Is a Hard Money Loan Right for you?   

Is a Hard Money Loan Right for you?   

 

Hard money loans are getting lots of press these days as the industry emerges from long-ago reputations of shady lending into a powerful, viable lending choice for those with real estate owning aspirations who need help in achieving their dreams.

You may be wondering what a hard money loan is, and wondering whether or not a hard money loan is right for your individual real estate borrowing needs. We’ll cover the topic of whom a hard money loan might be right for in this article. For a more in-depth look at hard money loans, you can read The Ultimate Guide to Hard Money Lending.

What is a Hard Money Loan?

A hard money loan is a loan funded by a company that has different qualification parameters than a traditional residential or commercial mortgage loan company does. Today’s reputable hard money lenders consist of private investors or private investing companies that are willing to take risks on loans that traditional lenders are often not able to approve due to government regulations or strict lending guidelines.

Hard money loan applications are usually approved much faster and funds are distributed much faster than with traditional mortgage lenders, making hard money loans the perfect solution to many property ownership dreams.

Is a Hard Money Loan Right for You?

Hard money loans may not be right for everyone, but they do have the potential to be a powerful investing tool for many who wish to own residential or commercial properties. Here are some scenarios in which a hard money loan may be right for you.

You’ve Been Turned Down by Traditional Mortgage Lenders

If you’ve been turned down by traditional mortgage lenders it might be a wise move to consider contacting a reputable hard money lender to see if they can provide the funds you need. Since hard money lenders are funded by private investors, they aren’t held to the strict guidelines that traditional mortgage lenders must adhere to.

You Need to Close on Your Property in a Hurry

Whereas traditional mortgage lenders can take weeks to fund a deal, it’s not uncommon for reputable hard money lending firms to be able to close on mortgages within a few days. The quick turnaround from application to closing can mean the difference between cashing in on a great real estate deal and losing a property to someone who already has their financing in order.

Your Real Estate Transaction is Outside of the Norm

Hard money lenders are experts at assessing real estate transactions that are outside of normal mortgage lending guidelines, such as rehab projects, bridge loans, mezzanine loans and short sale properties. If you want to purchase a property that doesn’t qualify for traditional lending, consider using a trustworthy hard money lender.

Your Credit is Less than Perfect

Everyone makes mistakes, and hard money lending firms know that. If you’ve got some less-than-perfect issues with past credit, those past mistakes may disqualify you from getting approved by a traditional lender.

Hard money lenders use different parameters to assess loan approvals on, which means a past bankruptcy, foreclosure or other credit mistake doesn’t mean you can’t get a hard money loan.

If you’re looking to purchase a real estate property but are uncertain that traditional lending brokers can help you with your needs, consider contacting a quality hard money lender in your area today.

This article was provided by Inca Capital – a premier hard money lender in Arizona.

5 Ways Online Loans Are Changing the World of Small Business Lending

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Online lenders are revolutionizing the world of small business loans. Rather than wading through a complicated and lengthy application process, small business owners can quickly and easily apply for a loan online, boosting their working capital in days rather than weeks or months. How exactly are online lenders changing the role of small business funding? Take a look here:

  1. Focus on data

Traditional small business lenders typically require a detailed business plan and they look closely at the business or its principals’ credit histories. This can make it especially hard for startups or businesses who have suffered from credit issues in the past to get funding.

Online lenders, in contrast, have moved away from these evaluation trends. Rather, they harness data to create a picture of each business. Lenders weigh unique information ranging from an applicant’s seller ratings on eBay to the flow of revenue into a business’s PayPal account. By using such a wide variety of information, lenders are able to get a more accurate picture of a business’s health and its ability to repay a loan.

  1. Faster underwriting process

Because most of the information is gathered quickly online, underwriters for online loans can work faster than underwriters for traditional bank loans. As a result, the approval process can take mere minutes and loans can be funded in days.

This gives businesses a newfound flexibility. If their clients fall to pay their invoices, if an emergency pops up or if revenue momentarily slows, businesses no longer have deal with waning resources and a waiting process. Instead, they can access the funding they need almost immediately.

  1. Product flexibility

As the growth of online loans continues, these lenders are offering more and more products. While many lenders offer lump sum loans designed to be repaid with a portion of sales, other lenders offer lines of credit (LOC). With an LOC, borrowers only take the funds they need as they need them, ensuring they don’t pay interest on money they don’t use. Online lenders are also branching into factoring loans (advances on accounts receivables) and inventory loans (loans secured by inventory).

