Know it all about Hard Money Loans

Some people think, that the thought of hard money invokes notions of loan sharks threatening to break your legs if you don’t pay on time. While not all hard money lenders are ideal business resources, most are knowledgeable, professional and can be used to great advantage in your real estate investing.

With the complexities of traditional money lending services available for real estate investors, most investors may their way towards hard money as a bridge loan between the acquisition of a real estate property and permanent financing. Of course, hard money loans are not cheap but is well worth the loan amount, successfully serving its typical purpose. In most of the prominent areas, the hard money lenders charge around 15% rate of interest and 5 points. However, in local networking are, you can find private lenders charging a lot less than that.

The biggest benefit of using hard money loans is the facility to borrow a capital amount for renovation expenses. An investment property has a certain equity potential, but an average home buyer often gets discouraged by the bad condition of the property. A real estate investor creates a suitable margin that provides the sufficient funds to acquire and renovate a property. Financing the property, and making the needed repairs is a vital key to this real estate chain, and a hard money loan is a tool that offers it all to do just that.

In today’s real estate market, an investor acquiring a conventional bank loan is expected to pay around 20-25% down just to obtain the property, and then coming up with extra cash needed to complete the renovation process. Another alternative would be, making use of a hard money loan to finance the acquisition and repairs, while placing only 10% down of the total cost.

Once the property is acquired and renovated using hard money the real estate investor can employ a typical lender for permanent financing. As the renovations made to property presumably increases its value, the new lender may use the appraised value in calculating the maximum allowable loan value. Usually, a money lender allows up to 75% of financing on the appraised value. Considering the best case scenario, the appraisal amounts to be high enough that the investor is able to refinance the hard money, along with the closing cost of the property.

No matter what your investing goals are, hard money loans can be the best and most effective tool. Even with the imminent changes in the guidelines, hard money loans, to leverage a real estate investment is a great strategy to purchase, renovate and retain the property. However, keep in mind that going forward you will need a genuine and trustworthy hard money lender to finance the loan, especially when it is about to refinancing using hard money. You can also find a hard money lender online, using platforms like Syberloans.com. It is an easy-way solution to your problems of finding a genuine hard money lender, as it provides a detailed information about all the industry experts that have been serving for years in the profession of the hard money lender.

Source: http://syberloans.com/know-it-all-about-hard-money-loans/

How to Get a Loan with Bad Credit?

There can be hundreds of reasons for having a bad credit score, for example, undergoing a financial crisis or an initial phase of building up the credit score. Whatever the reason is, owning a bad credit score makes it extremely difficult to acquire loan from the traditional financing sources, i.e. banks. Here, we will discuss the important aspects of hard money loans, and what benefits it holds over traditional bank loans.

If you want a loan, even with having a bad credit, then seek assistance from a trustworthy hard money lender. Various money lenders across the state offer hard money loans for both residential and commercial real estate property. For getting a hard money loan financing a residential or commercial project, the supporting choice is done on the basis of the borrower’s real estate assets, unlike the traditional methods, focusing on credit scores. In such cases, the value of real estate investment is kept as a collateral for the entire transaction of hard money. A good hard money lender will close the deal in no time, maybe less than a week, for funding the real estate project. Choose a hard money lender who is well recognized and well known for financing various residential and commercial real estate projects.

Residential or commercial hard money loans are a good alternative to customary bank financing when having a bad credit score. Hard money loans prove to be of high profit to both, the real estate borrower as well as the hard money lender.

Lending hard money loans to people with a bad credit report are possible with a platform providing details about a genuine hard money lender. There can be a number of circumstances, which may lead to a bad credit score. Other than that, application for a hard money loan can be due to a number of situations which may include, 

·        Having impaired credit with former bankruptcies

·        Having tax liens, unpaid items or judgments

• Property repositioning
• Quick funds for purchasing a commercial or residential property
• Quick closure
• For avoiding foreclosure
• A stated loan due to lack of tax returns
• Require a “bridge” loan
• Did not qualify for bank loans
• Restructuring the debt
• A foreign national
• Don’t have complete documents that are mandatory to be submitted to a bank.
• Need a personalized loan that offers easy solutions for the difficult financial situation

A trustworthy hard money lender will provide a financial security by offering a hard money loan in various circumstance as having a bad credit doesn’t matter in this case. The decision to grant a hard money loan solely depends on the real estate value, for which the loan is being consumed. With Syberloans.com you need not worry about finding a genuine hard money lender. The amazing platform provides a long list of hard money lenders, servicing in a specified area, along with their complete information. The best part is that it is completely free of cost. Our terms and conditions are beneficial to real estate party looking for a hard money loan application and you get to select among various choices, suiting your finances.

 Source: http://syberloans.com/how-to-get-a-loan-with-bad-credit/

What is a Second Mortgage Loan?

If you’re looking for options to repay high-interest hard money loan or need financial assistance for making a major home repair, second mortgage loan may be the right choice for you. Here in this article, we will discuss all the points you need to consider, before applying for a second mortgage or hard money loan, and what platforms are available to provide assistance for the same.

A second mortgage loan is taken against the equity you have on your home when you applied for the first mortgage or hard money loan. There are two methods of the second mortgage:

• Home equity lines of credit are processed exactly like credit cards by letting you borrow an amount to a pre-set limit. Later, repay the loan by flexible payments with interest rate amount.
• Home equity loans work the same as the first mortgage which includes borrowing of a fixed amount and then repaying it with fixed monthly payments along with interest.

The chief advantage of availing a second mortgage loan is the low-interest rate than the conventional bank or unsecured loans. But, with getting such loans, always keep in mind to repay the loan amount on time as it can lead to the loss of your property, in case you are unable to keep up with the repayment. Also, the second mortgage interest rate is tax deductible if being used for purchasing, building or improving the real-estate property.

What happens if you don’t pay your second mortgage?

When unable to pay the second mortgage loan amount, the financing body puts a foreclosure on the property and gets the remaining amount balance. In case of a foreclosure, the money from the sale of the property first covers first mortgage amount, and then the second one. The remaining amount goes to the property holder directly.  If the sale amount doesn’t cover the mortgage amount, the hard money lender owns complete right to file a legal case in the court, before putting a foreclosure to the property.

How to avoid a foreclosure?

It may be possible to dodge a foreclosure of the property when one is unable to repay the loan amount. Either go with the option of settling the debt or negotiate to get a new financing plan.

Both first and the second money lenders need to come to an agreement for splitting the proceeds of property sale. Any of the hard money lenders can file a case for not covering the loan amount from the sale of the property.

Selling the home for repaying the loan amount is a feasible option is done just like any other mortgage. After the closure of the deal, all the proceeds are to be paid for covering the first and second mortgages.
If you’re considering to get a second mortgage loan or facing difficulty in repaying the first one, ask from assistance from Syberloans.com, a platform which provides a list of genuine hard money lenders in your area, and learns more about second hard money loans from the experts.

Source: 

http://syberloans.com/what-is-a-second-mortgage-loan/