Niche Private & Hard Money Commercial and Residential Lender

Why are real estate courses for investing so popular?

Mon, 12 Oct 2009 17:23:51 -0500

Via Real Estate Course Blog (Real Estate Course Blog):

If you are unaware, real estate investing courses are very much valuable as you start real estate investing. Real estate investing courses are a marvelous tool for real estate investors of all caliber levels. Obviously, real estate investing courses are a terrific solution to provide you with a better appreciation of the real estate investing trade. What's more, real estate investing courses are the most vital step towards becoming a profitable real estate investor.

Real estate investing courses are available as home study programs, online programs, and academies as well as other off-line classroom settings. Don't forget, the finest real estate investing courses offer access to an individual who can aid you with individual questions and concerns and that provide a systematic approach to learning fundamental information about becoming a profitable real estate investor. For this reason, the seminar real estate investing courses are far better when compared with home study or online courses due to the one-on-one or group nature and also the networking aspect. Those people and realtors who sign up for real estate investing courses are in all probability offering themselves the best opportunity to profit from real estate; either by investing in real estate personally or by providing professional educated advice as a coach.

In essence, for this reason real estate investing courses are fast becoming popular for almost all people and realtors who want to balance their portfolio for when the real estate market increases in value and provide themselves with another possible passive cash flow now and in retirement. Almost all real estate investing courses are going to explain to you the tools you will need to make your real estate business very profitable and give you multiple streams of income, real estate gains, and tax benefits. In my opinion, all these real estate investing courses, education, and books are useful in some way on your adventure in successful investing in real estate.

So talk to other real estate investors, read what they are saying on their blogs, and visit sites where real estate investors are providing their personal feedback on real estate courses.

We have many different real estate course reviews from real estate investors across the nation on our blog. We have a list of authors, mentors, gurus and their real estate courses with comments and feedback from other real estate investors.

Visit Real Estate Course Blog today at http://realestatecourseblog.blogspot.com

Good luck on your road to real estate success!

What are the real estate investments in this economy?

Sat, 26 Sep 2009 13:38:35 -0500

What are the real estate investments in this economy?

I believe the best real estate investments in this economy are probably commercial real estate investments, more specifically multi-family, apartment buildings, mixed use and similar income producing properties purchased correctly. This is where we are currently focusing on the investing and lending side. I have been involved with real estate investing since 1998 and commercial lending since 2002. I agree with many people that residential property for rentals and holding for the long term represents a rare opportunity that many of us may only see 1, maybe 2 times in a lifetime. The average economic cycle from boom to bust is about 7 to 12 years if history is any indicator. That said, purchasing residential properties at no more than 65-70 cents on the dollar including all acquisition, repair, financing costs, etc and holding for a cycle can prove to be extremely profitable. In this market, 10-50 cents on the dollar is possible...imagine the wealth. Make no mistakes this is the shift of wealth you're heard about in your textbooks but rarely see in action. This is where, pardon the cliche, "the rich get richer and the poor get poorer." All these foreclosures were somebody's life savings and so the road to recovery will be slow. Good luck and careful investing to you!

Isaiah Fox
SVP, Managing Partner
http://www.TVMFunding.com or http://www.TVMFG.com

REO Wholesale Investor Offering 55-60% ARV

Fri, 30 Jan 2009 14:16:51 -0600

REOs including single family, duplexes, fourplexes, and condos at 55-60% ARV in the Austin or San Antonio markets. Please visit our site for more information on how to take advantage of this offering.

Interested investors are encouraged to pre-qualify online at:

http://www.TVMFG.com using the online form at

http://www.tvmfg.com/index.php/rehab-loans

Please enter "REO Package" in the Additional Comments field.

REO Wholesale Investor Offering 55-60% ARV

We are looking for serious real estate investor rehabbers or buyers to wholesale properties to from one our existing client's who is purchasing REO packages of SFRs, 2 to 4 Plexs, & Condos directly from banks and buliders locally. Properties are available in the Austin and San Antonio markets.

Purchase Wholesale Prices will be $75-95K per property.
Rehab/Construction Budgets will average $35-85K per property.
All properties will be offered at 55-60% with ARVs ranging from $250-375K+ retail

This opportunity is first come first serve. We are limiting the list to 30 pre-approved Investors and closing the list at our client's request at that time. This is to provide the pre-approved investors with no competition to purchase. This is also to ensure availability of inventory since our client's packages will range in size from 5 to 50 at a time as he is purchasing for his own portfolio.

Phase I

To add your name to the investor waiting list you must:

Sign a general letter of intent to purchase.
Provide pre-approval or proof of funds from a solid funding source or cash.
Show ability to refinance to permanent financing if rehab/construction needed.
No earnest money deposit is required at this time.

Phase II

A Non-Compete/Non-Disclosure (NCND) will be required.
Available properties will be released to the the Investor waiting list.
$2500 Earnest Money deposit will be required per property to secure.
Again, the Investor must have pre-approval or proof of funds from a solid funding source or cash.

Phase III

Investor closes on property contract(s) and is immediately placed back at the top of the list for the next round of opportunities. We repeat the above process.

We can also assist with rehab financing if needed.

100% up to 70% of After Repair Value (ARV)
6 month loan/No payments
640+ mid FICO required, Low/Full Doc - Partners allowed
10-15% Interest
6 Points
No Prepayment Penalties

Interested investors are encouraged to pre-qualify online at:

http://www.TVMFG.com using the online form at

http://www.tvmfg.com/index.php/rehab-loans

Please enter "REO Package" in the Additional Comments field.

REO Wholesale Investor Offering 55-60% ARV

Wed, 28 Jan 2009 12:40:56 -0600

REO Wholesale Investor Offering 55-60% ARV

Purchase Wholesale Prices will be $75-95K per property.
Rehab/Construction Budgets will average $35-85K per property.
All properties will be offered at 55-60% with ARVs ranging from $250-375K+ retail

Phase I

To add your name to the investor waiting list you must:

Sign a general letter of intent to purchase.
Provide pre-approval or proof of funds from a solid funding source or cash.
Show ability to refinance to permanent financing if rehab/construction needed.
No earnest money deposit is required at this time.

Phase II

A Non-Compete/Non-Disclosure (NCND) will be required.
Available properties will be released to the the Investor waiting list.
$2500 Earnest Money deposit will be required per property to secure.
Again, the Investor must have pre-approval or proof of funds from a solid funding source or cash.

Phase III

Investor closes on property contract(s) and is immediately placed back at the top of the list for the next round of opportunities. We repeat the above process.

We can also assist with rehab financing if needed.

100% up to 70% of After Repair Value (ARV)
6 month loan/No payments
640+ mid FICO required, Low/Full Doc - Partners allowed
10-15% Interest
6 Points
No Prepayment Penalties

Interested investors are encouraged to pre-qualify online at:

http://www.TVMFG.com using the online form at

http://tvmfg.com/index.php/rehab-loans

Please enter "REO Package" in the Additional Comments field.

