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  • admin 5:42 am on November 27, 2015 Permalink | Reply  

    How to Benefit from Hard Money Houston Lenders 

    It is important to have a place where you can get easy access to funds in case you need them quickly. At times, your own savings may not be enough especially for bigger needs. Since banks are also not too elastic with their overdraft provisions, hard money Houston may be the appropriate alternative. However, not all people who go for these loans benefit- at least as much as they should. This is because many borrowers tend to overlook certain things, which cause immediate or future negative impacts. Here are the things to remember:

    Avoid last minute rush

    Crises usually come with confusion that may cloud your judgment when choosing a lender. Some rogue firms may also take advantage of your hurry to enforce on you certain conditions which will benefit them while hurting your pockets. Therefore, instead of waiting for crisis to strike before searching for a lender, you can equip yourself with advance information concerning the best options in market. In this way you will know exactly whom to head to when eventualities happen.

    Compare different terms

    Carry out comparisons on interest rates, point charges and conditions that different firms require their clients to meet. Many firms charge somewhere between 18 and 20 percent but with a thorough look you may find one that takes as low as 12 percent. The client is also supposed to cater for the loan facilitation fees which may range between 3 and 10 percent of the loan amount. Apart from these, remember to also check on the repayment period. Longer periods will provide you with ample time to settle the amount.

    Plan for the money

    Just because this is a short term lending does not mean you should hurry through in spending the money without having a concrete plan.  Before you even get the money, ask yourself how you are going to raise it and make timely repayments.  You might have the best intention but without looking at such a simple area, time may run out before you achieve anything worthwhile and you might even end up losing it all.

    Moreover, before or after you get the money, communicate with the different stakeholders and contractors and inform them the urgency of the matter. You should only put short term funds on the most urgent areas and on things that will produce quick results.

    Have additional funds in place

    Do not expect hard money Houston lenders to finance the entire project. Most of them will only bear between 60 and 70 percent of the entire cost and leave the rest for you. You should therefore have another source of fund on the ready to complete your project. Some firms will need evidence of existence of additional funding before they release theirs.

    Repay on time

    You need to know that hard money Houston lenders are also in business. Therefore, they will naturally prefer clients that live up to their promise. To be in their good books therefore, ensure that you settle loans within the time limit. Next time, this will make your access to the facilities even easier.

  • admin 8:18 am on November 25, 2015 Permalink | Reply  

    Why Do Hard Money Lenders Houston Texas Take Down Payment From Some Clients and Not Others? 

    The issue of down payment is always stressful especially to investors who have not much in their pockets. Few hard money lenders Houston Texas offer facilities to clients without asking for a deposit. The prime reasons why getting advance money from the client is important include the following:

    Insurance for risks

    Some firms use this amount to cushion themselves against defaulter risks. Every lender is in for business, and therefore it is important that they reduce risks as much as possible. The amount might be paid to an insurance company or put into other investments.

    Proxy requirements

    In some jurisdictions, it is a requirement that firms acting as proxy lenders demand a certain percentage of deposit on every loan. This law however does not apply in many regions and firms will only take advance payment because of personal agreements with the lenders on whose behalf they act.

    As a motivation

    A few lenders believe that borrowers are likely to work harder when they pay deposit. Research has shown that there might be some truth in this. In the end the pressure benefits both the lender and borrower.

    Hard Money Lenders Houston Texas

    Credit history

    Your credit history could also determine whether you get to pay a deposit or not. When lending to you directly from their resources, some of hard money lenders Houston Texas are less likely to ask for down payments from clients whose records are clean since they do not consider them a flight risk.

    Even when they do levy these charges, the rate will be a bit lower than for clients with higher credit rating. If for instance, the maximum deposit is 30 percent for those with spotty records, people whose testimonials are clean might only be required to pay between 10 and 15 percent. This is part of the reasons why it is important to provide detailed information about your past borrowing especially if the details are impressive.

    Don’t confuse deposit with financing gaps

    Deposits are not the same as financing gaps. While not all lenders will ask for a deposit, each and every one of them want to be sure that you are committed towards the goals that you have set forth and that the said goals are achievable. To do this, they must confirm that you have enough money to cover up for the rest of the project after they have given their input. This should be about 30 or 40 percent of the total final property value.

    Another situation where financing gaps may come in is when your valuation calculations do not match up to that of the company’s agents. The valuators usually use the information you provided in your own calculations together with their own observation to make their own assessments and recommendations, which the lender will work with.

    If these are lower than what you calculated, the lender will only be willing to give you an advance based on their calculation, but will still expect you to raise the extra funds first so that the final value matches up to your previous sum.