Hard or Private Money for your Real Estate Investing Needs

By
Mortgage and Lending with TVM Funding Group LLC

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

 

Comments (2)

Yvonne Jones
Clicky.Buzz and Private Financial Club LLC - Dallas, TX
ClickyBuzz & Click2Call - Just: Click 'n Buzz

Hi ALL!

We specialize in HARD MONEY LOANS for our Property Investors (other loan scenarios may apply too). Most of our Property Investors are rehabbers. Any loan size will be considered and typically, we loan up to 70% ARV (after repair value) including closing costs. Our financial structure is unique. You may receive several "offers/bids" from our Financiers based on the property, loan size and value. Most will be up to 100% of the purchase price, but all terms are negotiated between the Financier and the Property Investor.

If you are an investor, and trying to borrow money for your deals, then you need to read this now!!!

Read what happened to one of my rehab investor's "STEVE":

One of my clients' "STEVE" previously made the mistake of paying cash ($120,000.00) for his 4 unit property; then sunk all his additional investment dollars into the deal to rehab it; and then rented it out.....sounds good right?! WRONG!!! Even though he has completely rented it out, and the home is completely paid off, he cannot refi it to get his cash back out to reinvest it - at all - ugh!!!! The banks won't even give him a 50% loan.

FYI---

Now here is the dilemma that a lot of people have including STEVE: debt ratio/income....especially for someone in his shoes who is self-employed; also, for any serious investor who is interested in having more then 4 properties. LENDERS/BANKS HAVE TIGHTENED UP THEIR POLICIES AND WILL NOT LEND YOU MONEY - and, ALL "stated" programs are gone now too!!!! He is home rich, but cash poor! He cannot get his money out of that home in order to reinvest it - and, it is completely paid off! What good does that do him now?

Timing is key: If you are serious about cashing in during this manufactured "mortgage crisis meltdown" then, NOW is the time to switch gears and think about how you can be the "lender / bank" instead of the "borrower"! This is the EASY way to make big bucks using the same dollars!! The person who has the money will "rule"! That is why we are offering a FREE consultation for anyone wishing to make up to 23% on their investment dollars - the EASY way!! We will show you how to get huge returns on your money that is safe and secured by real estate by "BEING THE BANK"! You can use cash or a self-directed IRA etc.

+++++++++++++++++++++++++++++++++++++++++++++

Here is what I had advised "STEVE" to do, and this is why I am contacting you today: We will help YOU avoid this problem all together! "STEVE" now wishes he would have listened too!

First:

We have deals that are in the range of $25k; $40k and upward from our rehab investors - who are just like YOU. Guess what they are looking for? Of course you know - MONEY - HONEY - To do their deals. That's where YOU come in!

As I was saying: STEVE could have done three SHORT-TERM (six-month) NOTES using less then the amount of money that he needed to purchase and rehab only ONE of his own investment properties. For example - three deals: $40K + $40K + $25K....that comes to $105 Right? Yes! And, he still would have had $20,000.00 cash left over, but that's not the point. He would have made $24,150 in six months time - that's $4,025 a month with the possibility of making a total of $195,000.00 grand total! (unfortunately, he's currently only making $2,725 a month now) That's another reason why these three little deals above would have been a more logical choice in the long run. This scenario would prevent you from getting stuck with just one deal! "Being the Bank" is where it's at folks! We have been preaching this ALL year now, and you cannot afford to make the same mistake that STEVE made!

Also, you should never want to tie up all your money into one deal. Some people think that you need a lot of money to "BE THE BANK," but, that's not true!

Let us show you how: www.privatefinancialclub.com

Just call us anytime and we will do a FREE consultation to teach you how to "BE THE BANK" and save yourself the aggravation of tying up ALL your funds into your deals and then NOT being able to get the cash out! Just ask yourself this question: How much time, money and effort, from start to finish, did "STEVE" invest into his project? "BEING THE BANK" is simple and easy! No sweat, no rehab work and no aggravation....just reap the benefits of someone else doing All THE WORK.

Call us to get more info and to schedule your personal consultation at: 847-845-4723

All questions welcome!

Register here for our upcoming private, club events that will be starting back up in January.
http://realestate.mee...

Sincerely,
Yvonne Jones, CEO
Private Financial Club, Inc.
www.privatefinancialclub.com
847-845-4723
877-RATE-100


PS: Call ASAP to find out more about our $25k; and $40K deals that could make you BIG BUCKS!!

YOU can be either at the "HEAD OF THE LINE" passing out the money, or at the back of the line begging for money - it's your choice!

Become a "Financier" and MAKE BIG BUCKS - 21% Interest in 6 months time!!!! 
Become an "Account Executive" and make huge residual income!

 

Jan 29, 2009 09:05 AM
Anonymous
sherry

Hello Yvonne,

I'm contacting you with some questions...I'm a Mortgage Broker here in So.California

1:Do you work with Brokers?

2:Are you a direct lener??

3:What are the average term of your loans?

4:What are the average rates on residential loans?

5:What are your average points?

6:Do you charge a due dilegence fee upfront?

I look forward to your response.

Sherry

 

 

Jul 27, 2009 10:47 AM
#2