Analyzing a Rehab Property for Investment

Mon, 01 Dec 2008 07:34:09 -0600

Analyzing a Rehab Property for Investment

So many lessons can be learned in real estate. However, if you should always keep this one in the front of your mind which you should have hear before, "You make your money when you buy a property, not when you sell it." When you started as a real estate investor, or if you didn't keep this in mind, then you learned the a very difficult lesson. Sometimes the reason for making this mistake is simply that many real estate investors don't know how to correctly analyze a rehab property for investment in order to pruchase it correctly. We all would like to "snatch a deal", but first, we have to research and determine what the true market value of the investment property really is. How do you go about this?

When I am working with an investor especially if they are newer I will interview them about the property and loan they need from me. I ask questions like, "Do you know what the fair market value of the property is, and when they give me an answer, the next most obvious question for me is how they came up with that value. Here's the scary part for me, the number one answer that I usually get, (especially from newbie investors), is that they were told the market value of the property by their realtor.

Now, I don’t want to alienate any realtors. As in any line of work, there are good ones, and bad ones, but the one constant, is that they are all overly optimistic about the price that a property will get on the open market. In my experience, if your basis for analysis is on their opinions solely then it is not a very safe analysis to use.

The best way to use your realtor is to have them run "comps" (area comparables of homes that have sold in the last year) for you. You can pull "comps" yourself off the internet, but the realtor software for this is usually much more reliable. Also, sometimes it's better to see all the "comps" of a neighborhood or area then locate the properties that best match yours. This way you know you are using the right comps.

I’m sure that many investors reading this article already know this, but what is the best way to analyze these "comps"? This is another question I ask of potential private or hard money loan candidates who come to me for financing. When there is a large enough spread between what the lowest "comp" sold for, and what the highest "comp" sold for, how do you relate this to the property that you may be trying to buy?

Once again, the most common answer is scary. Most real estate investors never even bother to look at the "comps". They often take the easy way out and decide to average the numbers of the various "comps". This can give you an inaccurate number that will cause you to spend time on a deal that is not profitable for anyone. Some investors actually think this is a good idea to do this, deleting the lowest price "comp", and the highest price "comp", and averaging the rest. Bad idea! Don’t ever do this because it will cost you money in the long run for taking this shortcut. The five or six "comps" that you get should all be less than a mile from your property and each other, this way there is never a reason to not take 30 minutes to an hour of your time to review them thoroughly.

Just taking an average is a basically a bad way to analyze the true market value of the property. Realistically, in most areas of the country (especially metropolitan areas and cities), the actual market value of a property can vary significantly from even one street to the next. If you personally review each property, you can analyze them correctly and accurately establish the after repair value of your deal.

For each property that you analyze, you should consider the following criteria:

How do the properties on the "comp" block compare to the properties on the block of the investment home that you are interested in buying? If the block that the "comp" property is on, looks as though the homes are worth more or less than the homes on the desired investment property block, throw them out. These comps are no good.
Compare and contrast the physical structure and the amount of ground that the "comp" has in comparison to your investment prospect. Are they similar, or different? You’d be surprised how many times I’ve seen a single family home that was assigned the "comp" of a twin, duplex, or something else entirely. If you don’t see for yourself, you just never know.
On the "comp" itself, it lists the square footage, the amount of bedrooms, and the amount of the bathrooms that each house has. Once again, is it similar to the investment property that you might buy?

If your evaluation finds one or two "comps" that pass all these tests, you have a real basis for assigning an after repair value that makes sense and is accurate.

The minimal amount of due diligence that you put into this evaluation could end up saving you thousands of dollars, and a lot of heartache.

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Preferred States and Focus:

Texas - TX
Alabama - AL
Arizona - AZ
Arkansas - AR
Colorado - CO
District of Columbia (D.C.)
Florida - FL
Georgia - GA
Idaho - ID
Illinois - IL
Indiana - IN
Iowa - IA
Kansas - KS
Kentucky - KY
Maryland - MD
Minnesota - MN
Mississippi - MS
Missouri - MO
Nebraska - NE
New Jersey - NJ
New York - NY
North Carolina - NC
Ohio - OH
Oklahoma - OK
Oregon - OR
Pennsylvania -PA
South Carolina - SC
Tennessee - TN
Utah - UT
Virginia - VA
Washington - WA
Wisconsin - WI

Rehab, Private, & Hard Money Loans - Basic Strategies and Standard Techniques

Mon, 24 Nov 2008 23:13:35 -0600

Rehab, Private, & Hard Money Loans - Basic Strategies and Standard Techniques

Unfortunately everyone thinks their way of buying investment real estate is the best. Well maybe I should say "fortunately" since when real estate is purchased incorrectly by one investor it may represent a substantial opportunity for the next investor.

However, when using rehab, private, or hard money loans to secure your investment real estate one should have some ground rules to make sure the investments is a profitable one.

There are many different basic strategies and standard techniques that most real estate investors use when analyzing properties. Before getting your self into a property, the following basic strategies and standard techniques are used to determine the worthiness of any rehab property.

Stating the obvious and please don't forget this, "Always buy the worst house in the average to above-average neighborhood." This alone keep you out of more trouble than you know.

No matter your exit strategy, which may be to "flip" properties, or to buy, fix, and hold for rental cash flow and tax benefits, and long term appreciation, it's important to be able to attract as many potential buyers, or quality potential tenants, as fast as possible. Keeping this in mind, you should consider properties on streets that are maintained properly and well kept. Believe me, I don't mean you should go to the higher end homes only and limit yourself. What you are looking for is the many subdivisions and what they call, "blue collar" areas where homeowners and tenants alike properly maintain the condition of their yard, property, and neaighborhood in general.

However, a street that has very poorly maintained homes or numerous vacancies do not particularly create a situation for a fast flip for resale and chance are they don't attact quality tenants either. Always remember that this is an investment. You take on a higher than normal risk, and a lots of extra work as a rehab investor. Regardless of how much TLC you give your rehab property, you can do nothing about the condition of your neighbor's property.

So I will say it even if you've heard it many times before, "You make your money when you buy a property, not when you sell it!"

The Purchase and Rehab Equation:

There are many different formulas that can be utilized for the successful purchase of a rehab project. If nothing else it's just plain important that you have one...period. You always need to be where you have a comfortable margin between the purchase price and the eventual resale price of an investment property. This margin will help you reach your goal and purchase a profitable investment, no matter if you have rehab budget overages, or again decide to keep the property for rental purposes and/or longer than you planned. Keeo in mind that every day that the property is not sold or rented comes right off your bottom line which eats away at your profit. The interest, taxes, insurance, and utility bills keep accumulating daliy. If you buy right then you need not fear the many surprises that go along with this business of rehabbing property and protecting your future as well as your investments.

