Saturday 31 March 2012

Why Realtors Should Partner with Private Money Lenders

Private Hard Money InvestorsWith the current state of the economy and the tightened financial markets, the use of private money lending sources has skyrocketed over the last couple of years. Right now the economy provides an excellent opportunity for finding private money lenders because they are looking for different ways to invest besides the stock market.

Below are the some reasons which can reveal the facts that why realtors should partner with Private Money Lenders.

• Most Private Hard Money Lenders can only lend on non-owner occupied properties. That is due to ever changing compliance restrictions that are being applied to owner-occupied properties.

• You may have sellers that would like to find buyers that are pre-approved and ready to close fast. Private Lenders are swimming with “investor types” like that.

•Many private Money Loans are paid off by obtaining a less expensive agency loan some point in the future thus giving you an opportunity for additional business.

• Hard money lenders are never the cheapest lender in the market, brokers try to find terms that will make their clients happy. Although a double-digit interest rate is common, brokers look for firms that charge origination fees in the 2-3 point range.

• Mortgage brokers connect their clients to hard money because they know that, in exchange for a higher cost of funds, the loan can actually close. While hard money loans require due diligence, brokers expect that the loan will be able to close quickly and to close without unreasonable levels of paperwork.

Private Hard Money LoansMost of Private Money Lenders don’t even get so much interested about your financial situation and how to react to something really positive in Real Estate Investment.  Your Private Money Lenders are more concerned about your success and therefore ask you to look at each property deal with minute details.

If you are looking for investment alternatives that offer high returns, are backed by hard assets and are serviced by experienced professionals, then you should contact Private Hard Money Lender, or contact us at http://www.equitycoalition.com/

Friday 30 March 2012

Effective hard Money Loan Strategies

California Hard Money Loans
Hard money is an excellent source of funding. It is an alternative to traditional bank loans. It is a special type of loan which is backed by the value of property, not by the credit worthiness of the borrower.  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. Whether your deal is a commercial construction project, a high rise acquisition or a residential housing development, it will help you in all situations.

Investors, developers and borrowers prefer hard money lending to complete financial transactions. It will help to save time. Conventional banks give loan but after a long term process. It include large documentation and tired income verification process. The real estate business men do not have time to wait. So they apply for hard money lending. As a borrower, they must know all terms and conditions regarding location of property, value of property, type of loan, marketability and environmental issues. The borrower and lender discuss LTV (loan to value percentage), term of loan, and interest rate before going for final agreement. Since the hard money lender is looking to the property as the ultimate source of repayment, he wants a margin of safety and will loan only a percentage of the property value, typically 50-65%, depending on the lender.



California hard lending moneyWith the increase of demand of capital in real estate business hard money lending becomes more popular among investors. Due to this large number of companies start hard money lending business in different areas of world. Beside this, private individuals also take interest in this business because there is huge profit in this business. The main strategy is to give loan on high interest rate. In USA, mainly in California hard money lending is most popular business. Many real estate investors, developers use loan facility for business needs. Companies serve them with professionalism to complete their requirements. Finding the right hard money lenders in California is a challenging and time consuming process. There are so much firms and companies that offer hard money loans for real estate business. The borrower sometimes confuses to decide the right lender. Due to lack of knowledge and experience about loan terms and conditions the borrower sometimes caught by the wrong lending companies which would ruin their time and money.California Private money loans

At last I would say if investor or borrower want 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.




If anyone has query about California Hard Money Lendersdo contact us at http://www.equitycoalition.com/contact/

Wednesday 28 March 2012

Facts about Hard Money Personal Loans


Hard Money personal loans to cover or consolidate personal debt obligations are usually for relatively short periods. Personal loans from hard money lenders might be used for property needs, maintenance or repairs. When a hard money lenders transfers funds to the borrowers, and as these are secured loans, the borrow must provide something of nearly equal value to use as collateral for the loan. A borrower currently holding a house or something of particularly high value should to be secure a personal hard money loan for negotiable term of somewhere between 8% and 16 %, however higher rates are also possible.

Hard money personal loans are of two types:-

  •         Secured hard money personal loans:
                Loans that can be availed by depositing any asset worth the value of the loan, as a security.

  •          Unsecured hard money personal loans:

          Loans that can be availed without depositing any security. As these loans involve great risks    
          they are not preferred by the lenders.


If you are in urgent need of money to complete a project that a traditional lender will not lend on, then why not take advantage of a hard money personal loan. This type of loan may also be suitable for those in default on mortgage payments or facing bankruptcy or foreclosure. However, due to high interest rates and fees this type of loan is best seen as a temporary solution to your financial crisis. There question arise how an individual is applicable for the hard money laon, Below are some points for that.

