Author Archives: Shawn Molem

Hard Money Loans – The Fast And Easiest Way To Finance Fix and Flips Projects!

Category : Fix & Flip Loans , Hard Money Loans

Fixing and Flipping Houses have become a very profitable business today, but it costs a lot of money to fix and flip houses. Real Estate Investors need lots of capital to purchase and renovate a house before they can flip the house for a profit. In addition, they need to pay contractor fees, listing and broker fees, holding costs, and much more. House Flippers find hard to qualify for traditional loans cause of their strict lending regimes. Luckily, there are hard money loans options available for them. Hard money loans are the most useful and fastest way to get money for investors who are new to fix and flips or who have tarnished credit. Hard Money Loans are most suitable for experienced or inexperienced flippers who need money quickly. Fix and Flip Investors typically use hard money loans to purchase and renovate a property for flipping.

Why are hard money loans better than bank loans for Fix and Flip funding?

  • Hard money loans are faster & flexible compare to traditional bank loans. It usually takes 24 hours for loan approval and 5-10 days for funding.
  • A hard money loan is a short-term loan secured by real estate that can be used to purchase, renovate, and sell a property within 1 year.
  • Hard money loans offer easier qualifications compare to all other financing options. Novice home flippers can also get qualify for hard money loans because hard money lenders care more about the property and its potential value than about the borrower’s experience or financial qualifications.
  • The credit score is not the primary factor in hard money loans. Hard money lenders prefer to take look more at the collateral and borrower ability to pay. On the other hand for banks, credit score is the primary factor to make the decision for loan approval.
  • In the case of hard money loans, borrower’s income is of lesser concern, for traditional loans borrower must have good credit with documented income.
  • Hard money lenders offer very flexible terms to Investors which suits their financial situations.
  • Hard money lenders offer up to 70% amount of after-renovation value (ARV). For example, if a home costs $50,000 but the ARV is $100,000 then you can borrow $70,000. After paying the $50,000 purchase price, you’ll have $20,000 left for closing costs, lender fees, rehab, carrying costs and selling expenses such as staging, marketing, and real estate agent commissions. If you can stick to that budget, you won’t need any money out of pocket to flip the home.
  • A hard money lender typically charges between 11 and 18 percent interest and 3 to 10 points. For bank loans, the closing costs usually 2-5% of the total loan amount.
  • There is no prepayment penalty in hard money loans.
  • Hard Money Loans work for both experienced and inexperienced fix and flippers finance investment projects when whereas banks only work with inexperienced house flippers.

The Bottom Line:

If you’re looking to tap into the growing real estate market for your personal financial interests, but your credit score is entangling your efforts, you can utilize hard money loans to buy a house that needs some work and later you can resell at a good appraisal value. A hard money loan is good for the experienced and inexperienced fix and flippers. With the real estate market expanding by leaps and bounds every single year, many real estate investors are keen to get their portion of the market share. Property prices are on the rise, hence savvy investors can buy low, and sell high to make a good profit.

Magna Capital Group, Inc is one of the most experienced and trustworthy hard money lending companies across California which helps its clients in many different types of situations realize their property ownership dreams. We provide fix and flip loans to experienced and inexperienced fix and flip investors on attractive interest rates with no prepayment penalty.

For specific information on whether or not a hard money loan is right for you, please feel free to call us today at (310) 734 4044 or email at info@magnaloans.com. We will provide our full support to make your fix and flip projects successful.

The Top Most Situations To Utilize Hard Money Commercial Loans!

Category : Commercial Loans

Commercial hard money loans are primarily based upon the borrower’s real estate assets. Such loans are also called no-doc loans, private hard money loans, bridge loans etc. For a commercial hard money loan, the lending decision is based on the commercial asset as opposed to relying heavily on a borrower’s credit, financial etc. By relying on an asset, private money lenders are able to fund transactions that might not fit traditional lending guidelines.

