Private hard money lenders are in the business of providing loans and loan services to people who require hard money loans (loans collateralized by real estate.) Private hard money lenders may be direct hard money lenders or brokers of hard money loans. Most private hard money lenders are, in actuality, brokers. Some private hard money lenders are both brokers and direct lenders. In these cases, the private hard money lender generally funds one or up to a few small loans per year and serves in the broker capacity to clients for the loans they help to originate. Deciding on whether to work with a hard money broker or a private hard money lender is similar to deciding on whether to purchase real estate with the assistance of a broker/agent or whether to make an offer direct to the seller on your own.
The advantages of working directly with a true private hard money lender are immediately evident: You may sometimes save money by going direct. Brokers are paid for their services via a percentage of the points you pay on a hard money loan. Therefore, the more brokers involved in a deal, the more you are likely to pay in both points and percentage to accommodate that cost. If you have selected a direct hard money lender who is a good match for your project, you will be able to speak directly with the decision makers, avoiding the ‘run around’ that so many hard money borrowers fall prey to. You are told that your loan is going through, only to hear the next day that the lender has elected not to take on your hard money loan and now your loan is on another desk in yet another direct lender’s office – or worse, on the desk of another broker who may know a broker who knows a lender who may want to fund your loan. Sometimes, the choice of direct lender is based more on the commission the broker will get than on your best interests. By working with a direct hard money lender, you can avoid the ‘run-around’ and may be able to close more rapidly. After all, no one knows your situation like you do, no one can explain any extenuating circumstances better than you can, and no one is as committed to your business and your hard money loan as you are. The advantage of working with a commercial mortgage broker is also clear: a seasoned, well-informed, honest commercial mortgage broker will have the knowledge of and access to the direct hard money lenders in Ontario, Canada, and the United States. A commercial mortgage broker will know where your loan has the best fit. A good commercial mortgage broker will help you ‘package’ your loan to your best advantage, helping you determine how much to expect based on the equity in your property, type of property you are collateralizing, how soon you need to close the deal, and more. A good commercial mortgage broker will be able to assist you through the lengthy application process and submit your loan request to the best direct lenders for your situation. More often than not, working with a commercial mortgage broker will save time. By representing you and presenting your loan request to the best direct lenders, it often makes the transaction run more smoothly and take less time than if you were to take on this task yourself. This often saves you time and trouble in the long run and be well worth the cost of using a mortgage broker.
Visit http://www.donnasmortgages.com
Wednesday, June 04, 2008
Advantages of a Commercial Second Mortgage
A commercial second mortgage is an important commercial real estate tool.Commercial second mortgages are often used in conjunction with a new first commercial mortgage loan. Typically, the commercial second mortgage will have a term of one to five years with interest only payments. While commercial second mortgages can be critical in some financing scenarios, consideration must be given as to whether or not you have the ability to service both loans.There are some clear advantages to this type of creative financing. The most frequent use is that a commercial second mortgage reduces the LTV (loan to value) of the first mortgage in order to allow you to more easily qualify for the first mortgage. An example would be where the primary lender (first mortgage holder) will only lend 70% LTV and you only have a 20% (or less) down payment. A commercial second mortgage can be used to make up the difference.Other uses for a commercial second mortgage are to finance business expansion and construction, working capital, to consolidate debts, pay tax arrears (lets face it, this does happen), or for renovations.There are a variety of options available to you such as: interest only payments, annual payments, exit fees, etc. that will help keep your immediate payments down and defer the costs of the commercial second mortgage. The idea is to give the property time to appreciate and thereby allow you to refinance and consolidate both the first and second mortgages at a later date at a then lower LTV.
Visit http://donnasmortgages.com
Visit http://donnasmortgages.com
Residential Second Mortgages and Home Equity Loans
A second mortgage is a registered lien on your property. This lien is in second place, behind the first mortgage. Because second mortgages are riskier, the interest rates are usually a minimum of 10-12%. A new second mortgage can be used to purchase a home or to refinance an existing home. If refinancing, the new second mortgage can be used for a variety of things:
§ Home renovations
§ Children’s education
§ Pay off existing debt
§ Emergency expenses
§ Business expenses in challenging times
§ Investments
Home equity is the difference between the current appraised value of your home and the amount you have paid on the first mortgage. For example, if you have paid $85,000 on a mortgage of $300,000, you can borrow against the $85,000 already paid. Home equity loans are either second mortgages or refinanced first mortgages with taking cash out. Again, this cash out can be used for a variety of reasons, from consolidating outstanding debt to renovating your home to paying for your children’s education.
