The key issue is the valuation of the property. One of the methods for determining value is an appraisal by an objective third party with no connection whatsoever to the transaction. An accurate valuation of the market purchase price must be extensive and include relevant information about the property. Most such reports also feature a comparison with similar properties and an overview of the local real estate market, along with other relevant issues.

Homeowners who qualify for these loans may have to pay a premium to get this new loan to stop a foreclosure in progress. Hard money lenders can charge 4 to 5 points of the loan as their fee. Hard money loans are a perfectly viable solution for homeowners in foreclosure who are able to meet the requirements. Although expensive, these loans provide foreclosure victims a short term solution, giving them a chance to keep their homes. It allows them to rebuild their payment history.

We all know banks are not lending money.

We also know that the few opportunities that may exist from borrowing are made much  more difficult by the banks requiring better credit than ever, and many of you have suffered credit hits because of the current downturn, reduced revenues and increased overhead expenses.  Thus, it is even harder to get a loan.

This is a problem.

Aside from normal operating requirements requiring lines of credit, and the desire to make acquisitions of many sorts, there is also a great need for capital to fund workouts. Workouts reduce debt paying small amounts in consideration of large reductions of debt. But you must be able to support the cash requirement or it cannot be done.

Frequently this becomes a critical issue as a workout may mean you remain financially alive so the capital required to fund a workout is critical to your emergence and survival.
So what does one do when loans are generally unavailable and with an upside down situation even with good credit banks are reluctant to lend to you.

The answer, hard money. Non bank lending, private lending, high points, high interest, low loan to value ratio but flexible terms.
Currently we are arranging a hard money loan with 10 points and 14 – 16% interest…Wow! Who would believe this? Not all hard money lenders are this steep but this situation is.

Why would someone do this? Simple, the nest savings will be many hundreds of thousands of dollars, about a million, and the actual cost of the loan for the first year is about $50,000. Steep? Yes. But compared to saving his business and reducing his debt by a million, the $50,000 is a bargain. It facilitated huge gain and survival, all for a mere $50,000.

This here is a place for hard money even at its hardest. Especially when supporting a workout…

Call us if this issue is holding you back…There is an answer.

Call Norm at 413-584-2581…he will arrange a no obligation teleconference for us to discuss your options.

For real estate investors there are numerous benefits and advantages to private real estate money versus hard money loans or mortgage loans to fund your real estate investing business. Knowing the advantages can mean the difference between making a real estate deal work or losing a good deal to your competitors.

As the credit-bubble continues to unwind, traditional sources of real estate financing are drying up and real estate investors need to find alternative sources of capital such as private real estate money.

Advantage #1: Speed and Cash Flow

The ability to close a real estate deal in less than two weeks is a huge advantage over having to wait weeks or even months for a typical bank loan approval. The importance of speed cannot be overstated in a competitive market and quick cash gives you a big edge over other investors.

Imagine if you are the seller and someone comes to you to buy your house and has a two or three month escrow period before closing plus several financing contingencies versus another investors who will close in two weeks with no contingences.

Not hard to tell which offer the seller will accept. And the real power of this offer is the seller may accept a lower price to close quickly with no contingencies. So not only do you get the deal from the other investor, but you get it at a lower price. The power of private real estate money is the ability to close quickly and drive better deals terms to your advantage.

Advantage #2: Simple Paperwork

Have you ever gone to a closing on a traditional mortgage loan and had to sign 2 inches of paper work. Now image going to closing and only signing two or three documents (yes that is not misprint).

Private real estate money deals are incredible simple and the total paperwork is normally less than 10 pages and includes two or three simple documents. The documents included in a private real estate money transaction are a mortgage (Deed of Trust), an installment note and possible a disclosure statement. The only other required paper work is to name your lender on your property insurance as you would in any normal loan situation.

Advantage #3: You Control Terms and Conditions

One of the incredible advantages of a private real estate money transaction is you control the terms and conditions of the loan. For example, you can offer a very short term loan of only 6 months if you know you are going to flip the property for quick profit. Or you can offer a 5 or 10 year term if you plan on holding the property for a long term rental.

You can also control the conditions of the loan such as not allowing a prepayment penalty for early prepayment. Most normal mortgages and hard money loans require a 1% to 10% prepayment penalty to pay a loan off early. With private lending transaction you control the conditions and can simply add a clause that allows an early prepayment without a penalty. That can mean a huge savings down the road.

Advantage #4: Reduced Fees and Costs

Private real estate money is less costly than mortgage loans or hard money loans. For example, most hard money loans can ultimately have total interest cost of 20% or greater by the time you factor in all the fees, points, interest and other costs. Even mortgage loans can be very costly with fees and upfront points factored in and the high interest rates most investors must pay versus home owners. Loans from private real estate money sources usually have no points and very few costs. The total cost of most private loans is somewhere in the 9% to 15% range with little upfront or back-end fees.

Advantage #5: Flexibility

Private real estate money provides tremendous flexibility for both you the borrower, but also for the private lender. The private lender can invest small amounts of $5,000 or less in deals or large amounts to fund larger apartments or commercial property purchases. You can also work with lenders to structure a term that fits the lenders needs.