Tuesday, 8 May 2012

Private Lenders for Small Business

California Private Money FinancingFor any business, small or big, you need a capital to start it. After that, you need more money for completing business transactions and expanding business. Falling short on sufficient financial resources is a nightmare for any businessmen. Obtaining capital quickly can sometimes prove difficult, but certain private lenders provide a timely relief to people and businesses in such a scenario. These lenders grant loans that have affordable interest rates and can be easily approved.

Hard Money real Estate LoansThere are two types of lenders operating in market. One is conventional lenders which includes traditional banks, financial and lending institutions. They are also called public lenders. Such lenders basically, accept deposits and investments from the public. These lenders usually have a very strict doctrine of approving loans which they have to follow as a strict compliance. Hence a good and fair credit report only gets the best deals, loans with lower interests. In many cases the applications are rejected due to some or the other reason such as current credit, income, security, etc. So if you are running a small business and you have a good credit history then you are eligible for bank loans.

The second and best option is private lenders or hard money lenders. These are the companies or lending institutions that helped you when banks rejected loan applications. Private lenders on the other hand are lender businessmen who led out their own money to small businesses. Private lenders are more like investors who want to reap better benefits, rather than store their money in low-paying bank accounts. The loans that they generate are often known as commercial loans. Such transactions have in fact proved to rather healthy for the US economy. California private money lenders are the important lenders in United States. In fact California is the head quarter of hard money lending business. They can finance small businesses even having a bad credit history.

California mortgage lendersThere are various types of business loans, which are offered by private lenders for small business firms. The first one is the basic one, secured loan. A high capital loan, the secured loan is a type of business loan that has a very large denomination and principle (amount that is actually lent). Usually such a loan is provided by the lender for some known important investment, such as purchase of machinery. In such a situation the loan is secured by the machinery itself. The next type is the expenditure loan, which is usually given to business when they lack sufficient liquid finances to pay off salaries. he third type of loan is the joint venture loan. This loan is a sort of investor policy where the lender finances a project of the business and reaps equivalent benefit.

If you have a small business and you want finance for business then California private money lenders are the best option. For more reference about hard money lending visit 

Monday, 7 May 2012

California Private Financing

Private financing means you finance your business with the help of private individuals or parties not by traditional banks. Private financing options are available for personal, investment and commercial purposes. There are many sources of private financing. It includes private and hard money lenders, investment groups, and venture capitalists. Private financers are also known as Angel investors. They helped you at that time when no one supports you. 

hard money loan lendersPrivate financing is the best source of funding in United States. California hard money lenders are well known private lenders in town. California is the head quarter of this business. Many lending companies deal borrower, customers with professionalism. Private money lenders are different from conventional bank loans. Banks gave you loan after a long verification process. California hard money lenders do not require so much verification. You also have immunity about income verification.

Private financing obtained in exchange for stock can be an excellent way to get the initial operating capital needed to start a business, but it can be extremely expensive on the far end. While you will likely not be paying interest in the early stages of your business, you will pay dearly should you become a success. 

As a real estate investor, you should require capital to complete business transactions. Some time situation occurs when you don’t have money for completing business deals and you need it in short time. If you contact banks for loan it will take long time to approve loan application. Here comes the role of hard money lenders. 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.

California mortgage lendersRegardless of the path you choose in obtaining private financing, you will find private financing companies are more flexible in lending criteria than banks, California hard money lenders, or similar traditional lending institutions. Check out private financing companies and brokers online to see which will suit your business needs most effectively

 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.

Friday, 4 May 2012

Where Does the Money Come From for Mortgage Loans?

California Private Money Financing
The process of taking loan for any purpose was different in past. In older days when someone wanted a home loan they walked downtown to the neighborhood bank or savings & loan. If the bank had extra funds laying around and considered you a good credit risk, they would lend you the money from their own funds. So in this way your requirement was complete. But at present, it doesn’t generally work. In these days most of the money for home loans comes from three major institutions. FNMA (Federal National Mortgage Association).  FHLMC (Federal Home Loan Mortgage Corporation) and GNMA (Government National Mortgage Association). California mortgage lenders are a big source of financing business. Below is the some description of taking home loan from mortgage lenders.

Hard Money real Estate Loans
First of all you talk to any lender and apply for a loan. They do all the processing and verifications and finally, you own the house and now you have a home loan and you make mortgage payments. You might be making payments to the company who originated your loan, or your loan might have been transferred to another institution. The company you make your payments to very rarely owns your loan. They are the "servicer" of your mortgage. They are called the servicer because they are simply "servicing" your loan for the institution that does own it.

Now what happens behind the scenes? Your loan got packaged into a "pool" with a lot of other loans and sold off to one of the three institutions listed above. The servicer of your loan gets a monthly fee from the investor for processing payments and taking care of your loan. This fee is usually only 3/8ths of a percent or so, but the amount adds up. There are companies that service over billions of dollars of home loans. Three-eighths of a percent on a billion dollars is a tidy income. This is how the mortgage lenders worked.

California mortgage lenders
In fact, mortgage servicing is where lenders make the real money. The entire system of originating mortgages, including wholesale lenders, mortgage brokers and mortgage bankers is designed so that servicers get loans into their portfolio hopefully at a "break even" level but often at a loss. Mortgage servicing is where they make their profit.

Once your loan has been packaged into a pool and sold to any of the three institutions, the lender gets additional funds so they can make more loans (to service in their portfolio) and sell to those institutions, so they can get more money, and so on. This is the cycle that allows institutions to lend you money.