A commercial hard money loan is a good alternative to traditional bank financing. This alternative financing can be very beneficial to the borrower in many circumstances. Below are just a few of the reasons when a commercial hard money loan might be appropriate:

  • You need a loan quickly and can’t wait the 4 to 6 months for a traditional bank loan approval
  • You need a Bridge Loan
  • You are not able to qualify for traditional financing for whatever reason (income, tax returns, unique property, etc..)
  • You don’t have enough credit score to opt a traditional loan
  • You or your property has liens, judgments, unpaid bills, etc. that cash is needed to resolve
  • You need business working capital
  • You are trying to avoid foreclosure and restructure your debt
  • You need a loan without documentations
  • You are a foreign national
  • You need a creative solution to a loan that doesn’t fit other lenders
  • You need a complex loan with multiple pieces of collateral
  • Your property is occupied by your business, and your financial don’t tell the full story

Why Magna Capital Group, Inc For Commercial Hard Money Loans?

Magna Capital Group, Inc is one the most trusted and premier source for hard money commercial loans. We provide custom loans to fit the needs of investors for all types of commercial properties, including office buildings, shopping centers, restaurants, industrial properties, apartments or any income producing properties. We underwrite in-house without any upfront fees for due diligence, etc and this allows us to provide honest answers quickly without the thousands in out of pocket expenses typically required for a commercial loan.

We can quickly provide the funding you need for a successful commercial real estate acquisition or refinance. We have some of the most favorable commercial hard money terms in the industry and understand how important it is to offer our clients fair terms. We understand all kinds of loan situations and work with all types of borrowers. We have the proven track record as a premier hard money commercial lender to help. Our rates vary depending on the type of property, term of loan and general situation.

Here are some of our hard money commercial loan features:

  • No documents requested
  • Loans Ranging from $250,000 and up.
  • Loan to Values(LTV) up to 65%
  • Fast Turn-Around Time
  • All Credit Accepted
  • 1-3 year Terms / Interest-Only
  • Flexible Underwriting
  • Competitive Interest Rates

If you need any assistance with a commercial hard money loan, please give us a call at (310) 734 4044 or email at info@magnaloans.com We will customize a loan to fit your exact situation.

Hard Money Loans – The Best Way To Finance Home Construction Projects!

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Category : Construction Loans , Hard Money Loans

If you are planning to build a new home but not sure how to finance it, hard money loans would be the perfect choice for you. It’s the best suited for availing finance in order to construction home or for remodeling an existing home. A hard money loan is typically a short-term loan secured by real estate. It comes with certain features that are distinct from the other regular loans. Here are top three significant advantages of obtaining a hard money loan:

1.Fast Approvals and Funding: The speed of the approval process and funding of the loan is often seen as one of the biggest advantages of hard money loans. In many cases, a loan can be approved on the same day as the initial request. A hard money lender can get your project funded in 10 days or less.

2.Easy To Qualify: A hard money loan is much easier to qualify rather than a tradition loan. It’s the best choice for those who can’t receive traditional loans. If you have been rejected by the banks for a conventional loan based on your credit score or other issues, you are still able to work with a hard money lender to get the money you need.

3.No Prepayment Penalties: It’s one more advantage of getting hard money loans that contribute to your success. Traditional banks often charge hefty prepayment penalties if circumstances change and a loan is fully or partially repaid before the due date, but there are no prepayment penalties with hard money loans.

What Is Hard Money Construction Loans?

Hard money construction loans are collateral-based loans and also its the best alternative to a bank loan or traditional mortgage when financing the construction of a building, or making improvements to an existing building. The collateral for a hard money construction loan is the value of the project after completion. Most of the real estate investors or borrowers find hard money construction loans more convenient because the restrictions are much easier in comparison to traditional loans.

Qualifying For A Hard Money Construction Loan

To qualify for a hard money construction loan, a qualified builder must be involved in your construction project. The private money lenders require detailed specifications of your construction plan. This includes all the details including floor plans and the materials that are going to be used in the home. Your home value must be estimated by an Appraiser in order to get a hard money construction loan. Typically, you need to put down 20-25% minimum for a hard money construction loan. This ensures that you are invested in the project and would not just walk away if things go wrong. This also protects the lender in case the house does not turn out to be worth as much as they expected.

