Many times, a lender will find a project too risky to provide a loan for and simply deny your loan application. This is where private money lenders come in to help you get your project rolling and making money! Many people use these types of loans as a method to fix up houses for resale, buying properties and also to fund construction properties. These loans are meant to be repaid as soon as possible and carry higher interest rates. This is because private money loans are made up of invested money from individuals that are interested in reaping benefits from investing large portions of their money into high risk projects.
Usually, these types of loans are highly leaning towards using security, such as properties or buildings, that the loan is being used for. This is a preventative measure for reducing losses and makes it possible for investors to recover their losses, in the event that the borrower is unable to repay the loan. This prompts borrowers to make sure to repay the loan as outlined in their contractual loan agreement in order to not lose their collateral used for security. Borrowers should not borrow more than they can handle for their intended purpose. This will help the person prevent unnecessary losses to interest accumulation.
There are many private money lenders available both online and through physical lending institutions. Usually private money loans are not regulated through normal regulations for loans and can have a large array of options that could either benefit the lender or borrower. It is important to always read the contract closely and stick to repayment obligations, or the consequences could be great for the borrower. Usually credit scores are not relevant to the loan process, but they could become severely damaged in the process, if the debtor gets into substantial debt and can not be covered by the collateral.
Private money lending is a method that has increased in popularity in the past few years. This method is commonly used by new businesses or people who cannot obtain loans from traditional lenders, such as banks. Private money lending is also well known as hard money lending. The loans that can be obtained from private money lenders usually are similar with the ones received from banks. However, the sum of money granted on loan can be limited.
Private money lenders can be an option for all type of new businesses who need a loan to get started. There are numerous different operating expenses that a firm needs to cover in order to begin work and not everyone can afford paying for them. Private money lenders can also offer personal loans to individuals in the need of a sum of money.
Finding private money lenders for both business and personal needs is not impossible.
Online. Start your search online. Naturally, online you can find almost anything you need. You will also be able to easily find a series of private money lenders. You will need to show proof of income and financial stability to be able to receive a loan, so make sure that you possess bank statements and financial details of your income and account.
Local phone books. You may also look for private money lenders in a local phone book. They can be listed in the investment or bank section of the phone book. Check your personal contacts, too, and ask your friends if they know any reputable private lender.
Contact various lenders and check out as many offers as possible. Different lenders can have different criteria when offering a loan. You need to make sure that you found the best one possible. After all your purpose in taking a loan is to make a good deal, not to turn out losing money.
Filed under: Tips - 15 Oct 2012 | Spread the word !
Making and keeping money in today’s economy may seem almost a joke, but if you want to make sure you will be able to fulfill all your dreams you need to take it seriously. In order to be able to do everything you desire, you can ask for a loan from a bank or from private money lenders. But is this OK? Most certainly not, because the money you receive today are dangerous money that you will give back tomorrow with something extra. And instead of wasting the money you will produce in the future, you should learn to save those you make in present.
In order to put money aside, you need to make a clear plan. And how to do such a plan? It’s not so hard as it may seem. Just watch the next video and try after this to make your own personalized plan after the pattern presented in the short film. This will help you decide how to save money and observe clearly how much money you can save on a regular basis.
In order to help you save money instead of spending it, we can offer you a few tips and tricks:
don’t buy unless you need something, whether it’s food, clothing or footwear;
cook at home, don’t waste money on eating out;
don’t waste food, it’s like throwing money out the window;
when you desire to buy something expensive don’t do it on the spot, but think it through at least for a day or two; if you still want the object, buy it, if not, forget about it and keep your money;
switch the lights off when you are not in a room, turn off the air conditioning too and close the laptop if you don’t use them; these all consume energy you pay money for even if you don’t use.
Put aside all the money you would spend on the things mentioned above. Even if it’s not a lot from the start, in time you will raise an important sum, maybe the one you would otherwise pay as interests.
It’s up to you to manage your finances, but keep in mind that borrowing money will have a huge impact on your cash flow when you will need to give them back. Sooner or later you will still have to make compromises and it’s better to make them in order to save than to give back to your lenders.
Filed under: Tips - 25 Sep 2012 | Spread the word !