Let's run some numbers using the Purchase and Rehab Equation:

Start with an "after repair value" (ARV) for your potential property. (Get your realtor to provide you with comparable sales or CMA report. Choose the property that has a street that is most similar to your house's street, and a floorplan that is closest to your house's floorplan or square footage, and then compare the structure, amount of bedrooms and bathrooms that are all listed on the "comparables sales or CMa report." This will help determine a true realistic market value for your property).
Multiply the ARV x .65 (This will give you 65% of the after repair value). Use 55-60% if you are more conservative.
Create a comprehensive and complete scope of work or list of repairs that you plan to do to the property, and estimate the costs for each repair. (This is very important. If you have experience and are knowledgeable and experienced in doing rehab work, then maybe you dont' need any help. However, if you are not experienced or skilled with the list of repairs to be completed then please find someone who is and have them put together an action plan and construction budget. Yes, this may cost you a little extra money to get them out there, but realistically this can and will save you thousands of dollars. I know from personal experience).
Next, deduct the cost of the repairs from the 65% value of the ARV.
If you are hoping to wrap closing costs into your loan, deduct an additional 9-11% of that number.

Voila!! you have just calculated your maximum offer price for this property and that you will pay n omore than this amount for the property! some would consider this a conservative formula, but it usually works well and keep in mind this is already a risky business so there's no need to take on more than you need to. Finally, always remember that anyone can buy a property at close to fair market value (they call those people retail buyers), but with all the costs and risks yo are taking, you must get the best price you possibly can without question!

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Preferred States and Focus:

Texas - TX
Alabama - AL
Arizona - AZ
Arkansas - AR
Colorado - CO
District of Columbia (D.C.)
Florida - FL
Georgia - GA
Idaho - ID
Illinois - IL
Indiana - IN
Iowa - IA
Kansas - KS
Kentucky - KY
Maryland - MD
Minnesota - MN
Mississippi - MS
Missouri - MO
Nebraska - NE
New Jersey - NJ
New York - NY
North Carolina - NC
Ohio - OH
Oklahoma - OK
Oregon - OR
Pennsylvania -PA
South Carolina - SC
Tennessee - TN
Utah - UT
Virginia - VA
Washington - WA
Wisconsin - WI

Hard or Private Money for your Real Estate Investing Needs

Mon, 24 Nov 2008 11:05:10 -0600

Hard or Private Money for your Real Estate Investing Needs

There are many advantages of using hard or private money to help grow and build your real estate portfolio and net worth.

Real estate investing is by far one of the most common uses of hard or private money funds. We all know that real estate investing is an extremely cash intensive financial endeavor. In order to capitalize on new opportunities, take advantage of ongoing projects, investors often require more operating capital than traditional or conventional banks are prepared to provide on short notice.

When traditional or conventional financing takes too long or is not available due to low FICO scores, discomfort with the project or collateral or some other reason, hard or private money can be a deal saver. If you invest in a lot of property, your FICO score can easily drop simply due to the number of mortgages you owe! This is in no way fair especially if you are paying on time, but it happens all the time. I know from my personal real estate investing experience and from that of my investor clients who I work with. Additionally, the properties that can be had for an advantageous price may not meet traditional or conventional banking criteria more times than not. In either situation, hard or private money lenders are not restricted in the same way that traditional or conventional banks are and since they are lending their own funds and most times do not have to answer to Wall St, FDIC, Fannie Mae, stockholders, and the like.

Hard or private money lenders can turn files around in as little as 2-3 weeks. Mortgages for real estate investing can take anywhere from 30-60 days at a minimum to be completed and funding by traditional or conventional banks and lenders. Hard or private money lenders can generally fund in two weeks from the time you have all the paperwork in place.

Many hard and private money lenders can also fund projects that traditional or conventional banks will not or can't. If your real estate investing takes you to the vacant - non income producing property ("white elephants"), maybe a dry cleaners (or a retail strip mall that has one), gas stations (environmental issues galore), or even assisted living facilities (one of the fastest, most lucrative growing real estate markets in the US currently), traditional or conventional banks are not likely to be able to fund your project. Hard or private money loans can, once again, be a deal saver.

You should only plan to utilize hard or private money as a bridge loan. Hard or private money loans will usually allow from 6 months to 3 years. This should provide plenty time to prepare the property or your personal financial situation to arrange for long term traditional or conventional financing or to arrange for the sale of the property in question.

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Preferred States and Focus:

Texas - TX
Alabama - AL
Arizona - AZ
Arkansas - AR
Colorado - CO
District of Columbia (D.C.)
Florida - FL
Georgia - GA
Idaho - ID
Illinois - IL
Indiana - IN
Iowa - IA
Kansas - KS
Kentucky - KY
Maryland - MD
Minnesota - MN
Mississippi - MS
Missouri - MO
Nebraska - NE
New Jersey - NJ
New York - NY
North Carolina - NC
Ohio - OH
Oklahoma - OK
Oregon - OR
Pennsylvania -PA
South Carolina - SC
Tennessee - TN
Utah - UT
Virginia - VA
Washington - WA

Residential and Commercial Rehabs - Prepare for the Worst but Hope for the Best

Fri, 21 Nov 2008 22:59:58 -0600

Residential and Commercial Rehabs - Prepare for the Worst but Hope for the Best

In all my years of investing if I could summarize my experience as a real estate investor and pass it on the next investor behind me I might say to him, "Prepare for the worst but hope for the best." We never expect to walk into our own project to find the walls stripped for copper or an HVAC unit missing after we close a deal with a distressed seller and we are nice enough to give them a few extra days to move out (an absolutely no-no by the way which I learned the hard way). However, an investor can plan ahead and make efforts to protect themselves and their property with the proper insurance coverage for their needs.

You may think that as a real estate investor and homeowner it is enough to have insurance coverage. this could not be further from the truth. You need to understand your insurance coverage and be sure that it meets your needs and provides the proper amount of coverage. There are three main policies an investor should understand are builder's risk insurance, umbrella policies and rental properties.

Builder's Risk Insurance
A builder's risk insurance policy is was created to address the exposures usual to an unoccupied structure under rehabilitation, construction or renovation. It also takes into account the progress and ongoing change in the market value of a property as it is being rehabilitated, constructed or renovated. The policy can include your workers' equipment and tools on site at the property. It can also cover the theft of your building materials such as copper, fixtures, etc.

A standard fire or hazard policy cannot establish a future value for the property. A standard fire or hazard policy applies to the property only as it exists, without completed repairs. Investors with standard fire or hazard policies are putting their profit at risk by not being properly insured. Builders risk insurance is a rehab investor must have.

A builder's risk policy will apply to the total as renovated or as completed end value of the property.

