Maintain your old Siemens Hipath system

Hard Money Lenders -- No Money Down The Easy Way

Would it help you as a real estate investor to be able to "Close For Cash in Days," even if you're tapped out financially?

Hard money lenders are perhaps the best way to get 100% financing with easy qualifying, money for fix- up, and fast closings.

So what can hard money lenders do for you? Hard money lenders make relatively short term (12-24 month) loans to real estate investors for the purposes of acquiring the property and rehabbing the property.

These loans are often funded by pools of private investors that have been grouped together into a pool of capital by a lender.

The hard money lender is looking for maximum return, and is willing to take more risk for this return in the form of easier lending standards.

If you strike the right purchase deal, you can even borrow 100% of the purchase price plus some or all of your repair money by using hard money lenders. Here's how it works.

Hard money lenders typically loan 65% of the ARV or After Repair Value of the property when it is repaired or ready for resale.

That 65% loaned by the hard money lender is calculated based on the value of the property AFTER REPAIRS, not as it currently sits, and not based on the price is being paid for the property.

For example, Say that the owner is willing to sell me his house for $60,000. The hard money lender's appraiser agreed with my assessment that the home could be sold for $100,000 once it was fixed up. That appraisal would allow me to borrow 65% of the $100,000, or $65,000. I'm only paying $60,000 for the property, so guess where that extra $5,000 goes?

Unfortunately, not into my vacation fund!

The extra loan proceeds go into an escrow account held by the hard money lender, and I can draw it out as I do repairs.

Remember, hard money lenders are not concerned with your personal credit to the level that traditional lenders are. They're concerned with the property. They know that their loan is fairly secure if you default.

What's bad about hard money loans?

The fees are higher than conventional financing.

Hard moneylenders in my area charge 15% interest, and 5% of the value of the loan in closing costs ("five points").

Thus, on a hundred thousand dollar loan, there would be $5,000 in fees to the lender to close the loan, plus attorney's fees and other charges.

Secondly, the loans usually are only good for 12-24 months. After that time, you have to refinance. If you haven't sold it by then, you have to get a new loan, pay more fees, etc. These are not loans to buy rentals with.

Another disadvantage is the fact that most hard money lenders don't figure the payments on a 30-year basis. The longer the payments stretch out, the cheaper the payment. They figure these loans on 15 or even 10-year terms. Thus, the monthly payment that you must pay is much higher than it would be on a conventional 30 year amortization schedule.

Also, hard money lenders are often more difficult to find than traditional funding sources. As a gift, I have compiled a national list of hard money lenders at my site to solve this problem for you.

Finally, most hard money lenders require a pre-payment penalty that must be paid if you refinance or pay off the mortgage before a given amount of time. Fortunately, this time period is often fairly short. For example, the hard money lender that I use has a two month pre-payment penalty period. Even if I am not going to do much work on the property, and have a contract on it quickly, I can just set up the closing for after the pre-payment penalty expires.

In conclusion, hard money lenders present an attractive option for investors to succeed without having to resort to the late night TV creative hype that we've probably all been exposed to. If you can qualify for traditional financing, and your seller is comfortable with a longer closing window, you may want to stay with conventional financing.

However, if down payment money is tight and your credit is not perfect, or you need to close very quickly, hard money lenders may be a viable solution since they will allow almost anyone who can find a good deal to purchase a property extremely quickly, with less red tape, get money for rehab, and have virtually unlimited access to cash.

**Attn Ezine/Blog editors/ Site owners** Feel free to reprint this article in its entirety so long as you leave all links in place, do not modify the content and include the resource box. If you do use the material, please send us a note. Thank You!

David Wnisnant is a real estate investor and attorney in Atlanta, Georgia who teaches cutting edge real estate tactics specifically designed to increase the number of deals investors find, increase the profits from each deal with less risk. Download Dave Whisnant's FREE 50 state hard money lender list and forever banish the problem of where to find the cash for your deals! Go to http://www.realestateinvestingbrain.c om/freehmlist.html

In The News:

Undersea 'blasts' recorded at same time Russia-Germany gas pipelines damaged
Tue, 27 Sep 2022 09:39:00 +0100
Mysterious leaks in the Nord Stream gas pipe network began with "powerful subsea blasts" and may have resulted from an "act of sabotage".

