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Blogging About Residential and Commercial Property Loans in Southern California
It's no secret that hard money loans are a viable options for those in need of quick cash. A typical bank loan borrower looking to take out a business loan has to be two years in business, have at least $250,000 of annual revenue, have good personal and business credit, and be cash flow positive. Still, hard money loans are incredibly versatile in a variety of situations. But before you commit to a hard money loan, it's important to be aware of these common mistakes.
Read more: Considering A Hard Money Loan? Beware Of These Common Mistakes
There's no shortage of individuals or organizations that are willing to lend money to your business, no matter what your qualifications may be. These can be traditional bank lenders, private money lenders, or alternative financing companies. they may all have different names, but they're all willing to give small business owners like you a leg up.
If you've worked in the lending industry or the house flipping business before, you're probably already familiar with the concept of a hard money loan. You also probably know what the difference between a hard money loan and a private money loan is. But for those not quite in the know, it can be a little confusing.
Read more: Hard Money Loans: A Guide to Understanding the Basics
It's no secret in the world of real estate that using hard money loans can be a smart and profitable way to fund your investments. Real estate is a field that requires substantial capital to get started, and many people simply don't have access to that kind of money. For instance, a typical borrower looking to take out a business loan from a bank would need to have already been in business for two years with at least $250,000 in annual revenue. More than that, they'd also have to have good business and personal credit scores with a positive cash flow.
Read more: 3 Types of Real Estate That Could Benefit From Hard Money Loans
Are you interested in the hard money loan process, but aren't sure where to start? Here's what you need to know.
What exactly is a hard money loan?
A hard money loan is one that is secured by real estate. These private hard money lenders typically charge higher rates than banks. However, these lenders accept borrowers who've been denied from many financial institutions. In other words, if you can't seem to get a loan, a hard money lender may be the place to go.
Read more: Frequently Asked Questions Concerning Hard Money Loans: Part 1
Private money lenders can be helpful if you have a major project that needs funding. They can give you the money that you need to be able to successfully fulfill your requirements, which you will one day pay back.
Read more: 3 Ways to Find Private Money Lenders Who Will Fund Your Deal
Buying real estate property may not always be easy. If you find yourself looking to purchase property, but don't have the money to do so, many people often turn to hard money loans for assistance.
Read more: 3 Reasons Your Hard Loan Application May Be Declined
One of the most popular forms of financing for real estate investors, without a doubt, is the hard money loan. But what makes hard money loans so highly sought-after? There are numerous reasons why real estate investors like working with hard money lenders, but chief among them are the fact that these loans are fast, flexible, and carry more weight. Below, we'll take a closer look at just three of the reasons why investors like working with hard money lenders, in particular.
Read more: Top 3 Reasons Why Real Estate Investors Like Hard Money Loans
Is there something you are wanting to do, but you don't have the money for it? You want to update your kitchen. Maybe you want to build an extension on your house. These things can get very expensive.
If a home sells at least twice in the same year, it's considered house flipping. House flipping strayed from the spotlight for a little while, but now it's coming back in a big way. In fact, house flipping made up 6.1% of all U.S. home sales in 2016.
Read more: House Flipping is Coming Back to California in a Big Way
Debt has become a fact of life for the average American. According to the latest statistics from the Federal Reserve, consumer debt in the United States has continued to grow, reaching nearly $3.4 trillion in May 2015. As debt grows, it begins to get harder and harder for some to get loans to help relieve their financial burdens, or to pursue career or business aspirations.
If you are considering applying for a hard money loan, there are a few things you must know about the process. Before you contact a private hard money lender, here is everything a beginner should know about getting started with hard money loans.
Read more: Interested in Hard Money Loans? Here's What You Should Know Before Applying
Home-buying can be a stressful process, from finding Realtors and open houses to banks and money lending. By the time you finally find a house, you're ready for the whole escapade to be over and things to settle back down. However, there's just one last thing you need to accomplish before you can start packing: the closing.
Read more: 3 Helpful Hints on How to Ensure an Easy Home Closing
