The Harper Herald

Essential Traits Found in Successful Real Estate Investors

In 2018, 5.5 million existing homes were sold in the United States. Moreover, there were around two million active real estate licenses in the country, which shows that the real estate market is the real deal and can be pursued as a full-time career. Though any person with basic knowledge of properties can invest in real estate, it takes a little business savvy to become successful in this competitive arena. As exciting as it may seem, real estate is a demanding and tricky business and not everyone has what it takes to become successful. But of course, successful investors aren’t born with an innate disposition for real estate investing; with dedication and hard work, anyone can grow as a solid real estate investor. Here are three essential traits that successful real estate investors have. Vision Having a visionary mindset is pivotal for successful real estate investing. A smart investor is able to see the potential in a distressed, neglected property while others don’t even bat an eyelid at it. They can purchase an ugly, rundown house and turn into a beautiful home and make thousands of dollars, just like that. Using their strong imagination, they can assess what’s lacking in a property. For instance, they think about the effects of expanding the kitchen, adding an additional bathroom, or perhaps adding a patio in the backyard to make it a functional outdoor space. At other times, only a fresh coat of paint and new flooring can do the trick! Confidence The real estate market is a generally safe option for investment, but every transaction comes with some type of risk. And the...

How To Scale Up Your Fix and Flip Business

Ever thought about scaling up your fix and flip business? Well, you should. As returns are shrinking in the house flipping business, you need to work on high volumes to ensure that you’re able to earn decent profits. Here are a few ways in which you to scale up your business: Online marketing It’s extremely important to understand how to market your message in order to grow your fix and flip business. According to statistics, 50% of homebuyers find their homes on the internet. You should identify your target audience and devise a bulletproof marketing campaign to effectively deliver your message to potential buyers. Automate your follow-ups It takes more than a single call to close a deal—a lot more, actually. Dealing with new clients requires consistency if you want it to pay off. Using automation tools to follow up with your clients is a great way to stay connected with them. Also, your clients will receive regular updates and timely replies while you’re sleeping or perhaps closing deals. Pay attention Properties are everywhere. So it’s important to pay attention to identify vacant properties around you. It’s a great way to identify hidden properties that aren’t on the market yet, allowing you to get a head start and seal the deal before others get the opportunity. This way, you’ll be able to close more deals and increase your earnings in no time. Now that you’ve sorted out how to scale up your fix and flip business, it’s important to sort out your source of finances. How to raise finance to scale flip and fix business? House flipping market can be highly competitive,...

3 REASONS WHY YOU SHOULD OPT FOR A PRIVATE MONEY LOAN

CREDIT REQUIREMENTS Bank loans are heavily dependant on your credit score. If you don’t have a stellar score, you won’t get a loan. While private financers do not lend money if you have a bad credit score, their requirements are still not as strict as banks. IMMEDIATE CASH Bank loan procedures are tedious and require a lot of waiting time. Private loans do not have such long waiting times and the application process is also much simpler. INCOME REQUIREMENTS If you are self-employed, or have an irregular source of income, you can still get a private loan. Private money lenders do not require proof of income as long as you have collateral. Looking for a private loan for real estate financing? Find the perfect solution at:   HARPER FINANCIAL...

Things To Consider For Choosing A Reliable Hard Money Lender

A successful track record shows that they are credible and can be trusted. If you get involved with an experienced commercial lender, the whole process will become easier for you as there are several compliance regulations that must be met and legalities to be taken care of. Fair Rates Look around to get an idea about the typical rates among commercial lenders. Be careful about the lenders who are charging lower rates than banks as there are increased chances of a seam. Online Presence A specialist commercial lender will always have an online presence, which includes a website and social media accounts. Make sure the phone numbers, email address, and physical address are clearly mentioned on the website and the social media accounts. Specialization Engage with a specialized lender as you will be able to obtain advice and expertise from the lender. Are looking for a commercial hard money lender? Head Over To… Harper Financial Boston...

4 Things to Consider When Choosing a Private Money Lender

Private money is a term that’s often used in the finance and banking sector. It essentially refers to the money that’s loaned out to parties, for a short term, by non-institutional lenders such as private money lenders for the purpose of purchasing or renovating an investment property. Some types of private money loans include: Hard Money Loans – This type of loan is acquired by keeping a real estate property as collateral. Bridge Loans – This kind of loan covers the cost of down payment and other immediate needs when a person is selling one property while purchasing another, but the transactions are not made back-to-back. New Construction Loans – This type of loan is taken out on a short term when a buyer needs to begin construction for a house. If you’re looking for a private money lender to acquire a loan, make sure you keep the following things in mind to make the right choice. 1. Credibility and Experience These two things matter the most when it comes to private money lenders. You want someone who’s trustworthy and wouldn’t dupe you. To establish if the lender you’re choosing is credible or not, conduct a quick background check on them. Go online, check out their website and most importantly, speak to their previous clients. Moreover, make sure the lender has adequate experience, a good reputation and has been in the sector for a long time. 2. Loan Flexibility Before you finalize your decision about going with a private money lender, make sure you’ve gone through the terms and conditions carefully and you’re comfortable with everything that’s on the documents. Often, the...

