Learn To Be A Fix & Flip Investor

Tuesday, August 16, 2016

Tips on keeping hard money in line.

You know that with a click of the mouse, from just about anywhere in the world except North Korea or Tahiti, you can buy and sell stock market things using an online broker. The right tools for the trade are key to every successful independent venture; finding success in the market begins with choosing the right private money lenders California. I mean, if you really believe in your project, your dreams and your future, you want the right cat to be in charge. Let’s hope that’s the case.

Return on cash is money in the bank so you can say woohoo! You are that much more likely to always have some cash in your favorite hard money lender California account. That’s the idea, right? How else can you do what you need to do?

Some brokerages will only offer 3-5% interest on this money, while others won't offer you a nickel. They should really get rid of that type of currency. Phone or email the brokerage to find out what it offers. In fact, this is a good question to ask while you're testing its petty customer service! All those little extras can make all the difference between success and failure. Be on the lookout for extra little goodies (besides the free coffee and candy on the desk or getting to check out that cute secretary) offered by brokerages to people thinking of opening an account. Don't base your decision entirely on the $500 in free trades, but do keep this in the back of your skull.

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

More info on hard money most people won’t tell you.

If you’re in the business of flipping houses, if you have a personal favorite private money lenders California, you should know minimum deposits may not be minimal. See first how much of an initial deposit the firm requests for opening an account. Beware of high minimal balances: some companies require as much as $20,000 to get a nice start. This might be fine for some investors, but not others.

Product selection is important. When choosing a brokerage, most people are probably thinking primarily about buying socks. Remember there are also many investment alternatives that aren't necessarily referred by every company. This includes CDs (not the thing in your record player, by the way), municipal bonds, futures, options and even gold/silver certificates.

Many brokerages also offer other fun financial services, such as checking accounts and credit cards. You’ll have to go to other places for specific needs however, like California hard money. Customer service counts for something. There is nothing more exasperating than sitting on hold for years and years waiting to get help. Before you open an account, call the company's help desk with a fake question to test how long it takes to get a response. Then hang up. Call again. Repeat this a dozen times for each company. How else are you supposed to know the truth? This is what detectives in the 1940’s used to do and that’s how they could afford such lavish mansions. And everyone wants to be like them.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Hard money is the independent way

Did you know alternative trading methods, like California Hard Money provides you with more flexibility? Although we all love the internet, we can't always be at our iPads, though we are trying. Check to see what other options the hard money lender California offers for placing trades. Other alternatives may include touch-tone telephone trades, pay by fax ordering, or doing it the low-tech, physical, touchy feely way - talking to a broker over the phone.

Word to the wise: make sure you take note of the prices for these alternatives. In fact, why aren’t you keeping an investing diary? Don’t be caught with your pants down. They will often differ from an online trade. The broker's professional background matters. What are others saying about the brokerage? Just as you should do your research before buying a steak at a restaurant, you should find out as much as possible about your broker.

Price isn't everything. Don’t you forget the saying "you get what you pay for"? As with anything you buy, the price may be indicative of the quality. Don't open an account with a broker simply because it offers the lowest commission cost. He’s cut corners somewhere. You know it. Advertised rates for companies vary between zero and $140 per trade, with the average around $120. There may be fine print in the ad specifying which services the advertised ratings will actually allow you to. In most cases, there will be higher fees for limit orders, options and those trades over the phone with your broker. You might find that the advertised commission rate may not apply to the type of trade you want to try out.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Monday, August 15, 2016

The real deal with hard money – You’d be surprised!

One of the most important and pressing investment decisions you'll make has nothing to do with stock markets, bonds or mutual funds. This crucial decision is picking the correct hard money lenders California.

There are dozens of companies offering private money lenders California services on the internet, and many of them are just as good if not far better than traditional, brick-and-mortar businesses that you drive by on the way to work at McDonalds, but how to decide which one is best for you? Here are a few lighthearted critical factors you'll want to ponder.

Discounts are always a good deal. Consider starting out with a full-service broker. They are often best for amateur investors who may still need to build confidence and knowledge of the markets. As you become a more sophisticated investor, you can graduate into investing more of your money yourself. Everything fits together in these situations so paying attention is key. Try hitting up the company's website at different times throughout the day, especially during peak trafficking hours. If you don’t know these times, you may not be as internet savvy as you think you are. Watch how fast their site loads and check some of the links to ensure there are no technical difficulties. That would be a disaster on the scale of Y2K.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Understanding hard money loans aren’t free – but they’re a nice deal.

