Category Archives: Residential Loans

Residential Hard Money Loans – The Best Financing Option For Real Estate Investments!

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Category : Hard Money Loans , Residential Loans

Finding financing for real estate investments can be a real struggle if you’ve been through a foreclosure or bankruptcy in the recent past. Even qualified borrowers can find it difficult to secure the loans that they need in order to buy residential properties in today’s market. Thankfully, residential hard money loans are a viable option for residential buyers with unique needs.

Residential Hard Money Loan is a type of loan that allows a borrower to get funds based on the value of his residential property. Residential loans are given by private hard money lenders based on the value of the borrower’s asset and not dependent on traditional banking criteria like income statements, credit scores, tax returns etc. Residential hard money loans are useful for investors and borrowers who don’t meet conventional lending requirements. These types loans can also be used by residential buyers who want to purchase homes or investment properties.

Residential private money loans are utilized by many different types of borrowers because of its flexibility. Many investors opt these types of loans because they find properties that they want to buy but don’t have time to wait for approvals through banks. Other investors opt for residential hard money 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 these types of loans to purchase residential property.

Why Use Residential Hard Money Loans?

There are many buying situations where residential hard money loans can be utilized. These types of loans are not only for buyers with poor or damaged credit histories, but it can be also used when:

• Buyers want to turn unconventional properties into homes.
• Homes don’t meet the requirements of FHA lenders.
• 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.

The Bottom Line:

If you want to buy a distressed property or want to get back on track after a foreclosure, residential hard money loans would be the best choice for you. Private hard money lenders offer many valuable offers to borrowers that traditional financial institutions don’t offer. With careful, advanced planning, residential private money loans can provide for an excellent return on investment.

Magna Capital Group, Inc offers many different loan programs and choosing the right one could save you hundreds of dollars on your monthly payments. We are fast, creative, and reliable consultants that help you close and fund Residential loans. We specialize in innovative real estate financing for borrowers who fall outside the box of traditional lending guidelines.

For more information about residential hard money loans, Contact Us at (310) 734 4044 or Email at info@magnaloans.com.

Top 10 Questions To Ask A Hard Money Lender When Applying For A Loan!

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Category : Commercial Loans , Hard Money Loans , private money lenders , Residential Loans

A hard money loan is one of the easiest and fastest financing options to fund your real estate deals, but it’s also more important to select the right kind of hard money lender for your needs. This will help you to avoid getting into a bad situation with a hard money lender who isn’t able to deliver what you need or adds extra junk fees to the loan at the last minute.

Here are top 10 questions you must ask when seeking out a hard money lender and submitting your hard money loan application:

1. Are you a certified lender?
Make sure that the hard money lender is licensed. If a lender is licensed and state approved, that individual is bound to follow state-mandated rules which provide customer protection. Their license ID should be displayed on their official website and any advertising material they produce. One example is the Magna Capital Group, Inc., you can see license IDs in the bottom of its website www.magnaloans.com.

2. How much experience do you have in hard money lending?
It is best to choose an experienced hard money lender for your project. An experienced hard money lender that has been in business for years, they can understand the cyclical nature of the industry and suggest you the best loan for your real estate investing business.

3.Do you have references from previous borrowers?
You can ask hard money lenders to show their reviews and testimonials by their previous satisfied clients. A reliable hard money lender should not hesitate to give references of their previous satisfied borrowers. The lender may have reviews or testimonials on their own website or third party websites.

4. How do you fix your Interest Rate?
The interest rate completely depends upon the Lender. They determine interest rates by the property type, risk analysis, and your credit rating. Generally, hard money loan interest rates are range from 8% to 18%, but there is greater flexibility in hard money loan rates for quality borrowers.

5. Are there any other charges that will be applied for obtaining the hard money loan?
Some hard money lenders quote interest rates and points and then conveniently wait to inform the borrower of other documents, origination or processing fees. So make sure to ask hard money lenders about all the charges which affect the total cost of the loan.

6. What loan to value(LTV) can you offer?
The LTV is the funding amount a lender provides on the basis of the existing value of the property. The LTV can vary from lender to lender and property type. Some hard money lenders lend on the after repair value (ARV) as opposed to the more conservative current value or purchase price.