The Complete Guide To Getting A Hard Money Loan

Do The Math Hard money financing is based on collateral value (the value of the property you’re seeking funding for). You will need to determine the possible value of your property/project to show the lender. It should be large enough to help you obtain the loan. Create A Plan Your hard money lender will ask for a comprehensive plan for your real estate project. They want to know more about the state of your project/property and what you plan to with it. This will help them decide if it makes sense to fund it Along with submitting an executive summary of the project, you also need to have a solid loan exit strategy. Financial Documentation Coupled with your project information,, your financial information also plays a crucial role in getting a hard money loan. The hard money loan financial documents required will vary from lender to lender and also differ based on the type of the loan requested by the borrower. Looking for a hard money lender in Massachusetts? Harper Financial provides a range of private money loan products to clients, including hard money loans, bridge loans, fix and flip loans, partnership buyout loans and more. For more information, visit our website. HARPER...

Four C’s Of Credit: How Banks Determine If They Should Accept Loan Applications

Getting approval for a loan application is no easy task. Everything needs to be perfect. And to be honest, banks aren’t entirely to blame either. After the 2008 financial crisis, the banking sector has become far more regulated. The lending criteria for banks have also become stricter. There are certain factors that banks take into account when they’re reviewing loan applications. These are collectively referred to as 4 C’s of credit. Let’s take a look at these: Character The first C of credit is ’character.’ This means that banks assess an individual’s character and determine if they are likely to return the borrowed amount or not. They start by researching your credit history. They’ll see if you have ever defaulted on your payments in the past. They‘ll also check your credit score. If you have a low credit score, the bank is likely to reject your application. The thing about credit scores is that they can be improved over time; so even if you have a bad score currently, you can work towards improving it at a later date. Capacity Capacity refers to a person’s ability to pay back the borrowed amount. It determines a person’s capability to pay back the loan by assessing their current income level and their debts. Lenders use the debt to income ratio to do so. They add together all the debts of the applicant with their income. A low debt to income ratio will increase your chances of getting the loan. Ideally, you should have a debt to income ratio of 43% or lower in order to secure the loan. However, there have been...

Why Investing Is Real Estate Is a Smart Choice

You might have heard investors talk about how the real estate sector in the US is a potential goldmine? Why do investors say things like that? What is it that makes the real estate sector so appealing? Investors are always on the lookout for investment opportunities, and all signs indicate that the real estate sector will be an extremely lucrative market in the near future. Statistics suggest the same. In 2017 alone, there was 11% growth in this segment. If that’s not enough, take a look at some additional reasons why the real estate sector is considered to be so lucrative: Affordable Start with looking for property in residential areas. If it’s a popular place, the prices might be high; but you’ll also be setting the rent accordingly, so you’ll recover your investment after some time. Furthermore, you always have the option of investing in property in the outskirts of the city. These properties are affordable. Their average rent is also relatively high, so it’s a win-win situation for you. Steady Cash Flow A lot of people invest in real estate in order to prepare for their retirement. That’s because real estate investments ensure a steady stream of cash in the form of rent. Rental income is usually high and it covers additional expenses like maintenance and insurance. Over time, you can save up money and invest in more property. Another benefit of investing in real estate is that property value rarely ever depreciates. If anything, the prices increase over time. So later on, you can sell the property at a higher rate and make a hefty profit. Multiple Options...

HARD MONEY SCAMS HOW TO AVOID THEM

Loan Approval Without Property Evaluation Before approving a hard money loan a legitimate lend will either conduct physical inspection of an investment property or perform an in-depth assessment of an investor’s loan application details. Since hard money financing”s riskier than a traditional bank loan, hard money lenders won’t approve loans without doing their own homework. Request For An Upfront Fee If your hard money lender asks for an upfront fee, something is just not right. Fake lenders usually ask borrowers to pay a high upfront fee before funding the loan. While hard moneylenders do charge service fees, you should beware any lender who charges heavy upfront fees before closing. Provision of 100 % Funding Some fake lenders will promise 100 percent financing on a real estate property in exchange for the payment of a high fee. Keep in mind, majority of real lenders will only provide i50-155 percent funding of the collateral’s value. If you feel morn hard money lender is making outrageous claims, trust your gut. Excessively Low Interest Rates In most cases, hard money interest rates range from 12 percent to 18 percent. However, if the rates are lower than 10 percent, it may be a major red sign. Honest lenders will clearly inform borrowers their rates. Some tips for choosing a reliable hard money lender Ask a hard money lender for client references. Speak with these clients about their experience with the lender. Conduct proper research on the lender online. Check out their website and customer reviews. Inquire about the Loans they have closed. They should be able to demonstrate a solid track record. Have a personal...

3 Reasons A Bank May Turn Down Your Loan Request

For many real estate investors, banks are the most common and reliable sources for project funding. The process is simple—you choose a bank; submit your loan application along with necessary documentation and then wait for an approval. Sounds pretty straightforward, right? While you may personally know people who got loan approvals within a month, it’s not the same case across each loan application. In fact, you could be sitting months in anticipation only to be rejected in the end. But knowing the fact that banks have certain criterion and there are regulatory bodies in place to enforce that criterion, rejections are inevitable for some people. From poor or low credit score to lack of real estate experience, here is why a bank may turn down a real estate investor’s loan request: Poor Credit Score Whether you need a bank loan for a real estate project or to purchase a home, traditional lenders and banks check an applicant’s personal credit score and history before offering funding. The fact is that an applicant’s credit score reflects their financial worthiness and their ability to repay the loan. Therefore, banks consider your personal and business credit score when evaluating your loan request. If you have a low or poor credit score, there is a significant chance that your loan request will be denied. Insufficient Monthly Business Revenue In order to successfully pursue a bank loan, you need to demonstrate to the bank that you are making sufficient revenue every month. High monthly revenue assures banks that you have the funds to repay the loan. Lack of Business Experience In many cases, an applicant’s...