Understanding the Elements of Residential Hard Money Lending

Bauer | March 4, 2019 | 0

Residential hard money lenders basically ignore the credit rating of a borrower, rather issuing out loans based upon single family home or duplex considerations. Various terms are applied when referring to “hard money”, including personal loans, private loans and bridge loans. They all work the same way however where the underwriting process is dependent upon hard assets of the borrower available. The lender in such case utilizes real estate as collateral for performing a transaction. Processing a loan can take a little as between 3 and 4 days, depending upon the circumstances present. People who require this type of assistance can consider approaching the services for residential hard money lending Los Angeles California offers.

How Residential Hard Money Borrowing Differs from Bank Loans

Applying for a bank loan requires that the borrower adduce proof of income, tax returns, credit score, financials and appraisals among other important credentials. One also at least needs to have a typical minimum FICO score of 700. You might also require providing cash in upfront fees to facilitate the application process. A limitation exists too in that one can only apply for loans involving investment and owner-occupied properties. In addition, a request for loan is capped on the amount of loan and number of properties in which one wants to invest. The entire procedure takes over 60 days in typical fashion.

Residential money lenders by contrast consider a piece of residential real estate as the basis for approving a loan. One only requires signing a few documents to have it processed as well. The amount which can be borrowed also varies with different lenders. Some lenders even ignore the credit history and scores of lenders altogether. Certain residential money lenders waive upfront fees too. The entire procedure for loans to be processed takes less than ten days in general. It is also critical noting that personal money lenders present a broad range of requirements touching on how much they can lend; the types of real estate they can consider as collateral as well as minimum and maximum sizes of loans they offer. One can access seasoned agencies for hard money lending Los Angeles California has for investing in residential properties.

Assessing Residential Hard Money Borrowing Loan-Opportunities

All credible bridge money lenders have to be certified by both the regulatory agency operating within their states along with the National Mortgage Licensing System, or NMLS. Potential borrowers need to verify the license of a lender via the NMLS to keep from experiencing problems at closing. Many states require that the license number of lenders be listed on loan-documents. As well, borrowers need to ensure reviewing various aspects pertinent to the loan with care. They include the lender’s interest rate, loan to value, prepayment penalty, default rates, work out solutions, APR and points or loan-fees. Utilizing the opportunities for hard money lending Los Angeles California offers for instance is a credible way of obtaining residential loans.

Certain hard money lenders engage in direct lending of their own funds without charging any advance fee. Loans of up to 10 years and longer can be provided by residential hard money lenders too. It affords borrowers the flexibility they require of maximizing their opportunities on a given piece of residential property.

What’s the Best Age to Invest Your Hard-Earned…

Bauer | January 31, 2019 | 0

They say that working a 9-to-5 job won’t get you anywhere. It won’t make you rich. It won’t be the best way to live the life you’ve always wanted. But investing can and will. This is especially true if you’ll entrust your investment to a reputable company like Truebell Capital.

Why Invest?

According to financial experts, investing is the only way to use your money to make more, well, money!

Technically speaking, anything that gives you a return is an investment in its own right. So if you have a savings account that generates a 1% interest or even less, you have some form of investment lying in the bank.

But if you want an investment that gives you higher ROI (return on investment), particularly one that’s managed by a company like Truebell Capital, then you have to venture beyond your savings account. By doing so, you are creating long-term financial security for yourself and for your loved ones.

When should you start investing?

If you’re thinking of investing, be it in stocks, mutual funds, or real estate, ideally, you should start investing as soon as you can. Remember, the earlier you start investing with an investment trust company like Truebell Capital, the longer your money will work for you.

However, this doesn’t mean that you blindly jump in on the bandwagon.

Of course, there are things that you need to take into account—steps that you need to take first.

Here are some signs that it’s a good time to invest your hard earned money:

1. You have enough money in the bank.

A financially wise individual will have emergency savings. After all, having money in the bank for unexpected events is something that every person should never go without.

Ideally, you should have three to six months’ worth of your living expenses in your bank.

This will be your cash cushion, which you will need to land on should a financial emergency occur. Visit Truebell Capital for more details.

Why is this an important factor when investing?

Investments do not always give you high ROI (return on investment) right away. You will have to wait for some time to be able to do so.

This means that having enough savings in your account can protect you from any financial emergency.

2. You have insurance coverage.

Before you start investing with a trust company like Truebell Capital, you need to have insurance coverage.

Being uninsured puts all your assets at high risk. An accident or untoward incident could wipe out everything that you’ve worked so hard for.

So, be sure you have insurance policies for your car, home, health, disability, and your family.

It’s not enough that you have emergency funds kept in the bank. A death of a loved one, a tragedy that causes you to lose your home, or a vehicular accident can put a huge dent in your finances if you don’t protect yourself from it.

3. You don’t have large debts.

Unpaid taxes, child support, credit card payments, or other dangerous debts will wreak havoc on your finances if you don’t take care of them immediately.

To be able to make the right decisions about dealing with your debts, you need to seek legal advice right away.

Any investments with an investment management firm like Truebell Capital could be put at risk if you don’t take care of your debts first. Delinquent debts can blow up and cause you to lose everything, including your investments.

4. You have secured your retirement.

Whatever happens to your investment, you will still have a secure fallback if you have a retirement plan, whether with your employer or a private company.

Having a retirement plan is another way of investing your hard-earned money. What’s great about having one with your employer is that your savings get automatically deducted from your salary.

Now that you know that you have to start investing as early as now, all you need to do is to talk to a trustworthy company.

Get a hold of Truebell Capital by visiting their site https://truebellcapital.com/.