The Importance of an Experienced Underwriter
The more experienced the Account Executives, Loan Originators or Mortgage Brokers, the more accurately they can match the borrower and collateral to the lender and loan program.
By the same token, the more experienced the Mortgage Underwriters the more ways they can find to get your loan approved.
Hard Money is Not As Hard As It Used to Be
Once upon a time, “hard money” or private capital lending evoked imagery of potentially unsavory lenders congregating in back alleys, making loans to borrowers that simply had to be paid back – or else!
Fortunately, times have changed and markets have become far more efficient, with private capital or “hard money” lending evolving into being simply another arrow in the capable commercial mortgage broker’s quiver of potentially suitable financing sources, each presenting their own pros and cons.
Hard Money Warning Signs
Hard money is an important part of the funding world, and often a key player in many business plans. However, some lenders are less than honest and try to scam unsuspecting borrowers.
Carefully review a loan agreement before signing. Dishonest lenders love to sneak little traps in the contract, so if you feel at all like you don’t fully understand it, have a real estate attorney review the documents with you.
Foreclosure \ How To Avoid It
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.
Ask for reasonable loan amounts and then consistently set aside money to make your payments every month.
Hard Money Loans And Overall Business Strategies
This is a common plan for property rehabbers or flippers. Investors choose a property with high potential and are able to acquire quick funding through a hard money loan.
This strategy is for properties which are not intended for fast sale, such as rental or commercial properties.
History Of American Savings Life Insurance Company
On April 6, 1954, after years of dreaming, planning, calculating, and organizing, American Savings Life Insurance Company came to be.
Frihoff Allen, dreamer, creator, and founder of the company, had spent his early professional years as a life insurance agent and general agency manager, all the while putting aside funds in hopes of starting a local store.
Costs Associated With Private Money
Private money loans can seem intimidating, especially when considering the muddy reputation hard money lenders have imposed upon even the most reputable lenders.
Some upfront costs typical to private money loans include a small deposit, that is often refundable, as well as any due diligence fees such as appraisal, environmental reports or testing and inspections.
Interest Only Loans
With interest only loans, borrowers only pay the interest on the loan through monthly payments for a fixed term, 2-3 years.
When choosing an interest only loan, borrowers need a solid strategy for alternative uses for the money they’d otherwise pay towards the principal, as well as a strategy for getting rid of the debt. When this is the case, interest only loans tend to work well in favor of the borrower.
Is Storefront Retail Dead?
Contrary to the headlines shouting the lamentable death of many physical retail spaces, such as the defeated Toys “R” Us or the no-longer-so-hipster Teavana, storefront retail is not dead.
It cannot be denied that online shopping is becoming more and more common, but, according to most estimates, about 91% of all retail sales last year still took place in a physical store.
Obtaining Financing with Less-Than-Perfect Credit
The ability to obtain financing is often the difference between success and failure for many small businesses. Unfortunately, not all business owners have credit strong enough to qualify for conventional loans.
Businesses that have equity in their company’s real estate can usually obtain private money (also known as “hard money”) loans to raise needed funds.