Searching For a Reputable and Trusted Resource for Hard Money Loans? Private Money Utah Is Your Source!
Video: What Is a Hard Money Loan?
16 Apr 2012 | No Comments | posted by Corey Curwick Dutton | in Success
What is Hard Money? People ask me this all the time. A private money loan and a hard money loan are used interchangeably to mean the same thing. A non-bank loan, back by individual or private investment group instead of a bank. A private loan is typically faster and can fund in one day up to 30 days, depending on the complexity of the deal. More flexibility often means higher interest rates, from 7% to 18%.
The qualifications are less harsh, some lenders don’t even require a basic loan application or credit report, they just want to inspect the property. While others want to see nearly as much documentation as a bank, but can still move faster than a bank could. Collateral is the most important to a non-bank lender. You must have a real estate asset to use as collateral for this type of loan.
The most important thing about a hard money loan…To find a lender you can trust. Private Money Utah is your trusted resource for private money and hard money loans in California, Utah, Colorado, Arizona, Oregon, Washington, Texas, Georgia, New York, New Jersey, Virginia, and Chicago, Illinois.
Hard Money Loan Success Stories
26 Feb 2012 | 2 Comments | posted by Corey Curwick Dutton | in Success
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People use hard money and private money loans to accomplish a variety of goals and objectives. Most people who work in the private lending industry have some great success stories about their clients. Please share your own success story, or a story about one of your clients, below in the comments section.
I will tell 2 of our stories here and hope they inspire you….
Belinda – A first time real estate investor, Belinda was presented with an opportunity to purchase a small, mixed-use commercial building from a family friend. The building was fully rented and had good cash flow. The family friend had to sell the property quickly and was willing to sell it to Belinda far below market value. But only if she could come up with the cash in one week. Belinda’s credit has been hit, but she had enough cash reserves for a down payment. Because she was getting such a low purchase price on the building, we gave her a commercial hard money loan and she brought in the down payment. We were able to close within a week to satisfy the seller, and Belinda was able to get into a positive cash flow investment. Not too shabby for a success story eh? Read more..
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..
What is the Future of Commercial Real Estate?
27 Sep 2009 | 7 Comments | posted by Corey Curwick Dutton | in Success
Is the future of commercial real estate gloomy for investors? If small business continues to be deprived of working capital and eventually forced to close up shop, what is the future of retail, office, and industrial real estate?
It’s been a “feeding frenzy” in commercial real estate. But even with an incredible loan to value, is it wise to pick up a bunch of deeply discounted commercial space right now? As retail goes online and offices go virtual to save costs, will there be a glut of commercial property on the market in the next 5 years?
Retail will never completely die, as people still need to go and try on wedding dresses and wander aimlessly around shopping malls. However, I do think that the big days of retail are officially over. As consumers become more savvy online, there will be more tire kickers. And this trend will just grow and grow.
And, it’s easier than ever before for a company to take its office virtual. A friend of mine works for a small company with 50 employees. Several weeks ago, the company mandated that all employees work from home and meet twice a week for a whiteboard session. With all of the technology and “freeware” in abundant supply and easy to use, this is certainly the future of office.
Granted, office space will remain a necessity for some businesses, but others will be forced by the recession to grow up faster and use low or no cost technology. Perhaps multi-use, commercial real estate ventures like Noah’s will be the commercial real estate of the future.
The future of industrial commercial seems to be a little more bright. I imagine that it will enjoy fairly consistent growth after the recession blows over. Although small business is temporarily unable to access working capital, once credit returns, businesses that occupy industrial space will rebound.
Please share your insights into the future of commercial real estate. Do you agree or disagree with my assumptions? Please share!
Posted by Corey Curwick on September 27, 2009
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