does somebody know of a private lender who would loan money and i pay back in 6 months with higher interest?

October 30, 2009 by  
Filed under Private Money Lending

Lehman, JPMorgan, Bank of America, Mattel, HP in Court News

October 28, 2009 by  
Filed under Private Money Lending

Fate of Dancing Bear in Aspen lies with bankruptcy trustee
The fate of the second phase of the Dancing Bear, an unfinished fractional-ownership project in Aspen, rests with a federal bankruptcy trustee.

Read more on The Aspen Times

New Law Lets Homeowners Get Legal Fees in Foreclosure Cases
Supporters say the law, signed in Albany this week, will give homeowners a better chance in court by allowing them to more easily get legal representation.

Read more on New York Times

Lehman, JPMorgan, Bank of America, Mattel, HP in Court News
Barclays Plc took assets it wasn’t supposed to when it bought bankrupt Lehman Brothers Holdings Inc. ’s brokerage two years ago, and never told the judge, said a lawyer for the defunct investment firm.

Read more on Bloomberg

What happens if you go into financial default on commercial property?

October 20, 2009 by  
Filed under commercial mortgage lenders

My sister and I own a commercial building–the business we ran inside went bust thanks to the lousy economy. The building has been up for sale for many months with NO bites. We’ve lowered and lowered it. No one is buying–small town.

My sis and I both work, but this is still financially hard on both of us to keep paying on this building. Mortgage lender has changed our loan to a balloon mortgage, interest only (which saves us several hundred dollars a month), but if I sign it, we have one year & then have to come up with the entire principal, and he said there is NO guarantee they will renew it.

There is NO way we can pay it off in a year. So all this makes me wonder if we should just call it quits, keep what little we have left in our savings, stop working so hard to keep up on the mortgage. Our houses are NOT the collateral–the building is.

Sure, I know we’ll lose both of our top credit standings, but…..this is the pits, and it looks like we could lose it anyway in a year if we sign the new mortgage…..

What else would we face if we stop paying? Is it possible that it’s worth it?? Any other comments for us to think about?
Ananamas, yes, I did like your questions, but wasn’t sure how to implement them. For example, how do I find the kind of businesses who don’t have to be physically present? How do I contact them? That seemed daunting. Also, I think the city council requires that buildings on our block be a retail for customer to walk into.

As far as leasing it, we had some bites, but they ALL wanted to pay FAR less than our mortgage!! Very frustrating. People are low-balling.

Networking with local banks and Chamber about new businesses coming in or expanding–not sure either is happening in this community. No, we’re not in a dead community at all. It’s just the “economy{ thing…..

I’m still very interesting in all your ideas. Just not sure how to make them work. This is maddening.

When to Use Hard Money Lenders in Real Estate Investing

October 15, 2009 by  
Filed under Private Money Lending

The terms “hard money lender” or “private money lender” are thrown around quite often in the real estate investing world, but you’d be surprised how often these terms are misunderstood and misused. These lenders are often hailed as last minute saviors, or disparaged as usurers, but the fact is that they are merely one of many lending options that may or may not be appropriate for a given loan.

To begin with, we’ll define hard money (or private money) as money borrowed from an individual or extremely small firm, who lend their own capital. Borrowing money from a hard money lender is like borrowing money from your uncle instead of borrowing money from a bank, and as such these loans are entirely subject to that individual’s case by case decisions about a loan, not based on rate sheets or objective loan programs.

This has several implications for hard money loans. First of all, they are extremely expensive; rates typically vary between 12-20% and points typically range from 2-8%. Second, they are extremely fast, due to the small-scale nature of these lending operations. Third, they are conservative with loan-to-value (LTV) ratios, only lending a small fraction of a property’s value. Finally, they are usually short-term, as hard money lenders prefer a high turnover rate so as to continue lending the same limited pool of capital.

So what kind of borrower or scenario would benefit from such a loan?

Generally speaking, hard money loans are only advised for seasoned real estate investors, who know precisely what they’re doing by borrowing hard money. Homeowners, by contrast, are usually not well advised to borrow such expensive, short term loans, as homeowners tend to misunderstand the complexities of such a loan and tend to own their real estate for longer periods.

When is it appropriate to borrow hard money for real estate investing?

There are several advantages to hard money loans, which may justify their use. As mentioned above, hard money lenders are fast and responsive, and can often settle in just a few days, unlike lethargic banks and traditional mortgage lenders. Additionally, they will sometimes lend to borrowers with poor credit or undocumentable income, because they are lending at such a low LTV ratio. Hard money loans are collateral-based loans, and are designed to be recoverable even if the borrower fails to repay the loan.

