The Harper Herald

Is Hard Money Loan Right For You?

If you’re seeking funding for a real estate investment property, but without going through a bank, hard money loan is your best option. Hard money is a popular form of alternative financing issued by private lenders to real estate investors. Investors can use hard money financing for developing or expanding their real estate projects. Hard money is a short-term loan with interest rates higher than conventional loans. Just like a mortgage, a hard money loan is secured with the real estate property as collateral. Although hard money financing has seen an increase of late, it’s important to determine if it’s the right financing option for you. Here are some things you need to check before applying for a hard money loan: You Have Poor Credit If you have bad credit, you might not qualify for a bank loan. Banks check a borrower’s credit score – among several other things – to determine their financial worthiness. Your credit score is an essential factor that will help banks decide whether to lend money to you. Having a good credit score can increase your chances of getting a bank loan. Similarly, investors with a high credit score may end up getting the best interest rates on bank loans. On the other hand, hard money lenders are concerned about an investor’s collateral and not their credit score. If a bank has rejected your loan application due to low credit score, you can easily get a hard money loan because private money lenders look at the collateral that backs the loan. You Want Quick Access to Funds As banks take a lot of time...

Applying for Hard Money Financing With Low Credit Score? Here is Everything You Need to Know – Part 2

(This is the second part of a 2-part series on the link between bad credit and hard money financing) One of the most commonly asked questions about hard money is whether or not investors with poor credit can get funds. Generally speaking, hard money lenders are primarily concerned with an investor’s collateral or property. If an investor defaults on loan payments, the lender will foreclose on the property and resell it as payment. Along with the after-repair value of a real estate property, your hard money lender will check your experience in real estate investing and how many deals you’ve successfully closed, your assets and your business proposal. A business proposal will outline information pertaining to your project, including project vision, fund usage, exit strategy and more. This will help lenders decide whether or not to invest money in your real estate project. Maintaining good credit will help you acquire a hard money loan or traditional loan, without any issues. However, bad credit will not necessarily disqualify you for a hard money loan. Hard money lenders are more concerned with the bigger picture rather than a single score. When it comes to credit score, it’s safe to say that hard money lenders are more reasonable than banks. In fact, many investors apply for hard money financing because they fail to qualify for a bank loan due to bad credit. How To Get A Hard Money Loan Approved with Poor Credit If you have a bad or low credit score and want to increase your chances of getting a hard money loan, here is what you should do: Conduct thorough...

Applying for Hard Money Financing With Low Credit Score? Here is Everything You Need to Know — Part 1

As a real estate investor, you will need funds time to time. If you’ve decided to seek funds from a traditional lending agency or a bank, your credit score will play a decisive role in the loan approval process. Why does credit score matter so much to banks? Read on to find out: What Is A Credit Score? A credit score is one of the most significant financial numbers. Simply put, it reflects your financial worthiness. In other words, it allows lenders to evaluate your capacity to repay your loan in a timely manner. Your credit report has your credit score. You can request a copy of your report from TransUnion, Equifax, and Experian – the main credit bureaus. These credit agencies follow different models for calculating credit score. However, they use the following factors for establishing your credit score: Previous debt repayment history (prompt repayment will result in a good credit score) Current debt level (How much debt you currently owe to lenders) How long your credit accounts have been used How often you have applied for new credit recently Types of credit you have Its Importance As mentioned earlier, having a good credit score will make you more attractive to lenders. This is because a credit score determines two important things: It will increase your chances of getting approved for a loan. Banks and traditional lenders prefer to give out loans to reliable borrowers with a good credit score. Maintaining a high credit score will make the loan approval process easier. It will determine the sort terms and rates you are likely to get. The better your...