When people have huge problems and they need money to solve them, private money lenders can help them. Nonetheless, considering a private money lender is for many people like borrowing money from the mafia. Actually, things are not like that.
If you will search for the right lender, you will solve your problems very easily. There are a few qualities that can help you select the right private money lender for you. These qualities are:
Responsiveness is one of the most important qualities because any business depends on time. There are many lenders who neglect or are indecisive. A fast answer is great and always appreciated, even if negative.
Patience is a must because you have to wait for a deal that meets your financial needs and goals. Even if may pass a few months, the interest will be repaid and then you will feel more comfortable.
Fairness refers to a win-win situation. You and your lender have to establish a good relationship because money lending is an ongoing process. Therefore, the lender and the borrower have to find common grounds that are beneficial for both of them.
Flexibility of a lender will help him see far more deals than one who has preconceptions and thinks that he already knows everything. There are several non-traditional options delivering various loans, so he has to consider those, as well.
Experience is another element that includes the above qualities. Related to private money lenders, experience doesn’t refers to someone who works in this field for a long time. On the contrary, it also has to be a lender with all the above mentioned qualities.
Usually, private money lenders are straightforward, but others are complicated, so you need to find one with important qualities to deal with him.
Filed under: Tips - 13 Jul 2012 | Spread the word !
Private money lenders are individuals, investors or private companies that provide private money to individuals or businesses who cannot qualify for government money. For instance, if a person wants to get a loan and does not meet the eligibility criteria of banks, credit unions, mortgage brokers or other non-private money lenders, s/he has the option of turning to these private lenders (also known as hard lenders) and get the financial help s/he needs.
The main advantage of turning to private lenders is that they provide loans on a faster notice, with less paperwork and regulations attached. What’s in it for them, though? Well, they look for a better return on their money than they can get in the bond market or in a savings account. As private money borrowers have a higher risk of defaulting, the interest rates are also much higher. While there are always two sides of the story, it is important to know how to avoid getting scammed by private money lenders.
Here are some useful tips that will keep scams away:
Under no circumstances you should pay money upfront. Do not believe lenders who tell you that they need a “good-faith” deposit prior to giving you the money. This is a total scam, so make sure you do not give them a single dime until you sign a contract or an actual loan document. And make sure you read that document carefully before signing!
Apply for a non-private loan anyway. Even if you think that you do not qualify for a bank loan, you should try your hand at it and get a second (and maybe even a third) opinion. Chances are that the interest rate will be higher, but the total costs will not be higher than the ones of a private loan.
Know what you’re signing up for before putting your money on the line. Many borrowers have unrealistic expectations and fall for many scams. If it sounds too good to be true, it probably is. So, when private lenders offer you super-low interest rates or a very generous loan offer, you should think twice before signing.
Do your research. With the Internet being at the tip of your fingers, researching the people involved is easier than ever. It is important to know who are you dealing with and if other people have dealt with that lender in the past. If nothing shows up on search engines, you should be aware. Nowadays, Google can tell you more about someone’s past than you can think of!
Hiring an attorney is also a good idea. It may cost you a few hundred dollars, but you will be advised by a professional throughout the entire process. The lawyer will read the loan document and tell you whether getting that loan is a good idea or not. And remember that it is better to lose a few hundred dollars than losing thousands if the loan is a scam.
Do not give the down payment directly to the lender. If the lender asks you to do that, it is a sign that you should change your mind. This is because real lenders do not want you to write the down payment check to them, but to a trust that securely holds the money until the actual payment is authorized. Most likely, a lawyer will supervise the trust.
Watch out for the balloon payment, which is a very large payment that you will have to pay just one time during the term of the loan in order to minimize your monthly payments. The balloon payment can help you preserve your monthly cash flow, as long as you know when it is coming. Typically, the balloon payment should come 3 to 5 years after signing. If it comes within 6 to 12 months, this may be a scam for private money lenders to steal your home.
Last, but not least, read, read and read! Get informed on the subject, get an overall picture of what private money loans are about, and READ the entire loan document carefully before signing it. Make sure you pay a great deal of attention to the small print, as well.
By keeping these tips in mind, you will not fall victim to scams by private money lenders and you will finally be able to extend your monetary capabilities.
