Photos
Dr. Kalinda Rose Stevenson
Commercial Banker Discusses Typical Loan Scenarios for Private Money Deals
Welcome back!
Commercial real estate, private money loans also known as hard money and or bridge loans are becoming more prevalent as borrowers enjoy less red tape, quicker closings and more “common sense” underwriting than conventional financing provides. Typically though, borrowers still relay on this type of financing as an option when conventional sources are not available.
The increased speed and flexible underwriting comes at a steep price with interest only rates often in the teens, 3- 6 points being the norm and loan terms being relatively short at 12 – 36 months.
Why would owners pay such high fees/rates? In short, because it makes sense for them based on their current situation. Below are examples of transactions where it made sense for our borrowers or go the hard money route.
Read more of the article by Jeff Rauth at
http://nomoneylimits.com/articles/privatemoney003.htm
No tags for this post.Related posts
Why Are Hard Money Lenders Angels?
With the recent upsurge in residential foreclosures nationally, homeowners are finding themselves in a very unusual predicament. Over the last 7, borrowers with less than perfect credit fell into a category called :sub prime borrowers”. This class of borrower was able to obtain a mortgage with little or no documentation.
The lenders were all too anxious to lend money to this class of borrower. Consequently, many borrowers took advantage of possibly a once in a life time opportunity to own a piece of the American dream.
Then reality set in. Many borrowers purchased a mortgage with a negative amortization option along with interest only options. Rather than pay the fully amortized 30 year rate, they only paid the interest and in many cases paid the negative amortization rate.
Read more of the article by Leonard Rosen at
http://nomoneylimits.com/articles/hardmoney003.htm
No tags for this post.Related posts
10 Ways To Buy A Home With Little Or No Money Down
There are many ways to buy a home, even if you have little or no money to put down. Here are a few of the basics:
1. Sweat Equity
Sweat Equity is a way to get a home by trading work for equity in the house. This could be used for a down payment or for purchase later. This is a great technique if you are handy with tools, yard-work, and paint.
Look for fixer-uppers in neighborhoods you are interested in. Many times these homes will have a hard time selling and the owner is ready for just about any offer. You will find these houses ranging from just needing a little “cosmetic” work like landscaping or painting, to totally trashed out houses in need of some serious renovation. If you are into repairs, this is a great way to get a home for a good deal.
If you are not skilled at repairs and renovation, be careful about fixer-upper homes. They could end up costing you quite a large amount of money to pay others to fix.
I also recommend getting a home inspection so that you know what exactly you are in for before you begin.
By Alexis Dey
For 9 more ways to buy a home with little or no money down, read more at
http://nomoneylimits.com/articles/nomoney004.htm
Related posts
Does “The Secret” Teach Magical Thinking About Abundance?
“The Secret” has been a colossal phenomenon about how to create abundance, using “The Law of Attraction.” When my adult son first watched the “The Secret,” he objected to one dramatic episode. A boy wants a bicycle. He hopes and dreams for the bicycle and spends time gazing excitedly at a picture of the exact bike he wants. And then he sees the bike in the window of the bicycle shop with a “SOLD” sign on it. The boy becomes upset and gives up hope for the bicycle. After a period of despair, he again focuses his hopes and dreams upon receiving the bicycle. Throughout the entire episode, he does nothing but dream. The episode ends when the child opens the door to find his grandfather with the coveted bike as a present. We last see the boy riding off happily on his new bicycle.
The episode is meant to demonstrate that happy and excited thoughts focused on a desired outcome will result in getting what you want. In “The Secret,” the boy “manifested” his bicycle as a result of his concentrated positive thoughts and feelings. This is the secret of abundance in “The Secret.”
My son contrasted this story with his own experience. When he was in middle school, he wanted a Go-Kart. We said he could have one if he earned the money for it. So he went out and offered to work for people in the area. He raked leaves, swept driveways, and did other odd jobs. In a short period of time, he earned enough money to buy his Go-Kart. He “manifested” his Go-Kart as the result of concentrated intention and hard work. He has commented more than once in the years since that we did him a great favor by encouraging him to work to buy his Go-Kart rather than to buy it for him. It taught him that he could have what he wanted by taking focused action to get it.
I don’t mean to dispute the validity of “The Law of Attraction,” or deny the possibility that people can manifest what they want to have by concentrated thought. In a world of quantum possibilities, the mind is a powerful creator. I do mean to make the point that entrepreneurs are much more likely to get what they want than dreamers are, because dreamers merely dream, hoping for an outcome. Entrepreneurs act upon their dreams to produce abundance.
On contrast, so many of the stories addressed to children teach magical thinking as the method of manifestation. Fairy godmothers wave magic wands, genies grant wishes, boy wizards recite magic incantations. Children also learn about Santa Claus with his flying reindeer as the great wish fulfiller, a giant rabbit who brings colored eggs and candy, and tooth fairies who exchange baby teeth for cold, hard cash. As a child, I even learned to wish upon the first star I saw at night. I had no similar instruction in how to turn my wishes into reality by creating an action plan.
During elementary school, as a child growing up on Cape Cod, I was involved in a summer children’s theater. I had some small acting roles and did some behind-the-scenes work. During the production of “Peter Pan,” I sat in a theater box to the upper left of the stage and did sound effects. One sound effect was to jingle little bells for Tinkerbell.
In the story, Tinkerbell drinks poison and is dying. Peter Pan calls out to children everywhere to save her life by believing. Peter addresses the audience directly and claims that if there aren’t enough children who believe in fairies, little Tinkerbell will die. At that point, the audience gets involves and wishes Tinkerbell back to life. My part in the dramatic moment was to jingle the bells louder to show that Tinkerbell had been restored by the fervent wishes of the children.
Now, many years after my brief career in theatrical sound effects, I look back on Peter Pan as one more way that the adult world teaches children magical thinking. Maybe it is all part of the wonder of childhood and maybe it is all harmless stuff. But I am not convinced. The common denominator in all of these fantasies is to instill in children the idea that if you only find the right magic spell, the right genie, the right wizard, the right fairy godmother, do the right things to please Santa, then you can have what you want.
Such magical thinking does not end with childhood. When we get older, we can substitute hope in winning the lottery, hitting the jackpot, or buying into the latest biz-op as the way to get rich without doing anything beyond hoping for abundance.
Whatever else “The Secret” teaches, in this one episode about a child who wanted a bicycle, it teaches magical thinking as the method to achieve abundance.
In contrast, successful entrepreneurs do what my son did. They don’t use magical thinking to accomplish their dreams. When they want something, they do something about it. As a result, entrepreneurs are more likely to create wealth and abundance than any other group of people.
One way to overcome magical thinking is to understand the real nature of money. Be sure to get your free “52 Heart Of Money Insights” by Kalinda Rose Stevenson, Ph.D. at www.nomoneylimits.com. Discover the difference between “earning money” and “making money” in a real estate investing book, “No Money Limits,” USA Book News Best Books Winner in Business: Real Estate category and Finalist in Business: Personal Finance category. “No Money Limits” is not just for real estate investors,
No tags for this post.Related posts
Syndicate
Subscribe to this site's RSS feed.