The Harper Herald

What is The Difference? Short Term and Long Term Loans.

A loan is divided into two main categories that are further divided into different types of loans people opt for. We all keep hearing about short term and long term loans that help people combat their financial crisis and lead a better life. A borrower ask for a loan for various purposes. He or she has to return the amount within a said period of time. A loan has to be paid with interest. These loans have distinct aspects that make them different from each other. SHORT TERM LOANS The time period for short term loans is up to 3 years. These loans include payday loans and flexible loans. Payday loans are borrowed by a person when there is an emergency such as car breakdown. It can also be borrowed when you are taking a vacation or stumble across unexpected bills. The amount to be returned is taken from your bank account on your next pay date. Payday loans are up to 2000$ FLEXIBLE LOANS Flexible loan is a credit based loan that is up to $ 25,000. The term for this loan is 12 months. This loan comes with a higher interest rate than long-term loans. LONG TERM LOANS As the name suggests, long-term loan extends to a longer time period. The time frame to repay the amount depends on the lender, type of loan and your intended use of the amount. It includes mortgages, student loans, start-up loans and wedding loans. It is credit based and can be given in the form of secured or unsecured loan. A secured loan requires asset that can be kept as a...

Real Estate Investment: Setting Yourself Up for the Marathon

For many, real estate investing is a short-term game. You get in, invest, make more money, and get out—pretty much like a sprint race. However, those who are willing to ride the changing tides of the market and navigate their way through the cut-throat competition; for them, real estate investing is a more long-term opportunity. They view it as a marathon. Naturally, their gains and returns are also stronger and higher than their sprinting peers. What type of real estate investor do you aspire to be: a sprinter or a marathon-runner? The latter? Great! Of course, like every good marathon runner, we’re sure you’ll be preparing yourself in advance for the big, long race, right? If so, we believe you’ll find the following tips helpful in achieving your objectives. Integrate them into your business strategy if you haven’t already done so. Master one sector at a time Real estate investing is a diverse field with many facets. Speaking of primary categories, there are residential, commercial and industrial property investment opportunities. Dissecting each primary investment category further, there are multiple other investment opportunities. As a long-term real estate investor, your approach should be to perfect one investment category at a time. Once you’ve mastered one category, you can then move to the next. Step by step, you’ll eventually be able to build a well-rounded skill set and prime yourself with the required knowledge and experience to establish an impressive and profitable investment portfolio. Focus on building a dependable team of experts You’re committing to a long marathon, and there’s no way you can run this marathon alone. To be successful,...

Important Questions to Ask When Evaluating a Fixer Upper for Investment

To be a successful fix and flip investor, you need to have a strong eye for the right type of property. Make no mistake, there is no dearth of fixer uppers out there; every block in every neighborhood has one. However, you need to find a fixer upper that gives you the best chance to maximize your returns. How to know if the fixer upper you’re interested in fulfills this criterion? Ask yourself these three important questions. What Does The Fixer Upper Have To Offer In Terms Of Location? Location is the most important aspect of any residential property and fixer uppers are no different. A fixer upper located in a safe, clean and convenient neighborhood is likely to be more appealing to potential homebuyers than a fixer upper located in an unsafe, dirty and remote neighborhood. Make sure that the fixer upper you’re eying is located close to community amenities and in a neighborhood where crime rates are low. How Much Will It Cost To Restore The Fixer Upper? A fixer upper requiring significant restoration should be avoided, even if it’s located in an ideal neighborhood. Such types of properties carry big investment risks and often fail to provide adequate returns on investment. Survey the property you’re interested in with your contractor to determine its true cost of restoration. Research what needs to be done to bring it on par with other in-demand residential properties in the area. Check whether the investment fits your budget. Ensure it does not involve expensive repairs and remodel. Will I Be Able To Sell The Property Quickly? This is another important question...

