Monthly Archives: June 2016

Hard Money Lending – The best way to save your project!

When you need outside financing support for your project you generally go for hard money lenders or banks. Both methods of financing projects are commonly used but procedures are completely different which could affect the outcome of your project! Time is money on a construction site so the quicker you get your money the better the outcome could be.

Identify and approach your situation

It is important to identify the situation you are in to be able to choose the best financing option for your needs. If you need fund frequently but have poor credit or no credit at all, hard money loan would be the best option for you. Hard money loan always works for quick and flexible financing needs. Hard money is a short-term loan that you can close within six months or less. There is less paper work required in hard money loans because the only information generally needed is property value and the investor’s information.

The change can be very positive and worth it!

There are many cases where investors need quick financing but they don’t get it in time and suffer big losses from that. This usually happens when the loan is applied through banks, as they require much more paperwork and time to review a list of factors that determines your qualifications. This is not a very appealing route for many people as they generally assume they will be declined after all the paperwork asked by the bank.

The deciding factors can be the condition on the property and how much risk is going to be taken in working with that company. Hard money loan specialists will work with you further in-depth and be more considerate of your situation for a higher rate in return on their fee due to risk. The most positive impact a hard money loan can have is saving a project!

Conclusion

You can save your project with hard money loans even if you have bad credit score or ineligible for standard mortgage loans. Hard money loan procedure is significantly faster than bank loans because there are very less paper works required. You can get fund quickly to save your project.

Magna Capital Group, Inc. is a hard money lender in Los Angeles, California with over 30 years of experience. For more information about our loan programs or to inquire about a loan call (323) 655-6888 or email at info@magnaenter.com.

Reasons Why Real Estate Investors Prefer Hard Money Loans!

Hard money is a type of financing used to finance properties for short-term. Nowadays hard money is a

great option for investors to fund real estate deals. If you have a bad credit score and planning of

getting a home loan, the chances of you getting the loan is very slim. Nowadays getting approved for a

home loan has been a challenge. Standards on lending have been tight which means if you don’t have a

good credit score or if you don’t have enough income and resources, you’re bound on getting

disapproved for the loan.

Residential hard money loans provide you with the fast funding and loan terms that you need to help

you reach your real estate goals. Terms of hard money loans are more flexible rather than traditional or

long-term mortgage loans. The advantage of a hard money loan is you can get the entire amount of

money you will need to complete a deal. Although most hard money-lenders loan 65 or 70 percent of

ARV; that is not the purchase price, that is how much the house will be worth once you fix up the

home.

Hard money lenders are well known on bridging the gap missed out by traditional lenders. That has

been the reason why they have become well known option for investors nowadays. Hard money

lenders, unlike traditional lenders, place little weigh on credit score. The focus of the hard money

lenders are on the property fundamentals and equity position. Though do expect that hard money loans

will cost higher compared to traditional loans, although if you’re an investor eyeing on a great

investment opportunity, hard money has lots of worth for you.

Which to choose – traditional or hard money?

While considering and checking which you should choose, if you’ll go the traditional or hard money,

here are pointers that might help you:

Traditional loans rates are really low. If you are able to get a traditional loan, than you are starting off

with a big advantage. Only the process of getting it is really difficult almost impossible if you have low

credit score. Also, there are lot of documents requirements in traditional loans. The process of

traditional loans usually take more than 30 days.

On the other hand, hard money loans do not really put much weigh on you credit score. The focus is

on the equity and property fundamentals. Rates are higher compared to traditional but the good thing is

if you are an investor, you can get an access to the funds on a very short time or may be in a day. The

process of hard money loans take not more than 5 days.

Conclusion:

If you have a bad credit score and hungrily need fund to fix your real estate deal, don’t waste your time

into getting traditional loans because it’s almost impossible with bad credit score. In this situation, only

hard money loans can help you to fix your deal quickly. Don’t be afraid to finance real estate with hard

money if that is your only option.

For more information about hard money lending, visit our website MagnaLoans.Com or call us today

on (323) 655-6888 or send us an email at info@magnaenter.com

Valid Reasons to Use Residential Hard Money Loans

Whether you’ve been going through a foreclosure in the recent past or want to buy an unconventional property to turn into your dream home, finding financing can be a real struggle for you. Even qualified borrowers can find it difficult to secure the loans that they need in order to buy residential properties in today’s market. For investors and borrowers who don’t meet conventional lending requirements, finding financing might even seem impossible. Thankfully, hard money loans are a viable option for residential buyers with unique needs. Hard money loans also known as equity-based or private financing which have long been used by real estate investors who want to purchase properties traditional lending institutions won’t finance. However, hard money loans can also be used by residential buyers who want to purchase homes or investment properties.

 

Residential private money loans can be used in a wide variety of buying situations. Although, some believe that these types of loans are only for those with poor credit, but that simply isn’t true. Here are some other situations when property buyers use residential hard money loans:

 

• Homes don’t meet the requirements of FHA lenders.

• Buyers want to turn non-conventional properties into homes.

• Traditional lenders are unable or unwilling to finance fix and flip loans.

• Buyers have a mortgage on another residence.

• Buyers need to finance purchases quickly.

 

Who Uses Residential Hard Money Loans?

 

Hard money loans are utilized by many different types of Borrowers because of its flexibility. Many real estate investors prefer to use hard money loans because they find properties that they want to buy and don’t have time to wait for approvals through traditional financing institutions. Other investors opt for these types of loans because they want to buy properties that must be rehabbed or are viewed as high risk by lenders due to their location or use history. Individuals who have been through foreclosure or bankruptcy may also be able to use hard money loans to purchase residential property.

 

Buyers who are considering using a private lender enjoy options that traditional lending institutions don’t offer. Whether you want to buy a distressed property or want to get back on track after a foreclosure, a private financing might be a good choice. With careful, advanced planning, private financing can provide for an excellent return on investment.

 

Conclusions: Hard money loans meet requirements in all kinds of buying situations. The advantages of easy access, flexibility, convenient requirements and rapid processing allow you to purchase residential or commercial properties quickly. For additional queries, call Magna Capital Group, Inc at (323) 655-6888 or visit https://magnaloans.com/beta/ today.