Posts Tagged: Hard Money Tips | Tagged bad credit

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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Loans for Foreign Nationals?

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private loans interest rates

We have been asked several times recently if we could do loans for foreign nationals. For some reason, this seems to be a hot topic. It is probably due to the lack of financing available for deals that fall outside the box that the bank loans must fit into. Combine that with the fact that there are a lot of people who have money and want to invest in real estate when it is at or near the bottom of the market and you have a need for things like this. Now to answer the question, yes, we can do loans for foreign nationals as…
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The Flexibility of Private Money

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private loans interest rates

Since most people are accustomed to conventional lending, they are surprised when they find out how flexible we can be on our underwriting of loans. Please don’t assume that we can do anything regardless of how bad the situation is. The deal still has to make sense. But this is the thing that separates us most from conventional lenders and banks. For example, banks want proof of where your down payment is coming from and how long you have had it. They also have restrictions on gifts for down payment. In many cases, if you receive a gift, you have to prove not only that…
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Is Credit Important When Getting a Hard Money Loan?

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You might think that because hard money loans have traditionally been equity based, no one should or would care about credit. While this is true sometimes, there are instances where credit does play a part in underwriting a hard money loan. For example, if there are two borrowers applying for similar loans and one of them has good credit while the other has bad credit, it is not uncommon for the one with good credit to get a slightly better interest rate and to get approved more quickly. Really, it depends on the investor who is going to provide the money for the loan. Some…
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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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