Tag: Private equity group

The Difference between Hard Money and Private Money Loans

There is no difference! Hard money and private money loans are interchangeable terms that reference real estate loans with private investors as the lender, instead of institutional banks. You can potentially get a hard / private money loan when you are unable to obtain institutional / conventional financing. Possible reasons to get private money include:…

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When a 3rd Mortgage Hard Money Loan Makes Sense

When to obtain a 3rd mortgage hard money loan, it is vital to first understand its meaning. This type of mortgage is a lien on a property that goes subsequent / behind the current 1st mortgage and 2nd mortgage / heloc. A third mortgage may benefit you if you already have a 1st conventional mortgage…

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Top 3 Mistakes When Applying for a Hard Money Loan

Applying for a hard money loan, especially for first-time borrowers, can be stressful and overwhelming. To help avoid possible errors, we’ve made a list of the top 3 mistakes: 1. No exit strategy Lenders want to know how you plan to repay the loan. Examples of exit strategies include: seasoned income, rental income, sell the…

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Top 3 Benefits of Owner Occupied Hard Money Loans 

Both Consumer and Business Purpose Loans are Available Owner occupied hard money loans to purchase or refinance is a niche loan program not offered by all lenders. The benefit is that you now have access to money even though you can’t qualify through a bank or institutional lender. Owner occupied is when the borrower resides…

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What’s the Truth about Stated Income Loans?

A stated income loan is when a borrower does not provide income documentation such as bank statements, tax returns, or W2’s. Rather, the borrower simply states their income on the loan application. After the government passed Dodd-Frank in 2010, stated income loans are only permitted for business purpose loans, not consumer loans. As explained in previous blogs, a business purpose loan is business related, including…

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3 Biggest Misconceptions about Hard Money Loans

1.     Only business purpose loans are available Most hard money / private money lenders only offer business purpose loans. A business purpose loan is when a borrower uses the loan proceeds for investment purposes, such as purchasing an investment property or pulling out equity to invest in their business. On the other hand, a consumer…

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