Private Money Home loans vs. Conventional Investor Loans: 3CALoan

If You Need Capital Fast a Private money home loans Loan Can Be the Answer

Many people have misinterpretation about private money lenders and private money home loans. The main confusion is they don’t feel the difference between conventional home loans and private money home loans. In this article, we will discuss many of the general frequently asked questions which will clear all your doubts regarding the difference between conventional home loans and private money home loans.

Frequently Asked Private Money Home loans Questions

How does the program work?

Private money home loans are asset-based loans. This type of loan is issued by the private investors or companies. Private money loans comes secured on the basis of a note and deed to trust for a real estate transaction. We can fund the home loan very quickly. After receiving the final documents from the Title Company, we can fund the loan within the 72 hours. Private money home loans are available for single-family residential houses and as well as for real property including commercial projects.

What is the interest rate?

This will depend on your loan lender that how much they are charging the interest rate. Generally, the range of interest rate is 14% to 18% only annual interest rate payable monthly in most cases.

What are points in a private money home loan?

A private money loan lenders simplify the closing costs by charging points. They don’t have to detail separate other fees or underwriting. Also, they may charge points in addition to these fees.

Do private money home loans allow interest to be deferred to the end of the loan?

Mostly every Private money loans have the interest payable monthly but there are some loan lenders which allow interest to be deferred to the end of the loan.

How long is the loan for?

Private money loans are short-term loans. They are usually a 6 to 12 months term loan, but they can extend from 2 to 5 years as well depending on the lender and your needs.

What are the costs?

The cost of Inspection, Vacant Dwelling, Title Policy, “As-Is” Appraisal & Flood Certificate are required for every loan. Most require Origination points. It will also depend on your loan lender.

Can I get repair money?

Yes, private money home loans can fund repairs.

Does my credit matter?

Private money home loans lenders are not concerned about your credit score. Because they believe in your potential to complete the project and pay back the home loan in time. To determine how much money they will lend, they will check how much repairs will cost. In some cases, your lender may need to check out your credit history.

How do you decide how much to loan?

Every private money home loans lender has their own criteria but the home loans ranges are from $25,000 to $1,00,000.

Do private money home loans need an appraisal?

Yes, private money home loans require appraisal like “as-repaired appraisals” and “as-is appraisals”.

Do private money home loans require inspections?

In private money home loans inspections, the loan lender will check the interior before funding a home loan and before a repair draw to ensure the work is completed in a decent manner.

Do I need to put any money down?

In almost every situation, you will need some cash for your home loan. Because 100 percent finance of the sale price and cost of renovation is not possible in any loan program. In private money home loans cost of Inspection, Vacant Dwelling, Title Policy, “As-Is” Appraisal & Flood Certificate are required to be paid before closing.

How much will my payments be?

Multiply the rate which your lender is charging the loan amount and divide that number by 12. The amount which comes out will be the monthly payment of your home loan.

Will private money home loans finance commercial properties?

Yes, private money home loans lenders finance commercial properties only if the loan is secured by the real property such as the building and land.

Will private money home loans finance apartment buildings?

Yes, Private money loan lenders finance apartment building however it will take lenders longer to get their due diligence done.

How do Private money home loans compare to a traditional non-owner occupied investor loan?

There are many things where private money home loans are better. Take a look at this comparison;

Comparison:

Private money loan Lender/Mortgage Co.

• Time to Close- 1 – 2 weeks /4- 6 weeks
• Monthly Payment ($50k loan)- $583.33@ 14% I/O $549.00 @ 7% + MI
• Credit Qualifications- None /65% of ARV
• Cost to Obtain Loan- 4% – 5% /3% – 6%(Incl. Orig. Fees & SRP)
• Pre-Payment- Yes – 3 months min/ Yes – Up to 2 years

Final Thoughts

In many cases, private money home loans can be obtained faster and easier than other loans. Private money home loans lender has a different program and qualification process. We know that sometimes people have a harder time for getting a loan. That’s why we offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services.