With the current state the worldwide economy is in and the tightened financial markets, the use of private money lenders has skyrocketed over the last couple of years. Adding fuel to the fire is the fact that the so-called recession has put many people into bad credit situations that prevent them from obtaining other types of financing through traditional lending sources. You know that you need private money in some way, shape or form. Perhaps it is to finance a fix and flip investment or maybe it is a cash out re-finance on a property you own to get some liquidity for your business.
Regardless of the reason you need cash flow, you should do a little online research, to find about the best money lenders before you pull the trigger. You are thinking about getting started as a real estate investor and have just been introduced to the concept of private money. Consequently, you are doing your research in order to get a full understanding of how it works and to find a private money lending source that is trustworthy and reliable.
First off, you need to know that the private money lenders are also known as hard money lenders the terms are often interchanged. Private money really established that no financial institution is involved. The money given is directly from private people or a group of private people and not from a financial institution. A private lender cannot give you the details of the terms of a loan until they look at the property and do an evaluation. That is why you get ranges on the websites. You are probably thinking that you cannot make an offer until you know if you can get the financing you need.
Private lenders will give you the money you need if the deal is good and you do not have something like a bankruptcy or tax lien on your record. And if for some reason the financing on the deal does not come through, you have your contract written that allows you to back out unharmed. Before signing anything, just make sure that you read the contract, as well as the terms and conditions. Moreover, make sure that everything is written as it was established. Once you have signed the contract, you will receive the money in a very short time, under the established conditions.
Private money is a commonly used term in banking and finance. It refers to lending money to a company or individual by a private individual or organisation. While banks are traditional sources of financing for real estate, and other purposes, private money is offered by individuals or organisations and may have non traditional qualifying guidelines, such as private money lenders. There are higher risks associated with private lending for both the lender and borrowers. With the lack of conventional lending products available to real estate investors, most investors turn to hard money financing as a bridge loan between the acquisition of a property and the permanent financing. Hard money is not cheap, but typically is well worth the money for the purpose it serves.
When it comes borrowing money, there are three basic types of guarantees. The unlimited personal guarantee is one in which the entity issuing the guarantee is guaranteeing the entire outstanding loan amount plus legal fees, accrued interest, and costs associated with collecting on the loan. The lender will first exhaust their remedy by foreclosing on, and selling the collateral. The limited personal guarantee sets a dollar limit or some limit on the amount of liability and is common when there are several company shareholders involved in the loan.
The private money lenders or investor you are negotiating with may not be the person or entity that enforces the guarantee. When negotiating your guarantee , think how a complete stranger may try to enforce actions. Think about what type of entity may purchase your loan in order to gain control of your collateral if things do not go as planned and you fall behind in your payments. One of the benefits of obtaining a private money loan is that everything is negotiable. Sometimes having the knowledge of what to negotiate is the most valuable asset you have. Look at your project from the investor’s position and figure out a win win so the investor gets a solid return for their investments risk and you receive the best terms possible for the loan you are requesting. In the case of a real estate transaction the lender can ask for a deed on the property in their name and insurance on the property the same as a bank lending money would require as collateral to help insure they be repaid in the event of a default on the loan or catastrophe to the property.
When you need money, you can simply go to the bank and make a loan. Yes, the theory is very simple, but in life things are not so easy. Sometimes you need more money than the bank can offer you or you need it for a longer period of time. If you cannot agree with a bank employee to sign a contract that is mutually beneficial, you should opt for private money lenders. The private money lenders are a great option to take into account when you need money. The private money lenders are in many cases a better option than the classic loans that you can apply for at any bank. There are plenty of reasons to opt for private money lenders, you need to read this article in order to find out how this type of loan can be more advantageous for you.
In the first place, if you opt for private money lenders, you can ask directly for a certain sum. You will not be manipulated into accepting a larger or a smaller one, you simply need to ask for how much you need. If you meet the conditions that the private money lenders have in order to offer you such a quantity of money, you will receive it. You can also negotiate about the term on which you will need to return the money. The private money lenders offer more flexible services than the banks do, this is why in the last years, their services were preferred by many.
The private money lenders have less conditions than the banks and are open to dialogue. This means that you will be able to talk to a representative and establish the perfect terms and conditions for you, as long as these meet their requests. Of course, like in any case, when you sign a contract with private money lenders you still have to read the contract. Make sure everything was written as established. After you will sign it, you will receive the money you need in a very short time. And you will give it back in the established conditions.