Depending on your particular financial situation, you may be able to lower monthly payments on your outstanding debts. Instead of paying high interest rates on a personal loan or credit card, you can get a home equity loan at low mortgage rates and pay off these debts for less.
Depending on your unique loan scenario, we may be able to offer the following terms for your second mortgage:
- Insured Second mortgage up to 95%
- High-ratio first mortgages up to 100%
- Equity-based first and second mortgages up to 100%
Through our vast network of lenders, we can increase the probability of approval of your home equity loan/second mortgage.Call us today to see how a home equity loan/second mortgage can work for you.
Visit http://www.donnasmortgages.com
§ Home renovations
§ Children’s education
§ Pay off existing debt
§ Emergency expenses
§ Business expenses in challenging times
§ Investments
Home equity is the difference between the current appraised value of your home and the amount you have paid on the first mortgage. For example, if you have paid $85,000 on a mortgage of $300,000, you can borrow against the $85,000 already paid. Home equity loans are either second mortgages or refinanced first mortgages with taking cash out. Again, this cash out can be used for a variety of reasons, from consolidating outstanding debt to renovating your home to paying for your children’s education.
Depending on your particular financial situation, you may be able to lower monthly payments on your outstanding debts. Instead of paying high interest rates on a personal loan or credit card, you can get a home equity loan at low mortgage rates and pay off these debts for less.
Depending on your unique loan scenario, we may be able to offer the following terms for your second mortgage:
- Insured Second mortgage up to 95%
- High-ratio first mortgages up to 100%
- Equity-based first and second mortgages up to 100%
Through our vast network of lenders, we can increase the probability of approval of your home equity loan/second mortgage.Call us today to see how a home equity loan/second mortgage can work for you.
Visit http://www.donnasmortgages.com
Bad Credit Commercial Loans and Mortgages
While credit profile is an important consideration in the lending decision it is not the only one. A bad credit commercial mortgage or loan is available to individuals and businesses with less than perfect, or poor credit rating. These are also called “sub-prime” loans.
Bad credit commercial loans and mortgages are available for any sort of commercial purpose. Bad credit commercial loans can be used to remodel a manufacturing plant to make it run more swiftly, for example. Bad credit commercial mortgages can also be used to restructure or expand the existing business. Also, much like bad credit home loans, bad credit commercial loans can be used to actually pay off debt and improve your credit.
Bad credit may not stand in the way of obtaining your loan or mortgage request, only a clear detailed plan of your commercial purpose for the loan is needed, as well as a plan for repayment. With bad credit commercial loans and mortgages, bad credit may not hurt anymore, but rather it gets improved. And then, with timely payments, you can eventually improve your credit score and overall credit report even further.
Not all commercial property owners and prospective commercial property owners are alike and thus we treat each loan request as a unique scenario and try to maximize our clients’ opportunities to get the commercial property loan that meets their objectives, even if their credit history is less than perfect. New and creative financing techniques are available to make our services more effective and responsive to borrower's needs. Rates can vary quite dramatically across products, so it is important that we understand your situation as thoroughly as possible so we can secure the best product for you.
Securing the right bad credit commercial mortgage or loan is a very important decision. Equally as important is speaking with the right people. If this is an area you wish to explore, contact us today.
Visit http://www.donnasmortgages.com
Bad credit commercial loans and mortgages are available for any sort of commercial purpose. Bad credit commercial loans can be used to remodel a manufacturing plant to make it run more swiftly, for example. Bad credit commercial mortgages can also be used to restructure or expand the existing business. Also, much like bad credit home loans, bad credit commercial loans can be used to actually pay off debt and improve your credit.
Bad credit may not stand in the way of obtaining your loan or mortgage request, only a clear detailed plan of your commercial purpose for the loan is needed, as well as a plan for repayment. With bad credit commercial loans and mortgages, bad credit may not hurt anymore, but rather it gets improved. And then, with timely payments, you can eventually improve your credit score and overall credit report even further.
