Searching For a Reputable and Trusted Resource for Hard Money Loans? Private Money Utah Is Your Source!
6 Steps To Close a Hard Money Loan Fast
4 Feb 2012 | No Comments | posted by Corey Curwick | in Hard Money
Because every hard money lender has different requirements, it is difficult to say all the items you will need. However, the good news is that there are standard items you’ll need to close a hard money loan fast:
- Find a Good Hard Money Broker: A good hard money broker is your friend because he or she already knows the real hard money lenders from the fake lenders and can steer you in the right direction for a fast hard money loan. This is not to say you should go to your standard mortgage broker for a hard money loan though. A standard mortgage broker is just going to send you to a hard money broker anyway and you’ll be paying double the loan fees because you’ll have to pay the standard mortgage broker a fee for referring you.
- Have a Preliminary Title Report ready: A hard money lender always wants to see clear Title to a property before lending on it. You can get a Preliminary Title Report or a “PR” from the Title company that will be handling the escrow for the seller of the property. If it’s a refinance loan, find a local Title company to obtain one.
- Get Your Property Documents Together: If it’s a rental property, you’ll need copies of the leases. Apartment complexes will need rent rolls and an Income Statement that shows the income and expenses for the property. Most lenders want to see an Income Statement for 2 years on the property. Read more..
Top 4 Scams in Hard Money
24 Jan 2012 | No Comments | posted by Corey Curwick | in Hard Money
There are a lot of bad hard money lenders
in the private money lending space. Because it is not regulated as much as the banking industry, hard money lending has its share of scam artists. Below is a top 4 list of scams to watch out for when looking for a good hard money lender.
- Fee Collector: When a lender asks for an upfront fee for a sum of more than $1,000 this is probably a scam. There are a lot of hard money lenders who make money from charging upfront fees, and not by actually making loans. These hard money lenders are often called, “fee collectors.” Although there are exceptions, scams in hard money are usually found when a lender is charging $1,000 or more to give you a loan. Sometimes a lender will require an appraisal or site inspection as a final underwriting condition for giving you the loan. However, in most cases, this type of upfront fee will not be more than $500 and will typically be paid for a third party service.
- “Bait and Switch” Lender: The lender promises the borrower a low interest rate and a low fee loan that seems too good to be true. Right before funding the loan, the lender may give the borrower a less desirable loan term, at a higher interest rate. This is called “bait and switch.” Read more..
Private Money Interest Rates: Finally Trending Downward!
12 May 2010 | No Comments | posted by Corey Curwick | in Hard Money
Since the onset of the new year, I’m beginning to see interest rates trend downward. And this is obviously good news for borrowers who need non-bank financing.
With such a shortage of cash over the last two years, it seemed that there were just too many good deals chasing a limited supply of cash. Since the start of 2010, it now seems that there is more liquidity in the market.
Many private lenders are beginning to match the lower interest rates being offered by private investors or individuals lending out their IRA money. Some of the programs that are currently being offered in the Western United States include:
- CaliforniaResidential & Commercial Purchases, Refinances and Cash Out Refinances
- 8.5 to 9.95% APR
- Hard money 2nd mortgages starting at 10% APR
- UtahResidential and Commercial Purchases, Refinances, and Cash Out Refinances
- 10 to 11.99% APR
- NevadaResidential & Commercial Purchases, Refinances and Cash Out Refinances
- 11.99 to 12.5% APR
- ArizonaResidential & Commercial Purchases, Refinances and Cash Out Refinances
- 11.99 to 12.5% APR
- IdahoResidential & Commercial Purchases, Refinances and Cash Out Refinances
- 11.99% APR
These are just some examples. Last year at this same time, interest rates were typically starting at 12 percent and ranged between 12 to 14 percent. Like you, I’m hoping rates will continue to trend downward for the remainder of 2010!
Any comments on this topic?
Posted by Corey Curwick on May 12, 2010
How to Get Your Hard Money Loan Funded Quickly – Part III
21 Jul 2009 | 6 Comments | posted by Corey Curwick | in Hard Money
I wanted to continue the thread, from a couple of previous posts, on the topic of ‘getting your deals funded quickly.’ This posting revisits this important topic again; so I’ve decided to title it ‘Part III<
I did a post back in February called, “How to Fund a Hard Money Loan Quickly” Shortly thereafter, I reopened the topic again with a subsequent post called, “How To Get Your Deals Funded Quickly” A lot of the good tips in the last posting came from John Kutac of Western Capital Partners.
I think this is a great topic to post on because it solicits feedback and starts a dialogue. For those who seek a private money or a hard money loan, or even for hard money loan brokers, the tips provided in these postings are standard protocol in the private money realm. Don’t follow these basic rules of engagement, and you won’t get money very quickly, if at all.
Documentation is now pretty much a rule for hard money lenders these days. Have all of the typical documentation required for a conventional bank loan on hand, when looking for quick funds. For an express hard money loan, documentation will make the underwriters job a breeze because then they only have to ‘verify’ the documentation. Years ago, documentation was not required, but with lenders now cherry-picking deals, you must have all of your documentation prepared to submit.
Another important tip for getting your deals funded quickly, has to do with networking. Find out who is brokering money hard money loans consistently and quickly. Don’t waste time with someone who doesn’t have access to the money sources. Real lenders are hard to find. When I say ‘real lenders’ I mean those who have money to lend and are actively lending. Don’t spin your wheels with lenders who advertise on the internet if you want your deals to fund quickly.
Any other thoughts that anyone would like to share in order to continue the thread on this topic? Input or additional tips are encouraged.
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