Look For Private Money Partners For All Your Funding Needs

If your business model is sound, the path clear, and you need an infusion of cash to take your business to the next level, then read on to see if going to a private money lender is your ideal solution.

First, you should begin thinking of using a lender as more of a partner. Not in the “legal” sense, but in the “sharing profit” sense. After all, you the borrower,  get to use other peoples money (OPM) quickly and easily. In exchange for this amazing privilege,  private money lenders share your profits . . . a win-win for both of you.

Getting finance to make huge profits is not difficult. The truth is, private money partners are Interested in you and your business enterprise and would love to provide the funds so that you can increase your success.

Your success, is their ultimate goal as well!

What kind of deals are private money lenders funding? It could be any deal, large or small, a business, an investment, or infrastructure project. A private lender is an investor who has money available to him/her, puts it into a system, and receives risk premium. Besides giving the money, the lender would like to ensure you make profits and that you have control over your venture.

For example, a real estate dealer struck a lucrative deal on a property but realized there was a lien on it. The dealer not only got a loan to pay off money owed to a contractor but was shown how to complete the deal. An application for a loan ended up making a six-figure profit for both the lender and dealer.

So the next time you need to fund your ventures, think of private money partners.

Why Do you Need Commercial Mortgage?

If you plan to apply for a commercial mortgage, it is necessary to first point out the reasons why do you really need a mortgage. This will help you to get the best out of deal that you settle with.

If you are looking forward to purchasing a commercial property or to expand your existing facilities, to acquire multi unit properties or even to refinance the existing debt, commercial mortgage provides you with necessary funding. You can go to the banks and other institutions that offer several mortgage plans and can select the best type of repayment that suits your business. Depending on your need, the following points are always to be kept in mind for a commercial mortgage deal:

How a commercial mortgage works

What are your responsibilities

The types of commercial mortgages available

How to select the best lender

What the various costs are

The companies with good credit, strong financials and a proven business model generally qualify for commercial mortgages. The commercial real estate includes:

Office buildings

Apartment complexes, condominiums (four units or more)

Strip malls

Retirement homes

Warehouses, manufacturing plants

Health care facilities

Schools, churches

Car washes, repair shops

Restaurants, hospitality

Once you go for commercial mortgage, your monthly payments will help you to build equity instead of just providing office space for your business. The interest tax of your mortgage is also tax-deductible which lowers your business’ gross taxable income. If you come in term with fixed-rate commercial mortgage, where the rate does not change every month, the cash flow management of your business also improves. This enables you to predict your monthly expense without fear of rent increases. And as your commercial property typically appreciates in value, this is considered as a solid long-term investment.

Another advantage of commercial mortgage is that the loan is generally assumable. This helps you to sell your property without any extensive approval process. The buyer can take over the terms of your existing loan without any hassle.

Commercial mortgage lenders don’t provide funding for startup businesses. If you’re looking to launch a company, you may want to look into Small Business Administration (SBA) loans. These loans provide entrepreneurs with fixed rates to start new businesses. But if you are planning to increase the pace of your business and lacking the fund, commercial mortgage is perfect for you. It can not only be a fund for business, commercial mortgage can also help you to meet certain operating expenses like:

Debt consolidation

This situation arises when you have more than one debt and to pay off one you borrow from another source.

Office repairs

This is a very common problem for every business house and a lump sum amount is spent on that.

Monthly bills

There are certain bills that you have to pay every month (electricity, internet, maintenance etc.)

Based on your needs and your business solvency, you have to first gauge how you will handle the monthly repayments with the high interest rates. It is only when you are very sure of the viability that you should go in for a huge responsibility like commercial mortgage.

Using Private Money to Rehab Houses

For years, investors have been using private money to rehab houses. They find it better than conventional loans offered by banks, credit unions, and other traditional lenders. Rehabbers have a sundry of reasons for tapping this kind of financing and here are some of them.

The first is it lets them close deals with zero personal money. If you sought credit from traditional lenders, they will give you enough money to buy a property. In the case of rehabbers, this is not enough because apart from purchasing a cheap property, they also need money to fix and market it. They also need extra cash for closing and other unexpected expenses. While they have lower interest rates, traditional loans may not be enough for their needs.

That is why they turn to private money despite this kind of financing having higher interest rates. When you borrow money from private money lenders, you will usually get all the cash you need to buy a property, rehab it, and then market it. This is how it happens.

Private money lenders will give you money based on the amount of the collateral. In the case of rehabbers, the fixer upper home is used as collateral. Lenders determine the price of the fixer upper home in good condition and then will give you a percentage of that value, which is also known as the ARV (after repair value). The percentage used differs per location and lender although they commonly give between 60% and 70% of the ARV.