Not all commercial property owners and prospective commercial property owners are alike and thus we treat each loan request as a unique scenario and try to maximize our clients’ opportunities to get the commercial property loan that meets their objectives, even if their credit history is less than perfect. New and creative financing techniques are available to make our services more effective and responsive to borrower's needs. Rates can vary quite dramatically across products, so it is important that we understand your situation as thoroughly as possible so we can secure the best product for you.
Securing the right bad credit commercial mortgage or loan is a very important decision. Equally as important is speaking with the right people. If this is an area you wish to explore, contact us today.
Visit http://www.donnasmortgages.com
Why A Commercial Equity Loan?
One main reason for getting a commercial equity mortgage loan is to obtain a line of credit. A line of credit is an amount of money made available for you to borrow from whenever you wish.
When you get a line of credit with a commercial equity mortgage loan, what you're actually doing is getting a new 'mortgage-loan' on your commercial real estate for a particular amount. For example, instead of taking that amount, say $500,000 out of your commercial real estate in cash, you leave that cash in, but make it available as a line of credit.
Of course, this line of credit is accessible whenever you need it, paying interest only on the amount you use, and only when you are using the line of credit. If you took the $500,000 out in cash, you would have to pay interest on that full $500,000 until you completely paid it back.
So a line of credit is a money-saving option as opposed to getting full 'cash out' with a commercial equity mortgage loan, especially if you don't need to use the entire amount of equity in your commercial real estate all at once. If you get a line of credit by getting a commercial equity loan, it can act as a safety blanket for you in case of financial emergencies. Also, you can get a line of credit with a commercial equity loan far cheaper than you can get a regular line of credit from a bank.
Visit http://www.donnasmortgages.com
When you get a line of credit with a commercial equity mortgage loan, what you're actually doing is getting a new 'mortgage-loan' on your commercial real estate for a particular amount. For example, instead of taking that amount, say $500,000 out of your commercial real estate in cash, you leave that cash in, but make it available as a line of credit.
Of course, this line of credit is accessible whenever you need it, paying interest only on the amount you use, and only when you are using the line of credit. If you took the $500,000 out in cash, you would have to pay interest on that full $500,000 until you completely paid it back.
So a line of credit is a money-saving option as opposed to getting full 'cash out' with a commercial equity mortgage loan, especially if you don't need to use the entire amount of equity in your commercial real estate all at once. If you get a line of credit by getting a commercial equity loan, it can act as a safety blanket for you in case of financial emergencies. Also, you can get a line of credit with a commercial equity loan far cheaper than you can get a regular line of credit from a bank.
Visit http://www.donnasmortgages.com
Bad Credit Residential Mortgage
At Donna’s Mortgages, we have a track record for helping our customers manage their financial affairs responsibly, and assisting them in re-establishing their credit and stability.
We understand that, although many clients are capable and willing to take on the responsibility of a new residential mortgage, the criteria used by most, if not all, financial lending institutions prevent them from obtaining their loan request, due to past bad credit. Over the past few years, it has become increasingly easier to obtain loans for clients with bad or less than perfect credit, via tried and trusted private lending companies. These are also called sub-prime mortgages and loans. These companies can often finance sub-prime or bad credit mortgages which conventional institutions cannot. The main thing these private lending companies wish to see is equity in the property, in a marketable location.What's really important is that we are able, in almost all cases, to place financing regardless of your past credit history. We are also able to assist consumers with good credit to obtain the most competitive mortgage rates and terms, and offer a wide range of mortgage products to meet a variety of needs. Whether you have a history of bad or less than perfect credit, you have filed for bankruptcy, consumer proposal, credit counselling, you are self-employed or without verifiable income, or you’ve accumulated an unmanageable amount of debt, we can almost always place your loan request for financing.
Because sub-prime mortgage loans can often be a complicated process, it’s important you speak with the right people. The idea is to improve your credit score and get you back on track with manageable debt and payment schedules. Even if your initial goal is to consolidate debts, do home renovations, taking a much-needed holiday, or anything else, a sub-prime bad credit mortgage can actually help improve your credit score. Combined with timely payments, a sub-prime mortgage can put you in the right direction towards financial freedom. Call us today.