The completed value of property is comprised of the following items:

Acquistion/Purchase price of the property
Cost of the repairs and/ or improvements
Soft Costs
Profit

Umbrella Policies
An umbrella policy is designed to cover any gaps that occur when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgments against you and your attorney's fees, up to a limit set in the policy.

The basic everyday homeowner's insurance policy will provide up to a maximum of $500,000 of personal liability coverage. O fcourse what if your total combined assets, including your primary resience, are more than $500,000? the answer for this is to have an umbrella liability policy. Typically, a $1,000,000 umbrella policy will cost only a few hundred dollars a year. Depending on how much property you own and/or the level of risk you feel you are exposed to make sure you purchase enough insurance to address these issues. Insurance is about economies of scale, so the more you purchase the less it costs per $100, or $1000 dollars. Always make sure that you are NEVER underinsured.

Rental Properties
An insurance policy for a rental property assumes an occupied status of your property and includes landlord liability and loss of rents coverage (very handy). If a rental property is insured as occupied when in fact it is not occupied, this could result in issues if a claim is filed. In many cases, all your properties can be bundled into one policy which will save you the investor lots of time and money.

You should work with an insurance agent that you can trust. Many times it is often best to work with an independent agent or broker who can shop for the best insurance policy to meet your needs.

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Jumbo Residential Rehab and Commercial Loans

Fri, 21 Nov 2008 08:34:57 -0600

Jumbo Residential Rehab and Commercial Loans

TVM FUNDING JUMBO RESIDENTIAL INVESTOR LOANS

Loan amounts from $300,000 to $4,000,000

Rates from 14%

Loan Terms from 6 to 24 months

Use for Acquisition and Rehab / Repositioning and/or Cash Out Refinance

90-100% Financing available up to 65% of the after repair value (ARV)

• LTV — up to 65% of after repaired value

• Points — from 6%

• Use equity in other properties as down payment

• Quick Closings — within 2 weeks from receipt of a submitted complete file

• Lending area — Texas metropolitan areas, Colorado, and the Missippi

Gulf Coast.

• Amortization-interest only monthly payments

• We originate or acquire jumbo loans in the above markets as well as AZ, CA,

FL,GA, and NV.

TVM FUNDING COMMERCIAL HARD MONEY LOANS

Highlights of our commercial loan programs are as follows:

• Loan amounts - from $300,000 to $10,000,000

• LTVs - vary by product type

• Eligible Collateral types include land, lots, office, industrial, retail,

multi-family, mixed-use, or pools of SFR or condos.

• Term - 6 months to 2 years (other considered on a case by case basis)

• Amortization - interest only monthly payment

• LOI and Term sheets - turned around quickly

• Fast Closings - as fast as 10 days

• Geographic Lending areas - TX, FL, GA, CO and for loans over $1M most major metros in the Southern US from CA to FL and some midwestern states as well

Loan types include acquisitions, refinances, and cash out loans.

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Alert - Fannie Mae Changed its Guidelines: Sept. 5, 2008

Mon, 17 Nov 2008 06:50:30 -0600

Alert - Fannie Mae Changed its Guidelines: Sept. 5, 2008

On Friday, September 5th 2008, Fannie Mae issued an announcement pertaining to what most of us expected was coming. This has been a topic misunderstood by many investors and even mortgage brokers. Over the last several months many posters have incorrectly stated that Fannie changed their guidelines. Although many lenders implemented their own internal change, Fannie Mae had not until last week. The effective date is supposed to be December 1, 2008 but you'll probably see that many of those remaining true Fannie lenders will change by October 1, 2008.

The major changes include:

* A limit of 4 financed properties per borrower when submitting an investment loan - Fannie Mae also clarified that it does not consider the borrower to have an ownership in a property that is held in the name of a corporation, even if the borrower is the owner of the corporation. Those properties would not be counted towards the limit. In the event you already have four financed properties, EDC will allow you to add a co-borrower to your loan so long as the co-borrower qualifies for a refinance loan and does not have four financed properties.

* 6 month seasoning for cash out refinances - A rate/term refinance of an existing lien (unless that lien was a for a cash out refinance) will not have a seasoning restriction. If you purchased for cash and there was no lien then this rule would apply.

* Investment properties listed for sale on the MLS within the last 6 months can be done as cash out up to a maximum 70% LTV.

EDC services several markets from the East Coast to the Midwest. You can view a map of our coverage areas and get to know your EDC Territory Director by clicking here.

To apply for a loan with EDC today, please complete our easy, online loan application.

Get Started Today and Create a Free Account

Currently: Texas Florida Alabama Missouri Kansas Kentucky South Carolina North Carolina Pennsylvania Maryland Virginia Coming Soon in 2009: Oklahoma Nebraska Colorado Mississippi Arkansas Iowa Tennessee

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Safeguards against Contractors Taking Advantage of You and Your Project Profit

Mon, 17 Nov 2008 06:34:21 -0600

Safeguards against Contractors Taking Advantage of You and Your Project Profit

There are many reasons most investors will not invest in properties that need repair. They can't find one on the MLS where the numbers work, they have little or no construction experience themselves, and the main reason is probably the tale of a family member or friend who was taken advantage of by a contrator who stole their money and didn't complete the job, whether it was for investment or personal, many hae heads these stories.

Contractors are one of the main reasons why many investors fear real estate investing in properties that need repair. They have all heard the horror stories from others who got taken by their contractor and now believe that this is the risk that goes with real estate investing. Many resort to wholesaling while others stand by and watch leaving thousands of dollars on the table as a result of this fear.

If you intend on being a good investor in this business, you will need to learn how to find and correctly deal with good contractors. Whether you are finding full rehab properties or just minor paint and carpet type jobs, sooner or later you will come across a deal that you need the services of a contractor or face losing a lot of money. Contractors are people too and good ones are out there that are willing to provide quality work, complete the job on time and finish the job with no cost overruns. Does that sound like only a dream? It can be a reality, only if you follow these tips:

First and foremost - Be sure to check the contractors references
Go see a previous job completed from one of his references you checked
Get a good “Independent Contractors Agreement” – Sample available from EDC

Make sure that everything is spelled out in the construction contract to include:

1. Complete Scope of Work – Example Available from EDC
2. Draw Schedule and description of how contruction draws are to be disbursed (Example Available from EDC)
3. Change Orders — For any necessary changes to the scope of work that are agreed upon
4. Contract Deadline for work completion
5. Penalty Clause for work not completed by scheduled date
6. Reward clause for contractor completing job ahead of schedule
7. Damage Clause
8. Clean up Clause
Never give a contractor money up front prior to work
Visit your job site at least every other day
Weekly meeting on job site for progress inspections
Take pictures of progress each and every week
Always get a copy of contractors license, insurance, bond, home address, contact numbers, email
Always demand a mechanics lien waiver signed for each payment made (Example Available from EDC)
Make sure all permits needed have been obtained & posted on the job
Never pay a contractor for work completed until city approval for permits obtained
Make sure to hold back 10% of the contract amount at the end of each job for any punch list items as these are the hardest things to get a contractor to complete

EDC’s staff includes seasoned lenders, investors and mentors that are here to help our clients be profitable. Please utilize the expertise that is provided to you free of charge by consulting with the EDC Territory Director in your area. There is a lot of money to be made in real estate investing if you work with the right professionals and also take an active role in your projects.

