Private Lending Groups / Hard Money Lender http://chicagorehabloans.com Hard Money Loans Simplified Thu, 02 Sep 2010 04:37:24 +0000 http://wordpress.org/?v=2.7.1 en hourly 1 Hard Money Lenders Chicago http://chicagorehabloans.com/350/hard-money-lenders-chicago/ http://chicagorehabloans.com/350/hard-money-lenders-chicago/#comments Thu, 02 Sep 2010 04:37:24 +0000 admin http://chicagorehabloans.com/?p=350

Hard Money Lenders

Hard money lenders in Chicago in the past were the last ones to be considered when applying for a commercial loan. with a commercial hard money lender. However during the current mortgage meltdown hard money lenders are often the first place investors will search for financing.

COMMERCIAL Hard Money Lenders

If a real estate developer got stuck in a $10 million dollar development deal and planned to sell units to recover some of their investments from the project. However, delays in the sales date may occur or the project may exceed the budget. To avoid these circumstances, the developer will apply for bridge loan. With the traditional loan, the bank will not process the loan in four to six weeks. In this case, a hard money lender can offer loan immediately.

REHAB Hard Money Lenders

Rehab investor who wants to apply for a loan to renovate foreclosed homes that are vacant or unoccupied by, banks will turn down the loan application because they can’t verify that the rehabber can sell the units or the current occupants can’t pay the mortgage. Hard money lenders are willing to finance this kind of projects.

FLIPPING PROPERTY

Investors who found a property of great value may need quick and secure financing to buy, renovate and sell the property immediately. These needs can be catered by hard money lenders. Loans can be prearranged with interests only so that expenses can’t get high. After the property is sold, the principal amount can be paid back and the profit can be set aside for the next project.

BORROWERS IN FORECLOSURE

Homeowners that have problems related to foreclosure can also seek help from hard money lenders. Hard money lenders can offer restructure of the current loan, unlike other lenders. However, they charge higher rates and they require the borrowers to have collateral of at least 25-30% equity in real estate.

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]]> http://chicagorehabloans.com/350/hard-money-lenders-chicago/feed/ I bought a 2 unit for $25,000! http://chicagorehabloans.com/347/i-bought-a-2-unit-for-25000/ http://chicagorehabloans.com/347/i-bought-a-2-unit-for-25000/#comments Thu, 29 Jul 2010 22:32:56 +0000 admin http://chicagorehabloans.com/?p=347 Chicago 2 unit purchased for $25,000.
In 1986, yes that was what I paid for my 1st 2 unit in the back of the yards neighborhood in Chicago.
It was an estate property and I inherited all the furnishings in the house which I threw out the
2 back doors. The neighbors were all coming buy and taking the dressers and furniture and even the tub. The
tub was the old school cast iron tub on footstels.
I guess all that stuff was pretty valuable!
One mans junk is another persons Treasure!
It would not be the last time I threw out 30 years worth of someones collections…
Here is the Crazy part,,,, I can now buy that property for the same price that I paid 24 years ago!!!!!
Who says real estate never goes down?
Real estate has proven to me to be cyclical as commodities, metals, or the stock market!!!!
My friends,,,can it go any lower?
I do not have a crystal ball, but my guess is we are near the bttom?
What do you think?
Let me know your thoughts?
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]]> http://chicagorehabloans.com/347/i-bought-a-2-unit-for-25000/feed/ What would you do with 1 million in cash? http://chicagorehabloans.com/340/what-would-you-do-with-1-million-in-cash/ http://chicagorehabloans.com/340/what-would-you-do-with-1-million-in-cash/#comments Fri, 09 Jul 2010 00:59:11 +0000 admin http://chicagorehabloans.com/?p=340 What would still invest in Real Estate if you received
1 million in cash tomorrow?
I wonder how having 1 million in the bank would change
your perspective?
Would you still buy the same types of properties? In the
same neighborhoods? Would you look for bigger deals to
earn bigger profits. While taking on more risk?
Would you become the money lender and stop being the
landlord? fixing broken pipes, cleaning empty apartments.
Would you park it in CD’s certificates of depreciation, but
safe?
I bet everyone has a different answer?
Who is richer? the person with 10 million or
the person with 10 kids?
I am in the process of writing a book and I ask myself alot of
questions that can help make my book more interesting.
If you want to tell me what you would do with your million?
add your comments below.
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]]> http://chicagorehabloans.com/340/what-would-you-do-with-1-million-in-cash/feed/ How do you find real estate deals and leads? http://chicagorehabloans.com/303/how-tofind-real-estate-deals/ http://chicagorehabloans.com/303/how-tofind-real-estate-deals/#comments Wed, 12 May 2010 00:59:11 +0000 admin http://chicagorehabloans.com/?p=303 Dear Friend,
Almost every business must produce new leads and new clients to survive!
Where do you get your leads?
Networking? Newspapers? Craigslist? Realtors?
Do you have an automated system that brings you fresh new prospects every week? If not, when do you plan on creating a system to bring your business new new leads?
The market has changed dramatically! I used to get all my leads the old school methods I mentioned above until last year.
But last year I started a Video Web Marketing business with a friend called
I knew very little about web marketing and my original website www.ChicagoRehabLoans.com was online for 4 years as a 3 page old brochure that was very dated,did not get found on the web and nobody called for a loan.
That changed dramatically in May 2009 when I updated the website to a blog and added video and new articles each month.The web site now receives over 400+ unique new visitors each month. We also added an apply here section,
frequently asked questions, 800#, resources and programs section.
We now get more loan requests in one month then we used to receive in a year!
The cool thing is that it takes only a couple hours each month to add content and enhance. It also answers a lot of the repetitive questions that I would get everyday and allows me more time to spend closing loans!
If you are interested in learning how you can get your own website that gets top 1st page Google listings  for over a dozen keywords that my competition pays Google over $10 per click?
Visit my blog that exposes web marketing and is dedicated to bringing people online to web marketing.
Success Always,,
Daniel
]]> http://chicagorehabloans.com/303/how-tofind-real-estate-deals/feed/ Do’s and Don’ts of Private Hard Money Lenders http://chicagorehabloans.com/272/dos-and-donts-of-private-hard-money-lenders/ http://chicagorehabloans.com/272/dos-and-donts-of-private-hard-money-lenders/#comments Wed, 17 Mar 2010 05:02:58 +0000 admin http://chicagorehabloans.com/?p=272 When you search the internet, you’ll find a lot of resources about private hard money lenders. You may need to click dozens of links in order to answer the questions in your head. This article will provide a capsulized information that can help you deal with private hard money lenders.

