Hard money has its time and place for borrowers who cannot get traditional financing when they need it. And while it is a typically more expensive route, sometimes losing a great investment opportunity or home in a wonderful area can be costlier. So, why use this pricey avenue? Speed: In most non-owner or investment property […]
TRID Regs Bring Changes to Hard Money Deals
Raz writes that “the new integrated-disclosure rule known as TRID is excellent for consumers but also laborious for lenders. It will consequently have some short-term negative impact on lenders, including some hard money lenders — although in the longer term, it promises to offer benefits as well. The determination of whether a hard money loan […]
Investing in Real Estate
Investing in real estate is essentially one of the smartest and safest strategies to promote wealth building. With the proper foundation and knowledge, investing in real estate – or in this case,private lending – can prove to be highly lucrative for anyone. Of particular interest, however, is what an investor can do with the money they […]
Creating a Solid and Persuasive Executive Summary
Considering the enormity of paperwork and requirements demanded by conventional lenders, it is incredulous that brokers send files that are so incomplete. The most important component of a good file is the executive summary. Sometimes called a Pro-Forma or Summary, the Executive Summary is a general overview describing the borrower, the collateral, the request, and […]
Am I Candidate for a Hard Money Loan?
If you have strong equity in or a substantial down payment for a piece of real estate yet the banks decline you, you may be an ideal candidate for a hard money loan. Unlike mortgage banks or agencies like Fannie Mae or Freddie Mac, which have credit FICO score minimums, income to debt ratios, job […]
Advantages of Private Money
If the cost of private money financing is so much more expensive than institutional lending, then why use hard money? What are the advantages, if any, to private money loans? These are important questions that need to be asked and answered. While rate, cost, and terms are advantages to Fannie Mae or Freddie Mac institutional […]
10 Reasons For Private Money
WHY PRIVATE MONEY? With the additional rate and costs, why would a borrower opt for hard money, rather than institutional financing? Here are the 10 most common reasons: 1. Time – Traditional lending typically takes 30 – 45 days to complete. Often, borrowers cannot wait, and thus a quick private bridge loan makes more sense. […]
5 Trust Deed Investment Parameters
If you are seriously considering a Trust Deed Investment, here are the five key criteria when judging whether a loan may be right for hard money! 1. LOAN TO VALUE RATIO 2. TYPE OF PROPERTY 3. LOCATION 4. CASH FLOW OR INCOME OF PROPERTY 5. EXIT STATEGY Most Investors know that equity in the property […]