26 02, 2023

The Top Myths and Misconceptions About Hard Money Lending for Real Estate Investments

2023-02-18T03:09:22-05:00February 26th, 2023|Categories: Hard Money, Hard Money Loans, Loan, Real Estate|Tags: , , |

Hard money lending has been around for decades, but it's still shrouded in mystery and misinformation. Many real estate investors shy away from hard money loans because they believe they are too risky or that they are only suitable for borrowers with poor credit. But nothing could be further from the truth. Hard money loans are an essential tool for many real estate investors, and understanding them is crucial for making informed investment decisions. In this article, we will dispel the top myths and misconceptions about hard money lending for real estate investments. Myth #1: Hard Money Loans are Only

10 02, 2023

The 3 Financing Options Every New Investor Should Understand

2023-02-03T02:37:40-05:00February 10th, 2023|Categories: Hard Money Loans, Investing, Investment Properties, Loan, Private Lending|Tags: , , , , , , |

Real estate investors have a number of options when it comes to borrowing money to fund an investment. Most common are conventional loans, hard money loans and private money loans, which the following sections explain. The 3 Financing Options Every New Investor Should Understand Check out these three common options for investors: Conventional loans. These are loans from banks or other financial institutions that follow standard underwriting guidelines. They typically have a longer application process, a higher credit score requirement and require a larger down payment. Hard money loans. These are short-term loans from private investors or companies that use

16 03, 2022

Are There Downsides to Hard Money Loans?

2022-03-12T20:57:11-05:00March 16th, 2022|Categories: Hard Money, Hard Money Loans, Investing, Investment, Loan|Tags: |

If you are like many people, you've heard of hard money loans before – but what are they, and are there any downsides to using one? This guide explains whether there are downsides to hard money loans and what you should be aware of if you're considering borrowing with one. Are There Downsides to Hard Money Loans? Generally, the downsides to hard money loans are only downsides for people who aren't real estate investors. They include the costs associated with borrowing hard money, as well as the shorter repayment period. Here is a closer look at each. Costs of Hard

27 02, 2022

How Does a Hard Money Loan Work?

2022-02-27T02:56:35-05:00February 27th, 2022|Categories: Hard Money Loans, Interest, Investing, Investment, Investment Properties, Investments, Loan, Real Estate|Tags: , , , |

If you're like many investors, you've heard of hard money loans. But how do they work, and could one of them be right for you? This guide explains. How Does a Hard Money Loan Work? Money loans work a lot like regular loans do, but there are some key differences. First, you can get the cash from a hard money loan much more quickly than you could if you were to borrow from a traditional lender. Additionally, your interest rate will likely be a little higher, and you'll have to repay the loan much faster than you'd have to repay

7 08, 2019

What is Loan-to-Value Ratio in a Hard Money Loan?

2019-07-07T12:15:51-04:00August 7th, 2019|Categories: Loan|Tags: , , |

Many lenders require that certain loans be secured with collateral. The actual value of the collateral (usually a property) is used in combination with a variety of factors, such as creditworthiness, to determine how much money a creditor feels comfortable lending you. You’ve probably encountered the term “loan-to-value ratio”, and may be wondering what that means. Related: Investors are buying huge parts of the housing market. Here's what you need to know. What is Loan-to-Value Ratio in a Hard Money Loan? The loan-to-value ratio (LTV) is a method of determining what percentage of a property’s value can be issued as

30 01, 2018

Can I Use A USDA Loan To Flip A House?

2018-01-30T23:45:13-05:00January 30th, 2018|Categories: Flipping, Foreclosures, Home Improvements, Loan|Tags: |

Requirements for USDA Loans are pretty set in stone. Though income limits will vary based on the location of the property, other rules do not vary. Unfortunately for people hoping to qualify for a USDA loan in order to flip a house, these loans can't be used to purchase an income producing property, and they only apply to owner occupied properties. So, if you want to use a USDA loan, it will need to be used for your permanent residence. You also have to be a U.S. citizen or a permanent resident. So, if you already have your own home, and

31 05, 2016

Creative Ways to Find Down Payment Funding

2016-05-31T10:00:51-04:00May 31st, 2016|Categories: Down Payment, Hard Money, Loan, REIs|

  As a real estate investor, you’re all too aware of the challenges you may face when you’re trying to find a down payment on house you really want to buy. Unfortunately, many people aren’t able to purchase the properties they want because they can’t fund the down payment—but as a real estate investor, you may be a little more resourceful than the average Joe. So how can you fund a down payment if you’re having a tough time? Creatively Funding a Down Payment Because a hard money loan typically requires you to contribute toward the property’s purchase, if you

12 05, 2016

From Salaried Employee to REI: What You Need to Know

2016-05-12T10:00:58-04:00May 12th, 2016|Categories: Hard Money, Investment, Loan, Real Estate, REIs|

When you leave a company—one that gives you health insurance, paid vacation time and other benefits—to become a real estate investor, it’s a little scary. Okay, so it’s extremely scary. What if you don’t make it? What if things go horribly wrong? Everyone thinks about these things. We’re hard-wired to envision the worst-case scenario, so it makes sense that many people change their minds and avoid taking the leap. But what if you’re one of the few who can see past the potential bad outcomes? Here’s what you need to know about the major life change involved in leaving your

11 05, 2016

Private Money Lenders vs. Hard Money Lenders

2016-05-11T10:00:06-04:00May 11th, 2016|Categories: Hard Money, Loan, Private Lending|

What’s the difference between a private money lender and a hard money lender? The short answer is that there are some differences—and if you’re a real estate investor, you’ve probably heard the two terms used interchangeably. Differences Between Private Money Lenders and Hard Money Lenders A hard money lender such as Paces Funding is able to provide capital quickly. Private lenders are able to do so, too, but there are differences that may make all the difference in the world. Hard Money Lenders Hard money lenders typically have lending criteria. For example, Paces Funding’s loan criteria for residential properties include:

18 02, 2016

The Real Reason Your Construction Loan Was Denied by a Major Lender

2016-02-18T10:00:03-05:00February 18th, 2016|Categories: Construction Loans, Investment, Loan, New Construction, New Home Development, New Homes|

If your bank will not approve your construction loan, you may feel as if it’s because of something you’ve done. In reality, however, you are most likely part of a growing trend. We’re going to crunch the numbers for you to identify why you are not alone, and what you can do about it. As the reports from the FDIC show, bank-approved real estate loans in general have been on the decline for years. The third-quarter report for 2015 shows that real estate loans accounted for less than 3 percent of all bank activity – that’s not much, especially when

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