Monday, 30 April 2012

How to become a Hard Money Lender

hard money loan lenders
Hard money lenders are the private individuals or companies dealing in special type of real estate loans called hard money loans. It is a special type of loan which is backed by the value of property, not by the credit worthiness of the borrower. It is a popular business in USA. California is central point of this business. California hard money lending companies deal in private money lending and help borrowers for completing business requirements.

In order to become a hard money lender you should first understand hard money lending terms like real estate broker, investor, borrower, lender, player etc. you should also examine hard money lending as part of your overall financial strategy. Browsing the private money lending guide sites will help in understanding current market trends. Online forums and blogs are also live on web to gather and discuss a lot of information about hard money lending.

California mortgage lenders
After you’ve browsed the site to get a general idea of the information available, use the hard money lenders investment opportunity directory service to find one or more private money lenders to discuss various investment opportunities.  You can search for a lender by loan type, location, or by a keyword (e.g. construction, bridge loan, or rehab loan).   Most loan providers will have a few loans they are in the process of funding and will be able to give you details about particular loans that may meet your criteria as a private investor.

Another step is to develop a Rapport with a private lender. Most loan professionals in the hard money (private money) business are looking for long term relationships.  Many investors choose a lender with whom they have developed a rapport and who also pass the various due diligence requests put to them about various loans under consideration.  Avoid the private money lenders who are pushing too hard, or trying to sell you on something with which you are not comfortable.

Hard Money real Estate LoansLast but not the least step is again read article about investing in detail. Go back through the Private Money Lending Guide site as you consider your options as a private investor and learn more about the real estate loan investment opportunities. Articles and tips that may not have seemed relevant to you when you were first browsing the site will contain important information which may benefit you in negotiating the best terms and selecting the best loan provider to assist you with your investment.

These are the some tips for becoming hard money lender. I hope these will help those who want to become hard money lenders in future. After hard working and experience you will be a successful hard money lender in real estate market. 

For more details about Hard Money Lending please visit:

Thursday, 26 April 2012

Common Questions about hard Money

Questions about hard money loansDeveloping viable hard-money loan options may make it possible for mortgage brokers to close more loans in this challenging environment. Hard-money loans can seem difficult for many reasons, however. Brokers who haven’t worked with hard-money lenders before may have some misconceptions about this type of financing and question whether they are a viable funding source.
Below are some of the most frequently asked questions we get about hard money loans.

Q-1 what is hard Money Loan?
Ans- HardMoney Loan is the term that has used to describe a loan made on the raw equity of real property. In other words, hard money loans are made with the assumption that the liquidation of the property will be the primary means of loan repayment in the event of default.

Q-2 Can you use Hard Money forloans on commercial and residential property?
Ans- Yes you can! Hard Money can be used for any type real estate, single family homes, land, apartments, industrial buildings, office buildings, and retail stores.
The procedures of doing the loans are similar but the concepts regarding the value and equity vary significantly between commercial and residential property.

Q-3 how long is the loan for?
Ans- Typically write the notes from 3 months to 12 months depending on the Lender and your needs. Longer the term can lead to increased costs or interest rate.

Q-4What is the process for Hard Money Loans?
Ans-Hard Money Loans provide Investors access to capital to purchase investment properties. They can fund quickly, typically within 72 hours of receiving the final docs from the Title Company. Hard Money is available for adequately collateralized loans on single-family residential houses and other Real Property including commercial projects.

Q-5 can interest to be deferred to the end of the loan?
Ans-Sometimes Most have interest payable monthly. Again, if you cannot afford to close you typically cannot afford to take out this type of loan.

faq about hard money loanIf you want to know more about Hard Money Loans or interested to get loans, do contact us at:

Call Us: 415 680 3454

Wednesday, 25 April 2012

Hard Money for Real Estate Investing

hard money loan lenders
Hard money funds are big source of capital for real estate investors. In order to complete financial transactions, investors require more operating capital than conventional banks are prepared to provide on short notice. So real estate investors prefer hard money lending to take advantage of ongoing projects. Hard money loan is a source of refinancing and funding business. It is special type of real estate loan which is backed by the value of property not by the financial condition of the borrower. Whether your deal is a commercial construction project, a high rise acquisition or a residential housing development, it will help you in all situations.

California Private Money Financing
In these days, real estate business is increasing day by day. Every day there sets thousands of deals on buying and selling of properties. These deals are on cash basis or on loan basis. As a buyer or investor you need a huge capital in short time to complete business deal. We know that traditional banks are not fulfilling needs of borrower in short time. As they require income verification and large paper work in order to just apply for loan. Here comes hard money lending companies to finance you and solve your problem. They typically gave loan within 72 hours of receiving the final docs from the Title Company. Hard money lending is becoming popular among investors in America. California is head quarter of this business. Different private lending companies operate in California to facilitate borrowers with capital to complete their business transactions.