Usually, private lenders need the following lending criteria:
a. An estimated 65% to 75% of the property’s value
b. No income or credit checks
c. Money is released immediately
d. Higher interest rates

Don’ts
1. Call the private lenders to borrow more money if you already exceeded the 75% value of your property.
2. Pay upfront fees because fees are normally paid at closing.
3. Relay false statements about your current situation because they are just observing your credibility.

Do’s
1. Look around for the most honest lender with lowest fee.
2. Request for the fee breakdown. The typical fees include: loan origination fee, notary fee, and evaluation fee.
3. Inquire about the lending terms and conditions.
4. Check the lender’s prepayment penalties.

]]> http://chicagorehabloans.com/272/dos-and-donts-of-private-hard-money-lenders/feed/ Online Mortgage Calculator http://chicagorehabloans.com/270/online-mortgage-calculator/ http://chicagorehabloans.com/270/online-mortgage-calculator/#comments Sun, 07 Mar 2010 09:46:04 +0000 admin http://chicagorehabloans.com/?p=270 Commercial mortgage loan calculators are very useful because they can help in determining the amount that you can borrow as well as your monthly payments.

When you searched over the internet, you can find a lot of real estate mortgage loan calculators. However, before you start the calculations, check if you are using the right type of mortgage calculator. Residential real estate loan calculators can present guidelines on the expected amount but they are not 100% accurate. Banks and money lenders have varying interest rates for different types of real estate.

To use the online mortgage calculator, enter that amount of loan, interest rate and length of payment. Choose your preferred payment option: fixed rate, adjusted rate or balloon rate. All these factors will compute the possible fee that you would pay.

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]]> http://chicagorehabloans.com/270/online-mortgage-calculator/feed/ Hard Money Loan Requirements http://chicagorehabloans.com/266/hard-money-loan-requirements/ http://chicagorehabloans.com/266/hard-money-loan-requirements/#comments Sun, 07 Mar 2010 09:24:21 +0000 admin http://chicagorehabloans.com/?p=266 Hard money commercial mortgage loans are not meticulous with the borrower’s credit score. Instead, they approved loans based on the equity. Unlike the conventional loans, you can close hard money loans faster because they require lesser documentation. You can immediately receive the funds from hard money lenders if you meet their requirements.

1. Cash: Although some lenders do not require down payments, they will charge you with other fees. Funds used in hard and soft costs such as actual site work and engineering plans will be charged on the equity. Normally, private mortgage lenders aim to get 10% cash or hard equity from the borrowers.
2. Equity: Hard money lenders implement lower loan-to-value rations of the substantial equity. Usually, approved loans are not more than 50% of the raw land, 60% of the full entitled land or 65% of infrastructure properties. They do not exceed in 90% of the collateral’s value.
3. Credibility: Although they do not focus on credit reports, private lenders will check your credit history to determine your character and credibility.
4. Experience: Property owners and builders will have better chances of getting a loan compared to first time investors and developers.

With These Factors in Place, You Will be Approved
These are the main things private lenders are concerned with when they consider a hard money loan. If a borrower is of good character, has some experience (or has a partner with experience), and can show both hard (cash) and soft equity in a deal, chances are very good that they’ll easily qualify for a privately funded commercial mortgage loan.

