Category Archives: Uncategorized

What Are The Advantages of Using a Property Management Company?

A property management company act as the owner, and overseas the entire operation of the asset in the broad context of the market.

Below mentioned are few advantages of using a property management company:

 

 

Higher Quality Tenants

Think of tenant screening as the moat and draw bridge around your castle. It is certainly possible to get a bad tenant out of your home once they are in, but it’s a real hassle and you are so much better off never accepting them in the first place. A thorough screening process results in reliable tenants that:

• Pay on time
• Rent longer
• Put less wear and tear on the unit
• Generally cause less problems

An experienced property management company has seen thousands of applications and knows how to quickly dig for the real facts about candidates and analyse that information for warning signs. By allowing a management company to handle the screening, you will also be shielding yourself from rental scams directed at owners, and discrimination lawsuits resulting from an inconsistent screening process. This kind of experience takes time, and insomuch as it means avoiding bad tenants, scams and lawsuits it is arguably one of the most significant benefits a property management company will provide.

 

Veteran landlords know it only takes one troublesome tenant to cause significant legal and financial headaches. A good property manager is armed with the knowledge of the latest landlord-tenant laws and will ensure that you are not leaving yourself vulnerable to a potential law suit. Each state and municipality have their own laws, these plus federal law cover a number of areas including but not limited to:

• Tenant screening
• Safety and property conditions of the property
• Evictions
• Inspections
• Lease addendums
• Terminating leases
• Handling security deposits
• Rent collection

Avoiding a single law suit can more than pay for the property management fees, and spare you time and anguish.

Shorter vacancy cycles

A property manager will help you perform three critical tasks that affect how long it takes to fill your vacancies:

• Improve and prepare the property for rent – A property manager will suggest and oversee cosmetic improvements that maximize revenue.
• Determine the best rent rate – Too high and you are stuck waiting, to low and you’re losing money every month the tenant is in the unit. Determining the optimal price requires knowledge of the local market, data on recently sold comparable, and access to rental rate tools.
• Effectively market your property – An experienced property management company has written hundreds of ads and understands what to say and where advertise in order to get a larger pool of candidates in a shorter period of time. Additionally because of their volume they can usually negotiate cheaper advertising rates both online and offline. Lastly, they are familiar with sales and know how to close when they field calls from prospects and take them on showings.

 

Better tenant retention

While its easy to see the effects of lost rent, there are other equally serious problems with a high tenant turnover rate. The turnover process involves a thorough cleaning, changing the locks, painting the walls and possibly new carpet or small repairs, not to mention all the effort associated with marketing, showing , screening and settling in a new tenant. This is a time-consuming and expensive process that can often be averted by keeping tenants happy and well cared for.

A good property management company will have a time-tested tenant retention policy that ensures happy tenants with lengthy stays in your properties. These kinds of programs require a consistent, systematic approach, which is where a good property management company will shine.

Tighter rent collection process

The way you handle rent collection and late payments can be the difference between success and failure as a landlord. Collecting rent on time every month is the only way to maintain consistent cash-flow, and your tenants need to understand this is not negotiable. By hiring a property manager, you put a buffer between yourself and the tenant, and allow them to be the bad guy who has to listen to excuses, chase down rent, and when necessary, evict the person living in your property.

If you let them, your tenants will walk all over you. They have to be trained to follow every part of the lease or deal with the consequences. Property managers have an advantage because tenants realize that they, unlike the owner, are only doing their job and are obligated to enforce the lease terms. Many property managers will tell you that it is considerably easier to manage other people’s units rather than their own for this reason.

 

Regarding evictions, there are strict laws concerning the eviction process, and doing it wrong, or trying to evict a “professional tenant” can be a fiasco. A good property management firm knows the law and has a good process for obtaining the best possible outcome given the circumstances. Never having to handle another eviction can be a compelling reason to consider hiring a property management company.

 

Magna Capital Group, IncAsset and Property Management services provide comprehensive management Services in  Southern California geared toward reducing expenses and increasing tenant retention for our clients. We have the cutting-edge technology, tools, property management expertise and market knowledge to provide superior management services. All our experienced professionals are client-focused and result-driven to meet all the expectations.

 

We have great referral fee program for referring parties .

 

 please feel free to contact us  today at (310) 734 4044 or email at info@magnacapitalgroup.net for further discussion.

The List Of Benefits of Acquiring A Hard Money Construction Loan

A hard money construction loan is a short-term loan secured by real estate. Borrowers use such loan for new construction or renovation of a property. Including 100% of the acquisition of the real estate parcel and repair costs, hard money lenders offer many other benefits to borrowers that banks cannot. 

Here are the key features of obtaining a hard money construction loan:

• 100% funding of vertical construction costs
• Accept approx all property types
• Up to 75% ACV (after constructed value)
• Land + new construction loan options available
• 6 to 24 months terms
• No penalty on  prepayments
• Interest rate between 8% to 14%
• Only 2% to 6% origination fee per transaction
• Transaction Size $500,000 to $50,000,000
• Maximum 10 business days to close
• Foreign nationals are welcome
• No minimum credit score required
• Only pay interest on funds received

The Bottom Line:

Hard money construction loans provide the ability to borrowers to obtain funding at a much faster rate than a bank loan. The loan flexibility and speed of hard money construction loans are significant advantages for a real estate investor. Especially when they are trying to complete construction or renovation works quickly in order to sell the property for profits. 