Visit http://www.donnasmortgages.com
We understand that, although many clients are capable and willing to take on the responsibility of a new residential mortgage, the criteria used by most, if not all, financial lending institutions prevent them from obtaining their loan request, due to past bad credit. Over the past few years, it has become increasingly easier to obtain loans for clients with bad or less than perfect credit, via tried and trusted private lending companies. These are also called sub-prime mortgages and loans. These companies can often finance sub-prime or bad credit mortgages which conventional institutions cannot. The main thing these private lending companies wish to see is equity in the property, in a marketable location.What's really important is that we are able, in almost all cases, to place financing regardless of your past credit history. We are also able to assist consumers with good credit to obtain the most competitive mortgage rates and terms, and offer a wide range of mortgage products to meet a variety of needs. Whether you have a history of bad or less than perfect credit, you have filed for bankruptcy, consumer proposal, credit counselling, you are self-employed or without verifiable income, or you’ve accumulated an unmanageable amount of debt, we can almost always place your loan request for financing.
Because sub-prime mortgage loans can often be a complicated process, it’s important you speak with the right people. The idea is to improve your credit score and get you back on track with manageable debt and payment schedules. Even if your initial goal is to consolidate debts, do home renovations, taking a much-needed holiday, or anything else, a sub-prime bad credit mortgage can actually help improve your credit score. Combined with timely payments, a sub-prime mortgage can put you in the right direction towards financial freedom. Call us today.
Visit http://www.donnasmortgages.com
Business and Construction Loans
Capital is the foundation of every business. The business owner needs to have enough funds to run his business smoothly. And, as we know, business does not always mean earning profits - you may have losses as well. In a not always predictable market, doing business necessitates the requirement of immediate cash. Commercial secured business loans have been designed to help you out in these circumstances.
Commercial secured business loans are tailored specifically for entrepreneurs who require funds for starting/acquiring a business or expanding an existing one. The amount drawn from commercial secured business loans can be used for a variety of purposes, such as purchasing machinery, renovating buildings and offices, purchasing commercial buildings and much more.
One important feature of secured commercial business loans is that these business loans can be collateralized by commercial property, equipment, accounts receivables, purchase orders, contracts, company shares, other unrelated properties, etc.
Commercial real estate lenders wish to see a business plan which shows a strong source of repayment for the loan. The lender wants to make sure that his business loan is going to get repaid.
There are a number of questions that the lender will have in order to see if you qualify for a business/construction loan or financing:
- Will the finished project be worth more than it costs to construct/finance?
- After the project is finished, will the loan to value be, for example, 75% or less?
- How much will the borrower be willing to invest in the construction/business loan?
- How does the borrower’s net worth compare to the size of the construction/business loan?
- Will the lender be able to get out of the deal at some point by the borrower qualifying for a new loan to pay out his construction/business loan (takeout loan)?
As far as business start up loans, lenders are concerned with such things as: the borrower’s experience in the line of business (increases the borrower’s chances of success), the amount the borrower is willing to invest himself (how much the borrower will have at stake in the deal), collateral sufficient for the loan portion of the deal. Business start up loans can be used for: construction financing, renovations to existing premises, machinery and equipment, marketing, and working capital, or acquisition of a business.Call us today to find out how we can put a solution together for your specific needs. Visit http://www.donnasmortgages.com/
Commercial secured business loans are tailored specifically for entrepreneurs who require funds for starting/acquiring a business or expanding an existing one. The amount drawn from commercial secured business loans can be used for a variety of purposes, such as purchasing machinery, renovating buildings and offices, purchasing commercial buildings and much more.
One important feature of secured commercial business loans is that these business loans can be collateralized by commercial property, equipment, accounts receivables, purchase orders, contracts, company shares, other unrelated properties, etc.
Commercial real estate lenders wish to see a business plan which shows a strong source of repayment for the loan. The lender wants to make sure that his business loan is going to get repaid.
There are a number of questions that the lender will have in order to see if you qualify for a business/construction loan or financing:
- Will the finished project be worth more than it costs to construct/finance?
- After the project is finished, will the loan to value be, for example, 75% or less?
- How much will the borrower be willing to invest in the construction/business loan?
- How does the borrower’s net worth compare to the size of the construction/business loan?
- Will the lender be able to get out of the deal at some point by the borrower qualifying for a new loan to pay out his construction/business loan (takeout loan)?
