Creative home financing

WHY WOULD A SELLER CONSIDER CREATIVE HOME FINANCING?

How to Structure Creative Real Estate Deals

It is important for every investor to know that how to structure deals which most of the people don’t know. You should know the answers to some questions like How do you close the deal properly? What if you don’t have enough money to put down? What if you find a great deal to invest that distressed? How will you finance something like that? What will you do when you will find a seller with a great property and with great upside, but has no financials? How will you creatively structure a deal and also close that deal?

In this article, we will discuss some reasons for how creative home financing may be possible for you to close your next deal. “Why seller will take interest in creative home financing? Is seller is not interested in the simple process of selling their property in the market? Why will seller not sell you their property to someone which have enough money to put down for down payment? Why wouldn’t the seller, sell the property for the price he wants and be done with it?”

In many cases, the seller may not be able to. These may be one of the reasons a seller will consider creative financing:

The very first reason why a seller will want creative home financing is when the property has the high vacancy or the property is not in good condition. Nowadays, the property which is eighty percent occupied considered distressed. A bank will not qualify the property for a loan. So, in this type of situation how could you sell the property for top dollar with the high vacancy? And also, when the property is not in good condition. Bank will also not qualify the property with a bad condition for a loan. If the property suffers from this, and the seller still wants to sell the property, the only way to get high prices for his property is to do creative home financing.

Let suppose that the property is not in bad condition, it is in good condition. But there are chances that the seller is not in good condition. Maybe the seller doesn’t have full records and books on the property. Amazing as it sounds, many commercial owners don’t keep records of their expense and income. That documents will don’t allow you to validate how much the property makes. And if it doesn’t allow you validate how much the property makes then definitely the bank will face some problem and due to that problem, they will not going to provide you the dollars which you need for the property unless you will ready to pay a large down payment.

They will protect their downside by taking a large down payment. This deal with paying a large down payment makes no sense. Here creative home financing will come in power because the property is in good condition, but there’s nothing to substantiate the pricing. Let’s suppose the seller has some concerns about paying capital gains taxes if he sells. While selling many sellers use seller financing to mitigate seller concerns about paying taxes. You can look at an installment sale as a creative financing solution. You can also structure a master lease.

Sometimes the sellers are in hurry to sell the property because of a life situation. For example, when the person is going through the divorce, or the seller is ill, or the seller is being relocated, in all these situations every person will try to sell the property quickly.

Final Thoughts

In any case, when your life circumstance requires a quick sale of the property then the best way is to do creative financing. You can contact us to discuss how creative financing can benefit you the buyer but also the seller. We know that sometimes people have a harder time for getting a home loan. That’s why we offer multiple different alternative financing options. Don’t rush during the process and avoid the common mistakes with loans. Contact us and we’ll be happy to answer any questions! 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.

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

Real Estate Blog Directory blogville iBegin

tiwikleJuly 18, 2018August 20, 2018

Traditional Loan

Traditional Loan Steps for House Flipping: 3CALoan

Traditional Loan If you check the history of mortgages, then the very first mortgage that was issued happen to be traditional mortgages itself. This wasn’t until later when people with low income have started opting the concept of mortgage financing. This is also for people who happen to have special demographic requirements. In this article, we will discuss some steps which are needful for you, you just need one paper, pencil and a loan mortgage calculator and get set to do the needful steps as discussed below.

From these four steps will help you to obtain a traditional loan easily to flip a house:

Check your credit score

Before taking any step or doing something related to mortgage, you should check your credit score. Please consider this step at the top of all the steps because this is very important to obtain a traditional loan like bank loans. You should have a good credit score if you want to get the traditional bank loan. We will suggest you, maintain your credit score or raise your credit score from a few months before you apply for a mortgage. The minimum credit score which is the need for the traditional loan is 620. If you have a credit score of 620 then you will get approved, but will not get good Interest rates.

Have all your documents in order

It is important that you should have your documents in order. If you want to obtain a traditional loan then it is important that you get your assets and income verified. Also, you will need to have at least 20 percent of the value of the home or pay Private Mortgage Insurance (PMI) to put down. The loan lender essentially required Private Mortgage Insurance (PMI) because of the risk of default. The documents which are required by the traditional loan lenders are W-2 tax forms, your employment history with bank and account statement, your recent pay stubs.