]]> http://chicagorehabloans.com/266/hard-money-loan-requirements/feed/ Residential Real Estate Investor Rehab Loans: Non Conforming Rehab Loans vs Hard Money Loans http://chicagorehabloans.com/256/residential-real-estate-investor-loans/ http://chicagorehabloans.com/256/residential-real-estate-investor-loans/#comments Sat, 06 Feb 2010 05:22:03 +0000 admin http://chicagorehabloans.com/?p=256 There are lots of alternatives for funding purchase and rehab projects of real estate investors. If you are going to invest in commercial multifamily housing or residential investment properties, you can look for lenders that will pay for your finance purchase or refinance investor rehab projects. You will have to choose from these two types of rehab funding: non conforming investor rehab funding or hard money rehab funding.

Non Conforming Real Estate Investor Rehab Loan

Non-conforming real estate investor rehab loans do not have secondary market that will purchase the loans. Therefore, every non confirming investor rehab loan must satisfy the requirements of conforming mortgages. The borrower and real estate investor must have a good credit, a verifiable income, an ability to repay the loan, acceptable down payment and reserves, and higher licensed bonded contractors to do the rehab. Unlike hard money loans, the non conforming real estate investor rehab loans offer lower fees. On the contrary, non conforming real estate investor rehab loans have a long list of qualification criteria and you can’t get the financing immediately.

Hard Money Loans

Hard money loans have more higher rates that ranges from 4% to 10% hard money loans. In contrast with the non conforming investor rehab financing, these loans release the fund in 2 to 3 weeks time and they have lesser requirements. For this reason, you can apply for additional loans. But, you will be only qualified for hard money loans if you are unfortunate enough to have a non conforming rehab loan.

Qualifications to get Non Conforming and Hard Money Investor Loans

The two programs oblige you to buy a property that will have an after rehab value of 65% or less. They also require satisfactory exit strategy to pay the loan and check if the contractor or investor has the experience and license to complete the project. For non Conforming rehab financing programs you need to pay at least 20% of the total purchase and rehab costs while hard money rehab funding programs will or will not ask you for a down payment.

]]> http://chicagorehabloans.com/256/residential-real-estate-investor-loans/feed/ Basics of Rehab Loans http://chicagorehabloans.com/252/basics-of-rehab-loans/ http://chicagorehabloans.com/252/basics-of-rehab-loans/#comments Sat, 06 Feb 2010 05:16:25 +0000 admin http://chicagorehabloans.com/?p=252 Rehab loans can be used for buying and fixing an existing property. Through rehab loans, you can borrow an amount that is equivalent to the after repaired value (ARV) of the property. The ARV is based on the appraiser’s estimate. For instance, when the appraiser declares that your rehabbed or remodeled property is worth $250,000 once completed, then you will be able to loan 60% to 90% of that amount to purchase a property or renovate it.

In applying for a rehab loan, there are two important factors that you need to consider: the amount of money that you currently have and your current credit score. When you are qualified to loan 90% of the ARV, you are required to pay 10% of your down payment in order to complete the full 100% of the budget to finish the project. Your contribution may come from cash you have deposited in the bank for at least two months, a gift from a close relative or a secured credit line like home equity line of credit. On the other hand, if you cannot meet these requirements, ask your broker for other alternatives. Your contractor may be required to create a budget plan for the project as well as its timeline. The fund for your rehab project will depend on the budget plan and timeline from your contractor.
After the completion of the project, the majority of the lenders will offer to make your rehab loan a permanent loan. They will also charge you with certain percentage that varies from the agreement between you and the lender. Interest rates may range from 3% to 12% of the loan amount. However, when you did not pay any down payment, the interest rate may reach 8% to 15%.

]]> http://chicagorehabloans.com/252/basics-of-rehab-loans/feed/ Hard Money Real Estate Loans http://chicagorehabloans.com/250/hard-money-real-estate-loans-chicago/ http://chicagorehabloans.com/250/hard-money-real-estate-loans-chicago/#comments Thu, 04 Feb 2010 07:55:27 +0000 admin http://chicagorehabloans.com/?p=250 At this point of time, hard money real estate loans can prove to be of ultimate help. So let us discuss all the relevant details about hard money real estate loans. Hard money real estate loans are basically short term loans and therefore, the rate of interest is higher, as compared to other loans. These are called hard money real estate loans because of its strict terms and conditions.

For hard money real estate loans, you need to offer some of your assets as collateral to secure the loan amount. This way, you can find nominal rates and several additional benefits of hard money real estate loans. If we talk about the criterion to avail hard money real estate loans, you need to offer some important documents like bank statements, residential proof, age proof etc. One can make use of hard money real estate loans for procuring new property. Search well and crack the best deal of hard money real estate loans.

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