To better explain this point, see this sample computation. Let’s say a fixer upper home in its current, dilapidated state is worth $50,000. However, in good condition, it can be sold for $100,000. You will need around $15,000 to repair and improve the property and another $5,000 for various expenses such as closing costs. All in all, your total expenses amounts to $70,000. If the lender gives you 70% of the collateral’s value in good condition, or the ARV, you will get $70,000 from one loan. This means that you will be able to buy a property and rehab it without spending any personal money. Plus, you get to take home a $30,000 check for your work.

Compared to traditional loans, private money is also released fast. Also known as hard money, this financing is not hard to access and can be used even by borrowers who do not have good credit scores. If you’re interested in this line of credit and how it can help you rehab houses or invest in real estate, visit REIwired.com today.

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Commercial mortgage loans

www.lendinguniverse.com commercial mortgage loans, www.lendinguniverse.com money loan together commercial mortgage lenders as well as commercial property loan, construction loans and for the most part with commercial mortgage lendersand money loans , money loans and commercial mortgage lenders…

Does the “Basis” of a 401K (rollover to IRA) include the money you put into it, even if it is pretax?

I rolled over an 401K several years ago, and need to calculate the “basis” of the rollover IRA where that moeny now resides. Is part of the “basis” the money taken out of my paycheck – pretax, which now resides in that IRA? I’m assuming it does, but not sure because it was removed from my paycheck – pretax, whereas other “contributions” to the same IRA over the past two years were made after tax.

Is it advisable to do an IRA rollover for after-tax income earned from after-tax contribution in a 401K acct?

Or is it better just to transfer both after-tax contribution and after-tax income to an individual brokerage account? Is it correct that capital gains tax will need to be paid for the after-tax income earned from after-tax contribution? Any advise will be appreciated.

Hi, i am going to sign a commercial loan contract approval, any advice is helpful?

I have been quoted a rate by a commercial finance consultant company and they are asking for $2500.00 deposit to get the loan started. They say it is partially refundable if loan doesent go through, I don’t have a lawyer, here is the fine print in the contract, if someone could read it and tell me what it means. This is governed by CA law since it is a company in California, also what can I do if I send the deposit and sign the contract with the clauses here and they do not decide to give me back my deposit? Thank you.

Borrower hereby retains Commercial Capital as the placer for the purpose of procuring a mortgage loan approval. Furthermore to obtain a new mortgage upon further investigation of equity, credit, income and title validation.
Commercial Capital acting as exclusive placement agent for borrower will conduct proper due diligence in accordance with ethical business standards to adequately find and place borrower(s) loan request with proper lender. Commercial Capital does not guarantee successful permanent placement of loan, this agreement is for the sole purpose of proper due diligence and best effort for borrower(s).
Borrower(s) agrees to fully comply with document requests relating to loan placement and due diligence needs list requirements for the best efforts to fund loan for borrower(s). Borrower(s) agree to respond with relating documents within 7 days of request to ensure proper streamlining of loan.
Any due diligence fee & packaging fee deposit given to Commercial Capital becomes the property of Commercial Capital wholly earned at the time of payment or collection.
Commercial Capital Promises to use its best efforts to find borrower(s) financing for borrower(s) property. Commercial Capital does not guarantee loan funding within any period of time specified because underwriting guidelines may change from time to time & borrower may not qualify due to loan to value, fico score, or liquidity, debt to income, debt service coverage ratio, or property does not debt service.
Rates fluctuate daily, terms and rates are only approximate until borrower(s) signs the letter of interest from lender and has submitted all the required paperwork and goes to underwriting for loan approval.
Final rate depends on credit worthiness, dept to income ratio, net operating income, and asset liquidity of borrower(s) & credit risk. Initial rate quote is subject to change by lender. Commercial Capital is not responsible for lender or investor changing rate and will not be held liable or responsible.
Borrower(s) agrees to cooperate fully and submit all requested due diligence information in a timely manner, within 7 days in order to submit to underwriting.
Disclaimer: Rates may change if borrower does not submit within timely fashion within 7 day period.
All submissions must be done electronically. Broker required to submit all due diligence documents electronically.
If referring broker does not send all required due diligence documents within 7 day period it could adversely affect rate which was originally quoted to borrower.
We are advocate of client to use best effort to find investors or lenders which fit into borrower’s request. Subject to underwriter to receive all due diligence material within 7 days otherwise PMD fee is not refundable partially or in full.
This PMD fee is not subject to a refund, an offset or a reimbursement and is deemed earned once received.

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Presenting a Private Money Offer to Your REIA Group

www.privatemoneyblueprint.com Got a question from one of our students, Gene, on how to present an offer for private money at his local REIA (real estate investing association). Here’s a killer script to use to lock up the funds you need to close the deal.

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