Send applications to several places

You can get the conclusion about mortgage requirements with the help of a loan mortgage calculator. After getting the conclusion you should contact several lenders regarding the mortgage. It is essential for you to contact lender because the terms keep varying across loan lenders. After contacting traditional loan lender, you might feel that the bank where you make your day-to-day transactions isn’t the correct choice. You should also check some credit unions that offer better rates.

Supply extra documents when requested

Sometimes loan lenders require extra documents due to the increasing number of house defaults. For example, loan lender requires to submit copies of your last 2 years taxes for self-employed people.

Final Thoughts

Keep in mind the above steps when you’re going to take out a traditional loan. If a traditional mortgage doesn’t work out, and if the loan to value ratio is high, give us a call at (818) 322-5626 because we offer multiple different alternative financing options including hard money loans. Don’t rush during the process and avoid the common mistakes with home loans. Contact us and we’ll be happy to answer any questions! 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.

Real Estate Blog Directory blogville iBegin

tiwikleJuly 17, 2018August 20, 2018

Purchasing Foreclosed Property

Purchasing Foreclosed Property & Reaping the Rewards: 3CALoan

In the society of America, purchasing foreclosed property are very common events. At the time of 2007 financial crisis, many people were no longer able to make their monthly payments due to foreclosure. Due to foreclosure, almost all owners were trying to boost the demand for their assets and it eventually resulted in the decrease in housing rates. If we think according to the investor’s point of view, foreclosures are good real estate deals. All investors want to buy a house at a discounted rates and in excellent condition from distressed sellers. And after some time they will resell them at a good profit. But, many times things rarely go according to plan. In this article, we will discuss how foreclosure work and what that means to you as an investor.

Which situations lead to foreclosures?

When anyone decides to not make any monthly payments, then they are indirectly inviting the risk of having the house foreclosed. Many times most people are no longer have the ability to make their monthly payments and some people go into foreclosure willfully. Situations where you can face foreclosure:

Divorce

Employment relocation

Job loss

Permanent disability

What should an investor consider?

Purchasing foreclosed property is the very common operation that can be conducted in every state. But the rules aren’t same for every state, they are different from one state to another. When we discuss foreclosure, the rules of foreclosure are generally classified under two scenarios:

Trust deeds are used
Mortgages are used

Some states have the policy where homeowners are entitled to stay in the house for up to one year. In these states, mortgages are used. On the other hand, states where trust deeds are used in that states they give homeowners up to four months to vacate. So if you can wait for one year then you can prefer purchasing foreclosed property in states where mortgages are used otherwise you can prefer purchasing foreclosed property in states where trust deeds are used.

There is one more thing to consider that whether you will be given the opportunity to inspect the home before making an offer. All this will depend on the location where your house is located. But if find yourself in such a situation, just do your search and don’t take any risk. It is true that you don’t want to make an offer on the house which you don’t know how much you have to spend on the repairs.

There are many more things to consider before purchasing foreclosed property. You have to check whether the property which is going to purchase has any kind of liens or not. After transferring the title of the property, you will be liable for those liens. If you will take care off all these elements before purchasing foreclosed property then it will help you to select the most profitable foreclosed properties.

Final Thoughts

If you have to find a good foreclosed property then you should make a good relationship between you and your loan lender. Give us a call at (818) 322-5626 to speak with one of our private loan specialists. We know that sometimes people have a harder time for getting a home loan. That’s why we offer multiple different alternative financing options. Don’t rush during the process and avoid the common mistakes with loans. Contact us and we’ll be happy to answer any questions! 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.

Real Estate Blog Directory blogville iBegin

tiwikleJuly 16, 2018August 20, 2018

Types of Homes to Buy

Types of Homes to Buy for Real Estate Investment: 3CALoan

Nowadays it’s being very trending for investors to seeking out newer property and add that property to their rental portfolio. From last many years, older homes were the popular choice for many investors, especially among DIY-ers who loved the rehab process. After some time, there seems a change in most investors that many investors started preferring homes less than 10 years old. So, it is one of the most important questions for everyone who wants to invest their money that which types of homes to buy. Whether new or old?