For more information on our loan programs or to inquire about a hard money construction loan, please feel free to contact Magna Capital Group, Inc. today at (310) 734 4044 or email at info@magnaloans.com. We provide construction loans for all types of commercial and residential properties at the most affordable interest rate.

Why Borrowers Use Hard Money Loans?

1. Bad Credit Records:

Traditional lenders love borrowers with excellent credit scores, but if a borrower has damaged credit record it is very difficult to get loans through institutional or conventional lenders. Banks barely look at the borrowers and qualify them before looking at the collateral. Whereas, hard money lenders are opposite. They always care about the property and make sure they are in a very strong position and less about the borrowers.

 

2. Documentation of Income:

This is a second big reason for borrowing hard money loans. It is also very difficult to get financing from Banks if you unable to prove your income. Hard lenders care very little about income and understand that self-employed debtors often have more income than they can show. Hard money lenders want to see solid deals and money in the bank. After having the confirmation that the loan payments will be made based on the money the borrower currently has, lenders will do the deal.

 

3. Time Frame:

The time it takes you to get money can be crucial when you are buying from someone who wants to close quickly. The time frame is one of the biggest reason that borrowers always prefer to use hard money loans. A conventional mortgage takes so long time to close the deals, sometimes more than 30 days. With a hard money loan, you can usually close within a week, sometimes less.

 

4. Property Type:

Conventional banks usually offer loans for Single family homes including 2-4 unit and some types of commercial property, but properties that are distressed cannot be approved for a conventional mortgage loan. Hard money lenders lend for all types of properties that fall outside of the conventional parameters likes rehab loans, construction loans, bridge loans, land loans, mixed-use property, non-owner occupied rentals used to secure startup capital for new ventures. Hard money loans are designed for distressed properties and are used by investors looking to buy and renovate, either to flip or refinance and keep as a rental.

 

5. Loan Term:

Most conventional mortgages have interest rates that are fixed for 30-years and are fully amortized. Hard money loans are interest-only and typically have a term of 1 year or less.

 

6. Customer Services:

Traditional financing is much difficult to get even if you do qualify.

Sometimes, borrowers find hard to work with traditional banks even if they qualify for the loans. In conventional loans, the underwriters are always looking for reasons to refuse loans so they take a long time and collect a lot of papers. Hard money lenders look at the same documents but it is easier to work with them and they don’t try to kill the deal. Customer service is also better because you are dealing with individuals that understand the business.

 

7. Down Payment:

Traditional lenders required a big amount of down payments and rarely finance for repair works. Hard money lenders usually loan a much larger part of the purchase and repairs. With lower down payment,  borrowers get into deal easily and able to do more deals. This increase his ROI much higher.

 

The Bottom Line:

Hard money loans are the first choice for those who have made financial blunders in their past including late payments, limited credit, collection accounts, unemployment or laid off, judgments, liens, and charge-offs. If you are the same who made such mistakes, hard money loans would be the last and best option for you.

 

If you have any questions about getting a hard money loan or a private loan, don’t hesitate to contact our team at Magna Capital Group, Inc. We are one of the well-known names for hard money loans in California offer the best lending option for every borrower. For more information, contact us today at (310) 734 4044 or email at info@magnaloans.com.

Top 4 Advantages of Private Mortgage Loans

Private money loans are also known as hard money and it usually comes from private investors or private lending company such as Magna Capital Group, Inc who offers loan to home buyers to purchase a specific property. The problem for most borrowers in recent years is the strict lending requirements imposed by traditional lenders. So, if you’re having trouble qualifying for a conventional mortgage loan, a private mortgage loan would be the best option for you.

Why Private Mortgage Loans?

You would use a private mortgage under any of the following circumstances:

• You want to buy an unconventional property that a prime lender or bank won’t finance.
• You need fund quickly and don’t want to wait for a long approval process.
• The cause of your bad credit history, you are being turned down by conventional lenders.
• You only need a short term loan.
• You have non-confirmable income that is preventing you from getting a traditional mortgage loan.

Here are the top 4 advantages of private mortgage loans:

1. Easy to qualify:

Private mortgage loans are easy to qualify than traditional mortgage loans. If you have less than the perfect credit score or cannot provide proof of your steady income, private mortgage loans could be a great option for you. A hard money loan is not “person” focused, it’s “property” focused. So, a person with poor credit can also obtain a hard money loan if the project shows a likely profit.

2. Great for Flippers:

Private mortgage loans are best fit for flippers. If you plan to sell or “flip” the house within a short time-frame, or want to be able to qualify for a conventional refinance within a few months after acquiring the property, you might consider such a short-term loan. Flippers use private mortgage loans to make extensive renovations in a short time period to boost the value of their home as it helps them to sell or refinance the property fairly quickly.

