You will need to repay them their money within a short term of anywhere between 6 months to 2 years.

You will need to pay higher interest rate. starts at 9% up to 15%

You will have to pay 3 points to 7 points upfront in order to get the loan.

As you see there is a price for everything, but if you will purchase a foreclosed property and have the option to make $50,000, is it worth you to pay $10,000 in fees? I think it’s a great deal you should consider.

Do Hard Money Lenders Fit Your Need?

Hard money lenders are a great way to get the necessary funding for your own investment endeavors. From foreclosures to commercial hard money opportunities, there are more than a few ways to use the benefits of a shortened application period to generate revenue. These short-term loans are a great way to obtain property in need of renovation, make the necessary changes, and quickly sell, generating revenue without the hang-ups of a large bank.

Identifying the nuances with your specific situation will be the key in determining whether or not hard money loans are for you. The practices involved can help you, but if you aren’t sure about the property you are purchasing or have doubts about your ability to repay, you may want to take a moment to review the nature of the industry and how it will affect you.

Hard Money Lending Practices

Hard money lending is the practice of giving a borrower capital that a traditional lender would not. Essentially, someone wanting to purchase an apartment complex in Long Beach, CA may want to contact a Los Angeles hard money firm. Though the complex may not have significant value as of yet, they have renovation plans that will allow them to sell it at an incredible profit. The commercial hard money group will review the property and let the borrower know if they are approved within a week! This is a far cry from the processes witnessed with larger institutions and can help when foreclosure is imminent.

Particulars of Hard Money Loans

Anytime you are filling out your hard money application, remember that the interest rate will be higher than average and the repayment period short. The reason you are pursuing this opportunity is because the bank doesn’t have the faith that you will generate the profit that you expect. Because of the risk involved on the hard money lending group’s part, they must charge a few extra interest points. Many Los Angeles hard money organizations will take your individual situation into account. After all, great ideas are great ideas, and if the profit margin makes sense, you’ll have what you need to move forward.

Residential and commercial hard money scenarios generally involve foreclosures, renovations, or time-based purchases. Imagine that a local area is on the brink of being rezoned. If you had the ability to get a quick loan, you can make the purchase, selling it shortly thereafter once the zoning news hits the streets. This is the perfect scenario for such a loan, and given the propensity for higher-risk allocations, the providing group will have a solid understanding of your profiting concept, and how you intend to turn a profit!

The Hard Money Loans Advantage

Hard money lenders provide a number of benefits that surpass a traditional bank. With hard money loans, the terms and conditions are customized to suit the Borrower and Lender. This includes anything from the length of the loan to interest rates charged.

Generally hard lending equates to a short term loan with higher than bank rates in both points and interest rate. Commercial hard money may be the exception as terms may be extended, given the complexity of the purchase.
With Los Angeles hard money, the concern is generally not the personal finances of the Borrower but with the lender’s position on the property – often the case in large metropolitan areas. This hard money lending position ensures first payment.

For the Borrower, hard money lenders offer short terms, high points and high interest rates. However, this hard money lending may save individuals from foreclosure or allow for improvements until long term financing becomes available.
Often hard money lenders are the only alternative. A retail strip mall, for example, may be slated for demolition. No traditional bank would fund such a project leaving hard money loans as the solution. These hard money loans could be used for renovations, which could lure tenants and prevent foreclosure.

Obviously, there are benefits to the hard money lending groups, as well. The benefits for both the residential and commercial hard money lenders are centered on the increased interest rates charged and the short-term risk.
Hard money lenders win on the fact that they have the opportunity to quickly reallocate their resources to another project. With commercial real estate the terms may be longer but so it the pay out.

As a Borrower, turning to hard money lending is a decision based upon a number of situations. Hard money loans may be perfect for your current borrowing dynamic as they do not take nearly as long as the traditional banks who take upwards of 30 days. Hard money lenders can have the funding to you in a week. When facing foreclosure, time is of the essence.

