What is an Owner Occupied Loan and How Can it Benefit You?

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owner occupied loans

As the name suggests, an owner-occupied loan is given to a borrower who is expected to stay in the home for at least a year. Banks consider these loans to be less risky compared to investment properties. Because of the lesser risk they carry, owner-occupied loans come with lower interest rates. They also have lesser fees and penalties compared to second home mortgages or investment property loans. What are the Risks of Owner Occupied Loans? There are many advantages to owner occupied loans. However, these advantages are only beneficial if you stick to the agreed terms of the loan. For instance, with an owner-occupied loan,…
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How Do Private Money Loans Work?

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private money lender

There is no reason why you should feel ashamed if you have poor credit. This issue is more common than you might think, with roughly one-third of all Americans having less than desirable credit histories. Unfortunately, despite its prevalence, bad credit can still prevent you from getting where you want to be in life. Whether that means buying a house or buying a car, bad credit can and will be a nuisance. It will make you ineligible for a number of loans offered by financial institutions. So what are your alternatives at that point? In most cases, you’ll need to visit a private money lender….
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3 Reasons to Get a Hard Money Loan for a Fix and Flip Project

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hard money loan

For fix and flip investors, getting access to quick financing is crucial to success. While a bank loan can be one way to finance a fix and flip project, bank loans often take ages to get, and the loan application process can be quite tedious. The real estate market is dynamic, and if you’re a fix and flip investor, you can’t afford to drag your feet and miss out on available properties. You need money fast. That’s where hard money loans come in.   Hard money loans don’t follow the stringent loan application processes most banks and traditional lenders use. Instead, hard money loans are…
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Hard Money Vs Private Money Loans: Which is Best For You?

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private money loans

Are you between a rock and a hard place financially? Are you in dire need of a loan? Don’t know which kind of loan you should settle for? Well, you are in the right place. We will help you demystify between hard money loans and private money loans and find which best suits you. In the end, you will be able to settle on the loan provider that suits you best. A hard money loan is a traditional short-term mortgage that is collateralized by a hard asset while a private money loan is a money lent by a private organization or individual. Accessibility Private money…
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3 Advantages of Using Hard Money Loans

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hard money lenders

Borrowing money can help you achieve your goals sooner, but it’s not always easy to secure financing. That’s because there are many standards and requirements that you must meet to secure the funds. However, hard money loans can come to the rescue in such situations. What Are Hard Money Loans? Hard money loans are short-term loans that are mostly used by people who cannot get traditional mortgage loans. Private investors lend money to borrowers solely dependent on the property used as collateral. Hard money loans offer the following main benefits: Short Turnaround Time In terms of approval, hard money loans are fast and more reliable…
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Common Questions About Hard Money Loans

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hard money loan

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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Why Use a Private Money Lender For House Flipping?

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private money lender

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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Hard Money Loan Myths, Debunked

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hard money loan

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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What Is a Hard Money Loan? And Is It Right for You?

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what is a hard money loan

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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5 Simple Mistakes You Can Easily Avoid When Borrowing Hard Money Loans

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hard money loans

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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