Debunking Fix and Flip Myths

The concept of flipping homes isn’t something new. In recent years, home flipping has taken an upturn because of rising home prices. As a result, more and more real estate investors are hoping to generate substantial short-term wealth from flipping homes. For those new to fix and flip, it’s a short-term loan secured by real estate investors for expanding their portfolio. A fix and flip loan is used to purchase an undesirable residential property below market value with the intention of fixing it. After getting the necessary repair work done, the renovated will be quickly sold off to a new buyer. The proceeds will be used to repay the fix and flip loan. Although investors have been using fix and flip strategy for several years, there are many myths associated with it. This can create a lot of confusion and prevent people from making smart flipping decisions. Here are some common misconceptions people have about home flipping: You Need To Invest Thousands Of Dollars of Your Own Contrary to popular opinion, you don’t need to put in thousands of dollars of your own for home flipping. Investors can get fix and loans from private lenders and banks. Private lenders typically offer loans faster than banks. This is because banks take a lot of time verifying a borrower’s credit score and other financial details. If you’re looking to secure fix and flip financing within a reasonable time, without going through a bank’s complicated and lengthy loan application process, then you should contact a private lender. You Have to Repair The Home Yourself You should hire a professional renovation company for fixing...

Cash in Hand: The Help Your Clients Need to Move on After Short Sale

Let’s face it: Short sales stink. They’re scary. They’re difficult. They’re messy. They’re time-consuming. And after months of aggravation, the homeowners are left with nothing. That’s why we’ve created a new program that not only makes the short sale process easier, it actually helps the now-former homeowners walk away with enough cash to get back on their feet. Your client will receive $10,000 which is funded by a combination of the mortgagee bank or lender and investor. Your client will receive this amount upon completion of the short sale and after vacating the property. Ok! Let’s break this down: How do we make the process easier you ask? Well, our team of short sale specialists includes a short sale negotiator, a dedicated project manager, an investor, a Realtor, an attorney and a seasoned coordinator to ensure that entire process goes quickly and smoothly. We’re all not only trained in short sale and understand the inherent quirks, nuances and roadblocks; we’re all also experts in our respective areas of expertise. Oh, and there’s something in it for you too —besides the satisfaction of giving your clients a helping hand during what is most definitely a devastating time in their lives. How’s $2500 sound? You read that correctly. We’ll give any referring attorney $2500 for every closed short sale. Now, fellow bankruptcy attorneys, you have a viable solution to offer your clients — one that they and you can feel good about. Do not delay! Call 508.559.2477 today or email us here to find out how our Cash in Hand program can help your clients move on minus the fear.  ...

Our Wish for You

Here’s to the happiest of holidays and a healthy, happy and successful 2016! All our best, Winnie Uniacke, Norman Novinksy and the Harper Financial...

The Harper Financial Edu-Series on: Reaffirmed and Non-Reaffirmed Mortgages

Reaffirmed Mortgages: In a bankruptcy case, a reaffirmation agreement is a legal contract stating that you promise to repay all or part of a debt that would have otherwise been released once the bankruptcy was discharged. Reaffirming your mortgage means that you are recommitting to the loan and all of its terms. Both the lender and the borrower must sign off on the agreement. Should you not be able to keep up with your payments and default on the loan, your home will be subject to foreclosure. Translation: You become permanently liable for the loan, regardless of what happens. Non-Reaffirmed Mortgages: Unlike some personal property, you do not need to reaffirm a mortgage to keep your house. As long as you keep your payments current, you keep the house, regardless of whether you reaffirm the mortgage or not. For the aforementioned reason, as well as others, a homeowner may choose not to reaffirm his/her mortgage. The caveat: Most banks will not work with you on a refinance if you have not reaffirmed your mortgage. Moreover, they’ll often cease reporting your current payments to the credit bureaus in an attempt to pressure you into reaffirming. Why? Well, as long as you have the mortgage scheduled in your bankruptcy, the lender cannot go after you personally for any shortfall or deficiency. The good news? Harper Financial will work with you on a refinance of a non-reaffirmed loan! According to Winnie Uniacke, Harper Financial’s senior loan expert, “We understand the full implication of and ramifications for borrowers with non-reaffirmed mortgages and are ready, willing and able to assist them. We have an...

Welcome to Harper Financial

Welcome to Harper Financial: The premier go-to for alternative real estate financing in Massachusetts. We’re happy you found us – and even happier about helping you find the very best loan for your very unique situation. What’s even better? We work with you for the duration of your loan, step by step, hand in hand, to ensure you achieve an optimal exit strategy. At Harper Financial, you are more than a name and loan number; you’re the builder of your very own American dream. We understand our clients and we know what they need to succeed. Want to learn more? See what loan solutions we can custom-tailor to suit your needs. Got questions? Ready to get started? We’re here for...