Signs You Need to Switch Your Alternative Real Estate Lender

People that have been conducting property deals know the benefits and drawbacks for sticking with one lender for too long. Loyalty in business dealings has its perks but you need to be looking out for your interests—sticking to your lender can be costing you. Switching your loan lender can be more profitable for you. Their product offerings may be better suited to your needs and loan approvals may take shorter time. To determine whether it’s time to switch loans, ask yourself if your needs are being met. How long does loan approval take? Would it be better for you if loans were approved faster? Is your business being slowed down due to lagging loan approvals? If you’re current lender is proving to be an inconvenience in your business, it’s best to look for a new lender. The greatest benefit of private loans over loans given by banks is that they provide more flexibility and quicker service. Generally, private loan offer a win-win situation for both the lender and the borrower. Consider the following factors: Flexible Financing Solutions These are required for a range of portfolio projects. Loans taken out from traditional lenders don’t require much flexibility but by opting for a private money loan, you have access to a much larger, more diverse pool of lenders who are more accommodating to the unique needs of borrowers. Don’t settle for a lender that isn’t adequately meeting your needs when you can be matched with a lender that’s willing to provide added flexibility. Transparency Communication is imperative in property deals since your ability to make profit is so dependent on the...

Understanding the Costs of a Hard Money Loan

Those who’re looking to refurbish worn out property and sell it for profit can use hard money loans to finance those projects. Companies that offer hard money loans gather private investors who want high-interests on the funds they provide and rehab borrowers that fix and flip properties. Generally, when the real-estate market is improving, there is a splurge of rehabbers who turn to hard money loans to fund projects. How do Hard Money Loans Work Hard money loans are offered on a short-term period; they usually run for 6-24 months. Before the loan period ends, the borrower is expected to make a balloon payment that consists of the interest amount and the principal too. The funding received from hard money loans covers 60-80% of the final value of the property after repairs have been made. Compared to conventional loans, hard money loans have higher interest rates along with greater lender fees and extra charges. There are two cost-components you’ll need to consider in hard money loans: interest rates and up-front points. Interest Rates As mentioned above, interest rates on hard money loans are substantially higher than on loans that are given by traditional institutions. Because hard money loan lenders are taking a greater risk by offering a large sum of money, they require a larger amount of interest in return—the larger the loan, the greater the interest. Hard money loans usually start at an interest rate of 7%; on average, they are offered with a 10% interest rate but this can increase depending on how big the financial risk is. Up-Front Points When it comes to hard money loans,...

How To Find Suitable Properties To Flip?

As fix and flips is a process of buying a property and then selling it to earn profits, an investor has to be extra careful prior to purchasing a revenue generating property. He should take the neighborhood and the market statistics into consideration before choosing the asset to flip. Not just this, analyzing the conditions of the fix and flip properties and being mindful of the required budget and potential profit are some of the other important things to do. It is essential to have an appropriate neighborhood for a fix and flip. The characteristics of the neighborhood include a nice appeal and provision of the basic amenities. Avoid places where there are many vacant houses as they are an easy target for crime. Buyers do not prefer places that are vulnerable. Moreover, check the sideways, street lights and cleanliness of the area to make sure it has the curb appeal. Potential buyers purchase houses that provide them with a good access to basic amenities such as grocery stores, medical facilities, shopping malls and bus stops. Analyze the market statistics to make a better decision. They would help you calculate your budget and the payable amount to get the flip property. You should know about the comparable properties and the number of days they have been in the market. INFOGRAPHIC BY...

FIX AND FLIPS Are They Beneficial?

Fix and flips are mostly talked about by real estate investors. They make it easy for you to bring in income and gain profits by buying, renovating and selling properties. According to the ATTOM data solutions (Q3 2017) house flipping report, 153,727 single family houses and condos were flipped. Reaping benefits by purchasing and selling properties is not possible if you do not have sufficient money. However, fix and flip loans are a great option to avail the real estate opportunities. The loans help the buyer to purchase the property and get access to the funds for refurbishment. Once for the best things about fix and flip loans is that they get quick approvals. If you have all the required documents with you, you can submit them and get the loans within few days. The ease of getting the loans makes fix and flips overshadow other traditional financing institutions that might take months to process the request. You can get the loans regardless of the conditions of the properties. If a property is in a deteriorated state or there is a foreclosure lingering on it, it gets difficult for the borrower to get funds from banks. Banks have strict rules when it comes to choosing a property for loans. In the tough situation, opting for fix and flip loans is a wise decision. If you want to buy a property in order to flip it, you need to spend a hefty amount on the renovation and repair. With fix and flips, the lender will have a reserved loan for the rejuvenation. You don’t have to kill your wallets to...