·         An individual having a bad credit score.
·         Those persons having no credit status.
·         Defaulted earlier.
·         No income proofs and the stable income proof is available
·         Those, who need immediate refinance.
·         Those in need of short-term money.
·         Those, who do not have a complete set of required documents
·         As it is easier to qualify for this loan, people prefer opting for it, even though the rate of interest is high.

The some advantages of hard money personal loans are as under:

·         Provides a large amount
·         Terms are negotiable
·         Easy documentation
·         Fast processing
·         Speedy and a less tedious procedure

Some disadvantages also there:

·         High interest rates
·         Hidden charges
·         Rarely available

Hard money personal loan is practiced, since there were not many banks and financial institutions available to the common person. Even after knowing all the disadvantages, it is highly preferred by the borrowers, as the process is faster as compared to other loans provided by banks and financial institutions.

We deals in California Hard Money Lenders Business, if someone has something to ask do contact us at http://www.equitycoalition.com/contact/

Private Vs Hard Money Lenders


Private VS hard money lendersPrivate and hard money lenders are lending companies dealing in special type of real estate loans. Both private and hard money are one and the same thing. Both are typically asset based loans. Both are backed up by a real property instead of financial qualifications of the borrower. But there is little bit difference between two. Hard money comes from an institution managed by an organization and usually licensed to operate. Private money are run by private individuals like friends, relative etc.

Private and hard money lenders provide private funding for commercial, residential, and land located in specific area. Developers, real estate investors and property owners need fast loans and resources to meet their business needs. They need money for purchases, refinance and investments. Their first priority is to apply for hard money loan. The reason is private individuals and small local companies operate where even subprime lenders fear to tread. They treat desperate and needy the same way as regular banks service traditional customers. They can help borrowers and investors in hard times when no one helps them and make bad situation better.
California Hard Money Lenders
Private, hard money loans are expensive than traditional loans. The interest rate is high on these loans. The loan terms are also strict and hard imposed on borrowers. This is to get rid of frauds and scams. As a borrower one must choose the right money lending company in his or her area. As it is difficult task to find it, but after some research he must find the right one. A person must understand hard money terms like LTV (loan to value ratio), interest rate, loan size, time span of loan before applying for loan.

Hard money lending is involved in commercial real estate projects. People from all over the world apply for hard money loans for fast loans. 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. It 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.
California Hard Money Loans
A person having no money in pocket and want to start business or restart previous business is also eligible for hard money loan. He only requires brief introduction and verification of his property to qualify for loan. After that he will get loan. So I suggest if anyone wants easiest and fastest access to money then he may apply for private hard money loan. It will surely work to complete business transactions. It will help to fulfill business goals.

We have California Hard Money Lenders Firm, if you have any query related to hard money do contact us at http://www.equitycoalition.com/contact/

Tuesday 27 March 2012

California Hard Money Loan, Is it a Good Choice?


California Hard Money LoansA hard money lender that specializes in the real estate industry is an individual or company that provides the financing for real estate investors with private funding. Hard money lenders are generally first lien and title holders to the property in which the funding is supplied. Many of these lenders are working business men and women who simply want to see a high return on their investment, while others are retirees who enjoy having a steady stream of income.

Traditional lending is beginning to lose some of its power among commercial and residential investors. Finding California hard money loans is often preferable to going through the red tape involved in securing a traditional loan. Residential and commercial investors are looking at many different properties at any time during the week and do not have the time it takes to wait for a traditional lender to make a decision in their favor. With lending policies tightening up investors are forced to seek funding from sources that are more timely and tuned into their ever changing needs.

What do you really need in terms of funding? How quickly do you need the cash? These are questions that may help you determine whether you should attempt to seek the services of a traditional lender or eliminate that option completely in favor of a hard money lender. Some of the things you may want to consider while weighing your options include the following:
  •          Amount of cash needed
  •          Turnaround time requirements
  •          Purpose of the loan
  •          Income documentation
  •          Credit qualifications
Not all individuals can complete the cumbersome process of traditional loans and fulfill the documentation required. More often, due to credit score, inconsistent loan history and even insufficient documentation, loan applications are often rejected. This will not only include those who don’t qualify, but even those who can afford the loan might get rejected. In such scenarios and when a person needs cold hard cash, they can opt for a Hard Money Loan. Hard Money Loans are given against collateral, such as a Real Estate Property. States laws vary for hard money lending, so it is ideal to go with lenders in the respective state. So, if you are in California, California Hard Money Lenders are your best choice.