7. What types of loans do you offer?
Some hard money lenders are specialized in a particular loan category, while others have a broad loan portfolio. So make sure you select a lender that is more accustomed to a broad loan offering and aligned to your project’s needs.

8. Is there a prepayment penalty?
It’s not uncommon for lenders to charge a small prepayment penalty which means a minimum amount of interest must be paid on the loan. In many situations, the prepayment penalty will not affect the borrower in any way. If there is a prepayment penalty, the borrower must make sure it works for their proposed timeline.

9. How long of a loan term is available?
Hard money loans are normally for short-term use only. Generally, hard money lenders offer 1 or 2-year terms but some lenders may also offer 1 to 5-year terms. Longer the term can lead to increased costs or interest rate. So you must make sure your timeline works with the lender’s loan terms.

10. How long will it take to fund the loan?
It’s important to know how fast your loan can be funded. Hard money lenders should be able to approve and fund a hard money loan within 2 weeks. Magna Capital Group, Inc. can fund hard money loans within 3-5 days in some cases if the funding is necessary to save a deal.

The Last Word:
Choosing an experienced and reliable hard money lender is a very important task in order to make your real estate investment project success. 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.

Magna Capital Group, Inc. is one of the most trusted hard money lenders in California, provide hassle-free equity-based private and hard money loans for residential and commercial properties. We understand the most complex hard money loan scenarios and provide asset-based hard money loans to real estate investors, builders, property owners. individuals, corporations, LLC’s, partnerships, trusts and other legal business entities. For more information about our Hard Money Loan Programs, Call Us Today at (310) 734 4044 or Email at info@magnaloans.com.

Private Hard Money Lenders – Choose the One, Which Suits You Best!

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Category : Commercial Loans , Hard Money Loans , Real Estate Loans , Residential Loans

I want to talk about the core difference between private and institutional lenders. An institution is basically a bank or a credit union, which provides funding for different stuff.

On the other hand, private is more about a bunch of people, who works under a private organization, which works towards helping people buying and selling good deals by providing financing. They are not held by government or any other regional organization but they work by themselves and use their own money.

Now, we come down to two basic types of lenders in the world of real estate:

1. Institutional lenders

These are the hard money lenders, who are a part of a bank or any other federal organization and they work with them. Although, it is quite difficult to get a loan from them because they look at lots of things including the borrower’s credit history, job, bank statements etc.

These are only stuffs that institutional hard money lenders are concerned about. They don’t have a real estate background, that’s why; they don’t care much about the worth of a property. Even, if you have a good deal, they won’t lend you unless your credit or job history is satisfactory.

There’s a huge gap between institutional lenders and real estate investors, which isn’t easy to fill.

2. Private hard money lenders

Private money lenders are usually real estate investors and therefore, they understand the needs and demands of a borrower. They aren’t regulated by any federal body and that’s why, they have their own lending criteria, which are based upon their own real estate understandings.

Their main concern is property and not the borrower’s credit history or bank statement. The motto of private hard money lenders is simple: If you have a good deal in hand, they will fund you, no matter what. But if you take a crap deal to them, then they won’t fund you, even if you have excellent credit history because they believe that if you’ll make money, then only they would be able to make profit.

If you have found a hard money lender but he or she hasn’t got any experience in real estate investment, then they won’t be able to understand your deal. They will always think like a banker.

A true private money lender is one, who can help you in evaluating the deal and giving you a proper direction and funding if you find a good deal. But if the deal is bad, they will tell you straight away. Before rehabbing a property, they know what would be its resale value, due to their extensive experience.

The basic difference between institutional hard money lenders and private hard money lenders is that the institutional lenders try to have everything in place and perfect order. They want to have all the figures and the amount of profit they would be making. They completely ignore the main asset, i.e. the property.

Whereas, private money lenders use their own fund and experience to realize what’s store for them. They don’t try to sell the paper or recapitalize. They just look at the property and see if it is worthy enough to rehab or not.

In the end, they just want to make good profits along with the borrower. If anyone goes to them with a good deal, they will fund them. Some of them only fund for the property, whereas, others gives funding for the repairs too as long as they can see a good ROI.