Lenders can also fund projects that conventional banks cannot. If your real estate investing takes you to the realm of dry cleaners, gas stations, or even assisted living facilities (one of the hottest growing real estate markets in the US), conventional banks are not likely to be able to fund your project. Hard money loans can, once again, be a deal saver.

Hard Money real Estate Loans
Beside this, commercial hard money is issued to a business entity or individual signing on behalf of a business entity or individual. Commercial hard money is greater than simple hard money loan. This loan is used for commercial real estate business like selling and buying of commercial property. To qualify for commercial loan you need to verify your business by lender companies.

At last I would say that hard money lending is a big advantage for real estate investors. It is a best option for investors to invest in commercial projects as well as small projects. It will help a lot to fulfill business requirements and to complete dreams and goals.

Monday, 23 April 2012

How to take advantage of current real estate values

hard money loan lendersThis is the frequent question asked by private investors, clients, family and friends. They are interested in searching the ways to take advantage of current real estate values. Most people in the media have taken the real estate market perspective of gloom and doom. For the most part, they would be correct in their assessment that the real estate market is having a very difficult time. Unfortunately, they do very little commentating on the positive side of the real estate market and the opportunities that exist. If you use the right technique in real estate business then it is an excellent opportunity to make profit.

If you start real estate business as an individual, then at the beginning, focused on single family residential real estate. It’s simply an easier place to start, smaller dollar amount to pay, easier to move in and out of the properties. As an investor you can take the loan from hard money lenders from your respective lender in your area. Hard money lending is a popular business in America. California is the head quarter of this business. You basically has three options. Buy and flip the property for quick profit. Buy and hold property for monthly rentals income plus future appreciation. Third is simply be the lender and place a lien against the property as collateral.

Hard Money real Estate Loans

The following are the ways to take advantage of the current real estate market.

1         1.      Marketing: Within the advancement of technology the use of computers and internet is best mean for advertising and marketing your product or services. The way you market  your property is highly matter to achieve good profit. So focus on new marketing techniques.

2.      Watch for Foreclosures and Short Sale Opportunities: Foreclosures are homes
where the borrower has defaulted on the loan; a short sale is when the home is sold for less than what the borrower owes on the loan. In either case, it can be a super deal for you, the real estate investor. Talk to your real estate agent and ask him or her to get you on a foreclosure auction list so you can start to see how much foreclosed homes in your area are going for. 

California mortgage lenders3.              Check Out HUD Home Opportunities: HUD homes have always been good deals, but these days you can find homes for almost nothing, especially if you are willing to move into a revitalization area. Ask your real estate agent for a tour of revitalization areas in your metro area, and then start keeping track of HUD homes as they come on and off the market.

4.              Consider Buying Rental Property: It is not the wisest decision to buy and flip the property.  But it is a great time to buy and rent it out. So stay calm and cool and buy the property and rent it out for earning profit for your business.

Friday, 20 April 2012

Raising Money for Structured Real Estate Deal

California mortgage lenders
A structured real estate deal or structured finance involves highly complex financial transactions offered by many large financial institutions for companies with very unique financing needs. The investor must have a handsome amount of money for completing structured real estate deal. Similarly he must understand all industry terms related to structured real estate deal.

First of all never get into a deal with partners without having a formalized real estate partnership agreement. If you don’t take the time to work up a formalized agreement and purchase a property with partners, you can get yourself into some real trouble. Make sure you consider the following things in putting this real estate partnership document together.
    hard money loan lenders
  •  Who is putting up funds and how much are they giving?
  •   What is the percentage split of funds?
  •   Who will be actively managing the property?
  •   What will each partner’s role be in the day to day care of the property? (consider little things like    who wants to be woken up at 3 AM if the is a problem with the property)
  •   Who will be on title?
  •   Who will apply for the loan?
  •   How will expenses be covered?
  •   How will any monthly profits be split?
  •   If sold, how will the proceeds be split?

California Private Money FinancingBreak things down even further and have a clear understanding of all roles of all parties. When you have figured out the roles and amounts of money that are put up for the deal, negotiate a fair balance between these to come up with percentage splits in profits, proceeds, ownership, etc. Write these down in the partnership agreement. Once you’ve completed the document, pay the extra money and have an attorney review it to be sure both parties are protected. Then should you move forward with a deal with partners.
Some business terms related to structured real estate deal is 
Sponsor: The company or individual who is looking to raise money and has identified the real estate to be purchased or improved.
Investor: The money partner, sometimes an individual, sometimes a company, (private equity group) who is putting up the cash above and beyond leveraged or bank money. However, if 100% of the money needed to complete the project is debt, then the term investor might be used to describe the lender or debt partner.
 Lender/Debt partner: The institution putting up the loan.
Structured Financial Transaction: Any deal structure where debt and equity are both used together to finance a deal.