Once you have qualified for and been approved for a hard money construction loan, the lender begins paying out the money they agreed to loan to you. However, they are not just going to give the builder the cash all at once. Instead, a schedule of draws is set up.

The Bottom Line:

A hard money loan is the best source of financing when banks are not an option or the loan is needed in a short period of time. If you’re having a tough time securing the traditional loan, you can go for a hard money loan to finance your home construction project quickly.

To find out whether you qualify for this type of funding or not, Contact Magna Capital Group, Inc. Today! We specialize in innovative real estate financing for borrowers who fall outside the box of traditional lending guidelines. Magna Capital Group offers private hard money loans for any type of residential and commercial project. We understand the complexity and details of construction projects and find proper financing to make your project successful. We are fast, creative and reliable consultants with the experience and lending sources to keep your project momentum moving forward.

For more details about our hard money construction loans program, Call Us at (310) 734 4044 or Email at info@magnaloans.com.

Top 10 Ways To Deal With Bad Credit!

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Category : Bad credit home loans

If your credit score is low then it would be hard to obtain a loan from a financial institution for you. Credit scores are one of the first criteria banks use when measuring whether a borrower represents an acceptable risk. Many homeowners and investors in America are struggling with their credit. Credit cards and loans are not easy to get anymore, but people still need them. So how can we overcome bad credit and qualify for the loans?

Here are top 10 ways that may help you to improve your credit score:

1. Check Your Credit Reports Properly: To improve your credit score, you should check your credit report to see if there are any mistakes. Your credit reports could have an error that could affect your credit scores. Make sure all your debts are registered to your correct name and current address. There is no sense in paying for mistakes you didn’t make, so keep your eyes on your credit reports. You can check credit report for incorrect addresses, personal information, outdated or duplicates information etc.

2. Lower Your Credit Utilization: It’s an important factor in your credit scores. To know your credit utilization ratio, divide your total credit balances by your total credit limits. Generally, using your maximum credit limit every month causes down your credit scores. To improve your credit score, try to keep your debt-to-credit ratio under 30 percent. You can improve your ratio via paying down your debt, also getting a higher credit limit will immediately drop your utilization rate, as long as you don’t spend more.

3. Care About Credit Applications: Don’t make too many applications for credit in a rush that includes things like mobile phone contracts. Lenders translate that as desperation. Space out applications. Also, don’t apply for new cards or cancel old ones. Having balances on many accounts reflects negatively on your credit, but simply having more available credit in total is positive.

4. Find A Co-Applicant With Good Credit Score: If you have a relative with good credit, get that person to co-sign a loan or a credit card application. That will instantly boost your credibility with the lender. Be sure you can pay your debts, or you might ruin your credit and your friendship with your co-signer.

5. Increase Your Down Payment: Most loans require a down payment from 20-30 percent. If you can increase the typical down payment by doubling or tripling the usual requirement, you’ll show the loan officer that you’re serious about your offer. The same is true with rental deposits. If you have bad credit, landlords may reconsider you if you provide three or four months’ rent upfront.

6.Explain Yourself: You can share the details on your credit report and attach your explanation to your credit file that goes out with each credit inquiry, and some hard money lenders might take that into consideration.

7. Pay Your Bills On Time: Not making payments in pull and on time every month is probably one of the worst things that put you into bad credit in the first place. It’s a bad news for consumers is that, typically, utility bills only appear on a credit report when they’re delinquent. So make sure you pay your utility bills, car payments, mortgage payments, etc. on time every month.

8. Get A Credit Card: If you have never had a credit card before, your scores may be suffering because of this. If you have a fair, good or excellent credit score, there are many credit card options out there for you. You can get a credit card and start using it, just make sure you make payments on-time in order to improve your credit score.

9. Open A Secured Credit Card: If you have bad credit, a secured credit card would be probably the best option for you. A secured credit card is a type of credit card where you make a deposit into a checking account that secures the line of credit the bank or lender is extending you. You can get one with bad credit and add a new account with a positive payment history will go a long way in showing creditors you’re back on solid ground.