Advantages of a Newer Home

There are some benefits while opting for a newer home for an investment purpose. For people who have just started to invest in homes:

In the newer homes, you have to take less worry about the home repairs.
According to the age of the home, you will recognize easily that how will be the condition of major systems like electrical and HVAC.
In newer homes, you will have a more updated look which will look like today’s renters.
In newer homes, many things are common which is not common in old homes like open concept floor plans, granite counters, and other higher end finishes. So, in these homes, you have to do less work to bring the home to the standards the most renters expect. You will also have the potential for higher rental rates, as tenants will pay you more if you have the newer home with nice finishes.

Advantages of an Older Home

While an older home may not have the most trending granite countertops and stainless steel appliances that will attract most people’s eye, but they do have their own perks:

You can renovate the home to bring them into the current decade and allowing the owner to select their own finishes and colors.
Older homes are mostly located in established neighborhoods, with mature trees because of their age.
Generally, Older homes are located near local amenities, like parks, shops, restaurants, and public transportation.
Even after changing to the standard beige color scheme, it will look like similar to what you’ll find in many newly built homes. The older property will likely still exhibit features that set it apart from the neighboring homes. In other words, they are less cookie-cutter and more personality.

Which is Best – Old or New Home?

Again, we are on the same question that which is the best types of homes to buy. As many investors have this question with other questions in their mind. But the truth is there is no easy yes or no answer. It will depend on your situation and goals. In older homes, you may find good to save more money while purchasing an older home but maybe the amount of renovation and repairs will be more than the amount you bargained. On the other hand, you will pay more while buying a new home, but you save money in renovations because their won’t have any renovation cost in new homes. You will have another option that you can buy an older property that’s already been rehabbed that means it will be fully updated, you will get a like-new property without the new prices.

Final Thoughts

When it comes time to choose which property is right for you, don’t let it come down to just old vs. new. Do check all the criteria and all types of homes to buy involved before making your decision. We know that sometimes people have a harder time for getting a loan. That’s why we offer multiple different alternative financing options. Don’t rush during the process and avoid the common mistakes with loans. Contact us and we’ll be happy to answer any questions! 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.

Real Estate Blog Directory blogville iBegin

tiwikleJuly 13, 2018August 20, 2018

The Bridge Loans

What are the Bridge Loans and Hard Money Loans?: 3CALoan

The Hard money loans come secured on the basis of a note and deed to trust for a real estate transaction. These loans for real estate are a specific type of asset-based loan financing. Real property secures the funds the borrower receives. Hard money home loan lenders typically have some type of relationship with the borrower as opposed to residential hard money loan. Hard money loan is an alternative to a conventional loan where private funding is secured by the value of a property. Therefore, You will save your time by taking a home loan from the hard money loan lender rather than the traditional lender. If you are having a bad credit, no credit and high debt in your portfolio then there are fewer chances for you of being approved by the traditional loan lenders like banks but you can take home loan from the hard money loan lender.

The Bridge loans are temporary loans. The bridge loans the gap between the sales price of a new home and a home buyer’s new mortgage if the buyer’s home hasn’t been sold. The buyer’s existing home secures the bridge loans. This loan can also be used to renovate and acquire the investment property. The funds from the bridge loans are then used as a down payment for the move-up home. The bridge loans interest rates and fees can have a higher interest rate than a traditional mortgage. The loans are short-term rates. They are sometimes expressed as the rate per month.

Quick Hard Money Loans vs Bridge Loans

Similarities:

Hard money loans are taken as short-term bridge loans and the bridge loans which are secured by the property are hard money loans, So, these two are quite similar in these two loans. There is no need for high credit score in the bridge loans because the loan is being secured by the property. If the borrower is interested in investing in a short-term repayment plan, then they are best for it. Because both the loans are short-term loans or temporary loans.

Another benefit of taking hard money loan or bridge loan is repayment option. The repayment option is very flexible in both the loans. Hard money loan lenders always try their best to structure repayment and property release terms in this way which is beneficial to both lender and borrower. In the bridge loans, borrowers always have the choice that whether they want to repay the bridge loans before the permanent financing is secure or after. In return for these benefits, there is a higher interest rate for both compared to traditional loans.