3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, without tax return, private hard money home loan, private hard money loans, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today and our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.

Private Hard Money Loans are Better than Traditional Loans: 3CALoan

Nowadays, financing your real estate is not exactly favorable. If you want to borrow loan from traditional home loan lenders like the credit union and banks then it is next to impossible and it appears for now that it’s a trend that will go on for some time. The fact is bank doesn’t have the real estate investing in their first choice to put their money. If you have a bad credit score then you will likely go running into roadblocks along the way, because traditional home loan lenders will avoid you and consider you as risky.

Private hard money loans

Private investors or companies issue Private hard money loans. The loan comes secured on the basis of a note and deed to trust for a real estate transaction. Private hard money loans are a specific type of asset-based loan financing. Real property secures the funds the borrower receives. Private hard money loans lenders typically have some type of relationship with the borrower as opposed to private hard money loans.

When Traditional Funding Sources Have Dried Up

What will you do when all traditional funding sources for funding a home loan will be dried up? You can find some other to funding a home loan or you can wait till the things will get better. Right now, almost all the investor think that it is a good time to invest in real estate to get a great price. Because prices are cheaper than they have been in decades. There are also many real estates which are short sales and foreclosures that will give you a great profit at current pricing. So, if you want to purchase the real estate but have empty pockets then we will discuss an idea you may not have tried.

Real Estate Funding Options

There’s no shortage of people out there that have seen the esteem of their retirement nest egg wane down enough to wonder where the bottom is. The concept essentially includes finding a company, numerous can be found online, of your choice which specializes in Self Directed IRA’s and making your real estate investment utilizing the company to help. Most traditional companies tend to invest in traditional assets such as stocks, bonds, and mutual reserves.

Better Possible IRA Returns

You can invest in real estate, mortgages, leases, and other asset-backed investments with a self-directed plan. You can invest in assets that you know, effectively control, and understand. To allow you to have a full advantage of saving for your future, the government has increased the contribution limits. So now you can compound your assets quickly with the investment that you have selected. You can choose the retirement plans which are best for you and in that plan, what types of investment you want to make.

The IRS rules are fairly uncomplicated but they prohibiting self-dealing and other limitations. You can understand the entire process works by information on the websites of different companies and you can also check their fees over there. You should find out the company who are good in this type of plan and do research on your limitations. Before moving any cash from your existing plan you should always consult your tax professionals.

Final Thoughts

If you are interested in exploring the options of Private hard money loans as an alternate IRA Investment plan, please give us a call. We know that sometimes people have a harder time for getting a loan. That’s why we offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services.

3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, without tax return, private hard money home loan, private hard money loans, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today and our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.

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Fix & Flip Home Process is Simple but Not Always Easy: 3CALoan

Investing in some property which is abandoned and then fixing it up is the process known as fix & flip homes. It is a popular way to earn the profit by selling the property and getting involved in the real estate. There are many television shows which says it is the easy way to make a good profit and it seems like a fast process. It is important that you should have enough time and money investment to earn the profit. If you don’t have enough cash with you, then you will mostly like to take a home loan for the rehab and purchase the property. Here are some things which you should know before getting your fix & flip loan.

You Still Need Cash

In almost every situation, you will need some cash for your home loan. Because 100 percent finance of the sale price and cost of renovation is not possible in any loan program. You will need some cash for making the deal attractive for your loan lender to fund the home loan easily. This is true for all the situations, whether you are seeking a loan from the bank or from hard money loan lender. A good rule of thumb is to have at least 20 percent of the amount you expect to need in capital reserves before you go to a loan lender. Your home loan amount and fees will be lower if you have more cash in your hand.