A Guide to Managing Hard Money Loans

For new or cash-strapped investors with poor credit histories, getting a bank loan can be an uphill battle. Since the financial crisis of 2008, banks and conventional lenders have become much more conservative in underwriting of loans. As a result, many real estate investors do not meet the lending criteria set by banks and other traditional lending companies. Fortunately, alternative loans give hope to real estate investors with flawed credit history seeking financing.  One word that comes to mind when we speak about alternative financing is hard money. Hard money is the most widely used alternative loan product. Issued by a private or non-institutional lender, hard money loans are used for financing commercial real estate projects. Hard Money Loan 101 A hard money loan is a short-term alternative loan. In order to apply for hard money financing, you need to submit collateral to your lender. While interest rates on hard money loans are usually higher than bank or conventional loan rates, hard money are easier, quicker to obtain than traditional loans. At the same time, you can repay the loan before the maturity date. Unlike bank loans, you won’t have to worry about a prepayment penalty with hard money. How To Become A Successful Hard Money Loan Borrower Once you’ve received the loan from a private lender, it is imperative that you follow proper debt management practices. Here are some simple ways to manage and close hard money deals successfully: Planning First off, you need to know your loan and real estate project. The more information you obtain, you can plan loan repayment much more effectively. For your real...

3 Ways Hard Money Loans Can Help Businesses Finance Multiple Real Estate Projects

If you’re seeking financing for real estate projects, not many options are as benificial as hard money loans. Hard money is a short-term, alternative loan. This type of loan is issued by private lenders. Unlike banks and other conventional lenders, a hard money loan is backed by the value of a real estate property than the credit worthiness of an investor. Hard money loans carry interest rates higher than bank loans. That being said, these loans provide a number of benefits over traditional loans to investors. This is particularly true for investors with poor credit histories who have failed to acquire bank loans. Here are some ways in which a hard money loan can help you finance multiple real estate projects: Quicker Access to Funds If you need loan approval within a reasonable amount of time, look no further than hard money financing. Banks and traditional lenders take a great deal of time screening applicants. They can take several weeks or months to verify a borrower’s loan application, financial and personal data, etc. to determine their worthiness. On the other hand, hard money loans can be acquired within a few days, depending on your lender. This provides investors the opportunity to secure cash for funding multiple projects. Flexible Terms and Conditions If you have bad or low credit, there is a great chance you might not qualify for a bank loan. As mentioned above, banks and traditional lenders verify an applicant’s credit score, financial statements, etc. to figure out their financial worthiness. Even if you end up getting a loan, you may be charged excessively high interest rates.  Financial...

How Harper Financial Can Help You Obtain the Right Alternative Real Estate Loan

If you are an investor looking to invest in the country’s thriving real estate market, you might opt for a loan from traditional sources, such as banks. However, things in real estate landscape are not that simple. You might have bad credit or the property you are looking to invest in is in poor state. This is where traditional methods won’t be of help. We at Harper Financial are a hard money lending firm with an incredible reputation. Over the years, we have not only funded tricky investments, we have also provided a way for these investors to maximize their ROIs. Here’s how Harper Financial can help you: We Have On-Board a Team of Experienced Professionals Harper Financial was founded by a bankruptcy attorney and a commercial lending strategist. This gives us an edge over other firms, as we have expertise in the two most crucial areas of commercial lending. Our experts ensure that you are choosing the right type of alternative loan. We stay with you throughout the process and ensure that the deal is made successfully. We Offer Funding for Fix and Flip With such great potential in the real estate market, fix and flip has been a lucrative option for many people. Harper Financial can help you latch on to this exciting opportunity. We have established ourselves as a nationwide commercial lender. We can provide financing, loan support and guidance to fix and flip investors across the country. We Work with Impeccable Attention to Detail Our team takes time out to talk to you and understand the unique set of circumstances. After we have looked into...