Posts Tagged: private money

Hard Money/Private Money Rates

Posted by & filed under Hard Money Tips.

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…
Learn More

Why Buy During the Winter?

Posted by & filed under Hard Money Tips.

private loans interest rates

Many people do not shop for houses during the winter because they have other things to do or because they don’t want to deal with bad weather while looking at houses. While this is understandable, it may cost you money if you fall into this category. Why? As we all know, prices are determined by the market. When there are more buyers, prices will tend to be higher. Conversely, when there are less buyers, prices tend to be lower. If you think about it, it makes sense that if no one else is competing with you for a house, you are more likely to get…
Learn More

The Flexibility of Private Money

Posted by & filed under Hard Money Tips.

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…
Learn More

Is Credit Important When Getting a Hard Money Loan?

Posted by & filed under Hard Money Tips.

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…
Learn More

Where is the real estate market going now?

Posted by & filed under Hard Money Tips.

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…
Learn More

Hard Money Uses

Posted by & filed under Hard Money Tips.

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…
Learn More