It’s Not Always Easy

You are likely going to run into roadblocks along the way, if you have a bad credit or if you are buying home for fix & flip process for the first time. Traditional home loan lenders will avoid you because credit unions and banks take this type of investment as risky. This type of loans usually takes a great deal of time to approve. So, you may lose the opportunity of getting that property. On the other hand, hard money loan lenders are not concerned about your credit score. Because they believe in your potential to complete the project and pay back the home loan in time. They don’t take much time to release funds, even to a borrower which are opting it the first time. So, hard money lender will make your process faster and easier.

There Is Risk Involved

Even if you do thorough market research, it is risky to Investing in real estate for fix & flip process. You will never get the surety that you will sell that property easily, especially in short time-frame. In fix & flip home process, you should be prepared for the possibility of losing money. Before taking the home loan, you can take the advice from others which are successful in this type of business. Hard-money loan lenders are generally very experienced. They are always willing to assist borrowers for fix & flip process. Just keep in mind that no matter what the outcome will be, you will have to pay the entire home loan.

Final Thoughts

As a house flipper, getting a hard money loan is a good option. We know that sometimes people have a harder time for getting a loan. That’s why we offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services.

3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today and our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.

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Hard Money Home Loans– Owner Occupied Vs. Investment: 3CALoan

Hard money home loans in California are issued by private investors or companies. They are usually a 12 months term loans, but they can extend from 2 to 5 years as well. This type of loan is a specific type of asset-based loan financing. You should learn few things about hard money loans or you can contact any hard money lenders in California before you opt them so you can avoid pitfalls and sticky situations. Hard real estate loans are short-term loans secured by real estate and the interest rates are much higher as compare to traditional financing.

Options to Bank Home Financing

I have many questions regarding hard money home loans for residential properties. Funding loan from a bank is not possible with many people, so hard money home loans have become an alternative to funding a home loan. Hard money home loans also become an option even for those who have may have been able to obtain bank financing in the past. There are many differences between hard money home loans for consumer purpose and for investment purpose.

Income Documentation

Income documentation is mandatory for consumer lending on residential property of 1-4 units. We must be able to take all the income documents of the borrower and from that documents, we will ensure that their debt-of-income ratio is in line. This is different than hard money home loan lending used to be for this type of loan. In the past, lend-able equity in the property was the main requirement. But now, with that, we also required income documentation, so that we can calculate the debt to income ratios.

While income must be documented, we have some flexibility to how the documents need to be listed. Documents like tax returns, W-2’s, pay stub, etc, are all acceptable. We can also happy with the bank statements or any other third party documentation which shows the borrowers income.

Bank Lending Practices Have Changed

We all know that from last five years there has been an inundation of mortgage regulations. Regulations are still being written and phased in, so we are not done with those regulations. To curb irresponsible lending and subprime lending practices by institutions, these regulations were meant. These regulations do also apply to hard money loans. Many people who want to fund their loan with hard money home loans are usually unaware of the changes of regulations. They think hard money home loans lending don’t have same regulations as bank money. Many people have this issue with the banks that they believe hard money can avoid is the documentation of income.

Hard Money Loans Fees Passed to Borrower

The cap on fees and rates is another issue that we have with these types of consumer loans. In hard money home loans, all the fees are passed through to the borrower but not in the bank money. In addition, the financing source is ordinarily an end investor trying to find a return on his/her money more prominent than they can get somewhere else. Making these type of consumer loans for small balance loans is difficult due to these aspects of hard money.

Final thoughts

For those looking for hard money for non-consumer purposes, some of these issues do not apply. We know that sometimes people have a harder time for getting a loan. That’s why we offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. Our goal is to provide opportunities for people to meet their financial goals.

3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.