Get Started Today and Create a Free Account

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

What To Do To Make Your Property Ready for Refinance Appraisal

Mon, 17 Nov 2008 06:22:17 -0600

What To Do To Make Your Property Ready for Refinance Appraisal

In today’s tight real estate market investors need every advantage they can get to get top value for their property. One of the easiest ways to do this is to increase the "curb appeal" of your home. Curb appeal is quite simply cleaning up the outside of your home and property to give the appraiser a good immediate first impression. There are many things you can do to increase the curb appeal such as making sure the bushes are trimmed and the lawn is mowed. Nothing looks worse then unmoved lawn and bushes that are growing wild! Don’t have the appraiser come out when you haven’t completed the landscaping.

Work on your landscaping beds, add some colorful flowers (depending on the time of year) and try to create a peaceful, yet beautiful environment. Make the front walk to your front door appear beautiful and inviting. Edge around all of the walks, the driveway, and patio (if possible), and everywhere else that edging can be done. Rake all leaves and dispose of during applicable seasons. Fill all bare spots in the yard with new grass seed. It is important to remember that shrubs and bushes really never stop growing. Overgrown shrubs can obscure the actual size and appeal of your home. Spreading some fresh mulch and planting some brightly colored flowers can go a long way in increasing curb appeal. Check on your mailbox and replace or re-paint if needed. Replace, repaint, or re-tarnish your address numbers that are located on your home, mailbox and/or curb by the street. Have your EDC Territory Director give you some ideas on what to do to get better “curb appeal”.

On a survey taken by real estate professionals, touching up the trim on the house will enhance curb appeal. If your property has exterior painting in the budget, then spend some time really thinking about the colors you are going to use. How can you make your property stand out from the rest on the block? Again, ask your EDC territory director for his input.

A clean and neat exterior will let the potential buyer know that you have kept the house in good repair. Hire a window washing service to professionally clean windows and clear away paint or construction debris. One technique used by seasoned investors is to have the house smell appealing when the appraiser shows up. A fresh smelling home can easily be accomplished with scented candles. Be sure and turn on the furnace fan to circulate the scent throughout the home about 1 hour before. This all might sound crazy but the appraisal is just as important as if you were selling the property.

Most importantly - make sure to meet your appraiser at the property and make sure that everything above is done. Get to the property an hour before the appraiser is scheduled to come. Turn on all the lights; make sure the temperature is comfortable. Air out the property and get something to give it a warm fragrance. Make sure there is no construction debris anywhere on property. When you meet the appraiser, give him a copy of your subject-to-repair appraisal you had done at the inception of the project. It is very important to also print out a nice and easily read list of repairs and upgrades you did on the property that helps justify the new value. When walking around with the appraiser, be sure to point out all the work you did and be proud of your investment. Remember, an appraisal is not only based on facts it is also based on the appraiser's opinion of value.

Get Started Today and Create a Free Account

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Time to Refinance Your Private Hard Money EDC Loan: The Process Explained

Mon, 17 Nov 2008 06:16:13 -0600

Time to Refinance Your Private Hard Money EDC Loan: The Process Explained

The refinance process begins with an initial consultation between the borrower and the loan officer. During the first conversation, it is extremely important for the borrower to discuss what they hope to accomplish with their new investment in real estate. It is then the duty of the loan officer to best determine how to accomplish that goal, with the current qualifications of the borrower. Unfortunately, borrowers often end up in the wrong mortgage product because their lack of communicating what they truly intend to do. Borrowers also must remember to be upfront and truthful with their loan officer from the start. Remember, the loan officer acts as the borrower’s representative and structures the loan for presentation to underwriting. They will help their borrower around any weaknesses they may not want to disclose to underwriting. From the conversation the loan officer will take a written loan application. Your loan officer will ask you a number of questions at application time. Your answers, credit report information, and the loan program you’ve applied for will help determine if you qualify for an instant mortgage approval using an automated underwriting system. These systems are often referred to as DU and LP. They stand for Desktop Underwriting and Loan Prospector.

Documentation requirements vary, depending on the loan program, credit profile and various other requirements of the lending institution. In some cases only minimal documentation is required. In other cases more detailed documentation may be required.

An appraisal will be ordered at application to determine the fair market value of the property you are refinancing. An appraisal will be ordered as to support the value of the property. The loan is based off the overall value of the property and is crucial to get the appraisal done right away. EDC will provide your loan officer with your subject to repair appraisal as a guide to the value and rehab work completed on the property. Typical time for appraisal vary from area to area depending on demand and market conditions. Make sure to stay in touch with your appraiser to get this completed ASAP.

You can either lock in your interest rate (rate lock) or float your interest rate. It is important to discuss these options with your loan officer. At application or shortly after, you will receive a Good Faith Estimate and a Truth-in-Lending Statement, which will show your annual percentage rate (APR). These documents are required by federal law and disclose the credit terms of your loan and approximate closing costs.

After submitting your application to an automated underwriting system such as DU or LP, you will be given a conditional approval letter. This conditional approval will outline all the required documents needed to accompany your application. The applicant must supply the necessary income and assets documents (W2's, paystubs, bank statements, etc.) as required by the chosen loan program. Because these documents are essential to the underwriting process, the application package cannot be submitted without them. Therefore, it is important that the applicant present them without delay.

Your application along with the required documents will be submitted to an underwriter. An underwriter is a trained credit-risk analyst who will do everything possible to help you receive loan approval. It is the responsibility of the underwriter to ensure all documents supplied with the application meet the lender’s requirements.

Soon after your application is approved you will receive a commitment letter that explains the terms of your loan, including any loan conditions that need to be met prior to closing. Read your commitment letter carefully, and be sure to follow the instructions to ensure a timely closing.

In the case that your application is not approved, your loan officer can help you determine what actions need to be taken to obtain financing. EDC will also be in constant contact with the loan officer on your file. If the loan officer can’t get an approval and doesn’t have any actions that can change the denied loan to an approved loan, EDC will set you up with another lender that they feel can get an approval.

It’s important to gather all of the remaining conditions quickly as the lender may still need a few days to review them. After all conditions are met your loan will be "cleared to close". Generally at this time the settlement agent or title attorney will take over and prepare for closing. EDC will “hold your hand” through this entire process, but ultimately it is up to you to stay in constant contact with your loan officer and get them everything they ask for.