Qatar 'conscripting civilians and summoning diplomats from abroad' to do World Cup security
Tue, 27 Sep 2022 11:31:00 +0100
Qatar has called up hundreds of civilians - and summoned back diplomats from overseas - for mandatory military service to operate security checkpoints at World Cup stadiums.

Eleven children among 17 killed in Russia school shooting as wounded to be taken to Moscow
Tue, 27 Sep 2022 13:15:00 +0100
More than a dozen children wounded in a school shooting in central Russia are being transferred to Moscow for further treatment.

Shakira to face trial over alleged £13m tax fraud
Tue, 27 Sep 2022 12:16:00 +0100
Shakira is set to go on trial for tax fraud after a Spanish judge approved proceedings against the pop megastar.

Lawyer facing charges in case linked to Kenya's president found dead
Tue, 27 Sep 2022 11:31:00 +0100
A lawyer facing charges at the International Criminal Court (ICC) in a previous case linked to Kenya's recently elected president has been found dead.



tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Small Businesses You Can Start in Automotive

There are many choices when thinking about a small business... Read More

Asphalt Paving: Striping Your Parking Lot

As you may already know, asphalt paved parking lots do... Read More

Your Business and the Story of a Tree; Part One

This morning, I went to take a short walk outside.... Read More

Building Your Business for Success in 2005

It's a strange anomaly.Most people who set out to start... Read More

Competition Relations in Auto Detailing

There is significant competition in auto detailing and car washing.... Read More

Small Business - A Thing Worth Doing Is Worth Doing Badly

A thing worth doing is worth doing badly. Yes I... Read More

Five Facts and One Motivating Factor Behind a Successful Home Business

All legitimate home business entrepreneurs insist and announce loud and... Read More

10 Best Practices to Consider as Your SBIR Negotations Approach Contract Signature

10 Best Practices to consider as your SBIR negotiations approach... Read More

Small Business Stress Buster: Completion not Perfection

Completion not Perfection Five Keys To Doubling Your Productivity and... Read More

Create a Win Win for Your Small Business

Discover How Specialized Cost Containment Creates A New Win-Win Position... Read More

Franchise Rule to be Revised; Why?

The FTC, Federal Trade Commission, is considering modifying the franchise... Read More

How Micro Loans Can Mean Macro Success for Your Business

"Inch by inch, row by row...that's the way my garden... Read More

The Inside-Out Business Plan? -- Your Small Business Plan in 10 Easy Questions

Writing a business plan for your Solo Entrepreneur business doesn't... Read More

Small Business No How - Dont Give Away the Farm

You're pretty proud of yourself! After all, only four months... Read More

What is Rule 15c211 and Reverse Merger

Rule 15C211Under SEC Rule 15C211, a U.S. securities broker or... Read More

Small Business Essentials: Start Here

Thinking of starting a business on line? If so there... Read More

5 Tips for Hiring a GREAT Bookkeeper

Bookkeeping?the "dreaded" word is something we all have to worry... Read More

More Business Card Uses

Why would you use an event pass?Event passes are often... Read More

How to become a Career Coach for Profit

A career coach could be simply defined your job seeking... Read More

Postcards Make It Rain Referrals

One of the simplest ways to expand your marketing efforts... Read More

Window Cleaning Business Start Up

Should you buy a business opportunity or Franchise if you... Read More

Choosing A Business Thats Right For You

Q: I really want to start my own business, but... Read More

Finding the Right People for your Business

Where do you find the right people for a business... Read More

Business Valuation is Critical

What is Business Valuation? The term business valuation is the... Read More

The Business Failed, But Did You?

Q: After years of dreaming about starting my own business,... Read More