Posts Categorized: Hard Money Tips

When should you avoid a private money loan?

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private loans interest rates

The short answer is that you shouldn’t use private money when it doesn’t make sense, although that answer doesn’t really tell the whole story. To expand on that, there are various ways to figure out if private money will help or not. First, you need to run the numbers. This will tell you without any emotion whether it will make sense or not (and this applies to most financial transactions). If you are buying a property to rehab and flip, you have to know within a good degree of accuracy how much the entire project will cost and how much you can sell the property…
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Where is the real estate market going now?

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private loans interest rates

While no one knows the answer for sure, based on research I have done, I can say that I don’t think we will see much in the way of price changes in Sonoma County for the next few years. Some people say that we will have another big drop in prices but I don’t expect it. These people reference the number of new foreclosures that will hit the market and that there will be a flood of them. However, the banks don’t want to release a large number of properties all at once because it will devalue their inventory as well as devaluing the remaining…
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Hard Money Uses

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private loans interest rates

While most people who have anything to do with real estate have heard of hard money, there are still many who can’t imagine a use for it. Who can blame them? The rates and fees are higher than banks charge and they require a bigger down payment. So, why would anyone use it? Actually, there are many reasons. Maybe the property is in poor condition or has problems with permits. It could be that the borrower has bad credit or can’t prove income to the satisfaction of the bank. Regardless of the reason one would look for a hard money loan, there is a very…
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