Hard Money Loans

Hard money loans are tools for investors, business owners, property owners, would-be property owners and others for whom conventional loans are unattractive or unavailable. Originally, the term was used to describe any loan that was secured by property or other collateral, as opposed to unsecured borrowing, such as cash advances from a credit card or bank line of credit. Today, although the meaning has not really changed, the way that the term is used has. It can all be confusing to the average person, so we hope to shed a little light on the subject.

At one time, it was relatively easy to get a hard money loan. The bank knew that if you could not make your payments, they could take possession of your property. The only real consideration was the value of your property.

Times have changed. Foreclosures take longer. Banks are often unable to recoup their losses. The large number of defaults in recent years has actually hurt some of the financial institutions. Believe it or not, the funds that commercial lenders have available are not endless. Some have had to reduce the number of loans that they make. In general, all lending institutions have adopted stricter qualifications for potential borrowers, in many cases, making it more difficult for individuals to get the money that they need.

Commercial banks are governed by the Federal Reserve and they must follow certain rules and regulations. In addition, each bank has its own policies. We commonly refer to the considerations, rules, regulations and bank policies as red tape. When we apply for a loan, the paperwork can be overwhelming and very difficult for the layman to understand. Read this, initial here, sign there, etc, etc. The red tape is meant to protect the consumer and the bank, but even when you understand that, it can be frustrating. Plus, the whole process takes a lot of time. You might wait weeks, only to hear that your request was denied.

This is where private lenders offering hard money loans may come in. In most of the United States, private transactions are not regulated by state or federal laws. There is less red tape, so you will get your answer faster. There is still no guarantee, but at least you will know that you should look elsewhere for financing in a shorter period of time. There will be less confusion and less frustration. Of course, the policies of individual lenders vary. Some check credit, references and employment. Others are more concerned about how quickly you can repay.

A hard money loan is generally a short term solution. It is most attractive to investors and others that need money quickly, in a matter of weeks, to close on a deal or take advantage of a potentially profitable opportunity. Long term financing may be available, but in the time it takes to find it, the opportunity may be lost.

There are several advantages to hard money loans from private lenders, as opposed to secured loans from conventional lenders (the banks), particularly for real estate investors. Suppose you have the opportunity to buy a property that “needs work”. The seller is particularly motivated because he is facing foreclosure or moving out of state, so he is willing to sell for far below the assessed value of the property, as long as you can close the deal quickly. If you go to the banks, it will take at least 30-45 days (probably more) to close. A private lender may be able to hand you a check in a much shorter period of time.

Time is very important to someone who wants to take advantage of the auction of a foreclosed property or a trustee’s sale. You may have the bidder’s fee, but the trustees typically want the full amount within 14 days. The banks do not work that fast.

For those who can wait for the money they need for a real estate investment, traditional loans might be the way to go. But for everyone else, hard money loans make a lot of sense.

James has been in real estate for over 30 years and is an expert on residential and commercial hard money loans. He is a regular contributer to Hard Money Guide, a comprehensive resource for those looking to secure funding for real estate projects.

Author: James Whitmore
Article Source: EzineArticles.com
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It’s difficult enough to have to pack all your life to move into a new home, but when you have to do that and still, do it fast, you better have an easy and practical method to support you, otherwise the memories you will hold for years to come will be bitter and frustrating, turning what should have been a joyous occasion into a living nightmare!

Luckily, that easy and practical method is reachable; there are many ways to make any fast move go smoothly and enjoyably, and it has all to do with organization. Follow these tips and find the bright side of moving.

1. Prepare a list. Write down everything, no matter how insignificant it seems. Create a simple record keeping system to pack boxes, be it numbers, colors, or anything else. Get a notebook and write down in detail everything that goes in each labeled box, when it is ready, put it down on your designated “To Go Central”, meaning, everything that is there is ready to go. You should also have a packing area, where you have everything from scissors to labels, tape and markers.

2. Have enough supplies. Get enough boxes, better safe than sorry. Save around ten boxes for last minute packing, things like bedding, clothing, and cleaning supplies. Use strong tape and unprinted newspaper or bubble wrap to protect your belongings. You will need more than you think of everything, so get a lot of supplies and return what’s left at the end.

3. Use wardrobe boxes. They are great for things like pillows, comforters, blankets, and clothes. Calculate how many boxes you will need and ask the Seattle moving company to bring enough so that you don’t have to over stuff each.

4. Use wardrobe boxes strategically. The movers can move some of your things ahead of time, thus, pack a little ahead of time and as early as possible. Also, take advantage of the size of the boxes and fill them in a way that is easy to unpack and to keep everything organized inside: shopping bags filled with several closet items at the bottom, then hanging clothes, and finally some purses or sweaters.

5. Coordinate colors. Choose a color for each room in your new home, put a color sticker on each box, near the number, and put a matching sticker on the door of every room. In this way, the movers will know where everything goes.

6. Keep together things that belong together. Tape small parts to the items these belong to, or put them inside an envelope. Picture hooks with pictures and shelf brackets with bookcases. Designate a “parts box” and put any cables, pieces, parts or nails that appear here and there inside, so that you can easily find everything on moving day.

7. Pack ahead. Anything you can pack ahead of time will free you to take care of important stuff on moving day. Leave only the indispensable and pack everything else.

8. Organize cleaning supplies. Clean you old place ahead of time, but have a cleaning kit ready for action on moving day.

9. Use luggage to pack. Fill them with clothes, sheets, towels and papers.

10. Keep an eye on valuables. As much as possible, everything valuable must remain with you. Review the movers’ insurance to see how you are covered in case you lose something.

11. Guard important papers. This means birth certificates, school records, mover estimates, job contracts, utility company numbers, bank records, bills, phone lists, closing papers, realtor information, maps and installation manuals. Always keep them with you.

12. Get a box for each person. Each family member should get a special box. It should contain items that will be needed immediately after the move.

If you enjoyed this article, please feel free to post it to your site or blog and forward this link to your friends. Have a great day!

Don’t forget to visit our moving blog.

Joe Tacoma has written numerous articles for Puget Sound Moving, expert movers in Seattle, Washington and surrounding areas. Their blog is full of great moving and packing tips; check it out at www.psmoving.com/blogArticle Source:http://www.articlesbase.com/real-estate-articles/12-tips-to-handle-a-last-minute-move-1352130.html