If you have queries related to California Hard Money Lenders, do contact with us for further assistance. Visit us at http://www.equitycoalition.com/

Monday 26 March 2012

How to find right Hard Money Lender in California


Finding the right hard money lenders in
CaliforniaFinding the right hard money lenders in California is a challenging and time consuming process. There are so much firms and companies that offer hard money loans for real estate business. The borrower sometimes confuses to decide the right lender. Due to lack of knowledge and experience about loan terms and conditions the borrower sometimes caught by the wrong lending companies which would ruin their time and money.
A timesaving key would be to ask some general questions from lender. These questions are
  • ·      Are you a direct money lender in California? If the answer is no then ignore the lender.
    ·        How long do your hard money loans last? Hard money loan terms are typically no longer than 2 to 3 years. The reason is that a longer term becomes too expensive for the borrower.
    ·         What is the loan size for hard money? The general money they offer for loan is from $100,000 to $2 Million.
    ·         What is loan to value ratio (LTV)? Trustful companies offer lending for below 50% LTV, to 80% LTV.
    ·         What are the different types of hard money loans do you offer? Some types are loans for commercial real estate, residential real estate, land, new construction, a bridge loan or a rehab loan.

As a borrower if you find satisfied answers of these questions then go forward and apply for hard money loan in California. If not then there is no need to waste time. Leave it and search for another lender in this area, you will find a lot of companies in California.
Hard money lending in real estate business is increasing day by day. People involved in real estate business need fast loans to complete their transactions. They prefer hard money lending because it is easiest and fastest way for taking loan. They just need to apply for a loan and after short verification process he gets the loan. This is in contrast with the conventional bank loans where a borrower waits a lot for loan. In a real estate business there is always risks and threats involved in this business because the values of property can be increased or decreased at any time. So as a real estate investor you need hard money that will provide flexibility and autonomy so that you can be in a position to control your finances in future.
At last I would suggest if anyone needs loan to fulfill business requirements, for investment in real estate business then after choosing right hard money lender he can apply for loan. He will get loan if he is in hands of right hard money company.


To get more information about California Hard Money lenders, do contact with us at http://www.equitycoalition.com/ .

Thursday 22 March 2012

Why should I use hard money to buy real estate?


Real Estate Hard MoneyReal Estate is a business about selling, purchasing and renting out a property in a specific area. This business has many stake holders involved in it like buyer, seller agent, investor etc. A lot of money transactions are involve in this business. The investor invest a huge amount of money in different projects that include commercial real estate like building a restaurant, or invest in golf area and individual real estate.

The question arises that if anyone wants to start investing in real estate business or want a loan to complete his dealings then what are the different options for him? There are two or three options for him. First option is that he should apply for a traditional bank loan. As all of us knows that it is long and tired process in which one person first apply for a loan and after that he will wait for a long time in which his income is verified and bank completes all its requirements and decides either the person is eligible for a loan or not. During all this time the investor or borrower is in the situation of uncertainty that his request of loan is accepted or rejected. Therefore in these days people refused to take loan from banks. They choose an alternative way to complete their needs and requirements and that is hard money loans. Hard money loan is a special type of loan which is backed by the value of property, not by the credit worthiness of the borrower.  

As a real estate investor and if you want to buy a real estate then you can take loan from hard money lenders. Hard money lending companies are operating in a very different way as compared to other banks. Since these companies are owned by private individuals so they give more attention to their customers. This lending process doesn’t require income verification form you and it doesn’t require large documentation process needed for applying a loan. Another advantage is that hard money lending is a fast process so it saves time of customers and investor.

In a real estate business there is always risks and threats involved in this business because the values of property can be increased or decreased at any time. So as a real estate investor you need hard money that will provide flexibility and autonomy so that you can be in a position to control your finances in future. Hard money lending companies are present all over the world and take part in real estate business in the form of lending real estate loans.
At last I would say that if you don’t have anything in your pocket and need 100% financing to start your business or you want a loan to restart your previous business then hard money loan is a best option for you to complete your goals and dreams.

We deals in California Hard Money Lenders, if have any query do contact with us at

Qualification For Hard money Loans


It is hard to tell them exactly what the qualifications are for financing their project. There are certain qualifications that are necessary before any traditional lender will approve the loan. Things such as credit and employment come into the picture as does the question of the value of the collateral. California Hardmoney Lenders weigh a few things before they make the decision to invest in a property.

Equity in the Property:

Hard Money lenders must consider is the loan to value ratio between the value of the property and the amount the borrower is seeking. Typically a hard money loan is all about 60-65 % of the property value. If the borrower needs more than that and has additional properties, the lender may agree to a lien on another property provided that property has no previous.