Differences:

Hard money loans are issued by the private lenders. Hard money loan lenders typically have some type of relationship with the borrower. The bridge loans are usually issued by the banks or lines of credit. So, they both have different funding options. You can opt hard money loans for many numbers of purposes but the bridge loans are only for buying a property. Hard money loans can be funded quickly because private investors tend to be less picky than banks. This is also why a hard loan can make a great bridge loan.

FINAL THOUGHTS

Though hard loans and bridge loans are very similar, as they are both short-term loans mostly used for buying property, they differ in who finances the loan. We know that sometimes people have a harder time for getting a loan. That’s why we offer multiple different alternative financing options. Don’t rush during the process and avoid the common mistakes with loans. Contact us and we’ll be happy to answer any questions! 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 money loans for real estate, 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! 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.

Real Estate Blog Directory blogville iBegin

tiwikleJuly 12, 2018August 20, 2018

Hard Money Second Mortgage

Tapping Your Equity for Business Growth: 3CALoan

It is difficult to tap the remaining equity for many people who have their property with existing loans at excellent terms. In this type of situation, hard money second mortgage can help you better. Loan guidelines have changed, as have rates, and the ability to have a cash out on a new first loan at similar or more advantageous terms. Many institutions have changed their terms and they are also limiting their second position lending programs. For the equity in an existing property, they are making it difficult to obtain a second or line of credit. In this article, we will discuss some basic of California hard money seconds for business purposes.

Obtaining Second Position Loans

Basic factors of obtaining second position loans or lines of credit on the property:

The first and important factor of obtaining second position loans is the Cumulative loan to value. CLTV is defined as the ratio of your existing debt plus the proposed debt to the value of the property. The maximum CLTV that we can help is of 50%. For example, if you have a property which worth $1,500,000 and have an existing loan of $600,000, in this situation with a hard money second mortgage we could potentially help up to $150,000. We can explain you the calculation total worth $1,500,000 and 50% of it is 750,000 and this is the maximum total debt.

USE OF FUNDS

This is another factor that we can take into consideration is the use of funds. But this doesn’t mean that we are able to help with consumer purpose hard money second mortgage deeds of trust, we can only able to help you with hard money seconds. In hard money seconds, the use of the fund is basically for business purpose. For example, you are looking to expand your business by acquiring new offices, starting a new advertising campaign, increasing inventory, etc.

For real estate investors it can be obtaining funds for:

Putting a down payment on the additional investment property
Purchasing additional rental properties
Improving existing investment properties

It could also be used to purchase a legitimate business, and also a number of other business purpose uses. Because of use of funds, it implies the purpose of the hard money home loan. We cant issue loan on the basis of owner-occupied homes because we need to a have a document of use of funds. We have to confirm that the business use of those funds. For consumer purposes, we can’t help with hard money second mortgage. We can convert hard money second mortgage to individuals, corporations, LLC’s, or other legal entities. From hard money second mortgage, you can’t use these loans to pay off your debt like purchase vehicles for personal use, send children to college, etc.

FINAL THOUGHTS

If you would like to see how easy it is to apply for a hard money second mortgage, please give us a call. 3CALoan is the company to call for loans in Southern California. You should have the full information about loan terms. Don’t rush during the process and avoid the common mistakes with home loans. We know that sometimes people have a harder time for getting a home loan. That’s why we offer multiple different alternative financing options. 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 money loans for real estate, 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! 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.

Real Estate Blog Directory blogville iBegin

tiwikleJuly 11, 2018August 20, 2018

Private money home loans

WHEN SHOULD YOU AVOID A PRIVATE MONEY HOME LOANS?

Many people opt for private money home loans for investing in real estate instead of traditional lenders like banks and other institution. The important factor for choosing private money home loans is credit rating and with this, there is one more factor that these loans can be much more expeditious than borrowing home loans from banks. You should be more careful while taking private money home loans. In this article, we will discuss some basic facts that you should keep in your mind. We will discuss that in which ways you can be safe.