As far as business start up loans, lenders are concerned with such things as: the borrower’s experience in the line of business (increases the borrower’s chances of success), the amount the borrower is willing to invest himself (how much the borrower will have at stake in the deal), collateral sufficient for the loan portion of the deal. Business start up loans can be used for: construction financing, renovations to existing premises, machinery and equipment, marketing, and working capital, or acquisition of a business.Call us today to find out how we can put a solution together for your specific needs. Visit http://www.donnasmortgages.com/
Alternatives to Traditional Banks as Sources for Commercial Loans
Commercial mortgages are available through banks, commercial mortgage companies and private lenders. Commercial mortgage rates vary as widely as residential mortgage rates. Traditional banks offer some very low rates. However, due to their restrictive lending criteria, they are prevented from making commercial mortgages for many kinds of commercial properties. Gas stations, with or without convenience stores, for example, can be difficult to obtain commercial mortgages for. Commercial mortgages can also be difficult to obtain from traditional banks if you don’t have excellent personal and business credit scores. Hard money commercial mortgages are also available through private lenders. Unlike traditional banks, private lenders have more flexible lending criteria. Also known as hard money lenders, private commercial mortgage companies focus more on the current value of a commercial property than on your personal financial package. Private lenders are often able to fund a commercial mortgage if there is a clear picture of how the loan will be paid back. When determining whether to fund a commercial mortgage, private lenders will often look at the ratio of income to operating expenses. Unless a borrower has repeated defaults and bankruptcies, private lenders are not as concerned if the borrower has less than perfect credit.
When applying for a commercial mortgage, be prepared to provide your commercial mortgage company, be it a bank or a hard money private commercial mortgage lender, with the following:
• A completed standard commercial mortgage loan application, which includes a personal and business balance sheet
• A description of the use of proceeds of the commercial mortgage you are seeking
• A description of the property
• The current value/purchase price of the property
• The cost of improvements you will make to the property
• An estimate of the property’s value after improvements
• A repayment plan for the commercial mortgage/hard money loan
• For a hard money loan, provide an exit strategy for the commercial mortgage – will you refinance this commercial mortgage with a traditional bank after making improvements or alterations to the existing property or some other scenario?
Owners considering a commercial mortgage refinance will find many unique loan programs. As specialists of commercial mortgage refinancing we offer some of the best loan options available, most of which your local bank simply does not have. Refinancing your commercial mortgage is not an act exclusively reserved for the time your commercial mortgage matures. There are some great reasons for refinancing your commercial mortgage prior to this (see the article “Why a Commercial Equity Loan”). Now, given the current the state of the capital markets its more important than ever to work with seasoned professionals. Lender guidelines and underwriting parameters are changing rapidly as banks try to protect themselves. Options for commercial mortgage refinances, though still broad, are getting harder to determine and close. Just as important it is key to know not only which lenders are offering the lowest rate and fees but which are still actively funding loans. We know who these lenders are. Call now to discuss your loan scenario.
Visit http://www.donnasmortgages.com
When applying for a commercial mortgage, be prepared to provide your commercial mortgage company, be it a bank or a hard money private commercial mortgage lender, with the following:
• A completed standard commercial mortgage loan application, which includes a personal and business balance sheet
• A description of the use of proceeds of the commercial mortgage you are seeking
• A description of the property
• The current value/purchase price of the property
• The cost of improvements you will make to the property
• An estimate of the property’s value after improvements
• A repayment plan for the commercial mortgage/hard money loan
• For a hard money loan, provide an exit strategy for the commercial mortgage – will you refinance this commercial mortgage with a traditional bank after making improvements or alterations to the existing property or some other scenario?
Owners considering a commercial mortgage refinance will find many unique loan programs. As specialists of commercial mortgage refinancing we offer some of the best loan options available, most of which your local bank simply does not have. Refinancing your commercial mortgage is not an act exclusively reserved for the time your commercial mortgage matures. There are some great reasons for refinancing your commercial mortgage prior to this (see the article “Why a Commercial Equity Loan”). Now, given the current the state of the capital markets its more important than ever to work with seasoned professionals. Lender guidelines and underwriting parameters are changing rapidly as banks try to protect themselves. Options for commercial mortgage refinances, though still broad, are getting harder to determine and close. Just as important it is key to know not only which lenders are offering the lowest rate and fees but which are still actively funding loans. We know who these lenders are. Call now to discuss your loan scenario.
Visit http://www.donnasmortgages.com
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