  1. Transparent process

The benefit of online lenders doesn’t solely rely on the fact that these loans are speedy and efficient – the transparency of the process is changing as well. While loans used to be approved in a back office using metrics largely foreign to most borrowers, online lenders embrace a more transparent process. They also educate borrowers about the data points involved, making it easier for borrowers to increase their chances of approval.

  1. Lower interest rates

For the increasing number of small business owners who have turned to credit cards in favor of traditional bank loans, online lenders offer a significant amount of savings. Credit card companies know that their card holders are likely to overspend and that most business owners don’t read their contract carefully enough to notice the interest rates. As a result, these companies have a captive audience of people willing to pay exorbitant interest rates.

Small-business owners who cannot afford to pay off their balances every month incur interest charges that can ultimately make their debt unwieldy and repayments unaffordable. Online lenders have eagerly drawn borrowers away from this racket by offering lower rates and even encouraging borrowers to roll their credit card debts into an online loan so they can pay them off faster. Because of all the information they have on their borrowers, online lenders can reliably work with the borrowers who are most likely to repay their loans. As they erase much of the risk for underwriters, rates fall until they reach equilibrium levels, which appeals to both lenders and borrowers and tends to be much lower than credit card debt.

Online lenders have changed the world of funding for small business owners, opening the process up to an increasing number of people and businesses. However, within the industry, advancements are always afoot. One of the most essential aspects to monitor is the development of technology. As the industry and technology continues to develop and progress, online lending will be able allow lenders to assess and fund loans even faster and more effectively.

9 Signs You Need Help With Forex

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Are you looking to make it big in the world of Forex trading since a long time, but not getting the desired results? You might reverse the situation by hiring a professional to assist you through the process. Here are a few signs that indicate that you need help with Forex.

1. If you find it hard to understand position sizing

Individuals who don’t understand position sizing fail to manage their money aptly and implement risk reward correctly. If you find yourself risking big money just because you have put a heftier stop loss on a particular trade or risk a small amount only because you have put a small stop loss, it indicates that you don’t have a clear understanding of position sizing.

2. If you find yourself turning into a gambler

Ask yourself, “Ami I a trader or just a gambler?” Lack of knowledge about the market might force you to engage in gambling. You have to understand that gambling never allows risk management and for becoming a successful trader you have to manage your risk. Only a professional can help you come out of the vicious circle of gambling.

3. If you are allowing your emotions to control your decisions

Allowing emotions to control your steps is one of the main reasons why traders suffer losses; this has been confirmed by a survey conducted by CMC Markets. There are numerous factors which can induce and contribute to emotional trading. Most people engage in emotional trading mostly when they don’t do the other things correctly. By hiring a Forex broker, you can ensure that you don’t commit any mistake along the road and this will decrease your chances of taking emotional decisions.

4. If you are taking wrong decisions on liquidations time and again

Do you have a tendency of freaking out at the very first sign indicating that the market might soon move against you? Have you opted for liquidation and later discovered that the trade matured to bring in much more profits? If yes, then you definitely need professional assistance for becoming a more patient and logical trader and earning bigger returns.

5. If you don’t have proper understanding of risk/reward

If you want to succeed as a Forex trader you must understand risk-reward fully and should also have in-depth knowledge about implementing it on all trades you take. Lack of knowledge about risk reward indicates that you need professional help.

6. If you are not comfortable with trading bigger time frames

It’s impossible to reach great heights as a trader by trading the 10 or 15-minute charts. The main reason, for which you should concentrate on trading bigger time frames, is that they play the role of natural filters for price movement. They filter out all unnecessary price actions making it easier for the trader to understand what the price may do. An experienced broker is the best person to rely on if you are still not comfortable with trading bigger time frames.

7. If you are overtrading

To have greater profits, one should always trade less. An experienced and qualified broker will never allow you to overtrade. Over-leveraging is actually the fastest way of becoming a completely emotional trader. Traders often end up overtrading out of euphoria and revenge; such factors never influence professionals.

8. If you are looking to trade with fancy tools and indicators

A large number of Forex traders erroneously believe that using indicators will assist them to price movement fully. There are also many who think that indicators will make trading a more profitable journey for them. Such thoughts actually have no basis.

If you are relying too much on the indicators when taking trading decisions and not concentrating on the main price action all those indicators are obtained from, you are surely not on the right track. Ideally, you should seek help from an experienced broker instead of trying out the indicators.

9. If you don’t have a proper Forex trading plan

The primary aim of a Forex trader shouldn’t be making hefty amounts. Instead, he or she should aim at getting a proper trading plan ready. The most difficult part is that for getting best results, the plan will have to be modified every single day. As a result, many traders shy away from planning things. If you are one of them, you should immediately contact an expert and request him/her to prepare a Forex trading plan for you and keep updating it on a daily basis.