Further, the documentation you have at your disposal can push you toward hard money loans. Often times, incomes are understated for tax purposes, disqualifying individuals from the highly regulated banks. Since hard money lenders make personal decisions that may not be an issue. For example, Los Angeles hard money firms will bring hard money lenders together to get funding to those who do not “quality” due to their income-shaving techniques.

Finally, hard money loans can be used for a wide variety of purposes. There is no limit for its use as long as it is mutually agreed. Regardless of whether you are seeking residential relief or commercial hard money for a personal investment, you can find the right borrowing situation – guaranteed.
The hard money lenders benefit from the high rate of return and short repayment period, explaining why they would be willing to take the risk.

Efficiency – Learning the Hard Money Loans Process

The process of receiving hard money loans do not vary greatly from the traditional funding process. Each individual or department has a role to play. The following scenario covers commercial hard money, as well, giving you a solid idea of the important documentation required, how assessments can be made regarding risk, and the overall issuance of the loan.

Documentation

Before anything begins, a loan package must be created – essentially, this is a financial statement on the organization or individual seeking the funding. Information about the asset being purchased, credit rating of the Borrower, and income verification should all be included, as it ensures that the Lending group has all of the particulars required. Title documentation should also be a part of this package.

Although there is limited regulation with hard money lenders, the requirement for full disclosure of the loan details is squarely in place. This will include both federal and state documents, and the requirements are quite similar with commercial hard money.
The biggest requirement throughout the process of hard money lending is the simple coordination of the players involved. Titles, appraisals, and closings must be choreographed to insure a smooth integration.
It should be noted that every step of the process should involve informing the client, keeping them abreast of the situation.

The phases of funding can be broken down in two important categories. First: what happens prior to signing the loan documents? And, second: what happens after the loan documents are signed?
The entire process begins with the Title Company. They will research the individual or organization requesting the funding, as well as the seller in certain instances. A background check is completed which includes a records search for any liens or judgments, and a preliminary title report is issued. This verifies that the property can be used as collateral after escrow is closed.

The next stop in the process is the escrow department. This is a neutral third party which can be located within the Title Company. The main responsibilities of the team are to collect all of the proper documents, to determine the authenticity of the paperwork, and to collect and disburse the funds. In addition to collecting data such as pay off amounts, there is also the responsibility for collection of the property tax documentation. This research may include findings not only on the corporation where applicable, but on the individual members as well. The department will also oversee the final closing process which is the signing of the documents.

After signing on the dotted line, the second phase of the process begins. Hard money lenders are notified by the escrow department to wire the money into the escrow account. Again, the same scenario applies to commercial hard money.

The escrow department then records the deed and any other necessary documents with the appropriate government agencies—generally the county. Finally, the escrow department disburses the funds, usually within three days. These time frames even hold true in complex marketplaces like the Los Angeles hard money industry.
The last step in the process is the issuance of title insurance. It is at this point that the loan is considered closed.
With coordination the process should be seamless. The key to success is to be proactive. Do your due diligence, work with competent organizations, and establish relationships with the various service providers.
When involved with hard money lending, keep the process as streamlined as possible. If you do, the hard money loans process will be efficient and go off without a hitch!

Many Real estate investors and real estate agents are looking at buyers flipping foreclosed properties every day, but how do they get the money to buy foreclosures in the auction?

most real estate investors that are going to foreclosures auctions don’t have most of the money, but because they want to get in the game and start making real money flipping properties they are willing to consider other Alternatives “Hard money Loans”.

Did you ever go to a Foreclosures Auction?
If you did go, did you see all these lenders passing out flyers and offering financing?

These are hard money lenders. They will help you get most of the money to purchase Foreclosures in the auctions and start flipping properties.

So you really don’t need $300,000 to purchase a foreclosure, but you do need some money to show these guy that you are serious about your purchase and you will not let this property go.

Foreclosures Auction are the way to make you big money if you know what you are doing. It is really easy if you know real estate. Most new real estate investors we see in the auctions are real estate agents that are just tired of looking at their clients making all the money and they are making only 3% commission.

Now real estate agents can get in the game, they can buy and flip foreclosures. You buy cheap, remodel and resell for a profit.