It’s not uncommon for someone refinancing an investment property to be overwhelmed by the amount of information and supporting documentation that is needed. While it can be frustrating trying to remember what you did with that pay stub from 2 months ago, there are very good reasons that lenders require so much information prior to giving you a loan.

The more information that you can provide to your loan officer will help to attain you the best rate and best financing that you are capable of receiving. There are many programs out there too for people who do not want to or can't locate all of their information too. Keep in mind though you will most likely pay a higher interest rate for these types of programs.

The information that you provide is generally used to check credit and find out if you can afford to repay the mortgage you are applying for. The documentation that is gathered is used to verify that the information you provided initially is accurate. Even though once you get a mortgage the lender will have a lien for your property it is costly for them to foreclose on your property and they still might recuperate the loan amount and costs. That is why banks require so much information; they are lending you potentially hundreds of thousands of dollars.

Loan officers who request large amount of information do so to protect the loan applicant and the loan application. The more information you provide to your loan officer, the less likelihood that your home financing would have mishaps. Uncovering undisclosed information later in the process often proves to be costly and time consuming for the borrower.

If there is any information which the loan officer should know about you, be up-front with your loan officer. It is his or her job to help determine what might cause a glitch during the process, and chances are it will come up at some point anyway.

Banks require all of the above information to make an educated decision on overall risk of the loan. Remember it’s not you who owns the home, it is the bank. The bank is holding the house as collateral with the promise of repayment by the borrower. Therefore some banks are going to want information regarding the overall capability of the borrower to make the monthly mortgage payment.

If you have any questions about any part of the refinance process, call Ryan Lawrence at EDC to discuss. You can visit their website at by clicking here for additional information.

Get Started Today and Create a Free Account

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Private Hard Money: The 5 Basic Rules

Mon, 17 Nov 2008 06:06:21 -0600

Private Hard Money: The 5 Basic Rules

In my experience as a full-time investor, I have had plenty of dealings with hard money lenders and there are a few important questions to ask when trying to decide whether a particular hard money lender is right for you. I call these questions: “The 5 Rules of Hard Money.” They are listed here in what I believe to be their order of importance.

QUESTION 1: Are they investors or bankers?

The difference here is huge. Bankers and investors view the world completely different, and this viewpoint will probably color most of how that individual will conduct business. For those of you familiar with Kiyosaki's “Rich Dad Cash Flow Quadrant”: Bankers operate on the left side (either an “E” or an “S” depending on who you are dealing with), and investors operate on the right side of the quadrant.

While both sides are taking calculated risks, a lender who has never been an investor does not know or understand how the investor approaches a deal. This is critical – as you will see later on, you need your hard money lender to understand how and why you want to buy a particular property. They need to “get it” or else it can make acquiring a loan with that company very difficult. When bankers don't understand a deal, they often times will bury you in red tape, and ask for all kinds of additional protection for themselves - at your expense.

The best way to get this question answered: simply ask your hard money lender if they personally invest in real estate, then talk to them about what experiences they have had and what types of deals they have done.

QUESTION 2: How involved will they be in the process?

The more involved the better. Especially for newer investors – this is a safeguard. A hard money lender who wants to stay involved is not only protecting their own investment, they are protecting you! Things like appraisals, inspections, additional estimates, cash-flow analysis, etc. should not be looked at as cumbersome. These types of processes are in place to ensure that the deal is good. Don't you as the investor want to know for sure that your deal is good? You should.

Make sure that this process does not stop when you settle on the property. You don't want your lender to simply forget about you once the deal is closed, but this is exactly what many of them do. Remember that many lenders get their points (payment) up front. A hard money lender that stays involved in the entire process from beginning to end is one that is dedicated to the success of the project – and therefore your success.

QUESTION 3: What about collateral?

Generally speaking, lenders protect themselves by lending at a certain LTV (Loan-To-Value). For example – if a lender is willing to give you 65% percent of the money to buy your property – they are at a higher risk than someone who will only supply 50%. There are, however, other ways lenders choose to manage risk. Collateral is one of these ways.

The collateral issues are directly affected by the answer to question #1. If your hard money lender doesn't understand the investment side, they will try to cushion themselves with additional collateral, to protect their investment. This basically equates to putting liens against anything they can: other investment properties, your personal residence, etc. Some will even go so far as to lien your car, boat, or life insurance. The bottom line is this: hard money lenders who ask for additional collateral are betting you will fail. They are putting themselves in a position to profit if your deal goes horribly wrong. They have already managed risk by limiting their LTV. Any additional collateral is unnecessary. It can tie up your valuable assets, and represents the mindset of someone who does not understand your needs. The investment property they are lending against should be the only collateral required.

QUESTION 4: What are the terms of the loan?

Now we are getting down to the "nitty gritty". This is where we talk about all the various aspects of the loan including: points, interest, term of loan, fee structure, escrows, draws, inspections, pre-payment, minimum/maximum loan amounts, etc.

The best way that I have found to get all the information in an organized manner, is to ask your lender to walk you step by step through a deal, and ask questions along the way. Start from the point you have a deal under contract. What is the application process like? What paperwork do you need? How long will it typically take to close? When do inspections take place? What are the fees? All these questions (plus many more) will help you understand all the terms and conditions of the loan process.

As you have no doubt noticed, the section dealing with pricing has come after multiple other points. This is intentional. Whatever the price of the loan , it will always cost you MORE if you don't pay attention to the previous issues. In my opinion, honest, reliable, like-minded, hard money lenders on your team who are easy to work with and get your deals financed - are worth their weight in gold. The actual cost is completely secondary. That being said, pay careful attention to the next point.

QUESTION 5: What are the HIDDEN fees?

Be very wary of hard money lenders that are cheaper than all the rest. Every hard money lender charges points up front and then interest on the principal. However, there are many different ways to hide fees in the loan process.

New fees are literally being invented all the time. Here is a list of some of the fees you will see with many lenders in the marketplace – this list is by no means exhaustive.

back end points
loan origination fees
document preparation fees
legal fees
emailing fees
wiring fees
inspection fees
faxing fees

Some of these fees are nominal, but some can cost you several hundred dollars. Think about it, if you are doing a deal with a principal loan amount of $50k, every time you pay $500 in fees it is like paying an additional point. Make sure that you grill your hard money lender about these fees – so that you can accurately count the cost of hard money prior to getting into the deal.

Hopefully, these 5 points will help you to decode the sometimes complicated world of hard money. I would also like to offer one extra piece of advice on the issue. Do business with people you like. One of the perks of owning your own real estate business is that you get to choose who you do business with. Unfortunately, many hard money lenders are difficult to deal with. Rest assured – there are folks out there who understand your needs and will work hard to make your project a success.

