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

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

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

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

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...