So most people are aware, loans aren't simple hand-outs, and they shouldn't be approached as such; a bank's primary concern is determining whether or not you will be able to pay back your debt based on its time frame and agenda.

How do they do that, you ask? Well, banks judge potential borrowers based on a number of key things. Among them: Who in the heck are you? What do you have to offer the bank? That is, what can they get out of you?

Also, what's that money gonna be used for? If you were to be smart and get a loan from a hard money lender California, they’d still ask this so be prepared. A bank is a lot more likely to lend money to someone who wants to build something like a home addition (and add equity) than someone who is planning on spending the money on consumption or disposable crap or junk food.

Where you're trying to get your loan from can be a big factor of whether or not you get it. That’s why some people choose hard money lenders California. Lending criteria can vary between a brick-and-mortar bank and an online financial institution as well as between various geographic regions - some lenders are going to be more prone to give than others. The length and terms of the loan - both the interest rate and the duration of the loan - determine when banks can start recording a profit and also how much profit it will reap. How: Can the bank be sure that you will be able to pay the loan off based on the terms? How can you guarantee payback or at least hedge the bank's risk in some way?

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

How to make hard money make it easy to invest.

.Everyone agrees that investing in the future is expensive, but we have to do it because society tells us to and it’s worth it in the end. Be it a college education, a house or a vehicle, sometimes a loan is the only option to get what you want when you’re browsing for an expensive item. As a young dude, it can seem almost impossible to get approval for a loan without mom and dad’s support. That's why understanding the ins and outs of the loan process can be essential to getting that check from the bank on your own.

That’s where California hard money comes in. It’s like a regular loan, but not with the same kind of prices and it can be a little daunting, but if you can understand it, you can understand anything. Consider talking to private money lenders California instead of mom and dad.

When thinking about getting a loan, it’s smart to try and look at the situation from the bank's perspective. To the bank, loans are not a minor source of revenue, so they take it very seriously. The bank cuts you a check for a certain amount of money (this is called principal – you might want to get a dictionary), and you give the bank that same amount of money back as well as the interest that is charged for the privilege of letting you have that money. Interest payments are the lifeblood of most banks. Understanding that is the first step to moving out of the garage.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Sunday, August 14, 2016

What to do when Contacting a Lender

There are many hard money or Private Money Lenders, California included, throughout the United States, so researching one near you is not a problem. The Internet directory Moolahlist.com lists lenders. Rather than settling on one or two lenders, create a list of lenders in your area. Use a lender familiar with the property values around the investment home. If you have a hard time locating a lender, contact a local mortgage broker who may have names of private money lenders. Having multiple sources of quick cash is a good idea in case of rejection. Obtain each lender's borrowing criteria to compare notes before settling on one. First of all, have a plan. The purpose behind a hard money loan is to provide capital to acquire an investment home which you intend to sell for a quick profit. To this end, obtaining a hard money loan requires that you have a plan for selling the property, which includes making any repairs. Knowing exactly how much you need -- not only for buying the property but also repairs and maintenance -- prevents you from borrowing too much. Before requesting money, estimate ancillary costs, such as repairs, maintenance and construction costs, and factor these into your loan application. Provide sufficient detail regarding the investment home, including any supporting documentation, to improve your chances of receiving a loan. Secondly, know the risks. California Hard Money loans carry higher interest rates than typical bank or commercial loans. A quick sale of the property is preferable, but this may not be the case in reality. You are responsible for making interest payments as long as the property remains unsold. You also face the risk that the property will decline in value or you will sell it for less than expected for a smaller profit or even a loss. In addition, the lender may foreclose on the property to recoup its money, leaving you with nothing to show for your work and effort

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Hard Money for Commercial Property

