Real Estate Investors – Discover How To Raise Cash For Re Deals

The Private Lending Presentation Kit is an easy and affordable Done-For-You Template for real estate entrepreneurs to create your own stream of private lenders giving you cash and allowing you to do deals in these tough real estate times
Real Estate Investors – Discover How To Raise Cash For Re Deals

SBA Loans for Your Startup

Re-Examining The Microfinance Mission: Should Interest Rates Be Capped?
Re-Examining The Microfinance Mission: Should Interest Rates Be Capped?

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The LendingTree Foundation Appoints Executive Director
CHARLOTTE, N.C., Sept. 30 /PRNewswire/ — The LendingTree Foundation , a private, non-profit organization designed to provide personalized financial coaching to families in need, today announced the addition of Sharon Fowler as the new Executive Director. In her role, Fowler will launch The LendingTree Foundation’s inaugural class, delivering on the promise of empowering clients in their …

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SBA Loans for Your Startup
Find money today for your new business with this review of the SBA’s top three loan programs.

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5 Tips for Raising Private Money For Real Estate Investing

Join real estate investor and private money expert, Chris Yates, along with his Securities Attorney, Jillian Sidoti, Esq (“The OPM Guru”) for 5 quick tips on how to be a “Money Magnet”. Raising private capital for your business (real estate or otherwise) is one of the most important skills you need to possess in times of tight credit. These quick tips will put you on the fast track to raising millions of dollars in private money for your own business and real estate investments! Tip #1: Have Your Offering Documents Ready! Tip #2: Know Who Your Investor Is! Tip #3: Don’t Act Desperate! Tip #4: Make Sure That Your Corporate Identity Is Clear! Tip #5: Communicate With Your Investors! For more free training, forms, tools, and resources, on private money lending for real estate investors, visit FastMoneyWins.com

Can I use a mortgage instead of a commercial loan?

I know any property with 4 units or more is considered a commercial property. That being said, can I apply for a regular mortgage for a property that has 3 units or less, or do I still have to apply for a commercial loan?

What You should Know about a Private Money Lender

One of the reasons why certain people are discouraged from making real estate investments is that they fear that they won’t be able to secure the needed funds to buy properties or close real estate deals. Well, this is not entirely correct as there are alternative sources of real estate financing aside from banks and mortgage companies. An investor just has to use his (or her) resourcefulness and knowledge of the industry to find a reliable source of funds for his real estate investments.

A good example of alternative sources of real estate financing is a private money lender. Private money lenders can be considered heroes of the real estate investing world. Why, you ask? For starters, they make it possible for a cash-strapped investor to pursue a real estate deal even if the latter is short of funds. Second, these non-traditional lenders use less strict lending criteria that enable a borrower to qualify for a hard money loan regardless of his or her credit rating and current financial status. And third, they can process a loan application quicker and faster, allowing a real estate investor to secure the needed funds in a day or so.

You might be wondering why lenders of private money are willing to risk their financial assets on risky loans. Here’s a simple explanation for you. Naturally, private money lenders have created certain measures that will prevent them from incurring huge financial losses should borrowers failed to fulfill their promises.

Imposing higher interest rates is a common strategy used by these non-traditional lenders to safeguard their interests. Another option is to take over the property, for which the loan was made, should the borrower default on his loan. And although a private money lender is less stringent as compared to banks and mortgage companies when it comes to verification of a loan’s eligibility, it doesn’t necessarily mean that the lender will easily approve a borrower’s loan application. They will utilize various methods to determine if the investment that the borrower is borrowing money for is indeed capable of bringing in huge profits.

Private money lenders are investors, too. They want to get the assurance that they will reap huge rewards from any investment that they will make. So If you want to obtain the assistance of a private money lender, you’ve got to prove to them that you’re borrowing funds for a lucrative real estate deal.

For more information of private money lending, visit www.RehabHardMoney.com.

