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Real estate money and access to quick cash is the key for any real estate investor. Having cash to buy properties is the life blood of your investment business. But where does this money come from in the post-credit bubble market place?

Real estate investors are looking for better financing options as the old traditional sources of money are becoming more difficult to find and qualify for than in the past.

Here is a quick look at some of the traditional sources of real estate capital and the pros and cons of each and a new and better source of money in this market place. (more…)

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Today’s high risk money lenders are mostly private lenders and small companies that specialize in making loans that the banks avoid. Some people call them hard money lenders, but regardless of the name that you use, you will find that there are many advantages to this unconventional source of financing, particularly if you are a real estate investor or rehabber. There are always profitable opportunities in the real estate market, but in order to take advantage of them, you must have a good source of funding. Let’s look at a few examples.

High risk loan lenders can help you buy property with “no money down”. You may have read a book or watched a video about buying property with no money down. You may have even tried a few deals. (more…)

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When shopping for hard money loans online, there are certain things to look for and certain things to avoid. As with any internet transaction, when personal information is requested, the consumer needs to use caution.

The FTC says that con artists have “gone high-tech”. There are numerous reports from people who have been taken in. In many cases, alternatives to conventional financing are the best way to go. You just need to choose your lender carefully. Here, we hope to give you the information that you need to find a legitimate company to deal with.

Many of the companies that advertise hard money personal loans online are payday lenders. While the payday loan is not a true scam, the fees that the companies charge are equivalent to yearly interest rates in the double digits. This type of loan is not the right choice for anyone who has an option, but is definitely wrong for the real estate investor. If you are new to investing, looking to buy, build or flip a property, you should be looking for lenders that advertise rehab funding, construction loans or something similar.

Brokers are another group that advertises hard money loans online. If you use a broker, you are paying him or her to go out and find financing for you. (more…)

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When you’re ready to start your own small business, one of the first thoughts that comes to mind is how to fund the business start up. After all, starting a business usually involves buying supplies, getting licensed, possibly renting office, retail or warehouse space, and so on. If you’re starting a small business which will involve selling products, then you also need funding to buy your initial sales stock too. And that’s where small business loans tend to be a huge help.

Getting a small business loan can make the difference in your businesses success or failure. Some experts estimate that at least 90% of brand new small businesses fail because they lack capital – a.k.a. funding. (more…)

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Believe it or not, hard money lenders want the same thing you want – a shot at a great investment. Remember: investing involves putting up your time and/or money with the intention of realizing a profitable return. When you keep this concept in mind, it’s astounding just how broad the investing arena actually is. High rise buildings, apartment complexes, condominiums and luxury office space can become a reality – not just a dream!

If, for example, your credit rating is bruised and you’re pressed for time, securing a hard money loan for a shot at a great commercial property – that’s investing. (more…)

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Getting a hard money loan with bad credit may be easier than getting a standard loan from a bank. It really depends on the individual situation and the lender. Most banks have raised the minimum required credit score for personal loans. If your score is low, you may still be able to get a mortgage for your primary dwelling from a regular bank, but if you are interested in real estate investing, rehabbing or flipping, your application will probably be denied.

For some hard money lenders bad credit is not an issue. It is their business. Some small companies and private individuals specialize in making high risk loans to property owners. The amount that a person can borrow is limited to the amount that the lender can expect to recoup in the case of foreclosure. These are risky deals for both the lender and the borrower, but sometimes it is the only option.

The best advice is to look at your situation carefully. Don’t be overly discouraged by low credit scores, but don’t go around putting in applications at every bank in town. Numerous denied applications will drive you score even lower. It makes you look desperate.

If you have been denied credit based on a low score, you are entitled to a free copy of your credit report. (more…)

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At first, hard money lenders may seem difficult to locate. However, you just need to know the right places to look. Professionals such as accountants, attorneys, and insurance agents have often have clients who are hard money lenders or more generically, private lenders. Especially, if they think they could profit by your endeavors, these professionals often will be eager to refer a source.

Settlement attorneys are often very knowledgeable of individuals in the field since they write loan documents for hard money lenders. Because of their familiarity with the work, attorneys may be hard money lenders themselves. (more…)

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When considering a home purchase you will want to excercise many options other than the traditional lending facilities and these have been known for the highest interest rates. If the traditional mortgage lenders are not able to meet your financial needs, you may consider turning to hard money lenders. By going through hard money lenders, you can close a faster loan and get access to your cash sooner. If you are starting a business, buying a business or you want to upgrade your current business, getting a hard money loan might be perfect for your situation.

Many companies offer hard money loans, and if they can’t finance you, you should have no problems finding hard money lenders that will back you and your business. (more…)

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Many of us have heard about private money, hard money, and other types of non-traditional funding sources for real estate transactions. It sounds good but you may not be fully aware of all of the benefits that private lending offers to you and your business. With that in mind, I would like to outline the top ten benefits of using private money in your own real estate investment pursuits.

Benefit #1: You are in control!!

The first benefit of private money that I’ll mention is probably the one that is the most important. Private lending gives you far more control over the buying process than afforded by either traditional lenders or even hard money lenders. How often do you get to negotiate things like interest rate with a traditional lender? These rates are generally predetermined and are dictated by your financial strength and/or credit score. Furthermore, the terms of repayment for traditional or hard money loans are rarely negotiable. They know they’re in the driver’s seat (because they’re the ones lending the money and they have clients willing to accept their terms if you choose not to) and pass along that knowledge to you via terms that they dictate. With private lenders, you negotiate the terms of the loan. Granted, the private lender has a say in it but you are in a stronger negotiating position because you are offering an opportunity they might not be able to find elsewhere. (more…)

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I recently attended a real estate investment seminar in Las Vegas. Between speeches by different “gurus” I would mingle with other investors and explain that I owned a hard money brokerage firm. Even though it has been around for almost a hundred years now, I was amazed how hard money lenders still seem to be mysterious to many investors. They either did not understand how the hard money lending industry worked or had heard that it was something they should avoid like the plague.

To put it simply, hard money loans are short term loans that are used for various real estate projects. The most common projects are house flipping, but they are also used in commercial construction and land development. (more…)