Liens Position:

Because of the uncertainty in today’s real estate market, hard money lenders are not making second mortgages and will require that their loan be a lien in the first position. The loan will be secured by deed of trust and recorded to securely establish that position.

Income Requirement:

A person might seek out California Hard Money Lenders is because they do not have the credit score necessary to the qualify for the traditional loan. Hard Money lenders are interested in the value of the property and not weather is not the borrower has good credit. If your credit is borderline and you don’t want to spend time waiting to see if traditional lender will provide the funds you need, hard money loan is viable option for that.

Down Payment:

Though there are programs that do not require down payment they are fewer than ever. Most purchase hard money lenders require a down payment. For this reason it is good to be prepared to invest 20% to 30% in your projects. Because there are so many projects available yet funds are limited a down payment makes your project easier to fund.

Have an exit strategy:

Hard money loans are typically short term and usually are 1-2 years in length. The lender wants to know that the borrower has a plan for either selling or refinancing the property before the term is up. Knowing how you plan to repay the loan is a key factor in a hard money lender's decision.


Hard money loans have been an interlace factor in helping people achieve their dreams of obtaining funding for commercial, industrial, multi-family, business expansion, and much more. 
If you have any query about California Hard Moneylenders/loans feel free to contact with us at http://www.equitycolaition.com/  .

Wednesday 14 March 2012

Why Hard Money Lenders?


Hard Money lenders are private companies dealing in a special type of loan 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.  Hard money loans are sometimes called short term loans or bridge loan because these loans do not fulfill your long term business needs.  Since these loans are given by private companies or individuals and they do not have such a huge amount so they only fulfill short term needs of borrowers.

Hard money loans are more expensive than traditional loans because they give a loan on high interest rates as compared to conventional bank loans. Some advantages of this loan includes that it does not require income verification from customers and similarly no so much documentation is required for taking this loan. What you need to apply for loan is just a brief introduction of yourself and your property. They will verify your details and give you required money. So the people who don’t want verification of their property, hard money loan are a good choice for them.
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.

Hard money is given on strict rules and regulations as compared to other lending companies or banks. Generally banks impose soft terms and conditions for loans. Since money is a belonging to individual person in case of hard money lending so everyone is serious about his or her money. Now a days different hard money lending companies are working throughout the world to facilitate borrowers to take loan and complete their business needs. Within the advancement of real estate business hard money lending also increases day by day.

Equity Coalition, LLC is an example of hard money lending company. Its headquarter is in San Francisco, California, specializes in structured real estate finance providing private equity and mortgage loans to facilitate Real Estate acquisitions and investments nationwide. They control the most comprehensive private money network in the nation and have partnered with some of the most highly capitalized real estate investors remaining within the United States.

At last I would say 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 information please visit us at http://www.equitycoalition.com/ . It would be helpful for California Hard Money Lenders.

Monday 12 March 2012

Hard Money Lenders


Many of us learned about the term hard money lenders.  The question arises what does it means? Who are they? What are their objectives? I will try to answer these questions. First of all what is meant by hard money? When the money is in investor’s hand, it is referred as soft or hard money. Soft money means the money is lent on soft and flexible conditions and hard money means the money is taken as a loan on strict and hard rules. Now the hard money lenders are the lending companies that give you special type of real estate loan on strict rules and regulations.
Hard money lenders provide short term loans. They do not provide long term loans or much money for your requirements. They provide loans on high interest rates as compared to others lending companies. They do not require income verification from you. Most of the hard money comes from individuals not by companies. They provide only loan to you up to 70% ARV (after repaired value). This means that a hard money lender can loan you up to 70% of what the home is worth in repaired condition.
Now below are some merits and demerits of Hard Money Lenders, which can make the clear review of all what happening.

Merits of hard Money loans:

Since hard money lenders do not require income verification so it is easy for an individual to qualify for a loan and fulfill his business needs as many people do not want their income to be verified by third party or any individual.  Taking loan from hard money lenders is an easy task as it does not require lengthy underwriting process and heavy documentation. Another advantage is that hard money lending is a fast process so it saves time of customers applying for loan.

Demerits of hard Money loans:

There are also many disadvantages of hard money loans. Firstly there are many hard and fast rules for taking loan. So if anyone interested in hard money loan then he or she must follow and fulfill these conditions. Secondly the interest rate is much high as compared to other lending companies so if someone is willing to pay back the huge amount as an interest he may apply for loan, obviously nobody likes this. Hard money is not useful to you if you are interested in taking large amount of loan for your business. They only offer short term loans.
About Us:
Equity Coalition, LLC is one of the hard money lending company headquartered in San Francisco, California, specializes in structured real estate finance providing private equity and mortgage loans to facilitate Real Estate acquisitions and investments nationwide. 

