Tag Archives: make money

Tips On Finding The Best Personal Loans Rates

December 9, 2018   Personal Loan

There are a number of suggestions for securing the best personal loans rates. The types of loans that are included often do not include collateral. Rather, the idea is usually to get a smaller amount for a shorter time. The money can be used for projects, paying credit cards, and covering the unexpected expenses. The rates are often tied to credit score, desperation, and other factors that can be good or bad according to the situation.

Taking the time to consider all options can provide savings and lower frustrations when applying for loans. When your credit is not great, banks may end up being less welcoming to your application. They also prefer longer term lending because they are able to make more money than they do over shorter periods. There are other lending centers that are friendlier to lower credit scores.

Banks may try to increase the interest amount for short term lending. Even with good credit, they usually try to find a way to maximize their return. If you are aware of your credit score before applying, you will have some room for negotiation. Though they often seem have set rates, with good credit they are often willing to work with you to find a good balance so they make money, and you are approved.

If there is property that can be leveraged, it can be helpful in lowering the interest. Using a vehicle title loan can provide a short infusion of money. For projects that include remodeling, where the amount is not going to be paid back quickly, using other property as collateral can help. Depending on the reason for the need, the use of collateral may or may not be possible.

Payday loans may be the best option when the money is needed quickly. Though the interest is often very high, the need for fast money can be met through these centers. There is no credit check, just employment verification. It is great for people that are just needing a small amount that will be paid back quickly. These are often used for keeping utilities on, getting groceries, and other small emergencies. They are not ideal for larger, longer term projects.

A line of credit can be helpful for those that have an established account with a bank. These can be obtained by talking with your banker about having the ability to keep a credit line available for times when you need it. If the line is not used, there are no payments or interest. Because it is a trusted relationship, the rates can be very reasonable.

It is tempting to apply for money everywhere. This is a bad idea for anyone. Banks see it as desperation and it will have a negative effect on your credit score. When you find yourself short on cash, it is tempting to seek help from any place that offers it. However, taking the time to consider the options and make the best choice will save the credit score for later.

There are times when planning ahead does not work out. The unexpected situations that life sends your way can be frustrating and require a need for more money than the paycheck provides. Locating the best personal loans rates includes doing some research, considering the options, and then applying for the best type.

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Hard money lenders explained

January 9, 2018   Home Mortgage

I recently attended a real estate investment seminar in Las Vegas. Between speeches by different “gurus” I would mingle with other investors and explain that I owned a hard money brokerage firm. Even though it has been around for almost a hundred years now, I was amazed how hard money lenders still seem to be mysterious to many investors. They either did not understand how the hard money lending industry worked or had heard that it was something they should avoid like the plague.
To put it simply, hard money loans are short term loans that are used for various real estate projects. The most common projects are house flipping, but they are also used in commercial construction and land development. Essentially, a hard money loan is often the best choice for money that is needed on a short term basis.
Unlike conventional financing, a hard money loan also known as a private loan originates from a private individual or institution unlike a bank. The loans are generally short term between 6 and 12 months and have a high, interest only payment generally between 10% and 14%
Another major difference between a hard money loan and a conventional loan is that a hard money loan is not based on a persons credit but instead on the value of the project after its completion. A good example is if John has a house that he wishes to rehab and sell for $100,000.00 a hard money lender will lend up to $65,000.00. This is what is known as Loan to Value or LTV. Most hard money lenders lend anywhere from 55% to 70% LTV depending upon what type of project the borrower has.
Now you are probably asking yourself what the catch is, how do these lenders make there money? Hard money lenders make there money 3 different ways. The first way they make there money is the closing costs. These are anywhere from 1 to 4 percentage points of the overall loan. These points are paid when the loan is completely paid off in full. The second way they make there money is the interest only monthly payments on the loan which is anywhere from 10% to 14%. The third way they make there money is if the borrower happens to default on the loan. Being as the loan is not based on the person’s credit, hard money loans are secured by the property itself. If a borrower defaults, the hard money lender now has a property or piece of land for 65% of what it is worth. However, it should be stated that this rarely occurs as most hard money lenders are not in the business of foreclosing on properties.
So should a borrower use a hard money lender? The simple answer is if a borrower has a real estate project that needs short term financing that a conventional bank will not lend on, yes.

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