Tag Archives: money
Hard Money Loans
Commercial Hard Money Loans
Commercial Hard Money Loans are real estate loans based primarily on the collateral. Real estate collateral is the protective equity in the real estate transaction, and is the primary factor in qualifying for a Hard Money Loan. These types of loans are typically provided by Private Lenders who are looking for sound transactions based on equity and not on credit scores.
Hard Money Loans are an option when a real estate transaction falls outside the parameters of conventional lending standards of banks, life insurance companies, and other sources of traditional loans. Conventional loans are based on the borrowers credit and income, but credit and income are not primary factors with hard money loans. Banks have government regulations to contend with, where as regulatory red tape can be bypassed with Hard Money loans due to their origination being with Private Lenders.
Private Lenders, or Hard Money Loans, are a source of funding for:
* Property acquisition with little or no cash from the borrower.
* Short term cash for development, or to rehabilitate property.
* Investment capital instead of a business partner.
* Transactions that need to close quickly.
* Transactions that dont qualify for conventional financing.
* Borrowers who dont have the normal income documentation banks require.
* When other properties, or assets can be provided in tailoring a loan.
* For sound transactions that make sense to use this approach.
Being a Private Lender and not a bank allows the Lender to make quick decisions. It also allows the Lender to provide more flexibility in structuring the deal. There can be many advantages when working with a Lender that can tailor the transaction and make quick decisions.
** Benefits of using Hard Money Loans **
1. Easy Application Process – Private Lenders base their decisions on the current quick-sale market value, the purchase price, and condition of the property being offered as collateral.
2. Uniqueness of the collateral – special use properties and personal property, which are not acceptable to a bank, may be considered by the Private Lender.
3. Flexibility – Private Lenders have the ability to tailor the loan to meet the needs of the
4. transaction.
5. Seasoning – a property without a track record of payments can still qualify.
6. Quick Closings – since the propertys equity is the primary factor, less information on the borrower is required.
7. No Pre-payment penalties – Hard Money Loans are typically used for short-term situations.
8. Therefore, in many cases early payment of the loan does not penalize the borrower.
9. Pre-qualification – allows borrower to be a cash buyer.
Although understanding the benefits, what most borrowers consider the downside of Hard Money Loans is the interest rate.
Yes, the rates are higher than conventional financing, and if that was the only consideration then Hard Money Loans might not look like a viable means of financing. However, when a borrower is analyzing the entire transaction and not just the expenses, the borrower may well find the profits far out ways the short term costs. To illustrate this, in a recent transaction a borrower paid what he considered an exorbitant short-term interest rate, but after he netted $3 million in 30 days in flipping a commercial property, the rate was really inconsequential.
It is the quick and flexible access to capital that makes the borrower money. When considering rates, consider that “time is money.” What are the benefits of a quick acquisition? Does the Hard Money Loan allow the borrower to make money on real estate that would otherwise need to be bypassed?
Many transactions seeking financing, dont meet the requirements of a bank loan, dont have adequate borrower credit, income or documentation, or involve commercial property that is in some stage of need of repair. These factors increase the risk of the transaction and eliminate the conventional lender as a source of funding. Private Lenders will accept the risk and this is reflected in the interest rate. As in all things financial – the higher the risk, the higher the rate of return.
Instead of forfeiting a deal, work with a Lender that has the ability to offer alternatives and meet critical time lines. For many commercial borrowers Hard Money Loans have become an alternative source of funding they rely on to generate profits.
** Tips **
* Work with Lenders who are themselves Investors instead of bankers. The will have a better understanding of what you need and what you will be faced with.
* Consider the Lenders involvement as a positive. The more feedback they can provide, the more dedicated they are to your project, the better chances of your success.
* Although other real estate and personal assets can be provided for additional collateral, so you dont lose everything in the event of a default, consider properties that have the equity to support the transaction by themselves.
* Ask that the Lenders process be explained in detail – step by step.
* Understand the different fees and amounts charged by a Hard Money Lender.
* Use Hard Money Loans when you need: quick closings, have an opportunistic acquisition, rehabbing distressed property, sale/leasebacks, bridge financing, construction, short term financing, transactions that dont meet normal bank standards, and avoiding foreclosure.
************************************************
Funding Projects
For assistance in funding a project please review information from The Project Corporation, a professional consulting firm with expertise in business funding.
For more information on obtaining funds from the capital marketplace please visit Business Loans and Venture Capital
Same day loans-Solve small fiscal problems instantly
Do you need instant additional money? If you find your payday as inadequate to meet your financial desires, here are same day loans for you. This is the feasible and hassle free financial deal that cover your unwanted fiscal crunches right within least possible time. If there is time when you are facing financial crisis between two of your consecutive paydays, the assistance of this loan could be beneficial and appropriate fiscal aid for you.
One can approve with the application of same day loans after meeting the mentioned below lending criteria, such as:
1. The applicant should be a permanent citizen of UK
2. He should have an active checking account not more than 3 months old.
3. He should be in regular employment earning at least £1000 per month
4. Applicant should be an adult with eighteen years or more.
5. Also, a full time or part time employment is necessary.
Same day loans are short term loan aid that is temporary in nature and free form collateral demand. Thus, one can avail the assistance of this loan aid without undergoing any collateral assessment mess and related extensive paper work to fax. Loan money that the borrowers can avail can be ranges from £100 to £1500. It depends upon your monthly income and can be repaid back when you receive your upcoming payday in account. One can remove the financial stress after meeting his dire needs and desires like going for small vacations, purchase a television for your home, paying off grocery bills, meeting small medical care costs and so on. It also offers loans for unemployed.
If you are affected with several bad factors like insolvency, foreclosures, bankruptcy, skipped payments, arrears, defaults and so on, you are welcome to get the aid of same day loans. This loan does not follow credit checking process and allow all the applicants to enjoy this fiscal aid with ease. Thus, there will be no credit issues and borrower with any type of credit scores can apply with this loan aid.
Internet helps to grab the deal with affordable rates. Online financial market is awash with lenders offering the loan deal. Comparisons between quotes and negotiating with the lender are helpful in grabbing the reasonable deal. Also, application just involved filling a single online application form with few required details. Loan money will transfer in your checking account once you are approved. The assistance of this loan let you access the desired money within the matter of few clicks.