If you don’t know anything about financing, let me tell you why it is so easy for you to flip the property right away after you purchased it from a Foreclosures Auction:

The way you make the money if reselling the property to a person that will get FHA Loan. He will purchase a nice property to his family for a premium because he will get 97% financing and put 3 other family members on the application to qualify. That is the secret for fliping foreclosures these days.

Here is an example:

Mr Salinas is looking for a home in his neighborhood and he know there are foreclosures around, but they are all “cash offers” only. The house that he want to purchase goes for $250,000, but the value of this property is $350,000. Mr Salinas doesn’t have $250,000 in his pocket, but he does have $20,000 and he is really interested.

You(as a real estate investor) can purchased this property for $250,000 with having only $100,000 in your pocket(The rest of the money a hard money lenders will help you to get). Then you will pay some contractors to remodel the property for another $15,000 and resell it to Mr Salinas for $350,000. Now Mr Salinas have the option to purchase the property using the $20,000 he saved and in order to qualify he can put his sister, mother and son on the application.

In this scenario you made more then $50,000 in less then 4 months and Mr Salinas got a nice house for his family and made his dream come true.

Got the idea???
Purchase a Foreclosures in an Auction Today! Hard Money Lenders

Here are different points that will explain you all you need to know about Hard money loan:

1. Hard money loan is a loan being made by a private investor instead of a conventional lender(such as Bank of America, Chase, Wells Fargo, etc)

2. Hard money loan also considered to be an Angel loan for the reason of the type of financing private investors provide to help real estate investors when they can’t find any financing help outside.

3. Hard money loan will let you qualify for a real estate loan even if your credit is really low and you have Mortgage lates, foreclosures, Bankruptcy, etc.

4.Hard money loan will help you even if you lost your job and have no income, but need help to qualify.

5. Hard money loan Will qualify you mainly based on the equity you have in the subject property.

6. Hard money lenders will literally “Go outside the box” for the right deal.

7. Hard money lenders require very minimal documentation in order to fund a deal.

8. Hard money loan can be funded within 48 hours, while conventional real estate loan may take up to 45 days.

9. Hard money loan can cost you anywhere between 2 points of the loan up to 5 points of the loan. Watch your self from investors that are asking for 10 points and more then that.

10. Hard money loan interest rates will start at 8.5% and will go as high as 15%.

11.Hard money loans terms are for as high as 5 years, but in most cases will be less then 2 years.

If you need more information about hard money loans let us know.

So how do you really know who is the right hard money lender for your project?

It’s not that easy to recognize the hard money lenders that are not good for your project if you don’t have any experience dealing with hard money lenders before.

hard money lenders are all over the place these days. For some people it will be the best thing ever happen and for others it will be the worst nightmare. If you want to be one of those that by the time the deal will fund will have a smile on your face, then you need to make sure you are working with the right hard money lender

Here are some tips of what hard money lender shouldn’t say or do

1. Hard money lender shouldn’t ask higher then 15% interest rate.

2. Hard money lender shouldn’t ask for more then 5 Points

3. Hard money lender shouldn’t ask for any due diligence fees.

4. Hard money lender shouldn’t ask from you to use any other personal properties or real estate properties in the transaction of a one subject real estate property.

5. Hard money lender shouldn’t ask for more then 2 years pre-payment penalty.

6. Hard money lender should tell you if he is a broker or a direct lender first.

7. Hard money lender should have a license to help you with your hard money deal

If you meet a hard money lender that offers to you anything other then what I wrote here then you should contact another hard money lender to compare and make sure you are making the right decision.

Good luck

HML Investment group offers Hard Money Loans to owner occupied properties. There are many rules in the state of California against hard money lending to homeowners, also many hard money lenders here rather not even deal with homeowners because of the risk. HML Investment group found a way to help homeowners with any situation they are in and get then a hard money loan.

So if you are loosing your home or you have problems with your mortgage holder then you need to contact us. our Hard money Lenders will help you with almost every scenario. We understand that homeowners have problem getting money from their banks and understand that banks don’t really cooperate with the homeowner, but we will help you.