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REASONS WHY GETTING A COMMERCIAL REAL ESTATE LOAN IS IMPORTANT FOR BUSINESS

In business, taking a leap to expand it is scary. Especially for getting a commercial real estate loan. No one wants themselves in a debt. Thoughts about what could happen to your company and employees are enough to keep any business owner awake at night. But when you are getting a commercial real estate loan for the right reasons, it can also be worth for your company’s growth. So, we will discuss some reasons that why getting a commercial real estate loan is important for your business:

YOU NEED TO HIRE GREAT TALENT

Every good employer knows about their business that in order to be successful, they have to hire people who are more talented, more dedicated, and smarter than they are. The employer has to retain them and pay what they are worth. Because the employees are talented then they may worth higher. They are not easy to pay with the current cash. So, getting a commercial real estate loan in this situation is a good decision. You have to be sure that the employees which you are going to hire are right talent before you take on a loan.

YOUR PHYSICAL BUSINESS NEEDS TO BE LARGER

When your business is literally bursting at the seams because you’ve outgrown your space. When you need to physically expand, the positive point about getting a commercial real estate loan is that you’re expanding because you’re already successful. It takes some of the worries out after getting a commercial real estate loan. Before getting a commercial real estate loan, you should know the steps you need to take to find the right office space for your expansion needs.

YOU’RE LOOKING TO INCREASE YOUR INVENTORY

Many businesses have seasonal ebbs and flows. You should make a proper inventory to prepare for an expected uptick in business. And if you have a proper inventory then you should increase it but that doesn’t mean getting a commercial real estate loan is necessary. Compare your financial records from the same time of year with past few years. From this, you can easily expect how much business to expect this season.

YOU NEED NEW EQUIPMENT

Buying a new equipment means your business is more productive. So usually it’s not a good idea that getting a commercial real estate loan is necessary for new equipment.

YOU NEED TO BUILD CREDIT FOR THE FUTURE

There are some situations where you can have a bad credit like if you’re young. Not every employer have a great credit when they usually apply for getting a commercial real estate loan. By taking the small commercial loan, you can build your credit score for the future projects. But if you take the bigger loan, then there are chances that you can’t able to pay the monthly payment easily. One missed the payment will cost you bigger.

YOU NEED TO INCREASE YOUR WORKING CAPITAL

Sometimes the bills to pay are higher than money currently coming in. You can face this situation while starting a new business or in the middle of an awkward growth phase.

Final Thoughts

We know that smaller businesses sometimes have a harder time for getting a commercial real estate loan. That’s why we offer multiple different alternative financing options. If you are interested in exploring the options of hard money loans for commercial real estate investing. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of Commercial Hard money loan. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. Our goal is to provide opportunities for people to meet their financial goals.

3CALoan local mortgage broker provides no tax return home loan. It is also called no tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.

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Tips for Picking Up Bank Short Sale Homes: 3CALoan

If you want to add homes to your investment portfolio, then the pre-short sale homes are a good choice for you. Or if you are interested in flipping homes then it also can help you better at really good prices sometimes below the appraised value. In this article, we will discuss some of the ins and outs of buying the home before foreclosure.

Stage 1 Delinquency on Mortgage:

From this, almost all the homeowner starts to be late on their home loan payments. You can buy the list of 30, 60, 90 day lates from credit bureaus. And also you can start targeting the list with marketing. You will obtain the client information early before the Lis Pendens or Notice of Default(NOD) will be filed by the client with the county and others have access. So, there will be a less competition for you from other agents and it will good for you.

The negative point is it’s almost too early in the process. The client has more time to think about their bank short sale homes and consider their mortgage mod. It will become very easier to negotiate on the purchase of the note with a bigger discount if a note goes 90 days late. While there is less competition, it would be good to talk homeowner first and make a relationship bond better.

Stage 2 Derogatory/NOD filing with County:

In most states, Derogatory or NOD is needed to be filled within 90-180 days of the first delinquent payment with County Recorder’s Office.

The positive point is client will be desperate, so he/she will likely agree to bank short sale homes listing. The client will be also realistic at this stage. The negative point is during this we may be competing with more realtors and we also have less time to close the bank short sale homes. So, we can’t help them to get them early in the process. You can get a nice percentage, only if we target them in the first stage and follow them back after Lis pendens or NOS is filed. According to how long it takes to foreclose, the note should be discounted. Generally, the discount will around 70% or it can be greater. At this stage, the homeowner is now getting prodded constantly letters and calls by the bank. So this is the point where the majority of business takes place.