Thursday, 3 May 2012

How to Sell Mortgage Notes

hard money loan lendersA mortgage note (also known as a real estate lien note) is a promissory note associated with a specified mortgage loan; it is a written promise to repay a specified sum of money plus interest at a specified rate and length of time to fulfill the promise. A mortgage note is proof of a debt or a lien on a piece of property. The property may be a home or it may be a piece of raw land, without any buildings on it.

 If you are interested in selling a mortgage note that you hold on a property, it is something you can do on your own, with the help of a professional note broker. To sell mortgage notes, you must first put your mortgage notes in the hands of someone capable of selling them. There are some steps to follow for selling a mortgage notes. I would like to share these points with you.

First step is to find a licensed mortgage broker. In California you can easily find mortgage lender. To find a buyer for a first mortgage note; you may wish to find a licensed mortgage broker. The broker must have a license in the state where the property is located. A mortgage broker acts as a matchmaker or liaison between the buyer and seller of the note. Because mortgage brokers have a pool of business from which to choose, it is a much easier way to find a note buyer than trying to go it alone.
California mortgage lenders
Second step is to negotiate the terms of the note sale. Tell the mortgage broker the amount of the note, the terms and conditions for the note. This may include the interest rate on the note and how many years remains on the mortgage note. One of two things may occur. The mortgage broker may purchase the note from you and eventually sell it to a buyer, or if he has an interested buyer, the broker may broker a deal between you and the buyer. California mortgage broker will do this for you.

Third step is to sign the sale agreement. To transfer ownership of the mortgage note, as the seller, you must sign a sale agreement with the buyer. The sale agreement is a legal agreement, which the mortgage broker can prepare on your behalf. The details in the contract include the note amount, term and conditions of the sale. For the agreement to be legal, the buyer and seller of the note must sign it.

California Private Money FinancingLast step is to establish an escrow account with the broker. Set up an escrow account with the broker. This account is where the money transactions take place between you and the buyer. The buyer deposits the money for purchasing the note into the escrow account. The note broker fee is paid out of the escrow account and then the remainder of the sales money is distributed to you as the seller of the note.

Wednesday, 2 May 2012

Which Type of Hard Money Loan is Right for Your Business?

California Private Money FinancingIn today's economy, getting a bank or institutional loan for commercial property or for residential investment properties can be problematic. Banks look at lots of factors when determining whether or not to lend money and loan brokers can take forever to find and establish a loan. Between the reticence of banks to loan funds and the length of time it can take for a loan broker, a residential or commercial hard money loan can be your very best option to take.

There are different types of hard money loans. As a borrower or real estate investor you must have knowledge of all types of loans. You may choose the one which best match your need and suits you. I would like to share these types. First is a hard money acquisition loan. This is used to purchase a specific property, typically improved property or platted land. These loans are perfect when banks can't get the funds to you in time to complete a deal, if the property isn't up to an institutional lender's standards or there's an issue with credit or liquidity. Second is Value added loans. It is a type of hard money loan for properties that have higher than normal vacancy rates and can be used to renovate a property to increase cash flow. This is a great loan when a property has a lot more potential income that it's currently generating. 
Hard Money real Estate Loans
Third one is hard money land acquisition loans. It is a way to buy land to improve. Banks and other lenders, including other private lenders, aren't financing many land deals at all so finding a hard money loan for property is going to be your best bet. Fourth is Bridge loan. These are a great way to get from point A to point B in a financial situation. These are short term loans that can be used to purchase a property while waiting on bank financing to come together. These loans typically close in a few weeks instead of the months it can take for a bank loan which could lose you the property. Another type is Construction pay off loans. They are designed to help contractors who have finished a property but it hasn't sold yet. This loan is used to pay off the existing construction loan so the developer avoids losses and doesn't have to short sell the property.
California mortgage lenders
At last I would say, as you can see, this variety of options available can help borrowers and contractors alike to leverage a situation that can't be leveraged any other way. While traditional lenders may not be able to work with you on a standard loan, a hard money loan is much easier to get and a lot quicker to get as well. If you're in need of a loan for a real estate deal, take a look at a hard money loan and the hard money loan rates. It may make the entire deal come together.

Tuesday, 1 May 2012

The Positive aspects of Hard Money Loans

hard money loan lendersHard money funds are big source of capital for real estate investors. 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 have some advantages to conventional lenders. Hard money lending in California is just as popular as it is in most other states in the USA, specifically with real estate traders. You may wonder why credit seekers would likely select private hard money lenders over conventional financial associations. You might have heard or read that private funders charge extra or that they are considered a last option for mortgage.

California mortgage lendersThe truth is that California hard money lenders offer many services that the banks cannot or will not. They approve more loans, in a timelier manner. They understand the needs of the investor, since most of them have invested in real estate. Many of them still do. Some of them are even considered specialists, a good choice for the rehabber or reseller. The fees that they charge are reasonable, for the most part, but to get the best deal, you should shop around.

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.

You will find that California hard moneylenders are competitive. They want your business, so they advertise. One of the best ways to choose a provider is to simply evaluate their website. Look for the ones that detail their approval process, repayment plans and additional services. The more up-front they are about what they have to offer, the more likely it is that you have found a reliable legitimate source of funds.

California Private Money FinancingAt last I would say finding the right hard money lenders in California is a challenging and time consuming process. But after a little research one must find the right one. Hard money lending is a best option for real estate investors. It has many positive aspects as compared to conventional bank loans.