Everyone can be in the situation of needing an important sum of money with no way to obtain it. Needing those money as soon as possible is something that can happen to anyone. Unfortunately, when being in such a situation you only have one possible option to solve it out: taking a loan. Still, not even that is an option for all of us. Banks commonly impose a series of criteria to grant loans and some people cannot actually meet them all, being ineligible to receive the money. Well, there is still another opportunity you can take advantage of. Private money lenders offer good deals and few criteria have to be met to grant loans.
The benefits of private money lenders are quite many, while the risks are very low. At private money lenders you can easily qualify for a loan, you will receive the money much quicker, compared to banks, and you will also benefit of better rates. Finding great private money lenders is much simpler than you may initially imagine. With the help of private money lenders you can solve your financial problems or receive the needed resources to invest into your company and its growth. Shop around for the best private money lenders. Naturally, you will easily find them on different Internet pages. Then, you just have to check conditions and offers to be able to make a pick.
Before signing the contract that will put you into the possession of the needed money, you have to check and fully understand all terms. In case you have some problems linked to certain aspects from the contract, you have to ask and clarify them out with the private money lenders. Before making that important decision of working with one of the private money lenders you have found online, check the opinions of other clients to find out if they were satisfied with the services received or not. The best thing about the Internet is that anyone can share reviews on various services online. Read them all and you will get some valuable advices. Then, choosing a trustworthy private money lender should be simple.
Usually, bank policies are too complicated and it takes too long to borrow money from them. When people are faced with emergency problems, taking money from the bank is not a good idea. It will take too long and you also have to bring and fill in thousands of documents. Under these circumstances, people look for private money lenders. Private money lenders can be easily found on the Internet. With a few clicks, people will find out how they can apply for a mortgage and if they are eligible. Private money lenders also involve a wide variety of options and applying for an online mortgage is always very easy and it takes a minute.
Private money lenders are useful for many situations and needs, so people will surely find what they want. There are different policies for private money lenders and the process is not so complicated as usually. When reading the contract, focus on repayments conditions to make sure there is no scam and no trick. In case you think something is not alright or you have doubts, ask private money lenders to make sure that all details and obligations are clear to you. Do not hurry and choose the first thing you see, but at first research and analyze carefully several private money lenders. Moreover, read carefully the opinions and reviews about private money lenders. This is helpful as you will discover if the lender is reliable or its offers are a fraud.
Use special calculators to find out your interest rate and the monthly costs you will have to pay. This will help you figure out if you can afford paying that sum of money. It is great to find the quote and then analyze and plan your budget and also see if you are able to pay that sum of money. Private money lenders are a viable and fast solution when you have financial problems, but check if the sources are reliable. If not, you will get into huge problems. Being cautious is the best thing you can do.
If you want to start a new business, but you do not have enough money and you do not want to have complications due to a banking loan, you could choose to loan through private money lenders. Private money lenders may help you finally start to do what you like best. And if you invest in your start-up not just money from private money lenders, but also passion, you can be sure you are about to have a great success. Many people started their own businesses by taking loans from private money lenders. This is a great opportunity, so, do not miss your chance to do it. Taking money from private money lenders is not very difficult. Of course, private money lenders check your financial background, too, but, overall, their conditions are more advantageous for the person lending the money they are able to offer.
Before thinking to borrow money through private money lenders you still need to make sure you have a great plan. Hard work is necessary, but in order to do that, you should know exactly what is there to do. Commencing a business is not an easy task. It requires time and dedication. You also need to be able to constantly learn and to be prepared for all type of situations that may appear when you open a new business. Also, as the owner of this, you will have to work all the time, so, at least in the beginning you should be able to say goodbye to any holidays plans you might have had.
Taking money from private money lenders will not guarantee the success of your business. This totally depends on you. It is very important not to forget that once you have the money, you should also have a plan regarding the payment of the loan. Although very helpful, any kind of loan is not invented just to help you, because it is not a gift. You must give back all the money you take through private money lenders and if you are not sure that you can do that, you should think once again if a loan is the best thing you could do.