Post about "loans"

How Do I Find an Honest Commercial Hard Money Lender?

Hard money lenders have become popular as an alternative means of funding a loan when the bank turns you down. Hard money loans have their upside in that they provide you with a ready means of money. On the other hand, lenders can be notorious for hiking their rates as high as New York skyscrapers and beyond. Unscrupulous lenders can send you into a dive of unending debt and grab your property after you fall. So, one of the popular Google search terms on hard money lending is: “How can I find an honest commercial hard money lender?”Here’s how.What is hard money lending?The concept is simple and, actually, quite useful once you get the hang of it. Hard money lenders loan money to people who otherwise would not be able to these funds. Examples include if you’re deeply in debt and need to rent or buy a home but can’t get the money to move because your credit report is low. Or you want to start a business but can’t land a loan because of your credit report or other reasons. This is where the Good Samaritans appears in the form of these lenders and they may fork you the required money.Hard money lenders deal with different kinds of loans ranging from residential to commercial and almost anything in between. Their approval depends on the value of your collateral. Each money lender sets his own fees, drives his own schedule, and has his own requirements for determining your credibility. Each, too, carries certain loans that others won’t. Banks refrain from offering hard money loans; they’re too risky. Hard money lenders will give you them. They’re willing and mostly able to take the risk.Other advantages of getting a hard money loanYou’ll also find hard money loans wonderful in that the process is so much simpler than the traditional mortgage system. All you’ll need to do is make an appointment; answer some questions; provide some credit to lenders who ask for it; and demonstrate the value of your property as collateral. The lender assesses the value of your property. If it looks sufficiently valuable, he or she may advance you the loan. Loans usually take less than ten days to come through. Typically, you’ll receive the money in three or fewer days. If you know the money lender, he may give it to you that same day. This sounds wonderful if you need that money now!The process is also far simpler than the complicated underwriting process that is done under normal conditions. When applying for the hard money loan, you have to sign and complete far fewer forms and some money lenders will overlook your FICO score.Thirdly, banks cap your loans minimizing your money and limiting you on your property requests. Some hard lenders may cap your loans too, but you’ll find many who will consider complex-collateral requirements and properties that involves tens of millions of dollars. The bottom line for the hard lender is the borrower’s profile and the value of the property.So what’s the problem?The interest is almost double that of the conventional loans. That’s where the bad reputation comes from. And there are some bad apples. But actually hard lenders are forced to do this because that’s the way we make our profit. We take risks in relying on the property as collateral and we spend our own money in advancing these loans.Another disadvantage is the low value-to-property ratio where the loan will typically only be made at 70 to 80 percent of the property value so if the lender assesses your priority at $100,000, you will receive $70,000 – $80,000.Hard money commercial loans are far riskier than hard money residential loans. If you default, you do not get to keep the 30 to 40 percent down you placed on the property. Instead, the lender will seize the entire asset and liquidate the asset to cover the remaining loan sum. Any additional amount goes into the lender’s pocket and not back into yours. The commercial mortgage market has a much slower turnover than the residential market as a whole. It could be years before a commercial property sells, and lenders cover their losses with this protection.Who should use commercial hard money lenders?That said, some people would profit more than others from applying for a hard money loan. These include people who find themselves in one of the following situations:

Expedited Financing for the Real Estate Investor – You want to quickly close and sell a property. Unlike traditional avenues, the closing is far quicker and approval is granted within the week. This because the hard money lender funds from her own pocket, so you don’t need to submit all the documentation or wait the month or more until your application is approved.

Small Business Owner – Banks and traditional lending institutions are more reluctant to take risks, therefore these institutions yank struggling startups through a gruelling processes to determine whether they are applicable. Most appealing startups are turned down. If you are a small business owner who finds himself in that situation, you may want to consider applying for a commercial hard money loan. Hopefully, your business succeeds because if it doesn’t the investor will use your business property as means of repayment.

Low credit score investor – If you are trying to invest or purchase a property but are turned down by traditional lending institutions because of a low credit score or history, you may want to consider a commercial hard money lender. The requirements to qualify for a hard money loan are less stringent than qualifying for a traditional loan, but the repayment is going to be far higher. The risk is going to balloon, too.
And coming full circle: How do I know who I can trust?That’s a good question. I usually advise people to do the following:

Google and research lenders. Check their profiles and see if they are certified by the National Mortgage Licensing System (NMLS). They should also carry licensing from their state regulatory agencies.

Speak to them. See if they and you match.

Hire an attorney to review any and all forms before you sign

Thoroughly review the lender’s processes, terms, and schedule. Know that you can also negotiate the fees.
In short…Some hard money lenders are unscrupulous. Some states and the Consumer Bureau have implemented some laws to protect you. Look into them, shop around, pitch your proposition, and negotiate your terms. The process can be risky but if you’re able to repay the loan, you may find yourself with the property or item that you want.

Payday Loans For Bad Credit

If you have bad credit and you need a loan, all is not lost. There is a way that you can get the money that you need and you don’t have to wait for a long time to get it.Whats more, payday loans for bad credit don’t require a credit check and you can usually get your money within 48 hours, usually within 24 hours or even within the hour. Then you can have the money you need for whatever you need (put it to good use so it was a worthwhile exercise).Payday loans are great for little emergencies such as an unexpected car repair, a prescription for medication or a special school event for your child. These types of loans are ideal for when you need a small loan quickly. They are not intended to be long term loans. The fees that are associated with a payday loan can be rather steep.This isn’t bad when you are doing a one time loan short term, but if you try to go long term with the loan, you could wind up paying a considerable amount of money. Getting a payday loan is a fairly simple process. All you have to do is complete a brief application that asks for your name, address, birth date, employment information, bank information and a few other things. You can complete and submit the application directly online.At that point, your information is sent to a variety of lenders in an effort to make a match. This can take a few minutes, a few hours of even a day.Once a lender has approved your loan application, you will need to go to that lender’s website and complete any requirements that they may have. You may have to submit your bank information or your employment information. You may have to give them proof of your address.This is usually done via fax, or you can often scan the documents and submit the electronically. Once the lender has approved your payday loan and you have fulfilled all of their requirements, you will be ready to have your funds disbursed to you.The funds from your payday loan will be directly deposited into your bank account. This can occur just a few hours after your approval or within a day or two. The fees, or interest, on the loan generally vary by the amount of the loan and the repayment terms.Repayment on your payday loan is typically done by automatic debit. The lender sets up your account so that it is debited the amount of the loan, plus the fees. If you need to reloan, you can usually do so after the debit payment has cleared your account. When you accept the loan, read over the paperwork. It will describe how the money is to be repaid, give the loan amount and outline the fees. Getting a payday loan for bad credit couldn’t be easier!So before you do without the medication you need or the car repairs that will get you to and from work, look into getting a payday loan. Bad credit or not, it can be a good short term solution to a small financial problem. The best way to find out is to get a free online guaranteed loan quotation so you can see what you will be paying before you take out the loan, that way you can decide if it is for you or not.Payday Loans for Bad Credit can be affordable and a breath of fresh air you just need to navigate to the reliable loan companies so that you pay a fair amount of interest.