Category Archives: Hard Money Loans

Top 5 Best Ways To Finance Investment Properties!

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Category : Fix & Flip Loans , Hard Money Loans , Home Equity Loan

If you have a good deal to invest in real estate and looking for the best ways for financing, you are certainly at the right place. Financing investment property is about obtaining a property for short and long-term investment. It’s a good way to gain income. Investors would either acquire a property to have it leased to generate revenue or have it renovated and sell it at a higher price. Here are top 5 best options for you to finance your investment properties:

1. Traditional Bank Loans:
This is the first and most common method for financing investment properties, but you need to have a solid credit rating and be financially stable before trying to invest in properties. You can borrow money from banks, credit unions, home mortgage companies, and other financial institutions. Most of these lenders require a high credit score and a full documentation of your income and debts. You also need to pay out at least a 20% down payment. Because these complex loans requirement and a large down payment, real estate investors are less likely to default and tend to have a more secure financial standing.

2. Fix-and-Flip Loans:
A fix and flip loan is short-term loan secured by the property. Fix and flip loans work a little differently than conventional loans. It’s much easier to obtain in comparison to conventional loans. A fix and flip loan is suitable for financing investment properties if the purpose of your investment is renovating a real estate property and then putting the property for sale to earn profit. If you are sure you can turn a profits, a fix-and-flip loan is a great option for financing investment properties.

3. Home Equity Loans:
If you have significant equity in your existing property or primary residence, you can easily opt home equity loans. You can get as much as 80% of a home’s equity value in a loan to buy an investment property. The lender will give you the funds upfront, and they will be required to make a fixed payment each month. This method can be a more secure way for financing investment properties because you will have some collateral to back them up if your investment doesn’t work out.

4. Private Hard Money Loans:
This method for financing investment properties is commonly used when real estate investors believe they can raise the value of the investment property over a short period of time. Hard money lenders offer loans for flippers and real estate developers on slightly different terms than banks. They give cash for buying an investment property in exchange for a specific interest rate. These loans are the best choice for those people who don’t necessarily have great credit but require quick money to finance their investment properties.

5. Search For A Investment Partner:
If you want to invest in a real estate property, but the price range is outside of your budget, you might consider adding an equity partner to your team. Real estate partnership can be a win for both parties and is very beneficial to new real estate investors. You can use the partner’s cash for financing the entire property or use a partner to only fund the down payment. There are no set rules, but each deal requires its own examination of who makes the decisions, how profits will be split at the end, etc. However, partnerships can also cause more troubles than a single head, especially if each one of them is thinking in its own way and considering only its own gains. So make sure you do not do partnerships with just anyone who is not reliable.

The Bottom Line:
There are many different ways for financing investment properties, but you need to find the most suitable way to keep your investment property moving forward. Finding the right method of financing investment properties is key to your success, so make sure that it fits the type of program that you’re planning to invest in. For more information about financing investment properties, contact Magna Capital Group, Inc. today at (310) 734 4044 or email at info@magnaloans.com.

Hard Money Loans For New Home Construction!

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Category : Construction Loans , Hard Money Loans

What is a hard money construction loan?
A hard money construction loan is a short-term loan used to finance the construction of real estate investment property. Hard money construction loans are often the most attractive option for seasoned investors who are looking to challenge themselves by building a home from the ground up or completing a tear-down and gut renovation of an existing structure instead of average fix and flip.

Benefits of a hard money construction loan?

With most hard money loans, the loan amount is based on the as-is house or lot value combined with repair or construction costs. An additional benefit of a hard money construction loan is that there is no minimum credit score. However, keep in mind that unlike hard money fix and flip loans, experience is essential for a new construction loan! Hard money lenders fund up to 60% of the land value and 100% of the construction budget, capped at 60% of the ARV. With interest rates from 10% to 12%, points ranging 2% to 3% and a loan term up to 18 months, seasoned investors rely on construction loans like these for finance their business. Hard money lenders closed loans in as little as 48 hours, and have an average close time of 10 days, unlike a conventional loan which takes a minimum of 60 days to close.

How to get a hard money construction loan?