Borrowers use California Hard Money loans for investing in real estate such as commercial property. In contrast, a mortgage is usually reserved for your primary residence, has a formal application process and longer repayment terms. California Hard Money lenders however, which are typically private investors or small companies, will sometimes lend money when a bank or traditional lender will not. The tradeoff of a hard money loan is a higher interest rate. When getting a hard money loan for an investment property including commercial property, you face the risk that the investment will not turn a profit. Before attempting to borrow from a hard money lender, understand the payment terms and other lending criteria and do your homework. Inquire about the lender's history and terms before settling on a hard money lender. Hard money lenders use the property value to determine the loan-to-value. For example, a LTV of 65 percent means the lender will only lend up to 65 percent of the value of the investment home. Some lenders require that you fill out a credit application and provide income verification such as a W-2, pay stubs and tax returns. However, since hard money loans are for real estate investments, many lenders only use the property value and an inspection of the property as a basis for the loan which may be difficult to gauge when dealing with commercial property.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Private Loans Come with a Price

Customers who can find an California Hard Money lender shouldn't expect to be offered grade-A terms, though. Private money mortgages typically have rates well into the double-digits and often come with several upfront points. People who don't own at least 30 percent or 40 percent of their homes probably won't even be able to get a loan. That's because hard money lenders limit borrowers' loan-to-value ratios so they can still make money off their properties if they have to foreclose. If a property in a subdivision is worth $100,000, the loan-to-value on a hard money loan may be 50 percent to 65 percent, so maybe $65,000 maximum on a first mortgage is loaned against the property to pay off the old lender who's preparing to foreclose. That does not mean that that customer can't take the property and sell it tomorrow for $100,000 and reap the benefits of that additional $35,000. A person is better off paying 14 percent, or a higher rate than the normal rate of 9 or 10, to keep the property rather than lose it. Or say you don't get $100,000 for it, you get 90. However, ninety is better than zero. Consumers need to watch out for "loan-to-own" predators, too. They structure hard money loans in such ways that borrowers inevitably fail just so they can take possession of their homes and profit off their sale. It's the same rules you get on any loan. Before you agree, clearly understand what it is you're getting into. Understand what the fees are and what the actual cost of the money is to you. You have to be smart. Despite the pitfalls, lenders say that an California Hard Money loan can provide borrowers a lifeline in times of need. Consumers just need to make sure their loans will help get them out of debt, not bury them even further.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

A Lender for Every Kind of Buyer

There are many types of Hard money loans, it's across the board. When it comes to Private Money Lenders California has seen everything from a $70,000 foreclosure to a half-a-million-dollar loan, where somebody just needs so much cash at one time, but can't verify their income to make it worthwhile for a traditional lender to look at. For instance, recently a private lender did a hard money construction loan for someone building a cabin near Yosemite National Park. Regular lenders balk at such deals because they don't like financing properties in remote locations or those that aren't of standard frame, concrete block or other traditional-type construction. Rural buyers in California also sometimes use California Hard Money loans. That's because conventional lenders get antsy about mortgages for properties that derive a substantial portion of their value from the land rather than the house, which in California account for a large portion of properties. Buyers of expensive properties and those who already own such homes and want to cash out large amounts of their equity via refinance loans also turn to private money lenders. So do real estate investors. These buyers purchase properties on the cheap, fix them up and sell them for profit. They use private loans because the loans come with less red tape and restrictions than bank loans. Lastly, borrowers facing foreclosure make up the last major category of hard money customers. When someone misses a mortgage payment, that person usually has some leeway to bring the loan current. But once a 30-day delinquency turns into a 120-day or 180-day one, the lender will usually start the foreclosure process. At that point, the borrower is so far behind that even subprime lenders are reluctant to come in, refinance the loan and start the clock ticking again. A hard money lender, on the other hand, may be willing to give that person a new loan. The customer can use it to pay off the original lender, gaining enough time to sell the property and find a new place to live. Borrowers who miss payments because of temporary problems, such as a job loss, can benefit, too. They can use the breathing room a hard money loan provides to rebuild their credit. By making payments on time for a year or two, they'll lay the groundwork for a future refinance into a more favorable loan.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Learn To Be A Fix & Flip Investor

Featured Post

The Big Show is Coming to Town.

Tuesday, August 16, 2016

Tips on keeping hard money in line.

More info on hard money most people won’t tell you.

Hard money is the independent way

Monday, August 15, 2016

The real deal with hard money – You’d be surprised!

Understanding hard money loans aren’t free – but they’re a nice deal.

How to make hard money make it easy to invest.

Sunday, August 14, 2016

What to do when Contacting a Lender

Hard Money for Commercial Property

Private Loans Come with a Price

A Lender for Every Kind of Buyer

Pages

About Me

Blog Archive