Posts Categorized: Credit Tips

A hard money loan is a type of loan that real estate investors can secure without putting their credit on the line. The hard money loan is funded by private sources that don’t necessarily follow the set of rules that banks and other traditional lenders use. The money is often used to secure a property to flip a home (meaning to purchase, fix up, and sell a property at a profit), which is how investors can grow their income. Here are some of the most commonly asked questions about this type of loan. What needs to take place before I can get a hard money…
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The real estate industry involves more than just the buying and selling of homes in which you live. There is a strategy that exists within the industry that people use to help them earn money while buying and selling. House flipping, which has become more popular in recent years, typically involves purchasing a piece of run-down property and using funds to fix it up for the sole purpose of reselling it at a higher price. Throughout this process, many flippers find they require the services of a private money lender. Private Money Lenders Help With Financing When you flip a house, you may tie up…
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A hard money loan refers to an agreement in which you borrow funds using your property as collateral. Hard money lenders are usually private individuals or companies instead of traditional lenders like banks. That’s because while banks are more interested in your credit profile and ability to service the loan, hard money lenders are more concerned about the value of your property. The agreement is that you repay the funds together with interest and other borrowing costs over a fixed period. Typically, hard money loans have short loan terms of up to three years. They’re popular with borrowers such as property flippers, who use quick…
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Real estate investors often reach out to hard money lenders to finance their deals. Traditional banks may request formal property appraisals, good credit ratings, tax filings, and other documents before approving a loan. You may have to wait for weeks on end for the bureaucratic process to come to its conclusion, most times making you lose out of a sweet fix and flip deal. The average American has approximately $38,000 of debt, without including mortgages. It’s no surprise that 68% of the population has bad credit ratings. Is a recent foreclosure or credit card issue preventing you from accessing a loan option to expand your…
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Successful real estate investors understand the beauty of hard money loans. The hard money lender provides quicker access to much-needed cash to finance real estate deals with less stringent approval processes. Conventional mortgages are hard to come by, with a lot of scrutiny and red-tape before your loan gets approved. If you have a bad credit score or need instant access to ready cash, hard money loans are the perfect alternative. However, a lack of proper risk assessment can leave you in a debt hole. As a savvy real estate investor, here are five common pitfalls that you can easily avoid. 1. Not Waiting for…
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So it happened: you were turned away for a traditional loan from a banking institution. You’re allowed to be devastated initially. The reality is that many purchases, like those of property, are not possible to make without major loans. But the question for many is how they can obtain those loans after they’ve been denied loans from major financial institutions. In fact, major lenders are not the only options available for fairly sizable loans. There are also private money lenders available. But while we’re all generally aware of traditional loans offered by major financial institutions, we may be less aware of hard money loans, which…
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Have you been trying to qualify for a mortgage loan but haven’t been able to find the right lender? Hard money lending could be the answer to your worries. A hard money lender works around the traditional loan system to qualify you for a custom loan. The best news? You don’t need a stellar credit score or a large sum of cash to qualify. Hard Money Lending 101 The real estate arena is typically where hard money lending happens. Applicants use a property they’d like to buy as collateral to qualify for the loan. Hard money lenders look at the property value, rather than focusing…
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The fast-paced nature of the real estate industry pushes investors to have ready cash to seal the deal. Hard money loans are attractive alternatives to traditional financing options. Conventional bank mortgages involve many bureaucracies and red tape that can sabotage your fix-and-flip deal. On the other hand, hard money lenders provide ready cash with a less stringent approval process. Let’s talk a bit more about why these loans appeal to those in the house-flipping sector.   What is a Hard Money Loan? Getting approved for a loan from traditional lenders can be a painfully slow process. You may have to wait for 45 days or…
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So you’ve been denied your home loan. This can be quite devastating, especially if you were attempting to attain an investment property that would actually benefit your financial situation rather than being to its detriment. Yet countless people are denied home loans each year for a number of different reasons. One of the reasons why this occurs more today than it did even two decades ago is, of course, the 2008 financial crisis. This financial crisis was based in part on the fact that banks were freely giving out loans to whoever applied, and those people were then unable to pay for their loans. This…
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There is a wide variety of reasons why you may someday need a loan. Perhaps the biggest reason why most people end up needing substantial loans, of course, is the pursuit of homeownership. Those who can afford to buy a house upfront without a loan are few and far between to the point that mortgage loans have become something of an industry in the financial world. But the unfortunate reality is that though we all need housing, we aren’t always able to get our hands on the money necessary to buy it. If you don’t want to lose money over time, which renting inevitably does…
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