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

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...

A Comprehensive Guide to Hard Money Lending – PART 2

(This is the second part of a 2-part series on hard money lending and its main features and requirements)   If you missed part 1, here’s a brief summary that will help you understand hard money lending: Hard money loans are short-term loans (6 months to 2–5 years) funded by individual investors or groups of investors. Hard money loans are used for the acquisition, development or expansion of commercial and industrial real estate properties.   Hard money loan approval is based on the value of a borrower’s property i.e. collateral. Unlike banks, credit score doesn’t have a make or break effect on the approval of a hard money loan. Hard money lenders are mainly concerned about a borrower’s collateral value than their credit score.   A hard money loan provides a real estate investor quick access to funds and flexible terms and conditions of the loan. Borrowers can negotiate loan amount and terms with hard money lenders. On the contrary, banks have much more rigid loan eligibility criteria, terms and conditions.   Due to shorter loan durations, hard money lenders charge higher interest rates as compared to banks. Hard Money Requirements: What Borrowers Should Know It’s important to understand that hard money lenders have set their own requirements for borrowers. However, majority of lenders focus on these essential factors: Collateral As stated above, hard money lenders are primarily concerned with the value of a borrower’s property i.e. collateral. The value of your property will demonstrate to lenders your capacity to repay the loan. As long as the collateral value is sufficient enough, a hard money lender can overlook your low...
A Comprehensive Guide to Hard Money Lending – PART 1

A Comprehensive Guide to Hard Money Lending – PART 1

If you have a little bit of experience in real estate investing, you’ve probably heard the term ‘hard money’. Hard money lending is the process of securing a hard money loan through private investors or companies, as opposed to a bank or traditional financial institution. What Is A Hard Money Loan? Simply put, hard money is a short-term loan. These loans are provided by individual investors or groups of investors to real estate investors. Primarily used for property acquisition, development or expansion, hard money loans have six-month duration. However, the loan can  be extended to 2–5 years, depending on an investor’s specific financial needs and an investor’s lending capacity. Hard money lending is commonly used by investors who want to buy, renovate or improve a real estate property and then sell it. If you’re considering applying for a hard money loan, you will need to determine how much loan you need. How Much Loan Amount Can Be Borrowed? Generally speaking, hard money loans come in varying sizes. What’s more important is that collateral is the most important aspect of hard money lending. Hard money loans are based on collateral. Therefore, the amount of loan you can borrow will depend on the value of your real estate property (collateral). As long as the collateral value is sufficient enough, you can get the loan. What Rates Can You Expect on A Hard Money Loan? While hard money loans vary among lenders, they are higher than bank rates. This is primarily because of the higher risk and shorter time duration of the loan. In most cases, hard money rates may range from...

How to Avoid Hard Money Scams

When it comes to alternative real estate financing, hard money loans are a popular option. Hard money financing offers investors quick access to short-term funds. But, hard money loans have their own set of risks. These loans are issued by alternative or private money lenders. Investors need to understand that private lenders are not banks. There are many fake private lenders involved in scams. How can you choose a reliable hard money lender? Here are some scams you need to watch out for: Loan Approval Without Property Evaluation Before approving a hard money loan, a legitimate lender will either conduct a physical inspection of an investment property or perform an in-depth assessment of an investor’s loan application details. Since hard money financing is 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.  They may give these fees any other name, such as administrative fees, underwriting fees, travel fees or due diligence fees. While hard money lenders 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 60-65 percent funding of the collateral’s value. If you feel that a hard money lender is making...
Is Hard Money Loan Right For You?

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...