Monthly Archives: December 2017

Five Simple Requirements Of Getting Hard Money Rehab Loans

A hard money rehab loan is a short-term financing option used by real estate investors to purchase and renovate investment properties. Hard money rehab loans allow investors to purchase homes in need of renovation and rehabilitation under terms that are more flexible than traditional, long-term mortgage loans. Rehab loans are issued as a percentage of a property’s expected after-repair-value (ARV). A property’s ARV is equal to the expected amount the property will sell for after all renovations are made.

Hard money rehab loans usually have a quick approval process, 06-12 months financing terms, and good interest rates between 7.5% – 12%. Hard money lenders offer rehab loans of up to 75% ARV and can get investors funded in as little as 10 days. Further, they fund the purchase and renovation of both single-family homes and multi-unit properties, as well as offer interest-only payments, making it a good option for rehab investors.

If you found the perfect Rehab or Flip Deal and can’t find a traditional bank to lend or approve the financing you need, hard money rehab loan would be the best option for you. You can utilize easy lending criteria and quick closing services of a hard money lender that will finance a rehab loan quickly than a traditional bank. Every hard money lender has a set of requirements to fund and close a rehab loan. Here are some of the basic information required by most hard money lenders:

1. Interior And Exterior Photos Of The Property
You will be asked to provide photos of the exterior and interior of the subject property. For external photos, it would be ideal to provide a front, rear, sides of the property, as well as street scenes. For the interior, a few images of the various room, units, property amenities and good to see images would be helpful. You can also provide extensive photos of the property areas that will be repaired, replaced or removed, digital copies and a walk-through video. The more pictures submitted, the better the chances of approval.

2. Bid For Repairs:
Hard money lenders will require written estimates in order to process rehab loan application. You can contact a local contractor, handyman or repair specialist and get written estimates. Also, if you plan on painting and doing the make-ready yourself – still get a bid for repairs to give to your potential hard money lender.

3. Purchase Agreement:
They will need to see a signed copy of the purchase contract, the title company, and special escrow funding instructions if any. A real estate purchase contract is a binding agreement between two or more parties for the purchase, exchange or other conveyance of real property. Showing them a copy of the contract you plan to use is still a smart move and will make your property report compete and legit.

4. Proof of Insurance (POI):
You will need to provide proof of insurance to your hard money lender. It’s a type of documentation that a person can provide to another individual proving that the person has valid insurance with an insurance company. You can contact your insurance agent and get a quote for liability and hazard insurance for your hard money lender. This will ensure that the lender will be repaid in the event of the severe act of vandalism or catastrophic loss that occurs.

5. Preliminary Title Report:

This document is a tricky one. Some hard money lenders prefer to work with the certain title company. If you have a preliminary title report or confirmation that there is not a clouded title share this information with your potential hard money lender, else you don’t need to purchase title insurance or a full certified report.

Each hard money lenders have their own unique set of requirements based on their lending area, property purchase price, commercial vs residential, and loan repayment terms, but they always like to work with well informed and serious real estate investors.

The Bottom Line:
Hard money rehab loans are great for the fix and flip projects and for buying rental properties that need a small repair work done. Hard money rehab loans offer real estate investors a short-term loan with interest-only payments, quick approval times, and facilitate both the purchase of a house and it’s rehab costs into a single loan.

If you are looking for hard money rehab loans, take a few minutes to read these basic requirements to get your real estate investment deals funded quickly. To apply now or to get more information on our hard money rehab lending programs, contact Magna Capital Group, Inc. today and speak with one of our expert representatives at (310) 734 4044 or email at info@magnaloans.com.


What To Do If Bank Denied Your Mortgage Loan Application?

If your bank has rejected your mortgage application, it means there is something wrong with your financial records. You might want to know what to do next, why were you denied, how long do you need to wait before applying again, and what steps can you take to prevent it from happening again? It’s important to know the real causes of your loan rejection because it will probably continue to happen if you don’t take action.

Here are some important steps that you should take after your mortgage loan rejection:

Find Out Rejection Factors:
The first thing you should do is find out exactly what happened. Once your mortgage loan application denied, the bank is required to provide specific reasons in writing within 30 days explaining why they’ve been turned down. The most common reason for mortgage loan application rejection is either insufficient income or bad credit. This step will help you to know the actual causes of your loan rejection and make the right decisions without repeating the same mistakes, so that your loan application may get accepted in the future.

Understand The Problems and Fix Them Quickly:
To avoid your future loan rejection, it’s important to understand the actual reasons for your previous loan rejection. This is a very helpful step if you’re considering re-application in the future. Once you identify the problems, take the necessary steps to make it right. Make sure that your credit history and monthly income is up to the eligibility criteria. If you cannot fix these issues, then you might want to consider the next step.