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Thursday, 19 April 2012

Some Facts about Home Loans

However, in my past experience as both a hard money broker and a hard money lender, most private or hard money lenders look at the combination of certain criteria which paint a big picture of how much risk your loan request represents to them.

This includes your ability to repay the loan, the likelihood that you might default, if the property's value will hold up, and in the worst case scenario, a foreclosure.These criteria are combined to determine the risk involved for the hard money lender and if they can recoup their investment plus fees and costs incurred in the event that you default and they have to foreclose.  

There are different standards and strategies that real estate investor's use when evaluating properties. In order for us to get involved with a property, an individual should know that there are some advantages of hard money home loans which are:

– It usually entails in lower monthly loan installments.
– The home owner can pay off the earlier mortgage on his home
– A home Mortgage loan can be taken if the homeowner needs additional money

Real Estate Hard Money Loans– It helps the homeowner get a better interest rate as compared to what he was paying on the     existing home mortgage loan
– A Home loan remortgage can also help him consolidate other debts
– He can pay of some large expenses like his children’s education
– He can pay off other higher rate debts like credit card debts, car loans etc.

When making a loan, a bank and hard money lenders both have different options when it comes to determining the value of the property. A hard money lender takes a very conservative approach to property value. For Example, the appraised value means nothing to the hard money lenders. Plenty of hard money mortgage programs allow borrowers to buy houses with little or no money down, but they usually require private mortgage.

If you have any query about Real Estate Hard Money Loans, do contact us at

Tuesday, 17 April 2012

How to Use Hard Money Loans to Finance Real Estate

Hard money private money, is exactly that: non-institutional money that can be borrowed, usually from an individual or an extremely small lending company. They are an alternative to a bank or traditional mortgage lender, and their loans are typically much different.

  • Hard money lenders are expensive. They typically charge interest rates in the teens, and charge at least 2-3 points and sometimes as many as 7-8. Clearly, this is not a loan for Joe Homeowner.
  • They typically lend for very short terms. This could be anywhere from a few months to a few years, but seldom longer.
  • They lend at extremely low loan-to-value ratios (LTVs), meaning that they will only lend a small fraction of the value of a property. If the real estate appraises for $100,000, they might only lend $60,000.
Hard money lender real estate is one financing option borrowers with poor credit can utilize to purchase a home. Hard money loans are substantially more expensive than conventional home mortgage loans. This finance option should only be used on a short-term basis to help borrowers establish or rebuild their credit history.
Hard Money Lender Real EstateHard money lenders can be a useful resource for the wise real estate investor, but all investors should take a good look at their local banks first, as some local banks can offer the same speed, flexibility and quality of service as a hard money lender at a fraction of the price. Real estate investors are wise to try to establish a relationship with both a local bank and a local hard money lender to keep their options open and to find the best fit for each real estate deal that they make.
Real investors need financing, and hard money lending is one way to go. Here are some benefits of hard money lending that are certainly hard to ignore.
·         Hard money lenders support your venture in real estate investing. The basis for approval of a hard money loan depends on the deal and not the borrower’s credit score. Banks will not help you fund your rehabbing or flipping houses business even if you are qualified for a loan.
·         Repair costs are financed by hard money lenders.
·         It is a good way to start a real estate investing business since you won’t be using your own money for your business. You could invest in a property and earn money without spending a single dollar out of your pocket.
·         Since hard money lenders are investors like you, discussing matters on real estate is easier. They know the ins and outs of the industry and you will not have a hard time negotiating with them.
Hard Money Private Lenders·         You can flip and rehab a house without spending a single cent from your savings. Why so? Banks often require a 20% down payment for a loan, while hard money lenders don’t. * It only takes days to approve a hard money loan, unlike banks that take months to approve a loan proposal. These advantages are things a smart real estate investor shouldn’t ignore. It’s everything you need – a fast and easy access to finance your business.

Get a chance to meet the best lenders and borrowers by visiting today and know more information about hard money lender real estatecall us at 415 680 3454 or contact us at

California Mortgage Lenders

California mortgage lenders
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance (limitation) of that realty through the granting of a mortgage which secures the loan. It is an important type of loan. Mortgage lenders offer such loans.

