What Is the Difference Between a Hard Money Lender and a Fee Collector?
15 Jan 2012 | No Comments | posted by Corey Curwick Dutton | in Success
AAs with any type of business, there are good companies and there are bad companies. It is the same thing with private money lenders. The “bad” lenders are commonly called, “fee collectors,” and in fact aren’t really lenders at all. These are lenders that may give a loan here and there but will make most of their money from collecting upfront fees from their borrowers with no real intent to make a loan to them. (It is usually when you’ve been turned down by everyone else for a loan and a private lender suddenly comes forth with a very fast answer of ‘yes.’ If it seems too good to be true, it probably is!). These upfront fees could be called application fees, review fees, analysis fees, evaluation fees, preliminary underwriting fee, and commitment fees.
Then there are the “good” lenders that make money by giving loans, and not by collecting upfront fees from clients. A good private money lender may provide you with a Letter of Intent that sets forth the terms of the loan. If you agree to the terms set forth in the Letter of Intent provided by the lender, then you may have to pay for a small site inspection fee or appraisal fee etc., but typically no more than $500.
If you search online, you can sometimes find out if a lender is a fee collector by simply typing in the lender’s name and then the word “scam” or “Rip off.” However, make sure you look beyond the first page of a google search to find dirt on a bad lender. Some lenders will use a trick of trying to cover up bad online press with stories or other articles that will serve to bury the bad press on the 3rd or 4th page of a google search. Most people don’t bother to read the search results founds on the 3rd or 4th page of a google search so make sure you do your homework. Read more..
Hard Money Lending Replaces Bank Lending in Today’s Market
5 Jan 2012 | 1 Comment | posted by Corey Curwick Dutton | in Uncategorized
EEveryone has felt the effects of the changes in the lending environment, particularly real estate investors. The glory days of being able to finance 10 properties at a time through your local bank are long gone. Because banks have cut off stated income, subprime, and other loans that cater to real estate investors, private money lending has grown substantially over the last few years. With no credit or income to qualify for a bank loan, real estate investors have turned to residential hard money lenders and other sources for private money loans.
But what is a hard money loan? When bank loans were easy to get prior to the Savings and Loan Crisis and between 2004 to 2007, hard money lending was primarily used for loans that needed to fund at the last minute. In todays real estate market, private money mortgages are becoming the rule rather than the exception for real estate investors that rely heavily on financing for purchasing properties. A hard money loan is a type of loan where the collateral used for the loan, in this example real estate, is what qualifies you for the loan Read more..
Lowest Cost Commercial Bridge Loans in 10 Years – from 7.99% APR
25 Jun 2011 | No Comments | posted by Corey Curwick Dutton | in Uncategorized
SSome people will argue that it’s been even longer than 10 years since private money loans were priced as low as they are now. Because the private money lending arena is extremely liquid right now, borrowers are able to lock in very competitive private money interest rates. With rates on commercial from 7.99% APR, borrowers who had big credit hits can still lock in reasonable rates on private money bridge loans from non-bank lenders.
However, there are many false lenders and brokers on the web these days, and it’s becoming harder and harder to actually find the money. If you would like to get an idea of terms and requirements on the lowest cost commercial bridge loans in the Western U.S., please comment on this discussion or contact us via the “contact us” page.
Posted by Corey Curwick on June 26, 2011
New Private Loan Programs in Utah – as low as 9.99% APR
12 Mar 2011 | No Comments | posted by Corey Curwick Dutton | in Feature
FFor real estate investors in Utah, 2011 is full of opportunity. Unfortunate for some, more foreclosures are expected this year over last year. This represents opportunity for real estate investors who are looking to pick up as much discounted real estate as they can while the getting is good.
However, many real estate investors have also had their credit hit hard in the last several years and bankers have shut their doors. Private and hard money lenders in Utah have come forward to assist real estate investors to take advantage of opportunities. Private Money Utah has a new program that offers real estate investors in Utah loans starting at 9.99% APR and up to 80% of the purchase price in some cases.
Some real estate investors are cash poor, so they are teaming up with hard money lenders and another cash partner. By forming a Limited Liability Company (LLC) to hold Title to the real estate owned, all partners in the deal have a way to protect their interests. Private lenders also feel more confident lending to an LLC versus an individual because the transaction is assumed to be an investment rather than a owner occupied property.
To submit a loan request to us and receive the fastest response, click on our “Loan Request Form” page on this site. Take advantage of the real estate investment opportunities in 2011 by leveraging private money.
Posted by Corey Curwick on March 12, 2011
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