Author Archives: Shawn Molem

What Do Hard Money Lenders Offer?

Hard money lender – The term is a common one used in the financial world. Soft money is money that has easy terms and a flexible payment schedule. Hard money, on the other hand, has stricter terms to it and the repayment schedule is rigid and completely outlined by the loaner.

If you want to invest in real estate  then hard money lenders is actually a great resource for you. There are couple of reason behind this.

1. They give you money on hand so that you can make a purchase as soon as your offer is accepted.
2. It is also found in some cases that these lenders even lend closing cost money.
3. Apart from this, they are people, not institutions. So you can talk to them on a personal level and build trust with them, which makes it something you can really work with. But one should always keep in mind as you enter the field, that you never forget you have a business relationship and that a lot of money is on stake.

Hard money lenders can be a great resource for real estate investors. As they offer quick money without any hassle as of larger institutions. However on the other hand are little flexibility and are often tough. Because of that, you must make sure you establish a solid relationship and reputation with any hard money lenders you choose to work through. However, find the right one to make your real estate investment experience a successful one.

Are you familiar with Hard Money Construction loan?

Hard money loan are loan that is given by private investors. Hard money loan providers can be from anywhere but the lenders or borrower to work within their own state, i.e. if you are looking for a loan in Los Angeles then you need to find an investor in Los Angeles.

Construction loan: Under construction loan, the hard money lender offers the the borrower the money in stages. For Eg: If you have a land in Los Angeles and want to build a house on it, then you need to get a approval from the city of Los Angeles to your construction plans. Once your plans are approved you can now contact the hard money lender, providing him the complete information about the construction including construction budget. After the lender agrees to loan you, the hard money lender will loan you the money is by stages. The stages are:

• Contractor finishes the foundation, the contractor will get paid after inspection.
• when your electrician finishes the electricity in the house, then the electrician will get paid after inspection.

You understand the concept? All contractors will get paid by the hard money lender by the completion of the construction. The reason behind the hard money lender do that, because he want’s to have control of the money. Private investors know the risks they’re taking but they’re still willing to take these risks only if they have 100 percent control of the money.

Finding a Genuine Hard Money Lenders?

Are you not able to find a genuine Hard Money Lender in your town, in-spite of your hard efforts? If you have answered “yes” to above questions, then you are on the right place. We will help you finding the answers to your questions. So what is basically a “real” hard money lender company? There are some basic differences between the real hard money lender over the false company. Apart from this there are some major reasons of choosing a true hard money lender over a false one.

1 – A true/Genuine hard money lender is never interested in your credit history. A real lender will never put a condition that if you don’t have a good credit history, you won’t get financing. There are many hard money lending companies, which will say that they don’t care about your credit but at the end of the day, they’ll say that their minimum credit score requirement is 600. The main reason behind this is that, these lenders are packaging their loans for Wall Street or banks, so ultimately they’ll have to conform to all the legal requirements set up by these traditional lenders, which can’t be afforded by a person who has a bad credit history.

2 – On the other hand, a real lender ONLY cares about your collateral you are willing to invest in. They will get your property evaluated by professional independent evaluators, who will look at your property without any preconceive notions. They will give a purchase price, repair cost and estimated after repair value (ARV) of the property to the lender and if they find it good enough, they will fund you there and then.

Whereas, the imposters will put your credit score, job history, salary and other finances at the top of their loan requirements list before offering you a loan, which is exactly same as conventional lenders work.

This shows that there is a major difference between a real lender and an imposter.

Things Need To Know While Going For A Home Loan

It’s amongst the best feeling when you find your dream home. Once anybody find its dream home all s/he need to get a home loan to pay for the same. Going for a home loan requires some efforts, but one can easily get a right home loan while following the below mentioned step without any hassle.

Firstly, you should review your credit report, for that you need to order you credit report from the 3 major agencies of US (Experian,Equifax and TransUnion). It is one of the major part for your search for home loan. As most of the loan provider check and determine the ability to pay off your home mortgage. In this way the credit report provides all the valuable information to the home loan provider and tells them how punctual you are when it comes to paying your bills, and also how much you have already borrowed and still owe. It is a thumb rule that a good credit report gives the lender confidence that taking a risk on you will pay off. As good credit report provides a feel of reassured that you will pay them back, and certainly will make them more comfortable giving you a home loan.

Apart from this all you need to decide what home loan type will be best for you. Most people are going to be looking for a fairly standard loan. But before you start looking for home loans, you need to answer these questions:

– how much money do I have as a down payment?
– how much can I afford to pay in a home loan payment each month?
– will I be able to occasionally make extra payments off the principal?
– how stable is my income long term?
– is my income likely to rise over time?

All these questions are pretty much important because they help you to understand what you are looking for. For example in looking for a loan that requires a down payment of 20%, whereas you can only afford to pay 10%. Buying a home is a critical decision and for this you need to make sure that you get the best possible deal on your home loan.