Where have all the finance companies gone?

Ten years ago you could find a dozens of finance companies in Las Vegas, Nevada. Household Finance, Beneficial Finance, Security Pacific, General Finance, , Mercury Finance, Blazer Financial, CIT, Transamerica, Commercial Credit were making unsecured and real estate secured loans for the last 50 years. After the sub prime mortgage bust the securitization market dried up I do not know where to find one open finance companies for real estate investors.

In Las Vegas the market demand for real estate financing outstrips the supply of money for real estate investors and consumers nationwide. Until this void is filled it will be a a long time before housing comes out of its recession. Real estate investors will continue to seek alternative forms of capital for their real estate business including private lenders, credit unions, and hard money lenders.

Nevada hard money lenders and private lenders are one of the few sources helping the housing recession nationwide by providing capital when banks and traditional lenders turn their backs on all but the best borrowers. Hard money and private money are the new finance companies in 2012.

To apply for a modern day finance companies loan click here.

Calculation of Points
Las Vegas hard money lenders points are charged as a percentage of the total loan amount. If the lender charges 1 point, this means you pay 1 percent. This means on a $200,000 loan you pay $2,000, a fee you must pay at the closing before the lender disburses any loan proceeds. Some lenders may choose to incorporate other fees within the point structure in order to make things simpler rather than charging those fees individually. Lenders may also charge separate fees for underwriting, loan processing and document preparation or may include all of these fees under the points. The lender may choose to identify these separate entries or simply leave them as a bulk payment and perhaps stating the fees covers all of the above.

Purpose of Points
Las Vegas hard money lenders may charge points for originating and closing loans. Often lenders work together on different projects, so there may be referral fees involved in the distribution of points. The hard money lender may also have an agreement with a private investor to share a portion of the points in order for that investor to increase the amount of money he hopes to make from the deal.

Keep in mind when you are looking at Las Vegas hard money lenders that not all of them will charge the same fees or have the same fee structure. It’s important to make sure you conduct enough research to make sure you are choosing the best one for your project with the most reasonable costs. That doesn’t mean you should make a decision based on the fees but rather choose the lender that has the best reputation and that provides the best options for you and your company.

Understanding Your Hard Money Loan
Las Vegas hard money lenders include within the points of a hard money loan is not enough. You need to understand the total structure and how it will affect the overall cost of your loan. The key issue of importance is understanding the factors that make up the total of the “points” and their distribution. If these do not see a breakdown of these figures in the contract and there is not a separate entry, you need to question the lender. Make sure you understand the average for certain fees in order to avoid being overcharged—this is why it is a good idea to enlist the services of a real estate attorney to help you review the contract before you sign it. Once you sign a contract with a hard money lender in Las Vegasthere is nothing an attorney can do for you at that point.

To apply for Las Vegas hard money lenders loan click here.

The current Las Vegas, Nevada market presents asset based lenders with a multitude of opportunities and risks. As the availability of conventional bank lending shrinks in the marketplace, independent asset based lenders are seeing an uptick in residential and commercial loan applications. This development is a once-in-a-generation opportunity for private asset based lenders to develop relationships with business that was previously out of reach due to strong bank competition.

Asset Based Lenders Real Estate

Asset based real estate loans are a viable solution for businesses or real estate investors that cannot provide tax returns or have a few bumps on their credit report. Commercial real estate owners with equity less then 65% loan to value are the best candidates for asset based loans.

At the same time, across the board declines in sales and earnings make many business owners that own real estate a potential asset based loan borrower. How can your business capitalize on the opportunity to borrow when banks say no?

Private Lending Groups will work to expand and leverage your real estate assets. Business owners have a lender that uses your real estate asset as collateral instead of boxes of documents and months of underwriting your loan request.

For more information on asset based lenders contact Private Lending Groups.

Commercial hard money lenders are an important alternative to your business’s traditional financing alternatives. A commercial hard money lenders can sometimes make all the difference even if traditional lenders have rejected an loan application as too risky. Hard money commercial loans are always offered at higher rates than bank loans but beyond the cost when few other financing is available, Commercial Hard Money Lenders are a savior when traditional lenders are not lending.

Commercial Hard Money Lenders Requirements

Commercial hard money lenders will consider your property as the collateral for repayment and and not be as strict about credit and income as bank lenders. But commercial hard money lenders are seasoned business people who have no interest in owning your property much less in running your commercial venture. Loans are made based on the same considerations of risk and repayment as they would be at a mainstream lending institution, but the value of the collateral property is of far greater concern. In many cases, you will learn more from someone who has real estate experience both inside and outside of a traditional financial institution than from someone whose experience lies purely on the inside. Buildings or other facilities that your company is currently using may not be considered. Rather, a commercial hard money lender will be looking at the overall value of the business and especially at its resale value of the business.

Short Term Commercial Hard Money Loans

Hard money commercial loans are typically very short term loans. A commercial hard money borrower can expect repayment terms for periods of between 1 and 3 years. But commercial hard money lenders also do a good amount of business simply because they can close deals faster than traditional lending institutions ever will and closings in as little as ten days are sometimes possible. Some commercial hard money lenders will syndicate groups of private investors for every deal each deal while others actually hold big mortgage funds and can very quickly make those funds available within a period of days or a few weeks. Commercial hard money lenders know that the loans they offer are at a premium cost, and therefore they won’t stretch out terms but should be able to talk to you quite frankly about the length of time for repayment and about your ability to repay.

For more information on terms and qualifying click here.

If you have difficulty documenting your income because you are self-employed in Las Vegas, Nevada take a look at a self employed mortgage loan option for qualified applicants. Private Lending Group created an online marketplace so self-employed borrowers like you could get financing easier.