10. Get Hard Money Loans: You can use hard money loans in order to improve your credit score. These loans come along with more flexible agreements compared to the traditional mortgage loans. Hard money loans for bad credit are very useful for those who have had past bankruptcies or foreclosures but have enough equity to be considered for a private money loan product. The hard money lender loans money based upon the value of the property that secures the loan. They are not as interested in your ability to repay. The value of the home is more important to them than your credit or financial standing. Hard money lenders also allow people to refinance existing debts. This can definitely help debtors to improve their credit score.

Conclusion:
Your credit score is one of the most important components within your financial realm. Focusing on the above factors is the best way to start improving a credit score. There are many advantages of having a good credit score. A good credit score can help you to qualify for the best interest rates and terms when you borrow money from financial institutions. So, it’s wise to check your credit report and credit scores regularly and do everything you can to improve your credit score.

If you have poor credit and really want to buy a particular home immediately and will lose it if you wait, getting a hard money loan would be a good choice for you. Many borrowers with poor credit get a hard money loan for six months to a year. Then, they work on getting their credit score up as quickly as they can. For more information about hard money loans, Call Us today at (310) 734 4044 or Email at info@magnaloans.com.

Top 10 Benefits Of Vacant Land Loans

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Category : Vacant Land Loans

If you are planning to construct your own house and are looking to purchase a vacant plot, you’ll need to apply for a land loan. With a Vacant Land Loan, you can purchase a land for building your dream home, and then take your time designing your new home and choosing a contractor that is right for you. Vacant land loans are also known by many other names, such as land purchase loans, raw land loans, residential lot loans, land mortgage loans, land lot loans etc. No matter the name, these loans are used to finance the purchase of land in order to build a home.

A vacant land loan is similar to a construction loan, but the main difference is that construction loans place a time limit on when you must complete the building project on your property. This limit is usually set at between 1 to 3 years. On the other hand with a vacant land loan, there are no time pressures attached in terms of when you need to start or finish construction.

Here are the top 10 benefits of getting a vacant land loan:

1. Purchase Land: Regular home loans don’t usually allow you to purchase land without a home on it but a vacant land loan allow you to do it.

2. Build When You Are Ready: With a construction loan, you are typically required to build your home within one to three years, vacant land loans have no such requirement. You can purchase the land now and make the decision to build later.

3. Refinance Options: You ca n also use one of these loans to refinance an existing vacant land home loan.

4. Redraw Facility: The redraw facility will allow you to access any additional loan payments you have made. However, any principal reductions made during any fixed rate period will not be available to be redrawn.

5. No Penalties For Extra Repayments: You can make additional repayments at any time or pay the loan off early without incurring a fee. There are no penalties for extra repayments and your choice of repayments.

6. Repayment Schedule: You can choose a repayment schedule (weekly, fortnightly or monthly) to suit your budget.

7. Payment Options: You can choose from a variety of fixed, adjustable, and variable rate loans with flexible terms up to 30 years.

8. Loan Split Options: You may also opt for a split loan, which will afford you the security of a fixed rate home loan, and the benefits of a variable loan.

9. Lower Interest Rates: As compared to personal loans, the interest rates on these are very low. The loan term also continues till ten years. During this period, the borrower can make income from the land, and repay his loan easily.

10. Flexibility: This gives you flexibility that no other type of loan does. Once you get the loan, you can use it for any purpose other than purchasing that land.

The Bottom Line:
If you are considering a loan to purchase a lot, a loan to buy vacant land or a construction loan for building your new home on a lot of your choosing, contact Magna Capital Group, Inc today.

We offer competitive and flexible programs to finance residential and commercial Lands. We specialize in easy and convenient financing for vacant land loans for home sites of all sizes. We can assist with vacant land loans across California. To find out more details regarding our programs, Call (310) 734 4044 or Email at info@magnaloans.com.

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    Magna Capital Group, Inc
    8730 Wilshire Blvd., Suite 410
    Beverly Hills, CA 90211

    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.

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