Build Your Dream Home With A Hard Money Construction Loan!

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Category : Construction Loans , Hard Money Loans , Residential Loans

Building your dream home is a very appealing and exciting event. If you are planning to build your new dream home but are not sure how to finance it, a hard money construction loan can provide you funds to construct your new home. Hard money construction loans are specially designed to fund new home construction or for remodeling an existing home. The home construction loans are also called a story loans that means the lender has to know the construction plan before they give you any money at all.

A construction loan comes with certain features that are distinct from the other regular loans. One of many advantages of the construction loan is that the borrower pays only interest till the construction is fully completed. Principal amount can be repaid when the home is finally constructed. Moreover, you can even turn the loan into a mortgage loan later in case you are unable to pay off the loan.

There are some differences between a construction loan and a typical mortgage loan. So if you are considering for a construction loan, here are few things you should know before you get the loan:

It’s A Short-Term Loan: A construction loan is short-term loan program. Generally, the loan term is 6 months to a year, and the money is used to finance the building of the house.

It’s Due All At Once: With normal mortgages, you pay off the loan in the form of monthly payments. But with construction loans, the entire balance is typically due at the end of the loan term once the house is built. That means you need to either have a cash reserve that you can use to pay off the loan when it’s time, or you have to get some other type of financing or loan to cover the balance.

It’s Not Give The Money In Lump Sum: You won’t receive the funds in one lump sum. Typically, the lenders give you a certain amount of money periodically based on the percentage of work that’s been completed on the house.

Conclusion:

If you want to build or remodel a home, a construction loan is almost a necessity unless you have significant savings. You are advised to get the pre-approved letter with the help of an expert finance broker before commencing your building project.

Magna Capital Group, Inc. provides hassle-free hard money construction loans that allow you to receive the funding you need to build the home of your dreams. For more specifics about construction loans, Call Us on (310) 734 4044 or send Email at info@magnaloans.com.

Residential Rehab Loans – The Most Efficient Way To Buy, Fix and Sell Residential Properties!

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Category : Residential Loans

Residential Rehab Loans provide great opportunities for real estate investors to purchase homes in need of renovation and rehabilitation under terms that are more flexible than traditional and long-term mortgage loans. Residential Rehab loans are very useful for those investors who have an ability to find deals but unable to fund projects with conventional financing.

There are many options available for borrowers in residential hard money loans. For example, residential construction loans allow homeowners to finance construction and home improvement projects easily and with the flexibility that conventional loans cannot provide. These types of loans are designed to help the rehabilitation of properties with real investment potential.

Here are some key features of Residential Rehab Loans:

  • No minimum credit score required for loan approval (property-based approval)
  • Funding within 5-10 business days maximum
  • No loan payments during the initial term
  • Financing up to 85% of Purchase Price and 100% of Rehab
  • Interest rates from 12% to 13% interest only
  • 2-4 points as a loan fee (based primarily on loan size)
  • Loan terms up to 12 months with no pre-payment penalty
  • Monthly payments required
  • Fast closings

Residential rehab loan is a very popular loan that many people use to fix up houses. It allows you to hang on to your savings when fixing up a broken-down house. Rehab loans are designed for “fixer-uppers.” Therefore, this loan will allow you to qualify for a home purchase that many other programs would not. You can get a house at a lower price than you normally would be able to on the open market.

The Bottom Line:

Repairs on a house can be very expensive. If you are depending on your savings, you could run out of money quickly. You might not be able to resell the house and then your savings are depleted. With a Residential hard money loan, you can borrow the money quickly on the low-interest rate with flexible loan terms and complete your project successfully to flip the house and earn profits.

Magna Capital Group, Inc. is one of the leading rehab hard money lender for real estate investors. We have many different loan programs to choose the right one for you to save your hundred of dollars on your monthly payments. We provide easy approval, fast funding, and 100% financing possibilities that make our residential rehab loans different from the rest.

Our residential hard money loans provide you with the fast funding and loan terms that you need to help you reach your real estate goals. If you are purchasing a residential property to rehab or seeking funds to rehab a property you already own, Call Us Today at (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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