A distressed property is one where the owner has defaulted on the home loan. Several years ago, a number of home sales fall under the category of distressed sales after the housing market bubble collapsed. The amount of distressed properties available is dependent on current market conditions. Distressed homes can certainly still be found, and […]
Land loans tend to be an area where conventional lenders may show some degree of aversion. These types of loans are considered trickier to value based on the location and they are also considered riskier. In most cases, land loans will not go beyond 50% to 65% maximum loan-to-value unless the land happens to be […]
The lending landscape has changed considerably from all systems go to loans requiring some more investigation before proceeding. Informed mortgage brokers can set themselves apart and assist their clients in securing new construction loans by choosing a private or hard money lender. If a hard money construction loan is something you’re considering as a broker, […]
When applying for a conventional mortgage, it’s fairly simple to keep track of existing interest rates while having a largely solid foundation of what to expect. With hard money loans, however, they can be trickier to predict. They do have some factors that considerably affect the loan you’ll ultimately receive. Let’s take supply and demand, […]
One of the major reasons real estate investors opt for hard money loans is their convenience when it comes to fix and flip projects. Money is provided quickly, a property can be swiftly improved, and then sold for a potentially sizeable profit. For those just getting started with fix and flips, however, there is a […]
There may come a time when you’ll find yourself in a scenario trying to determine whether a hard money loan or a traditional loan is the best way to go. Should you need some assistance, the following scenarios are great reasons to give hard money loans strong consideration. Flipping. Flipping projects tend to draw strong […]
Are you looking to beef up your commercial real estate portfolio? You may wish to consider a hard money lender to assist you in your efforts. Let’s consider a few reasons why. Quick commercial loans. We’ve mentioned in the past that the traditional bank loan approval process can be lengthy and quite involved in regards […]
Budding real estate investors may come across a term at some point called “cap rate”, which isn’t as intimidating as it sounds. In fact, the cap rate is quite simple. At its essence, the cap rate refers to the ratio of a property’s income over its value or cost. It is a method of measuring […]
When trying to purchase a property through a conventional route, one’s credit history needs to be near perfect to receive approval and a favorable loan rate. However, to build credit one must create temporary debt, so what do you do if you prefer to use cash as much as possible and only use credit as […]
Fraud is common in the financial industry, and hard money loans are not immune to fraudulent practices either. If you’re thinking of choosing a hard money lender for your next investment to purchase, there are a few things to watch out for. Extra fees. Yes, a hard money loan will have fees attached to them, […]