Here is what a hard money lender will ask from you:

1. Full appraisal of the property(we can provide).
2. Credit report- We don’t really care for credit score, but we will ask for it. You can have a fico score pf 300 and it will be OK with us.
3. In some cases we will ask for income, but in most cases we don’t really care for it.
4. Title of the property(we can provide you with it)
5. IMPORTANT! We will need to see equity in your property of at least 30%, no exception.
6. Fees starts at 5 point depends on the scenario
7. Finding time is between 3 days to 10 days maximum.

Hard money lenders base their decision upon your property. If your property have lots of equity it will make your situation easier for us both and we can lend you the money within 3 days. Also if there is enough equity we will not ask for things like credit report, employment information, etc. Hard money loans is all about the property.

HML Investment Group offers great programs for homeowners and Real Estate investors with residential real estate. We can refinance your existing mortgage or help you get a mortgage to purchase real estate . To purchase or to refinance a property we will need different documents from you.

These days many homeowners and investors have lost their real estate and they are trying to save them somehow, that is where Hard money lender comes in place. We have helped many homeowners and real estate investors to save their properties in the past 10 years so we are confidant that we can help you as well.

The problem we are facing with residential homes is, that most homeowners and real estate investors are attached emotionally to their investment and they can’t let go. The result in most cases is Foreclosure, deed in leu or short sale. If you are in a bad situation and you can not keep the property anymore, you need to first take care of your self and your family and leave the property aside. If there is a way that you can save your home, let a hard money loan specialist help you no matter what is the cost.

Hard Money Loans are different then banks. Banks will offer you great interest rates and low fees while hard money lenders will charge you higher interest rates and much higher fees. The problem is that bank would not touch you and your property and hard money lenders will.

Let’s see what to expect from a Hard Money Lender when applying for a Hard Money Loan:

1. Refinance or a purchase OK
2. Bad credit OK
3. No Income or a job OK
4. Lower Loan to value. Example: You own $200K and your property valued at $400K= 50% LTV OK
5. Loan amounts start at $100K to Unlimited OK
6. Interest Rates starts at 8.99% up to 15%
7. Loan term up to 3 Years
8. Points starts at 5 up to 8 depends on your situation.
9. No prepayment penalty
10. Funding within 3 days to 10 days Maximum.

Hard Money Loans Documents needed

What is hard money?

Hard money is a real estate secured loan that is financed by private investors. If you want to purchase, refinance or remodel a real estate property you own and can not qualify with conventional banks, then you probably want to consider hard money.

How to qualify for a hard money loan?

Hard money lender want to make sure your property have equity and if it’s an investment property, then in some cases they will want to see you have some income as well. While some hard money lenders will ask you to provide credit report, tax returns and bank statements, they really don’t base their decision upon reviewing these documents.
Normally you need to show at least 65% loan to value ratio in order to qualify anywhere for a hard money loan. If you can provide that much equity then you have a good chance to qualify.

Here is an example:

Let’s say you own a property valued at $400,000 and your mortgage is only $150,000, you are below 50% loan to value ratio. You have $250,000 equity in your property. Knowing you have so much equity, you want to refinance and cashout $50,000 to have some money to remodel your property and pay some debt. This is a perfect scenario to get a hard money loan fast and easy. Understand how equity plays a roll here to qualify?

What makes hard money very popular these days among real estate investors and homeowners?

While banks make it so difficult to qualify for any type of loan these days, real estate investors and homeowners must find another alternative to purchase real estate or refinance existing property. Hard money lenders are more flexible and have very simple term: Equity!

Here is some hard money type of loans we do:

We do both Residential and commercial hard money, owner occupied and non owner occupied, Refinance cashout hard money, purchase to flip, construction loans, debt consolidation and foreclosure bailout loans.

So now that we gave some information to the borrowers, we also wanted to give some information to the investors out there. We are always searching for new investors to become a part of our hard money group. If you are trying to use your money to make high return instead of leaving it in your saving account, then you should contact us and find out how you can earn 12% interest on your money.

If you need help with any of these situations then you should contact us right away on our website www.hardmoneyloans.org or call us @ 818-308-4443