Check With Other Mortgage Lenders:
If you’ve been denied by the bank, it doesn’t mean every lender will reject your application. There should be many hard money lenders in your locality who can help you out. They can provide you better loan programs that can more accurately fit your financial requirements.

The Bottom Line:
If you are unable to fix those issues due to which your loan application was denied by the bank, hard money loans would be the best choice for you. A hard money loan is simply a short-term loan secured by real estate that can be obtained faster and easier than a conventional loan. Hard money loans are backed by the value of the property, not by the creditworthiness of the borrower.

Hard money loans are very beneficial for those who cannot qualify for conventional loans cause of their poor credit score or bad financial records. If you need quick financial solutions and cannot wait for or do not qualify for conventional banking approvals, you can apply for hard money loans. The loan application is very simple and quick. Hard money lenders typically take one to two days and may even be approved the same day.

Magna Capital Group, Inc. provides private money financing on residential and commercial properties of all types throughout California. With over 35 years of experience in the real estate industry, we provide unmatched expertise in customizing a loan structure to meet our client’s specific funding requirements with minimal documentation. If you have any questions about our hard money loan programs, feel free to call us now at (310) 734 4044 or email at info@magnaloans.com.


Six Easy Steps to Get Funded With Hard Money Loans Quickly!

If you are close to foreclosure or cannot find a traditional lender who will meet your odd financing requirements, you can consider getting a hard money loan. A hard money loan is simply a short-term loan secured by real estate property. Hard money lenders offer loans that traditional financial institutions can’t: they move quickly and lend based on collateral instead of credit scores. The loan terms are usually around 6 to 12 months and can be borrowed on almost any type of property including single-family residential, multi-family residential, commercial, land, and industrial.

If you have sufficient equity in your property and need fund quickly, follow these 6 easy steps to get a hard money loan easily and quickly:

1. Find A Local Hard Money Lender:
Find trusted hard money lenders like Magna Capital Group, Inc. who lend money in your locality. You can Google it or visit a local real estate network and get referrals from real estate professionals about a local money lender. Magna Capital Group, Inc. is a leading hard money lender in California, provides hassle-free equity-based private and hard money loans for residential and commercial properties. For more information, you can call at (310) 734 4044 or email at info@magnaloans.com.

2. Interview Selected Hard Money Lenders:
This is the second important step after getting some hard money lenders in your locality. You can call each hard money lender to begin the interview. Go through a brief conversation with them to understand each strategy properly. Here are some important questions that you can ask hard money lenders in order to choose the best one:
a) how much experience do you have?
b) are you a licensed lender?
c) can you show me your references?
d) how do you fix your interest rate?
e) how fast you can approve my loan application?
f) how much LTV can you offer?
g) what types of loans do you offer?
By asking these questions, you can get a good sense of the lender’s services and criteria, helping you to find just the right one for your investment property.

3. Select A Lender And Apply For The Loan:
On the basis of your interview, you can select one of the best hard money lenders from your list and submit your loan application. The process of a hard money loan is very quick and easy. You have to fill a short personal financial statement about yourself, liabilities, expenses, income, assets, subject property and employment. It will take few minutes to apply for a hard money loan.

4. Sign Disclosures:
After submitting your loan application you need to sign disclosures. E-sign consent is the primary disclosure. Permission is given to the money lender so they can send documents to you through the mail. You have to follow the privacy policy, fair lending notice, hazard insurance disclosure and mortgage disclosure statement to apply for the loan.

5. Sign Loans Documents:
The loan documents will only be ready when you will sign the disclosures. There are certain things that make up the loan documents –
• Payment Guarantee
• Note
• Escrow Instructions
• Deed of Trust
• Arbitration Agreement

6. Wire Down Payment:
After signing all the documents, you will be asked to pay down payment. Once it is confirmed by the escrow that your hard money lender has received all the documents then the loan will be funded to you.

The Bottle Line:
If you are a real estate investor with great buying opportunity but cannot get fund from anywhere, you can apply for hard money loans to secure the financing you need. These six simple steps can help you to get your hard money loan approved quickly and smoothly.

A private hard money lender like Magna Capital Group, Inc. can fund quickly within a flexible structure and without prepayment penalties that can unintentionally hinder the success of your business. For more information about hard money loan or our loan programs, please feel free to us at (310) 734 4044 or Email at info@magnaloans.com.


Recent Comments

    Although Magna Enterprises, LLC and Magna Capital Group, Inc. are referred to throughout the text of this website as Magna Group of companies, they are not affiliates, parent or subsidiary companies as both companies are separate and distinct entities. Any questions or issues regarding this disclaimer should be addressed in writing c/o Shawn Molem.