Stage 3 Auction/ Trustee Sale Date filing with County:

The positive point is client will be more desperate at this stage, so he/she will more likely agree to bank short sale homes listing and will be more realistic. The negative point is, in the stage, we are not getting them late and either may be competing with more realtors or have very little time to close the bank short sale homes. The process will get delay near about 3 months.

According to the state’s foreclosure laws, months to foreclose. If you delay the auction through a short sale, TRS, temporary restraining order or bankruptcy filing. This can add a minimum of 3 more months to the process which can often motivate the bank to sell the notes with heavy discounts. This can be done, but it is stressful and time consuming for all parties involved to get that extension.

Final thoughts

We can help you if you are interested in exploring the options of hard money notes for investing. Buying a home is a great investment, but you have to be careful and avoid making any costly mistakes. We prioritize informing and educating our clients about the home loan process. Our goal is to provide opportunities for people to meet their financial goals. We help our customers every step of the way. Our competitive rates, efficient services, and talented team can help ease the home loan process.

Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan. It is also called no tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.

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Real Estate Cycles & Buying Real Estate as an Investment

Everything in buying real estate as an investment always goes in cycles. Getting into buying real estate as an investment is no longer that you want to buy that house. But it became a way for many people to generate income. You can earn a profit by buying real estate as an investment and it is also the oldest form of investing. Many people usually take their chances with hopes that they can earn a big profit after some time by buying real estate as an investment. Many people need help to buy a real estate because they can’t afford on their own. Sometimes local hard money lenders are the better option than banks.

In our journey, we have experienced smooth sailing in buying real estate as an investment but from last few years, we are facing some challenges which forced everyone to regroup and invent their approach to the investing business and return back to the basics.

Basics of Buying Real Estate as an Investment

• You should browse the internet, you will find many avenues to easily search for good properties without talking with a seller or agent and without visiting the site. We also have followed many revised methods for locating, purchasing and financing properties also read books, attended seminars.
• Find a geographical area where you want to buy a home. Do research on those properties within that area. You should know all the things in that area like schools, property value, job market, community amenities, rental rates and many more.
• There are many older people who don’t know how to use the internet or don’t use the internet. So, they may not upload their property details on any internet sites. There are some old-fashioned properties which are best properties with high equity.
• Now many people want to make a direct contact with the owner by knocking on the doors of for sale by owner properties. It means building a relationship with the seller and working together as a team to create mutually agreeable terms to buy the property.
• What is the seller’s motivation? Many sellers may not want only money. We can assist better to the seller by understanding the seller’s motivation and their needs. By doing this we can structure the good offer for the seller.
• People like to help people. Our main purpose should be helping the seller by offering him good offers whether we are offering to purchase the property to rehab, lease purchase, wholesale, etc. Most of the times when we develop a good relationship with the seller, they are willing to help us in purchasing the property. They were being creative in the offer with owner financing and agreeable terms.
• This year, sellers also have experienced many challenges. Many sellers are more comfortable and willing to have mutually agreeable terms to sell the property. Because they also have lost equity in properties because of financing issues, declining values, and having competed against a market flooded with homes for sale.

Final Thoughts

Yes…there have been many challenges over the past years for real estate investors to buying real estate as an investment. But usually, the simple things work the best. We only have one aim of helping people first. If you are interested in exploring the options of real estate investing with private money loans, you can contact us. Buying a home is a great investment, but you have to be careful and avoid making any costly mistakes. We prioritize informing and educating our clients about the home loan process. Our goal is to provide opportunities for people to meet their financial goals. We help our customers every step of the way. Our competitive rates, efficient services, and talented team can help ease the home loan process.

Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of home loans and hold your hand throughout the process.

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