The high prices of real estate cause difficulty in finding and buying property in California. It requires a lot of money. Most people need loans to buy property for their family. By learning more about mortgage lenders in California one can choose an affordable lender that will give him access to the money that need to buy property. Like other lending institutions, mortgage lenders in California make money by charging interest rates. Consumers with high credit scores usually find that they qualify for low interest rate loans that help them save money over time. Those with poor credit histories, however, might need to find a lender that is willing to charge higher interest rates to offset the higher risk that they represent. Regardless of your credit history, though, you should shop around to decide which lender will give you the lowest rate without compromising the services that you need.

hard money loan lendersYou can start exploring the mortgage lenders in your area by visiting the websites. You can Google mortgage lenders. You can find many mortgage lenders in California. Users just go to the website and access all the necessary information from it. Similarly online blogs and forums are also formed where lenders and borrowers from different area of the world communicate with each other and discuss the issues regarding Real Estate, lending options, interest rates and bargain with each other. There are many mortgage companies in California, but researching and comparing rates among them can be a time-consuming undertaking. Finding trustworthy mortgage brokers in California can simplify the task by searching out the best rates for you. A California mortgage broker will also have access to deals that you would most likely not find on your own. 

Mortgage brokers in California should assess your circumstances, help you understand what you can afford, assist you in finding a California mortgage lender that fits your needs, and guide you in navigating the paperwork. When hiring a mortgage broker, choose a local one who really understands your neighborhood. Another benefit of using a local California mortgage lender is that they will be available in person and can deliver documents to you quickly to keep the process running smoothly.
California Private Money Financing
At last I would suggest you to find right mortgage lender in California. It will surely work for you to complete your business transactions and future plans. 

Monday, 16 April 2012

Myths about Private Money Lending

hard money loan lendersThere are many misconceptions and rumors about private money lending. No one knows the real facts about this type of lending. I want to write about myths on private money lending and original facts. Although it is long procedure but I gather main points about it and explain them step by step.   

First myth is that private money is too expensive. The fact is that private money is more expensive but is only one factor when assessing your lending options. It will cost more than traditional bank loans but is priced according to the law of supply and demand. Second one is no private money lender can fund in less than a week. This is absolutely wrong about private money lending. There is no hard and fast rule of days of funding. If the borrower is organized and diligent in providing the documents to money lenders then no need to wait. They will fund borrower in short time typically less than a week.

California Private Money Financing
Third is that most borrower seeking private money loans are desperate and turn to private money loans as a last option. It is also incorrect observation about borrowers. Most hard money borrowers are solid, successful individuals that are in a situation or are presented with an opportunity that does not fit easily into the rigid structure of institutional lending. Therefore they apply for hard money loan for convenience. They set the rules and regulations which best suits their business needs.

Fourth myth is private money lenders are a bunch of dishonest loan sharks. It is correct that some black sheep are present in this business but mostly not. Most principals in hard money lending organizations are successful business people with backgrounds in law, accounting, banking, real estate development or real estate investment.  They provide a needed service, especially in today's economic environment.

 Hard Money real Estate LoansBy considering all facts about this business one should easily understand the reality and make the difference between myths and original situation. I would suggest if anyone wants a loan for his business in short time and with minimum documentation then he should apply for hard money loan. It would save his time and money and soon he will in a position to continue his business.

For more details about Hard Money Lending visit:

Saturday, 14 April 2012

Reasons You Should Speak to a Loan Modification Attorney

hard money loan lenders
California mortgage lendersThere are many reasons why you should get in touch with a loan modification attorney. Loan Modification is a permanent change in one or more of the terms of a Borrower's loan, allows the loan to be reinstated, and results in a payment the Borrower can afford. As a layman you should contact with loan modification attorney to fulfill your business needs and lending procedures. I am including some meaningful reasons to have a loan modification attorney in this article.

Firstly you truly should consider that a loan modification attorney knows the laws and will be using their knowledge and experience to make the lender modify your loan. He is an experienced person with knowledge of rules and regulations about money lending business. He must do his best to help you in hard times as he is hired by you. Secondly having a legal professional deal with your lender to negotiate changes to make your mortgage more affordable can save your property from going into foreclosure. Though it is difficult to maintain but it will save your home, your credit rating and money in future.

Third, when your attorney provides these facts on your behalf the lender will not ignore these legal issues. It means the lender will be more than set to modify your mortgage because they know that loan will illegal terms and conditions are not enforceable. And in addition to that, you will have peace of mind with no worries of losing your home.

Hard Money real Estate LoansOnce you think about the reasons and evaluate them, then you must consider my opinion of hiring or getting in touch with loan modification attorney.  You must think what you will gain if you actually speak to a loan modification attorney. As many as 6 million families are expected to face foreclosure in the next several years. So to avoid of sticking in this situation you must consider attorney. It will help you a lot in your business matters and financial crisis. He advises you to take the right decision in business and real estate issues.

At last I would suggest business persons and hard money lenders to keep in contact with the loan modification attorneys for latest updates about lending issues. Real estate investors also contact with the modification attorneys for current market trends in investment business. It will help them regarding consultation in business and other lending problems.

For more details about hard money lending feel free to contact