Good Ways To Follow

First, you have to calculate the expense properly. We will tell you whether it will make sense or not. If you want a property for flip home and rehab, then you should know within a good degree of accuracy how much the whole process will cost to you and for how much you can sell the property after renovation. This applies to every amount of private money home loans whether you are buying a home for $10,000 or $1 Million.

If you want to buy the property for your family to live in, you still need to calculate the numbers. You should at least have the estimate that how much the monthly payment will cost you. You will have to make the calculation until you are able to get a good private money home loans. It is better that you should not take any private money home loans that can put your money in and losing the home.

Second, you should have some ‘exit strategy” while taking private money home loans. You will need to make a plan because private money home loans are short-term loans. They are usually for 6 months to 7 years. Most of the private money home loans have interest-only payments, you will also require making a plan about what you have to do and how you will get out of that loan.

FINAL THOUGHTS

As we discussed above, from analytical view every deal should make sense. If you can’t feel comfortable while calculating a number, you can call us at 818. You have to choose one of the local loan lenders which can fulfill your dream. Even if you have all the information about all the expenses and also you have decided that it will be your winning plan, but you should more safe with the local loan lender. While doing an investment choosing hard money loans for real estate is a great option. You should have the full information about hard money loan terms. Don’t rush during the process and avoid the common mistakes with loans. We know that sometimes people have a harder time for getting a loan. That’s why we offer multiple different alternative financing options. 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 money loans for real estate, 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! 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.

Real Estate Blog Directory blogville iBegin

tiwikleJuly 10, 2018August 20, 2018

California personal loans

MISTAKES YOU SHOULD NOT DO WHILE TAKING CALIFORNIA PERSONAL LOANS: 3CALoan

Most people need a California personal loans to finance their dream home. May you will also need that in your future. So, it is important that you should take care of few things that people usually take care while financing a home. In this article, we will discuss few mistakes that people tend to make while availing a California personal loans or an installment loan.

GRABBING THE FIRST LOAN THAT IS OFFERED

This type of loan is the unsecured loan which means the local loan lender doesn’t require any collateral and due to this the interest rates for your loan will be higher than other loans. Because you have to pay more in interest rates, we will advise you that please do comprehensive research on the product and loan lender before signing any deal. You should take some time to examine and compare the different deals before signing up any deal. By doing this you will secure yourself by rushing into the application process. You should sign the deal which is perfect according to your needs and requirements.

ACCEPTING UNACHIEVABLE REPAYMENTS TERMS

California personal loans are very comfortable for everyone because they ensure that you live a life without any financial stress or worry. While financing, many people end up the deal agreeing to the loan terms which are very difficult to follow but also end up locking them up with unaffordable interest and missed repayments. So, it is best for you to do all the calculations before and determine a repayment schedule. Also, find tenure that is both feasible and affordable for you.

TAKING TOO MANY CALIFORNIA PERSONAL LOANS

There are some finance companies which don’t ask anyone about the reason they are taking the loan. Due to this people usually take the loan without any reason but actually, they don’t know that there is no limitation of using the extra money. So, take a loan only if you require that loan otherwise try to avoid to borrow. If you have more than one personal loan then it will be difficult for you to manage the monthly finances and may you will fall behind on your repayment installments. This is one of the common mistakes that people make while financing California personal loans. This can harm your credit score as well.

NEGLECTING THE TERMS AND CONDITION

Sometimes people are in such a hurry to get the money that they didn’t confirm the obligation to fulfil the terms and conditions of the agreement without even knowing what is mentioned in it. However, this can be very dangerous for you.

IGNORING YOUR CREDIT SCORE

While financing California personal loans, if you ignore your bad credit then it will cost you a fortune. Local loan lender will charge you higher interest rate because of your bad credit. So, before applying for a personal loan, you should check your credit score and try to take some precautions to make your credit score good like paying off your debts or credit card bills, etc.

FINAL THOUGHTS

If this is your first California personal loan and you want to explore more information, 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. Don’t rush during the process and avoid the common mistakes with loans. Contact us and we’ll be happy to answer any questions! 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 money loans for real estate, 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! 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.

Real Estate Blog Directory blogville iBegin