Read on.

ABOUT EDC

EDC is a private lending and consulting firm that provides loans and consulting services for residential and commercial real estate investors that buy and rehabilitate distressed real estate. The entire lending team at EDC has a wealth of knowledge and experience concerning real estate investment, construction, and finances. Consulting with knowledgeable friendly and experienced investors is all part of the valuable service that EDC offers.

EDC LOAN PROGRAMS

EDC has 2 basic loan pricing structures on residential loans:
- 6 points & 15% interest
- 8 points & 10% interest
100% funding - Acquisition, Construction, Closing Costs
Loans up to 70% LTV (Based on ARV)
No prepayment penalties
New Construction, Commercial, and Mixed Use (on a case by case basis)

EDC takes a very “hands on” approach with each deal being financed. Values are assessed by one of our approved appraisers that are familiar with your area. One of our highly qualified inspectors will meet you at your job to assess the project. Inspections are made prior to starting, and periodically throughout construction. Rehab draws are available on a weekly basis. This means the funds are available when you need them, and that you have an extra set of eyes making sure that your contractors are performing the work properly and in a timely manner.

Because EDC is involved with the process every step of the way, we are confident in our ability to close loans – knowing that every deal we finance is a good one. For this reason we do not require additional collateral. Loans are secured solely by the investment property. There is no limit to how many properties our clients can fund at one time, and EDC has no minimum or maximum loan amounts. This allows investors to have little to none of their own money tied up in the real estate transaction.

WHAT TO DO NEXT?

EDC is growing rapidly because many investors are getting the message that there is a better way to use hard money. We recommend that you create your user account now—with or without a deal in hand. With the preliminaries out of the way – we can move quickly and smoothly when you bring us your deals.

Every step of the process from loan application to payoff letter is available 24/7 on our website. Should you require assistance with any aspect there is always someone to walk you through it. Head to our website and click on the link to create an account.

I am proud to serve as Territory Director for the Tri-State/Greater Philadelphia Area. We look forward to hearing from you.

Jonathan Fitt
EDC Territory Director

Get Started Today and Create a Free Account

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Private and Hard Rehab Money 101: What You Must Know About Rehab Financing for Investors

Mon, 17 Nov 2008 05:58:35 -0600

Private and Hard Rehab Money 101: What You Must Know About Rehab Financing for Investors

First, we need to clarify what investor rehabilitation really is. What we are talking about is financing for an investment property that needs rehabilitation (a rehab, a foreclosure, a handyman special, a renovation project, a fixer-upper, a condemned home, etc.). We will review how an investor client can purchase and rehab a property using various financing methods.

Why is it in your best interest to know this? First, you can make a lot of money investing in real estate but you must have the ability to finance your real estate investments. Most millionaires have either made their money investing in real estate or they have a substantial portion of their portfolio in real estate. Since residential real estate is the easiest and safest real estate vehicle to invest in, both real estate professionals and novice investors should have full knowledge of the topic. There are many real estate agents who are also successful investors, some of which become full time investors and part time agents once they discover the earning potential. Second, this information will help you when working with investors or would be investors. If you can help yourself and/or your clients finance more investment properties than you make more money.

Before we discuss the different ways to finance investment properties and the pros/cons of each method, we will need to review some of the factors to consider when investing in rehab properties. More often than not, there will be competition when making an offer. Often times, the sellers will be banks looking to sell off their portfolio of foreclosures in order to rid their balance sheets of non-performing assets. Sellers not only want the highest offer to maximize their profit, the seller wants to be certain the buyers financing is solid. We all know that a pre-approval letter isn’t always worth the paper it is written on. However, when the buyer knows their financing is solid they can be bold enough to make their earnest money deposit non-refundable. This alone shows the seller that you or your client you are a professional buyer and that your offer is real (this is the best pre-approval I know of). Often times, this is the difference in a competitive offer scenario.

Let’s now turn to the many ways to finance rehabs. This financing should include funds for acquisition of the property, renovation costs, and closing costs. Some of these methods will not surprise you but you will have clarity as to the best financing method upon conclusion.

CASH: Cash is king but only if you have it. It’s that simple. Cash helps on offers because you do not need a pre-approval letter, however, you should be prepared to provide proof of funds. The negative side of using cash is that you are tying up your personal assets until the property is sold or refinanced.
LINE of CREDIT: If you already own real estate with substantial equity than this is the next best thing to cash. Be prepared to show proof of your line of credit when requested by seller.
A PARTNER: You may have a partner who has cash - other people’s money (OPM) at it’s finest. The down side is that you have to split the profits and probably do most of the work. This has the potential of a marriage a 50/50 chance for divorce. In addition, you do not have the security of knowing the funds will be available since the funds are not yours. Partners often times will get cold feet prior to closing and back out of the loan.
BANK FINANCING: Yes, there are loans available from banks for purchase rehab money only. Usually, these are local banks and it’s always good to have a relationship with a local banker especially as you move on to bigger and better projects. In order to qualify for this type of financing, you must have a good credit history, a good debt-to income ratio, and good tax returns for two years. The downside is that they will require tons of paperwork, the process will be long and drawn out, and lastly you will have to come up with at least 20% of the purchase and 100% of the renovation costs plus all of the closing costs. Not bad if you have money lying around, you are patient, like paperwork, and don’t mind making monthly payments on a vacant house. Like any real estate financing, the lender will limit you to a loan to value (LTV) but in this case it will be calculated off of the after repaired value (ARV) (LTV’s are rehab loans are usually 70-80% of the ARV). The will usually have a six month term on this type of loan which would also be the case in the following types of loans as well. Six months is plenty of time to renovate and sell or refinance the loan.
HARD MONEY: You can borrow 100% of your purchase, renovation and closing costs. These are great loans because they are “NO MONEY DOWN” loans. One of the best ways to use OPM. The downsides are that these local deep pockets individuals who will loan you this money are expensive!!! Expect to pay no less than 10 points (a 10% fee added to the loan principal) and no less than 15% interest. Not bad if you consider that it is a cost of doing business and in most cases this is not a concern because you found a motivated seller and you will still have some great equity left in the property. As with Banks there will be an LTV usually 65-75% of the subject to value. The real downside to this type of loan is the monthly payments that will be required. These payments can be pretty steep especially when you consider that the property is vacant and no one is paying rent while you are renovating and marketing to sell or in the process of refinance. These lenders will give you between three to six month loan term. They charge high fees (typically an additional 5 points) for loan term extension. They are however more lenient than the local bank regarding paperwork and sometimes on the credit score minimum.
NOT SO HARD MONEY (ex: EDC): The number of lenders in the business of hard money lending has grown with the increased interest in real estate investing during the recent boom. During that time a handful of lenders of developed what I call Not So Hard Money loan programs. These lenders have developed loan programs that are much more investor friendly. They have taken the best features of bank loans and combined that with the best features of hard money loans. Additionally they provide additional services that make them far superior to these financing sources. They are as easy to work with as a hard money lender regarding paperwork and qualifications and have the more reasonable rates of a local bank. In additional to these benefits these lenders often provide consulting services as part of the loan program at no additional cost. These services provide a template for success. A new investor can get started without fear of failure and an experienced investor will have gain the knowledge needed to expand their business. EDC is a not so hard money lender I have used many times. Their website is www.equitydevelopmentpartners.com.