3. Geared toward ‘fixer-upper’ properties:

A damaged home cannot qualify for the conventional mortgages, it doesn’t matter that how good the borrower’s credit is. In this case, private money can play an important role for you. A private money lender can provide financing to get the house in sellable condition, and then “flip” the house.

4. Short Approval Process:

Private money lenders don’t need a long drawn-out loan process like a conventional mortgage does. The approval process for private mortgage loans often takes just a couple of weeks, as opposed, it takes 30 to 45 days for a conventional loan. Getting a loan with quick approval is a great advantage for many borrowers as they believe quick funding is a good trade-off for higher interest rates.

The Bottom Line

If you have a house that you want to rehab, and you believe that you could improve it enough to boost its worth in a short period of time that would allow you to pay off a private loan and replace it with a conventional refinance or sale, then getting a private mortgage loan is a viable option for you.

Magna Capital Group, Inc is a well-known and reliable private hard money lender in California, USA. We provide the best and flexible mortgage loan option that suits your real estate needs. You can get benefits of our wide range of loan options such as hard money loan programs, residential loans as well as commercial loans.

So what are you waiting? just grab the opportunity and fulfill your all kind of financial needs with Magna Capital Group, Inc. Call (310) 734 4044 or Email us at info@magnaloans.com or visit our website www.magnaloans.com.

Top 5 Tips For Buying A New Home

Buying a new home is a huge opportunity in which you can turn your dreams of homeownership into the reality. Having your own home means you can paint the walls with your favorite color, plant flowers and vegetables if you choose and plant the seed for an investment in your future. There are many stages involved while buying a new property e.g. finding a lender, then going shopping, making the offer, setting up inspections, getting insurance, working with a title company, and the final step closing the deal. If you are a first-time homebuyer and looking to buy a home in the next 6-12 months, you should start preparing from now.

1. Hire An Real State Agent

You can save your lots of time via hiring a good real estate agent. They will be willing to answer your questions and assist you in the process where needed. You should be able to reach your agent at any time and get the answer to your question quickly. Your agent should always be willing and able to help you. Magna Capital Group, Inc steers you in the right direction and provides all kinds of resources to make your dreams come true. For any kinds of assistance, call now at (310) 734-4044.

2. Find A Lender For Loan

Finding a lender is the most important part of buying a new home. It’s smarter to get loan preapproval in advance before buying a home. This way you know for certain how much home to buy. You can contact a lender to determine how much money you will have to spend or how much you can afford. There is no point shopping for a home if you cannot buy one. It wouldn’t be wise to look at homes over $500,000 if your lender will only loan you $275,000. It would be very disappointing to find the home of your dreams and then find out you cannot get it. So start with finding out what you will be able to finance and then you can go shopping for homes in that price range.

All lenders are not same so find one that is going to be helpful and informative to you. Your lender should provide you with information on what you are eligible for and if you are not eligible he should be able to tell you what you need to do to become eligible. Magna Capital Group, Inc is a well-known lending company in California, USA which offers various loan programs and a variety of down payment assistance programs to eligible first-time homebuyers. If you’d like to contact a Magna Capital Group, Inc, call (310) 734-4044 or visit www.magnaloans.com.

3. Find A Home to Buy

Finding the right home is not always an easy task. It can be an overwhelming process and emotionally draining. You are advised to schedule a maximum of 5 homes at a time because any more than that will make your head spin. Most of the homebuyers conduct a lot of research online before ever stepping foot in a home. Buyers spend an average of 5 to 7 weeks to figure out where they want to live. But once the neighborhood is selected, most buyers end up buying a home after 3 or 4 home tours.

4. Negotiate The Offer

Sellers can ask you any price they want, it doesn’t mean the home will sell at their required price. Your agent will provide comparable sales and examine the pending sales. Comparable sales are similar type homes in the same condition and location that have sold within the past couple of months. Pending sales will become the comparable sales by the time your home closes. You may need to pay the higher price if many buyers are interested in buying the same property. Magna Capital Group, Inc can give you a reasonable price range and help to manage your expectations. We know there is always more to an offer than its price, but the price is paramount.

5. Do A Home Inspection

There are a lot of older homes out there. You might not want to be locked into buying a home that has a faulty foundation. In some states, a home inspection is conducted before buyers make a purchase offer. In other states, a home inspection is a contract contingency. A contract contingency means a buyer has the right to cancel the contract. Sellers are generally not required to make repairs if problems are discovered during a home inspection. A home inspection is for the buyer’s edification. However, sometimes when a buyer gives a request for repair to the seller, rather than blow the deal, the seller will often agree to make a repair.

Conclusion
Buying a new home requires lots of money and time so you need proper financing method and planning to make your dream home into the reality.

Magna Capital Group, Inc offers home financing at minimum requirements. Our loan programs provide you fast funding and flexible loan terms that help you to reach your real estate goals. For more information about hard money lending, visit our website MagnaLoans.Com or call us today on (310) 734-4044 or send us an email at info@magnaloans.com