We offer self-employed and independent contractors stated income refinance loans, investor mortgages. If you own your own business, or you are a 1099 contracted worker, then Self employed mortgage loan will likely meet your financing needs. If you do not want to document your income, or you would prefer to supply the lenders underwriter bank statements rather than pay-stubs, then a reduced doc feature would benefit your mortgage loan submission. Getting a Self employed mortgage loan makes a lot of sense if you are self-employed or if you tax returns are more complex because of multiple revenue streams.     To apply for a Self employed mortgage loan click here.

Today’s real estate investors have found purchase rehab loans the answer to their investing needs. Purchase rehab loans are a combination loan. Part one is used to purchase the investment property, and part two is used to advance monies for needed repairs.

Many times, real estate investors need funds after closing to updated the kitchen and baths. Other times the property is just to small, and would be better used as a rental or flip if there were a more bedrooms, additional closets or storage added.

Our response to the market place in the Las Vegas area, we have our Purchase Rehab Loans program. You can purchase an investment PLUS add the cost of improvements to the loan.

Here is how it works, after you find an investment property to purchase. you figure out how much work the property needs, you submit this construction schedule and estimate with your loan request.

On the day of closing, the seller gets their agreed to sales price and the additional funds are put in a construction account for the investor to complete improvements. Draws are made as the work progresses.

An appraisal is completed based on the ‘subject to’ completion of the work, so that you know the true value. Remember, some improvements will only bring a home up to standard value, not increase the value.

A contingency factor of 10% is allowed in the construction costs and put into the transaction. This can either be paid by you at closing or rolled into the construction portion of the loan.

The purchase rehab loans is an Interest Only payment at the closing of the loan and during the construction phase of the project.

Once the work is completed, the purchase rehab loan is refinanced or modified to the final end loan. This could be a 30 Yr Fixed rate loan, a 15 Yr Fixed rate loan.

To apply for Purchase Rehab Loans click here

Private Money Real Estate Loans

Private money loans are an important source of funding for today’s real estate investors. Before the real estate bust it was relatively easy and inexpensive to get a loan from your local bank or mortgage broker. But those days are long gone as traditional lenders have tightened lending guidelines and in some cases, have gone out of business.

Real estate investors need funds to grow their business and help new home buyers achieve home ownership. Private money is a growing source of capital that is both affordable and readily available in most American cities like Los Angeles. Instead of seeking money from banks, savings and loans, and even hard money lenders who charge high interest rates, fees. Private money offer a alternative solution to growing your real estate business.

Where does Private Money come from?

Private money can come from all walks of life. From a neighbor or relative to a doctor, businessman or retiree that wants to earn a better return on their money then traditional investments are paying today. They may not want to own rental property or mange tenants, but are simply happy to earn 8-12 percent while most money markets and bank CD’s pay less then 3 percent.

Private money lenders are looking for investment returns that are secured by local real estate as collateral. In addition, private lenders want to be secured by a pledge of local rental properties real estate. Most private lenders want to be able to actually see the property that is securing your investment and, in fact, will most likely drive by and see the property from time to time.

Private money lending is the process of borrowing money from private lenders (not banks or financial institutions) at rates higher than banks or savings and loans and guaranteed by local real estate rentals.

Private money come in many forms

Private money lenders usually come in two forms. First mortgage lenders lend up to 70% to 75% of the purchase price and expect the real estate buyer to invest 25-30% of their own money. Second mortgage lenders are harder to fing and they usually keep the total loan to value less then 65%.

To apply for a private money loan in Los Angeles click here.

The current market situation presents asset based lenders with a multitude of opportunities and risks. As the availability of conventional bank lending shrinks in the marketplace, independent asset based lenders are seeing an uptick in residential and commercial loan applications. This development is a once-in-a-generation opportunity for private asset based lenders to develop relationships with business that was previously out of reach due to strong bank competition.

Asset Based Real Estate Loans

Asset based real estate loans are a viable solution for businesses or real estate investors that cannot provide tax returns or have a few bumps on their credit report. Commercial real estate owners with equity less then 65% loan to value are the best candidates for asset based loans.

At the same time, across the board declines in sales and earnings make many business owners that own real estate a potential asset based loan borrower. How can your business capitalize on the opportunity to borrow when banks say no?

By working with Private Lending Groups to expand and leverage your real estate assets. Business owners have a lender that uses your real estate asset as collateral instead of boxes of documents and months of underwriting your loan request.

For more information on asset based lenders contact Private Lending Groups.

How long does it take to close hard money loans?

It normally takes 7 -14 days to close a hard money loan. As soon as we have the appraisal, title insurance, and property insurance we can close the hard money loan.

To apply for for loan click here.

Private lending groups offers hard money business loans if you already have worn out all your possible financing sources from banks and traditional lenders and you still need more money to operate or expand. Since they are usually short term and must be paid within one or two years, they are also called bridge loans.

Before you sign for any hard money business loans,

When you have a flourishing business and want to expand it, then hard money loans can help you. Consider the following items.

1. Can you generate a return on investment (ROI)?
2. Do you have an exit strategy? Hard money business loans will be pain within a shorter period of time. Therefore, if you do not have a regular cash flow then it is not suitable for you.
3. What are your alternatives? When your alternative financing options are equity based, a hard money loan can enable you to take control of your business
4. What’s the impact on personal liability? Hard money loans are better compared to other financing sources with high cots.
5. Can you generate enough capital? A hard money loan is not the suitable option when it can’t cater your financing needs.

Hard Money Business Loans can be the very beneficial because they are easy to qualify for and will help you to meet your business financial goals.

To apply for hard money business loans, click here