Wednesday 7 March 2012

Ways to Raise Private Money for Real Estate Investors



There are so many misunderstandings related with private money lending for real estate investors. In fact, most real estate investor do not understand or participate in private money because they do not understand what it is or how to get started. There is a long a history of private money lenders investing their own money in real estate investments. Like many things, private money comes and goes depending largely on interest rates and the demand from real estate investors and other investors.


Hard Money is the right place for real estate investors who are suffering from shortage of capital to work out their real estate project. . Now that the mortgage market for buying investment real estate is all but dead - investors need to have other sources available or go out business. Being an experienced private money lender, we help our clients in a creative way and thus add value to their business. We help the real estate investors to protect capital or money for different financial situations. The amount of private money loan depends on the value of equity.

For many investors, financing deals is the challenge.  Here are some steps to get more Private Money then you could ever need

Real Estate Investing Business Plan:

Your business plan is not only a great sales tool, but it will also help you to think more deeply into your real estate investing business from varying angles. Of course, a big part of your business plan is to keep you on track through the growth of your business.


Private Lending Credibility Kit:

 As a real estate investor, you know how important an effective private lending credibility kit is to the success of your business, especially if you are just starting out. Instead of being at the mercy of conventional lending institutions to approve your loan, a private lending credibility kit will set you up for success in the world of private lending. There are several tools you can use to increase the chances of reaching your prospects and getting your credibility kit in front of many potential private lenders, you can see them on internet. The some of the ways are listed below:
  •          Create Podcasts
  •          Broadcast Your Expertise
  •        Social Networking
  •          Advertise an Entre-Card
Create your presentation:

Today there are a big number of real estate investing companies and new investors chasing private mortgage lenders to help fund their deals, so how can you get the edge and present your opportunity in the best way?The main things  in create the presentation includes:
·        
  •   Face-to-Face
  •    Charisma
  •    Don’t Act Desperate
  •    Negotiation Tactics
  •    Let The Numbers Talk

Learn more about working with private money investors in our website at equitycoalition.com

Saturday 3 March 2012

How do hard money lenders evaluate a property?


There is no set of criteria that is standard or unique to the hard money lending universe. Most of them will certainly underwrite their loans with significant desires for quality of the real estate asset. Most are solely collateral-based meaning real estate value is the most crucial criteria which a lender is taking into consideration when deciding to finance a property. Just how do hard money lenders evaluate a property in today’s marketplace?

Below points will really helpful to evaluate the things:

1-Appraisal:

California Hard Money Lenders
Appraisals would be the most recognized way to obtain property valuation, and for California hard money lenders, appraisals simply are opinions of value from licensed individuals. Appraisals are the longest-standing and most recognized source of property valuation, so it would surprise most borrowers and mortgage brokers to know that an appraiser's opinion can be taken with a grain of salt nowadays.

Many investors are accustomed to using an appraiser as the sole determiner of value of a loan. In most bank transactions, that is the case because the banker or loan officer lacks the time and expertise to evaluate all forms of collateral.



2-Tax Evaluation:
California Hard Money Lenders

Sometimes capital providers use assessment and tax valuation as a benchmark for valuating property. It would surprise most borrowers and mortgage brokers to know that an appraiser's opinion can be taken with a grain of salt nowadays. 








3-Broker Price Option:

California Hard Money Lenders

The estimated value of a property as determined by a real estate broker or other qualified individual or firm. A broker price opinion is based on the characteristics of the property being considered. BPOs are popularly used in situations where lenders and mortgage companies believe the expense and delay of an appraisal to determine the value of properties is unnecessary. A financial institution will order a BPO from a Real Estate Broker in which the broker will do a drive by BPO or an Internal BPO. The Broker Price Opinion is the less expensive approach to determine of the property value and basically lenders ask a local expert’s advice.

4-Income Approach Method:


The true hard money lenders are considering the probability of the potential borrower to repay their loan first. If the property is income producing property, is it enough to pay the monthly payments and is the borrower able to refinance and pay the loan off? And they want to know if they want to own the property if they foreclose on the borrower. 
While there’s simple valuation method, it is important to know that not all properties are valued the same and lenders consider valuating each asset class differently. For example, apartment buildings are more favorable than single tenant retail center. And for most hard money lenders, each asset class has a specific leverage ratio.

For more information visit our California Hard Money Lender
Visit Us at equitycoalition.com