|
Poor Folk Marketing.com
|
marketing iedas internet marketing online marketing offline marketing | |
|
Featured Business, Start a Personalized Candy Wrapper Business: Wrapcandy.com |
|
|
| |
| |
| Home | Small Business Information | Pay Per Click Advertising | Affiliate Revenue | Web Promotion | |
|
|
|
Hard Money Lenders -- No Money Down The Easy Way
Would it help you as a real estate investor to be able to"Close For Cash in Days," even if you're tapped outfinancially? Hard money lenders are perhaps the best way to get 100%financing with easy qualifying, money for fix- up, and fastclosings. So what can hard money lenders do for you? Hard moneylenders make relatively short term (12-24 month) loans toreal estate investors for the purposes of acquiring theproperty and rehabbing the property. These loans are often funded by pools of private investorsthat have been grouped together into a pool of capital by alender. The hard money lender is looking for maximum return, and iswilling to take more risk for this return in the form ofeasier lending standards. If you strike the right purchase deal, you can even borrow100% of the purchase price plus some or all of your repairmoney by using hard money lenders. Here's how it works. Hard money lenders typically loan 65% of the ARV or AfterRepair Value of the property when it is repaired or readyfor resale. That 65% loaned by the hard money lender is calculated basedon the value of the property AFTER REPAIRS, not as itcurrently sits, and not based on the price is being paid forthe property. For example, Say that the owner is willing to sell me his house for $60,000. The hard money lender's appraiser agreedwith my assessment that the home could be sold for $100,000 once it was fixed up. That appraisal would allow me toborrow 65% of the $100,000, or $65,000. I'm only paying $60,000 for the property, so guess where that extra $5,000 goes? Unfortunately, not into my vacation fund! The extra loan proceeds go into an escrow account held bythe hard money lender, and I can draw it out as I dorepairs. Remember, hard money lenders are not concerned with yourpersonal credit to the level that traditional lenders are.They're concerned with the property. They know that theirloan is fairly secure if you default. What's bad about hard money loans? The fees are higher than conventional financing. Hard moneylenders in my area charge 15% interest, and 5% ofthe value of the loan in closing costs ("five points"). Thus, on a hundred thousand dollar loan, there would be$5,000 in fees to the lender to close the loan, plusattorney's fees and other charges. Secondly, the loans usually are only good for 12-24 months.After that time, you have to refinance. If you haven't soldit by then, you have to get a new loan, pay more fees, etc.These are not loans to buy rentals with. Another disadvantage is the fact that most hard moneylenders don't figure the payments on a 30-year basis. Thelonger the payments stretch out, the cheaper the payment.They figure these loans on 15 or even 10-year terms. Thus,the monthly payment that you must pay is much higher than itwould be on a conventional 30 year amortization schedule. Also, hard money lenders are often more difficult to findthan traditional funding sources. As a gift, I havecompiled a national list of hard money lenders at my site tosolve this problem for you. Finally, most hard money lenders require a pre-paymentpenalty that must be paid if you refinance or pay off themortgage before a given amount of time. Fortunately, thistime period is often fairly short. For example, the hardmoney lender that I use has a two month pre-payment penaltyperiod. Even if I am not going to do much work on theproperty, and have a contract on it quickly, I can just setup the closing for after the pre-payment penalty expires. In conclusion, hard money lenders present an attractiveoption for investors to succeed without having to resort tothe late night TV creative hype that we've probably all beenexposed to. If you can qualify for traditional financing,and your seller is comfortable with a longer closing window,you may want to stay with conventional financing. However, if down payment money is tight and your credit isnot perfect, or you need to close very quickly, hard moneylenders may be a viable solution since they will allowalmost anyone who can find a good deal to purchase aproperty extremely quickly, with less red tape, get moneyfor rehab, and have virtually unlimited access to cash. **Attn Ezine/Blog editors/ Site owners** Feel free toreprint this article in its entirety so long as you leaveall links in place, do not modify the content and includethe resource box. If you do use the material, please send us a note. Thank You! David Wnisnant is a real estate investor and attorney in Atlanta, Georgia who teaches cutting edge real estate tactics specifically designed to increase the number of deals investors find, increase the profits from each deal with less risk. Download Dave Whisnant's FREE 50 state hard money lender list and forever banish the problem of where to find the cash for your deals! Go to http://www.realestateinvestingbrain.com/freehmlist.html
