Purchase Rehab Loans

Posted on October 27, 2011 by admin

Purchase Rehab Loans

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 North Carolina, 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

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Loans for real estate taxes

Posted on April 28, 2011 by admin

Loans for back taxes

Loans for back taxes are common in this challenging economy markets and business changes, unfortunately many businesses miss the warning signs and over or under react to the changing industry dynamics. Their actions or inaction’s can lead to dire consequences for a small to mid size business including cash flow issues which inevitably have a trickle down effect on all areas of the company including loans for back taxes.

These cash flow issues typically lead to issues with various taxing authorities including not fully paying income taxes, property taxes, etc. To help these business owners right-size their current situation, many options are available including Accounts receivable factoring, inventory financing, equipment financing, real estate financing and loans for back taxes

Real Estate

Loans for back taxes

Real estate loans for back taxes can be an excellent alternative to higher priced factoring solutions (inventory, equipment, accounts receivable, etc…). In many cases the borrowers have an excellent piece of real estate collateral that can possibly be financed to provide ample working capital for their business. Loans for back taxes increase working capital that is one of the key variables in the turnaround of any company.

Many times these clients will not qualify for traditional bank financing. Traditional lenders focus heavily on the business financial’s (both present and historical) to evaluate the soundness of the loan. Luckily, lenders exist that focus on the borrowers collateral as opposed to their current financial’s. A perfect fit for situations like this is a private lender with a no-doc program.

Loans for back taxes are a unique niche that is very different than other sub-prime products. Typically sub-prime lenders underwrite primarily on credit, income, or cash flow of the property. The private lender no-doc loan solely underwrites the property and not the borrower or the financial situation of the company.

For example, a no-doc lender recently made a loan to a business that had lost money for the last three years. The lender was able to analyze the property, understand the company’s financial situation and the steps being taken to improve the cash flow. As long as the property has enough equity in it and a plan for success, the no-doc lender is typically able to make the loan.

A no-doc loan is typically faster, and enables the company to pull out more capital than factoring on receivables and materials. Start to finish a no-doc programs takes 2-3 weeks and can provide the borrower up to 60% of the equity in their property. The loans can typically be structured to fit the particular needs of the situation.

We can help the following borrowers:

  • Unpaid property taxes
  • Payroll tax issue
  • Unfilled tax returns
  • Business cash flow issues
  • In need of working capital
  • Foreclosures
  • Tax liens
  • Judgments
  • Credit Challenges
  • Mortgage lates
  • Debt Consolidation
  • Various other situations where time is of the essence

To apply for a loans for back taxes click here.

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Private Lending Update

Posted on March 31, 2011 by admin

Private Lending update

The residential mortgage market continues to limit the availability of mortgage money and real estate investors are turning to private lending and hard money lenders to facilitate their needs. Private Lending Groups has witnessed a strong resurgence of investors and borrowers requesting hard money loans and private rehab loans.

Private lending is sometimes defined as a loan that mortgage banks won’t do. However in this market even financially strong investors find the private lending quick approval and closing an advantage over banks and traditional lenders.

Private Lending loans range from borrowers with low FICO scores all the way up to complex commercial deals involving blanket or bridge financing. The private lenders offering these funds are typically private individuals funds put together to fill the void for investment and commercial funding.

With the recent credit tightening of institutional financing and the folding up of over 320 sub prime and prime lending institutions, these types of hard money pools are gaining popularity with real estate investors and mortgage brokers.

Private lending as investments

These new private lending loans by wealthy investors or funds pay them an above average return on investment of approximately 10-12%. They then loan the money out and keep the origination fees that they collect from the borrower.

In the past private lending and hard money loans carried a negative stigma. This comes from the high fees (points) and high interest rates that some lenders charge. Interest rates of twelve percent are a normal starting point for these private lending loans. Origination fees are also typically ranging from 3-10 points (3-10 percent of the total loan amount borrowed.)

Interestingly enough for real estate investors, this type of loan is a wonderful thing. Residential investment mortgage loans have nearly dried up while the number of pennies-on-the-dollar foreclosure homes has gone through the roof. In many cases, real estate investors are happy to get financing so they can take advantage of record low real estate prices and purchase real estate investments. With the advent of the private lending and hard money lenders comes relaxed guidelines and a more common sense approach to lending.

Private lending loans are typically at a maximum of 65% of the purchase price of a home or its appraised value and repairs. For a private lender, this gives a tremendous cushion and a firm reassurance that a borrower will pay their monthly hard money mortgage payment. After all, if they don’t pay, the private lender will foreclose and own the home at a roughly 35% discount.

There are few other qualifications to a hard money loan besides having “skin in the game” (having the 20-35% to put down on a purchase in a real estate investment) A few private lenders require the borrower to have a FICO score of 620+ but other hard money lenders in the business still loan to any good project with a 65% LTV or lower.

If you are looking for a private lending loan on an investment property, a commercial refinance or a commercial transaction your first stop should be to visit our we site at www.PrivateLendingGroups.com. They provide private lending money loans strictly based on LTV (Loan-to-Value Ratio.).

Private Lending Groups assists in the placement of funds for these loans as well as consults investors with diverse yield requirements from all over the United States.

If you are interested in investing in private lending loans or hard money mortgages get our FREE Report “The Best Way to Earn 8-10% Interest Secured by Real Estate!” FREE Report Click Here

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Hello world!

Posted on August 25, 2010 by admin

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

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