Posts Categorized: Hard Money Tips

The Most Common Uses for Hard Money Loans

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If you want to make some money in the real estate market but don't have the credit score to secure a loan, then you should turn to a hard money lender.

With the real estate market improving by leaps and bounds of late, it’s not very surprising that real estate investors are keen to get back in on the action. Prices are on the rise, which means savvy investors can find ways to buy low, sell high, and earn a tidy profit along the way. Of course, just because investment opportunities are abundant doesn’t mean that financing for such undertakings is readily available. At the moment, it’s still pretty difficult to secure home loans with bad credit. Whereas traditional lenders were handing out loans with no money down like candy before the financial collapse that sparked…
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How to Leverage Real Estate Equity With Hard Money Loans

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How do you secure a loan to buy investment property if you have bad credit? Hard money loans could be the answer.

Whereas the average home buyer might give up on the idea of buying a home with bad credit after being turned down by multiple lenders, those interested in using real estate as an investment are more likely to continue trying to learn how to get a home loan with bad credit.  There is good news for these persistent house hunters. Hard money lenders can provide a solution for certain types of real estate investors, and if you already have some capital you can take full advantage. In addition, any equity you’ve managed to build through other properties could be leveraged to gain access to hard…
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How Do Hard Money Loans Work?

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Hard money loans are an alternative for financing a house or investment property if you can't get approved for a traditional loan.

If poor credit is holding you back from taking advantage of real estate investing opportunities, even though you have plenty of capital or collateral, it’s time you discovered how to get a home loan with bad credit. The first step is to walk away from traditional lenders and seek alternative funding solutions. Hard money loans could be just what you’re looking for, but what is a hard money loan? How does it work and why is it useful when buying a home with bad credit? Here are just a few things you should know if poor credit is stopping you from getting the loan you…
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Income Property Investing Do’s and Don’ts for Newbies

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When first entering the world of property investing it's important to do your homework and avoid costly mistakes.

Investing in real estate continues to be a lucrative industry, allowing some investors to earn six figures or even seven figures annually. Jumping into property investing isn’t something you want to do without some knowledge of the industry, though. You have to understand different terms like hard money and private money, especially when it is time to start financing your real estate investments. You can find both hard money lenders in California and private money lenders in California. This will definitely come in handy when you begin buying properties to rent out. Hard Money vs Private Money Loans in California The main difference between private and…
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Rental Property Investing Do’s and Dont’s

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Before you even start looking into financing a rental property, make sure you've researched these investment do's and don'ts.

When it comes to investing in property, there are as many ways to make mistakes as there are ways to make a fortune! Before you decide to sign on the dotted line, read on to learn some of the do’s and don’ts of rental property investing. DO: Research the Neighborhood of the Rental Property You’ve heard the expression: ‘location, location, location’. In the world of real estate, location is absolutely everything! A good neighborhood is an indication that the property-in-question will retain its value. Think logically for a moment – if you were a renter with a family, where would you want to live? Would…
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Common Reasons Your Private Money Loan Request Would Be Denied

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Understand the possible reasons you may be denied for a private money loan to help better plan your financing strategy.

There are many reasons why real estate investors might seek out private money loans instead of more traditional avenues of mortgage lending. Not only is credit rating generally not a factor, but these loans can be much more expeditious than borrowing from banks. This is because private lenders are more interested in collateral than credit, as well as the plan for seeing return on investment from real estate projects like house flipping, rental properties, or other commercial interests. Because funding comes from an individual or a group of private investors, you won’t have to jump through the same hoops as with traditional lenders. That said,…
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Hard Money Loans and House Flipping

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If you're looking to get your house flipping career off the ground, consider getting startup capital from a hard money lender.

Call it what you want but flipping houses has become Popular with a capital P in recent years. I speculate that the success of books such as Rich Dad, Poor Dad, by Robert Kiyosaki and TV shows such as Flip This House have brought fourth public knowledge on the merits of house flipping. Regardless of how house flipping became popular, it’s in and it’s here to stay! So How Does House flipping work? Well, on pen and paper it’s really straight forward, you buy a house for cheap, you fix up the house and you sell it for more than what you paid for. Easy…
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Now Is The Time To Buy A Home!

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buy a home at low prices using hard money loan

This is a line many real estate agents and loan officers have used to try to get prospects to buy a home. Sometimes it was true, sometimes not. So why am I saying it is true now? According to the California Association of Realtors , in the 2nd quarter of 2006, only 26% of Californians could afford an entry level home. As prices dropped, the number of people who could afford to buy a home increased. Now, with prices as low as they are, home affordability is at the highest point in many years. In fact, in Sonoma County, with the median home price at $274,860…
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Hard Money/Private Money Rates

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private loans interest rates

Probably the most asked question when someone is calling to find out about hard money is, “What is the interest rate?” The short answer, which is also not very specific, is that rates usually range from 10 – 12%. In some cases, we have done deals with rates below 10% but those tend to be cleaner deals. Before we can accurately answer the question, we need to know some of the details of the loan. Some of these things are: loan amount, purchase price (if it’s a purchase), property value, what type of property and the location of the property. There are other factors that…
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Why Buy a Rental Property?

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rental property

During housing boom a few years ago, many people bought rental properties because they thought the value would increase and they would end up making money when they sold the property. This was common practice even when there was a negative monthly cash flow, sometimes several hundred dollars. Then, when the market crashed, many people lost those homes and decided never to buy a rental again. Now that prices have come down to a more reasonable range, there are many areas where the rents will more than cover the mortgage payment, including property taxes and insurance. With positive monthly cash flow now a very real…
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