The process of obtaining a hard money construction loan is much different than a conventional mortgage. Unlike a conventional loan, which requires lots of paperwork, a new hard money construction loan requires relatively light documentation. Once you have completed loan application for a hard money construction loan, the loan officer and underwriter will review the deal with you and order an appraisal if the deal fits. The underwriter will ask questions about your experience, as well as request copies of the construction plans and other relevant documentation. Hard money lenders will issue a written term sheet that outlines all the loan’s details. The loan then moves to processing where the few required documents are collected, and ultimately the loan is closed by an attorney.

The Bottom Line:

Real estate investing is a growth industry, and good deals move quickly. Seasoned investors know how crucial a quick close can be. Hard money construction loans are the faster and easier alternative for obtaining financing for the construction of a residential or commercial property and that’s why experienced real estate investors have relied on hard money loans as a source of quick and reliable capital to fund their real estate deals for decades.

If you are considering building a new home from the ground up and need new construction financing, please feel free to contact Magna Capital Group, Inc. today. We have all the resources and information to help you successfully navigate the complexities of new construction financing. We provide the quickest and most streamlined lending process in the business to maximize your investment portfolio.

Our goal is to help you manage your investment portfolio in the most efficient manner possible. Over the years we have helped thousands of our customers achieve maximum wealth with the least amount of hassle. We have a creative solution to your financing needs. For more information about our construction loan programs, Call us today at (310) 734 4044 or Email at info@magnaloans.com.

Gain private hard money loans by selecting reputable service provider

Category : Hard Money Loans

Go for private hard money loans when traditional institutes like banks are not able to offer you with required loan amount to buy real estate property.

Need some information on real estate investment and financing options? How to do that? If banks and other financial institutions are not able to guide you or offer you with loan for buying real estate property then get in touch with private hard money lenders. Private hard money loans can assist you in best possible way to meet financial needs for buying real estate property.

Find the lenders whose terms and conditions mentioned against loans are favorable to you and are not too strict. The lender you select should be competitive enough when it comes to rates. If you apply for real estate loan to traditional sources then carrying out paper work can become tedious job for you. Opt for private hard money loans if you want paper work to get accomplished as soon as possible. Look for the private lending company that can guide you appropriately related to application of private loan and document submissions.

In this asset based loan financing option you need to secure your property in order to gain loan. Look for the private investors or companies that are located near your residence. This can make it easy for you to personally visit them and get all your queries resolved quickly. Going online and looking for hard money lenders is another way of gaining detail information about hard money loans.

Ask for a big loan in short time span by selecting a private money lender located in your area.

Residential Hard Money Loans – 3 Crucial Fundamentals!

Category : Bad credit home loans , Hard Money Loans , Real Estate Loans

I am 100% sure that you would not like to end up in a default situation.

But before I discuss all that stuff, I would like to ask some very
important questions…

1. Are you aware about the factors that make residential hard money loans
different from the others?

2. Are you aware of the basic difference between bogus and real
residential hard money lenders?

I would really like you to stop here for a moment and think meticulously
about these two questions. And if you are not able to answer them as “yes”,
then you can’t get success as a real estate investor.

So without wasting further time, let me answer these questions because
they are the first two crucial fundamentals, which you should know before
getting a loan.

What is the basic difference between residential hard money loans and
others?

Majority of people will start by asking the interest rate or payment terms
and conditions while analyzing this question. But they aren’t the most
important factor.

The most important factor here is the criteria, which a lender uses while
funding a loan to you. If he is asking for a credit score before giving you
a loan, this means that they are following the traditional lending rules and
they will sell your paper to banks or Wall Street.

These loans do not have any sovereignty or flexibility, which is vital if
you want to be successful as a real estate investor.

What is the basic difference between real and fake residential hard money
lenders?

There are different aspects which need to be considered while answering
this question. One of the aspect was hidden in my answer to the last
question i.e. a fake hard money lender sells your paper and don’t fund you
directly. This is really bad for you as a borrower. Let me tell you how…

If you are working in a fix and flip situation, there are many things
which can go wrong, whether you have planned for them or not. In this
situation, it is very important to work with a true lender whose success is
attached to yours.

But if your loan has been sold off to Wall Street, you could do nothing in
a problematic situation. You cannot ask for loan extension or anything else
and there are chances that you will end up in a default.