Use your private money as a tax efficient investment

Cash in! Private Loans are a tax efficient investmentPrivate money lending; what it is and who ought to it.So what is private money lending? It’s a kind of financing by which a customer receives resources contingent on the value of real estate owned by the debtor. The motivation for investing includes: the simplicity of the underlying expenditure and a desire for: one) An investment secured by real estate 2) Regular revenue derived from monthly dividend distributions; 3) Increased yields than those readily available from investing in money market funds or bonds; 4) An Active involvement in actual estate finance.Here’s an overview of the process. Real estate investors or borrowers, provide a Private Money Lender with the following information: 1) The amount of funds requested; 2) The value of the property that is being pledged as security, or collateral; 3) a property description; 4) a schedule of how funds will be usedThe Private Money Lender then assesses the proposed loan, focusing on the value of the property being proposed as collateral. By determining the “protective equity” existing within the property, Lenders are able to generate a maximum loan amount.For Private money lending, this equity provides the cushion for risks taken in extending a loan.If a borrower happens to default on the loan, the equity in collateral property is assumed to offset any outstanding balance on the loanProtective equity is calculated by taking the liquidated worth of the property (the selling price at which the home might be sold quickly, normally ninety days), and then subtracting any outstanding debt related for the property in the form of current loans or tax liens around the home.This amount is then compared to a Loan to Value (“LTV”) ratio. The ratio, established from the loan provider, represents the optimum sum that the lender will lend a debtor. It is expressed as a percentage in the complete amount of protective equity, divided by a percentage.Example: Appraised land worth = $1,200,000 Present trust deed = $200,000 Equity = $1,200,000 – $200,000 = $1,000,000Loan to value = 60% Utmost Loan Amount readily available to borrower = 60% of $1,200,000, or $800,000. The lender may possibly pick to place a $600,000 2nd Deed of Trust behind the $200,000 current Deed of Trust or it might place a new single $800,000 1st Trust Deed loan.The borrower is advised as to an approximate amount of money that may well be borrowed, and is provided with a preliminary estimate of a range of interest rates and loan fees that may be anticipated. This advisement usually comes in the form of a Letter of Intent or Letter of Interest prepared through the loan providerFollowing the completion of the preparation and compilation of necessary documentation, the loan proceeds are transferred to the borrower. Right after a brief pause in financing activities, the debtor then turns his awareness to arranging permanent financing to replace the higher price bridge loan he is committed to.Private Mortgage InvestmentThis is the traditional approach for investors to extend loans to borrowers. A limited number of investors (in California, 10) secure a loan made to a borrower by placing their names on a First (or Second or Third) Deed of Trust on borrower’s property. Monthly payments are made to a servicing agent, who then distributes the payments pro rata to the individual investors.Fractional investments provide the advantages of simplicity and transparency. Each and every personal investor reviews each prospective loan prior to making a decision to invest. On the downside, “building” each and every financial loan investor-by-investor takes time, detracts from 1 of Non-public Money’s key advantages: speed.By its nature, the investment is not diversified for specific investors. The investment is designed completely to a single debtor, typically on a one residence. In the event the debtor fails to make monthly interest payments, the revenue flow to the investors stops. If the borrower defaults on the loan, this profits flow will cease entirely. Investment principal and interest will be recaptured only following the loan is renegotiated, or the home securing the loan is foreclosed upon and sold.Additional, investors holding larger percentage interests in a fractionalized loan may maintain better control within the transaction over the other, smaller investors. In the event that additional investment funds are necessary in order to prepare a foreclosed-upon property for sale,investorsshould come up with these additional funds.Equity ownership programsHere, investors take direct ownership positions within properties that are undergoing rehabilitation or new development. This structure may be utilized in conjunction with loans extended towards the project, to ensure that the investor holds both equity and debt interests.Where to come across a Private Money borrowersOnce you decide to become a Private Money lender, you will need to find qualified, industry savvy, borrowers to lend capital to. www.Yourwholesalehouse.com is a great on-line resource for locating qualified private capital borrowers. This site is extremely user friendly and takes the guess work out of finding and creating profitable deals with smart real estate borrowers. Within minutes, you will be able to view the actual house, research the marketprice of the property, and decide whether or not a deal is right for you.

Private money lenders: Where to find them?

If you are in the real estate business, it is natural to borrow money from private money lenders. Private money lenders are also known as lenders of hard money in some areas. For a quick definition, a private money lender is a person that lends money directly to entrepreneurs or ordinary people who are temporarily in need of cash. Hard money lenders, however, are legally registered companies that provide loans. Real estate investors choose both private lending options over the traditional ones because of its numerous advantages. Where do you look for private money lenders? The succeeding article tells you.

Almost anybody can be a private money lender; from your co-worker, relative, or friend. You could discreetly try and borrow money with these people if they seem to have the cash to lend. Generally, private lenders do not advertise themselves as someone who lends money. Because these individuals do not openly declare themselves as lenders, finding them is quite difficult.

The first place you need to look is your local real estate investing club. REI clubs are a great source of private money lenders. As a matter of fact, these lenders usually belong to these clubs. Aside from acquainting yourself with these individuals, you can also fully immerse yourself in the industry that could further enhance you entrepreneurship skills.

Fellow real estate investors could also be private money lenders. Most of them are already earning a fortune so try to work a deal with them. Because you belong in the same field of business, they will exactly know what you are going through, thus upping your chances of borrowing from them. However, you must be very careful when borrowing money from private money lenders, especially if it is a close relative or friend. Once you break their trust, your personal relationship can go wrong. Prevent this from happening by paying your lender promptly.

You can also look for private lenders in the Internet. As said, these people do not advertise themselves. What you need to do is to post ad in eBay that states your need of a private lender. Also, you can search hard money lenders within your area by typing in the keywords with your location in the search engine bar of Google and that that’s it! Or, you can also visit RehabHardMoney.com for further details. It contains a large database that brings hard money lenders and borrowers together.

Where can I get the lowest interest rate on a commercial mortgage?

I need to borrow $700,000 on a new commercial bldg. It appraised at $1.2M, My credit is perfect. Where can I get the best interest rate?

Uncertainty Weighs Heavily Over Fourth Quarter Outlook

Mortgage brokers face fraud charges
A mortgage broker from Newtown Square, a loan officer from Drexel Hill and a Philadelphia man were indicted by a federal grand jury for allegedly defrauding two banks out of more than $35.5 million.

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A Fantastic Distressed Debt in Institutional Investor
By Hunter. Here is a fantastic distressed debt article that was sent to me earlier today. I have copied and pasted both below (sorry for the length) – My comments will be in a post later tonight (in addition to my notes on Michael Tennenbaum’s interview on Distressed Debt) Read more » »

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Uncertainty Weighs Heavily Over Fourth Quarter Outlook
Typically by October, the commercial real estate industry can see its way clearly through the end of the year, with a pretty good idea of what can be accomplished and how the rest of the year will play out. But these are not usual times. The loads of…

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Commercial Loan interest rates? Best way to apply? Tips?

I am applying for a large commercial loan. What are the best rates I should shoot for? What is the best way to go about getting the best rates? Anything I need to lookout for?

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