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Casual Articles - Hard Money Makes It Easy to Get Rich in Real Estate!
The World we living is changing rapidly and soon as capital pours into the Space Tourism Markets we will see more advances in space flight and soon more exploration and the start of the commercialization of space. In fact in the future we will see all this and more.Some people are leery about non-government sanctioned space flight and worry about Free Enterprise moving into space, yet the truth is that free markets do things much more efficiently than groups like NASA and therefore this is a con
You have paid a total of 24% of the purchase cost of your project and let’s say you doubled your money when you sold. Your cost would now be 12% of
So what makes a vision successful? Everyday companies try to create a vision that will lead them into the future but seldom does that vision ever impact the organization. The reason for this is that the vision is created by a few and never becomes a ‘shared vision’ of the entire organization.Peter Senge, in his book “The Fifth Discipline” describes a shared vision as “… a force in people’s hearts, a force of impressive power….At its simplest level, a shared vision is the answer to the question,
It is one of the most valuable, yet misunderstood tools in the real estate investor’s tool box.
In this article, I will show you how several of our clients used hard money to get rich quickly in real estate and you can too!
Hard money loans are loans made, usually by private lenders; on the basis of the value of the collateral as opposed to the traditional banking criteria of credit scores, tax returns, income statements, etc. of the borrower. In other words, they are based on the “hard” assets.
Typically hard money loans carry interest rates and points 50-100% higher than traditional bank loans. This has lead to the impression that they are “hard” to repay.
However to the sophisticated investor, hard money is in invaluable because it is:
Quick
Hard money lenders can close in a few days after appraisal and title work, unlike bank loans where you are still furnishing documents weeks after submitting your application.
Easy
True hard money lenders require only an appraisal and proof of clear title. Some quasi-hard money lenders now want credit and income data from borrowers.
Versatile
Try to get a bank loan on a property that is uninhabitable. Or a small apartment or office building, a storefront, restaurant or other non-residential property. It is almost impossible in most cases.
Cheap
That’s right, cheap! Cost is a relative concept. What if the bank won’t make the loan to do your deal? You could take in a money partner. Let’s say the hard money loan cost you 2% per month with 10 points upfront and it takes you 6 months to rehab and sell the property. (These are the upper ranges of costs for hard money, to make the point!)
You have paid a total of 24% of the purchase cost of your project and let’s say you doubled your money when you sold. Your cost would now be 12% of
It's important to know how much interest you earn on your savings. This helps you to project where your financial standing is in the future. This is often necessary, as in saving for retirement. It's a good idea to understand how financial institutions determine their interest rates.There are so many factors that affect interest rates. The Federal Reserve lowers and raises the short-term interest rates in order to stabilize our nation's financial system. Economic ups and downs are monitored by t
Typically hard money loans carry interest rates and points 50-100% higher than traditional bank loans. This has lead to the impression that they are “hard” to repay.
However to the sophisticated investor, hard money is in invaluable because it is:
Quick
Hard money lenders can close in a few days after appraisal and title work, unlike bank loans where you are still furnishing documents weeks after submitting your application.
Easy
True hard money lenders require only an appraisal and proof of clear title. Some quasi-hard money lenders now want credit and income data from borrowers.
Versatile
Try to get a bank loan on a property that is uninhabitable. Or a small apartment or office building, a storefront, restaurant or other non-residential property. It is almost impossible in most cases.
Cheap
That’s right, cheap! Cost is a relative concept. What if the bank won’t make the loan to do your deal? You could take in a money partner. Let’s say the hard money loan cost you 2% per month with 10 points upfront and it takes you 6 months to rehab and sell the property. (These are the upper ranges of costs for hard money, to make the point!)
You have paid a total of 24% of the purchase cost of your project and let’s say you doubled your money when you sold. Your cost would now be 12% of
When you begin talking about a small business networking upgrades, prospects and clients will often dwell on cost. They neglect to consider the soft costs of not properly investing in a network, such as lost employee productivity when imprudent corners are cut, downtime when fault-tolerance is an afterthought, and service costs from computer consultants when difficult-to-support or "dead-end" solutions are selected primarily because of their low price tag.Addressing Client ObjectionsNo ma
Quick
Hard money lenders can close in a few days after appraisal and title work, unlike bank loans where you are still furnishing documents weeks after submitting your application.
Easy
True hard money lenders require only an appraisal and proof of clear title. Some quasi-hard money lenders now want credit and income data from borrowers.
Versatile
Try to get a bank loan on a property that is uninhabitable. Or a small apartment or office building, a storefront, restaurant or other non-residential property. It is almost impossible in most cases.
Cheap
That’s right, cheap! Cost is a relative concept. What if the bank won’t make the loan to do your deal? You could take in a money partner. Let’s say the hard money loan cost you 2% per month with 10 points upfront and it takes you 6 months to rehab and sell the property. (These are the upper ranges of costs for hard money, to make the point!)
You have paid a total of 24% of the purchase cost of your project and let’s say you doubled your money when you sold. Your cost would now be 12% of
I am often asked the same two questions. Do I need a business plan? What should I include in my business plan? I am going to answer these questions when writing this article.Do I require a business plan?For most businesses the answer to this question would be yes. For the majority of new businesses and ones which require investment by way of a loan or a business partner, a business plan is a must. Any potential investor will want to see for example, your future growth projections before t
Versatile
Try to get a bank loan on a property that is uninhabitable. Or a small apartment or office building, a storefront, restaurant or other non-residential property. It is almost impossible in most cases.
Cheap
That’s right, cheap! Cost is a relative concept. What if the bank won’t make the loan to do your deal? You could take in a money partner. Let’s say the hard money loan cost you 2% per month with 10 points upfront and it takes you 6 months to rehab and sell the property. (These are the upper ranges of costs for hard money, to make the point!)
You have paid a total of 24% of the purchase cost of your project and let’s say you doubled your money when you sold. Your cost would now be 12% of
Everyone knows that health insurance costs are at an all time high. With the cost of medical care also skyrocketing, people, especially those that are self-employed are desperate to find ways to save money on their health insurance. This can be a difficult task as most insurance companies are far from excited to offer coverage to the self-employed.Your first step would be to shop around. Contact an agent that deals with many companies instead of contacting the companies directly. This will s
You have paid a total of 24% of the purchase cost of your project and let’s say you doubled your money when you sold. Your cost would now be 12% of the selling cost instead of the 50% you would have had to split with a partner!
Let me give you some real world examples of profitable deals using hard money.
A client was able to take down a package of 10 properties in Albany, NY at a bargain price from a distressed, out of state seller for $400,000. These were inner city properties that banks were not too interested in financing, despite the client’s high credit score. Also, these 1-3 unit properties needed serious rehabbing.
The client was able to sell off 7 of them, as is, and paid off the hard money. He was left with 3 homes as his profit! After rehab, he made over $175,000 on the deal.
Another client stood to make over $220,000 on a bargain property being sold for 60% of value by an estate if he could close in 30 days. Although he was credit worthy, he was not willing to take a chance that a bank could close in that time frame.
We referred him to a hard money lender that provided the cash by putting a blanket mortgage on two of his investment properties. He closed in 10 days, then refinanced the hard money out with a traditional bank refinance.
Richard, a client in Brooklyn, made a million dollars on one deal with no money down!
Several years ago, he found an owner of a dilapidated, 25 unit apartment building in a northern New Jersey suburb that was half empty. The owner was ill and could not handle the repairs needed to rent the vacant apartments. He was in foreclosure on a $75,000 mortgage. Richard made a deal to giv
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