This makes them a good choice for real estate investors who need to close a loan immediately in order to take advantage of a bargain property, or for real estate investors who may not be able to easily prove income. However, they are typically only useful for short term real estate investing, due to balloon terms and their high cost.

Because of their speed and flexibility, hard money loans tend to be a viable option for real estate investors looking for short term renovation or construction financing. For investors whose modus operandi includes buying shells or raw land, and renovating or developing it to either immediately sell or sign a lease agreement and refinance, hard money loans can be useful. However, long term financing for that lease agreement needs to come from elsewhere, so always have at least two banks lined up as possible long term lenders for longer term real estate investing.

Serious real estate investors need to establish relationships with many different types of lenders, from national banks to neighborhood banks to hard money lenders, depending on the deal at hand. Some deals will require inexpensive, long term financing (such as rental owners signing a lease agreement), while other deals will require fast, flexible financing (such as short sale purchases), so be sure to establish relationships with all types of lenders, for all the occasions in the real estate investing world.





Anyone have tuition and private lender advice?

October 10, 2009 by  
Filed under Private Money Lending

Hello again. I found a college in the chicago area with 18k tuition plus around 5k for housing. After receiving the FAFSA, I have found that I will be recieving 8k in grants and probably 6k in loans. However, that will still leave me short. I will ask about things such as Work-Study programs and school scholarships, but I may have to go to a private lender for money.

How can I get a loan for the remainder of the tuition if I have no established credit and my parents have bad credit?

Thanks!

What mortgage lender has the best 30 yr fixed interest rate today?

October 5, 2009 by  
Filed under commercial mortgage lenders

Is there a non-commercial daily update website? I don’t want to get on any more junk mail lists.

How to Get Private Mortgage Lenders for Property

October 3, 2009 by  
Filed under Private Money Lending

Wouldn’t or not it’s thrilling should you knew had inside knowledge of the secrets and techniques of obtaining private mortgage lender   from anyone? Close friends, spouse and children, expert sophisticated investors , exclusive equity cash?

 

There are 5 keys for convincing anyone to be a private mortgage lender. This will apply to no matter whom that you are speaking to in obtaining income on your real estate ventures.

 

* Now the first essential is WIIFM (which is not a radio station) it’s an acronym that means

 

What’s in it for me

 

* The 2nd is ROI– which most folks believe of as return ON investment but right here it implies return OF investment – in other words assuring the private lender of how they are heading to obtain their dollars back again.

 

* The third key that you must handle with any exclusive private lender will be the uncertainty factor – how you may decrease risk in their equity.

 

* 4th would be the knowledge factor, or your credibility – How would you prefer to current yourself as a professional and dependable group, even though you’ve not nevertheless purchased a single asset.

 

* and also the 5th is trust. And that is developing a relationship with the investment banker so that they end up giving you with their loan. Wouldn’t this be 1 of the greatest wealth constructing secrets and techniques of all?

 

Now let’s talk about What is In It For me – that’s actually the million dollar question for private mortgage lenders.

 

Because this may be the 1st thing on a potential private investor’s thoughts, wouldn’t it make sense to begin the dialog by informing them first?

 

How Very much to offer is really a weighing in between how Much profit or cashflow you can afford to give up, and the way Very much the private investment banker feels is “too excellent to refuse”. That really depends on what type of exclusive equity partner that you are talking to, and what their anticipations are.

 

For close friends and spouse and children who are new to your concept of exclusive investing – their expectations are based to the returns they experience from CDs or the stock market place. CD’s have been inside the 3-4% range as well as the stock market (well.!!! I’d hate to be a broker)! So for good friends and loved ones look at supplying a 10% or larger returns.

 

For large net worth exclusive equity partners (aka angel investors), they are previously conditioned to higher than ordinary investment returns and so for them I recommend offering 15% or ideally more !!! In fact with all of the damaging news about property, you may need to go fairly a little increased.

 

Would not it be great, in case you could borrow the money without interest, no funds?

 

Then think about supplying an equity portion-a % with the earnings. Now if your exclusive investment banker requirements to acquire typical interest installments – here’s a very good strategy:

 

Make Set the interest payment low enough to still get some cashflow, income from your house, and supplement the return to your private investor by adding what’s referred to as an “equity kicker ” i.e, offering a % in the profit towards the private mortgage lender to enhance his yield.

 

For additional information, check in our private money lenders review

 

Professor Richard Odessey, is known for his secret insider information on private mortgage lending. A 10 yr Property acquisition veteran, Richard finds private money for his ownpersonal deals and is a  private money lender himself. Having sat on both ends of the podium, he opens up with his coaching students, the insider secrets that will earn them millions in hard cash in private loan.

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