There is another type, which is known as fee collectors. These are the
people who call themselves a lender but they are not. They will just help
you in submitting a loan application and pay fees. After that, you will have
to submit your loan request to the real lender.

These fee collectors don’t care whether your loan application gets
approved or not because they have collected their non refundable fees.

You must be wondering what the third crucial fundamental is.

If you really want to be successful as a real estate investor, you need to
have a perfect plan to execute. You need to realize that real estate
investment isn’t for faint-hearted. It is for those who have a lot of guts
and courage. These are the people who can take quick action and can do
things in a short span of time.

Another important aspect is that hard money loans are short term and if
you are unable to pay it off in time, then you can get in a trouble
situation.

So, these were the three crucial fundamentals, which you need to
understand before applying for residential loans.

Top 6 Advantages Of Using Hard Money Loans To Fund Real Estate Deals

Tags :

Category : Hard Money Loans , private money lenders , Real Estate Loans

A hard money loan is a short-term financing option used to fund the purchase of an investment property. This type of loan is often a financial tool for house flippers or real estate investors whose goal is to renovate or develop a property, then sell it for a profit. Hard money loans offer huge benefits that are not typically available through traditional lenders such as banks and other financial institutions.

Here are top 6 advantages of using hard money loans to fund your real estate deals:

1. Simple, Easy And Quick Loan Process:
The application process for a hard money loan generally takes less time for you to be approved for the loan, which allows you to use your loan money quicker. This time-saving process can allow you to act on more opportunities and even gain an edge on the competition through speed and execution. The simplicity and straightforwardness of a hard money loan has made it a popular choice for all kinds of real estate investors.

2. Minimum Loan Conditions:
In order to obtain hard money loans, a borrower needs to satisfy a short list of criteria whereas a bank has many hard-set requirements, like income history, experience, etc. that need to be met. The entire process of bank loans can become drawn out and the borrower, ultimately, may not even be approved in the end. On the other hand, hard money loans are fairly simple and straightforward. If the hard money lender assesses that a borrower’s target real estate investment is an excellent value and the borrower has at least 20% equity to put into the deal, it is likely that the investor will qualify.

3. Quick Approvals And Rapid Funding of Loans:
Loan approval for hard money loans is far quicker than traditional banks or financial institutions. Traditional loans are based somewhat on your credit, it could take 1 to 3 months to secure a traditional mortgage whereas hard money loans are typically based on the value of your investment property. Since the property is the asset that is backing the loan, hard money lenders are only interested in how much value they see in the property. Depending on your lender, you could obtain hard money loans in a few days or a few weeks.

4. Flexible Term Structure:
Banks are not flexible and typically take a one-size-fits-all approach to all loan requests whereas private hard money lenders can structure repayment and collateral release terms in ways that are mutually beneficial to both borrower and lender. Greater flexibility often results in better outcomes.

5. Works With Bad Credit History:
In order to obtain traditional loans, you should have a decent credit history to meet the bank’s criterion. If you have negative items in your credit reports, the process takes even longer and you might not ever get approved for traditional loans. In the case of hard money lenders, credit history does not matter. They lend based on collateral securing the loan, and they are less concerned about your ability to repay. For hard money lenders, the value of the collateral is more important than your financial position.

6. Zero Prepayment Penalties:
It’s another significant advantage of hard money loans is the absence of prepayment penalties. Traditional financial institutions often charge hefty prepayment penalties if circumstances change and a loan is fully or partially repaid before the due date. You can avoid these fees by opting for hard money loans. Private hard money lenders are fully invested in your success and typically structure loans without prepayment penalties or added fees.

The Bottom Line:
Hard money loans are very beneficial for those who need quick financial solutions and either cannot wait for or do not qualify for conventional banking approvals. You can utilize hard money loans in order to grow your financial portfolio in short-time. Hard Money lenders can fund quickly, within a flexible structure and without prepayment penalties that can unintentionally hinder the success of your business.

If you are trying to get a hard money loan to grow your real estate business, contact one of the most trusted hard money lenders today called Magna Capital Group, Inc. We provide residential and commercial real estate hard money loans at competitive rates. We have helped hundreds of California investors get the real estate capital they need. We are a quick, simple bank financing alternative. For information about our hard money loan programs, Call us today at (310) 734 4044 or email at info@magnaloans.com.

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