MORE RESOURCES:
Small-Business - Google News |
|
|
|
RELATED ARTICLES
Starting A Concrete Cleaning Pressure Washer Business Concrete cleaning can be a lucrative business to start. Here are some tips which will help you do it right. How to Manage Your Pipeline How is your pipeline structured?I assume most of you have heard about the sales pipeline. Your pipeline is what keeps your business going. Small Business Success: Thriving During Change (And Landing On Your Feet!) If I had $1.00 every time I heard someone say " I don't like change or, change makes me uncomfortable" I'd be a millionaire. Multiple Clients Create Your Independent Business Would you rather have one good client paying you fivethousand dollars per month or ten smaller clients payingyou five hundred dollars each per month? Here are two good reasons for choosing multiple clients over just one client.1. New Habits, Rebounding Economy Help To Sell Giftware and Collectibles Just a few years ago, when one thought of a home-based sales business, Tupperware, Avon and a host of multi-level marketing schemes might have come to mind. Today, however, changing market conditions and evolving consumer habits have converged to make home-based selling businesses a realistic opportunity with real profit potential. How To Start a Small Business Not sure how to start a small business? This guide will offer you some useful tips on the basic requirements of starting a small business.Initially, there are two types of businesses available to you, Sole Trader or Partnership. Australian Workplace Agreements - How They Work For You The employer / employee relations environment has been constantly evolving during the last 25 years. In Australia, as in many western nations, the balance between employers and employees has shifted back and forwards usually in response to supply and demand. Small Business Vendors; Getting the Best Service If you are a small business you know that you must rely on your vendors to make sure you have everything your customers need. Lack of vendor support can lead to upset customers or even loss of your business. Yeah, It IS Lonely At the Top Sometimes when you run a business you feel as lonely as the Maytag repairman. Loneliness and isolation are very common problems for business owners. A Key to Success: Be Consistent Over the years I heard the best way to learn something is toto teach it. Well, this week's topic, practicing consistentbehavior, is definitely something I need to learn and practicemore effectively. Why Small Businesses Need Both A Logo And An Identity System Experts urge small business owners to "brand" their business - to use a logo and a set of consistent marketing materials. But, they rarely go into the reasons behind this advice. Increase Productivity and Business Success - Take Responsibility Are you responsible for your results?What comes to mind when I say that?When you hear that you're totally responsible for the results you produce in your business and in your life---you might jump to a conclusion. You may think that I'm suggesting that you should take the blame for your results. How To Start A Blind Cleaning Business Quickly And Easily Starting the blind cleaning business is one of the best marketable business ideas you could latch on to. If you give the requisite amount of time and dedication, there will be no cap on your earnings. Build Credibility with Expertise As an Investment Representative you've worked hard to build trust with your pension clients. Now, you can solidify that long term relationship with your expertise on one of the greatest fears of small business retirement plan sponsors. How to Get Maximum Results With Minimum Effort Get maximum results with minimum effort. Sounds great doesn't it? The key is leverage. Selling Your Business, Entrepreneurs Role $elling $elling $ellingWhat makes a great sales person? Well, the natural ability to sell defnitely could not hurt. Sales people are a passionate, obviously people oriented, motivated and energetic bunch. Family Business and Conflicts What is a Family Business?A family business is basically any business in which the majority of the ownership or control lies within a family. Involvement of members of family in a business can bring with it its own complexities because the line between the business system is sometimes separated by a thin line from the family system. Don't Wait for the Perfect Plan 1. Don't Spend Too Much Time PlanningWhen you are entering a new market, you won't know the hidden problems and challenges you will face. Pressure Washing Business and Post Fire Cleanups Many have not experienced a fire up close. One year about 15 years ago I almost lost my house as did our neighbors to a wild fire. Outsourcing and Virtual Assistants: Small Business Saviors Work smarter, not harderWhat is one of the best ways to work smarter without working harder? The answer is outsourcing. Whether you need occasional or ongoing assistance, outsourcing can save you money and time.
|
| home | site map |
| PoorFolkMarketing © 2007 |