An investor myself I use my cash, my line of credit, and a not so hard money lenders. I will do partner deals but only if my cash and line of credit are tied up in deals and only if the deal does not work within a not so hard money lender’s LTV requirements. As far as using the bank I have found that you have to move fast and the banks are just too slow. The local banks can be a good source for a line of credit or a blanket line of credit once you established a portfolio and again have built up substantial equity. As far as traditional hard money lenders, I think it is a matter of time before their borrowers demand a not so hard money loan product instead.

Get Started Today and Create a Free Account

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

About the author: Mr. Michael E. Brown is a local Hampton Roads resident and has been an active real estate investor in Hampton Roads for nearly six years and working with real estate investors for ten years. He holds a bachelor’s degree in industrial engineering and has over ten year experience as a mortgage professional. He is currently the vice president of a national mortgage company heading their reverse mortgage dept. and has owned his own mortgage brokerage firm. Mr. Brown currently owns and operates a local real estate investment firm and has built a net worth of over one million dollars in less than five years using not so hard money. He is a member of the No Work Group (NWG), a private organization of real investors as well as a member of Tidewater Real Estate Investors Group (TRIG).

What Sets Apart EDC From Other Private Hard Money Lenders?

Mon, 17 Nov 2008 05:20:43 -0600

What Sets Apart EDC From Other Private Hard Money Lenders?

There are quite a few reasons EDC is different from other private hard money lenders. Let's discuss some of the differences and the benefits they offer to you, the real estate investor and rehabber.

Availability of Funding & Quick Closings

A huge advantage of using EDC is our quick loan turn around. If you are bidding on a foreclosure property, an estate sale, or any property from a motivated seller, your ability to move fast will often determine your ability to "steal" a property. Banks will normally take thirty to sixty days to close. This will rob you of a competitive edge. EDC can close within 7-10 days from receipt of your loan application. This is powerful when bidding at auction or making an offer on a property!

EDC Experience

The EDC team has expertise in investment property rehab and the dynamic world of mortgage financing that we are eager to share with our borrowers. Our advice and insight can make your rehab process that much smoother as you can avoid potential pitfalls that many investors can make.

EDC Resources

EDC has many financing resources available to you the investor to assist you with your refinance of your EDC loan to a permanent mortgage or for your first time home buyers. We have relationships with banks and other direct lenders that will be helpful in getting you or your buyers permanent financing in place to pay off your EDC loan.

Less Risk

EDC does not require that you make monthly interest payments during your six month loan term. Traditional banks will require you to bring a down payment to closing and also make interest payments every month. At EDC, we finance the interest payments for you, so that you as the investor to have extra cash on hand and focus your resources on getting your project completed and either sold or refinanced.

Consulting Experience – Real Estate Consulting

EDC has a team that will assist you in analyzing your deal before we even make the loan on the property. EDC will offer cost saving suggestions, construction suggestions, and just simply set the project in the right direction from the outset. Your EDC territory director and our corporate staff will always be here to bounce ideas off of and to answer questions that you might have about anything in regards to real estate investing.

Best Terms

True 100% Financing, No monthly interest payments, No application fees, No draw or inspection fees!

Locations and Coverage Areas

Get Started Today and Create a Free Account

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Private Money & Rehab Hard Money Loans 100% Financing upto 70% ARV with No Junk Fees

Sun, 16 Nov 2008 17:19:11 -0600

This is by far one of the best rehab, private, or hard money loan programs out there currently lending 100% of purchase and repairs up to 70% ARV with no junk fees. They are currently expanding to new parts of the nation and already very active in quite a few markets. They will soon be in Oklahoma, Nebraska, Colorado, Mississippi, Arkansas, Iowa, Tennessee with new states and cities being added.

They are different because they have a local territory director who reviews your deal quickly & can close fast in 5-10 days. It seems most rehab or hard money lenders are out of business, have slow response times, or are not funding deals currently. Many of there competitors such as InvestWell, Brookview Financial, etc. just can't compare.

One competitor is Brookview Financial who is also based on the East Coast & lends nationally. Brookview charges 1% upfront to setup a line of credit in addition to normal rehab loan points & interest. You really should only have to pay for your deals when you are ready to fund them. Be leary of rehab private and hard money lenders who charge large upfront setup fees, processing fees, etc before you even start your first deal.

I'm not saying you should never pay an application fee but it should be reasonable. Many of the lenders we represent charge minimal to no application fees so you can get pre-approved at no cost and receive a "Proof of Funds" letters to make offers on property.

With EDC you can signup as a user even if you don't have a deal currently in hand and then submit a loan application once you get a property under contract. They are fast, friendly, & their entire team is very knowledgeable.

Check them out at www.EquityDevelopmentPartners.com

Sign up today to take your rehab business to the next level.

Some highlights of their loan program are below:

Their program provides 100% financing up to 70% of as renovated value. No payments for 6 months and unlimited properties. No Junk Fees or Monthly Payments - No application, inspection, or construction draw fees are required or hidden like other lenders. Our loan program allows investors to have little to none of their own money tied up in the real estate transaction. We can close your loan very quickly with minimal paperwork.

100% Funding - Acquisition, construction, closing costs
Loans up to 70% LTV (Based on After Repair Value)
Six (6) month loans
No Payments Required
Loan approval in 24-48 hours
Fast closings
No Prepayment Penalties
Full Service Consulting (Services included in the cost of financing)
No limit on the number of properties
Loan approval in 24-48 hours

TVM Funding Group LLC - Niche Private or Hard Money Commercial and Residential Lender

Sat, 15 Nov 2008 09:55:53 -0600

TVM Funding Group represents many private equity firms, lenders, and investors nationwide.

We welcome any commercial or residential loan scenario nationwide.

www.TVMFunding.com
Niche Private Money Commercial and Residential Lending
& Hard Money and Rehab Loans for Real Estate Investors

Preferred States and Focus:

Texas - TX
Alabama - AL
Arizona - AZ
Arkansas - AR
Colorado - CO
District of Columbia (D.C.)
Florida - FL
Georgia - GA
Idaho - ID
Illinois - IL
Indiana - IN
Iowa - IA
Kansas - KS
Kentucky - KY
Maryland - MD
Minnesota - MN
Mississippi - MS
Missouri - MO
Nebraska - NE
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