Hard Money Loans for Real Estate: How to Profit Wildly in Real Estate With Hard Money Loans

Hard money loans can help you make a fortune in real estate investing. Whether you’re just starting out or you have years of experience investing, you can definitely take advantage of the enormous leverage these special loans provide.

When you decide to use hard money loans to buy real estate for investment purposes, one of the first things you need to do early on is to think about your exit strategy.

Your exit strategy is essentially what you plan on doing with a particular investment deal in order to profit from it. For example, you might want to invest in a property so that you can fix it up and then sell it for a profit as soon as you have it ready. Another example of an exit strategy is investing in a property so you can hold onto it as a rental property for long term gains.

Once you’ve picked your exit strategy and decided you will be using a hard money loan to fund your deal, your next step is to crunch some numbers and complete your due diligence process. Like they say, “the money is in the deal,” so you want to “buy right” in order to make sure you profit.

You can find deals from motivated sellers in all kinds of situations — people facing foreclosure are a good example of motivated sellers, abandoned property owners are also likely to be motivated to sell and so are distressed out of town landlords.

Once you find your deal from a truly motivated seller. you want to negotiate and put it under contract because your hard money loan lender will definitely want to see that binding document before they can lend out any funds.

With your deal under contract, you will then need to find and contact a loan broker or lender who specializes in hard money loans for real estate. Hard money loans are typically not underwritten by conventional banks or credit unions like conventional real estate loans are.

After you get your funding and buy your investment property from a motivated seller, the next step is to get it fixed up so you can get it ready for the market. You can do this yourself or you can find independent contractors to help you with the repairs.

In most cases, hard money loans for real estate will make a provision for repair money. So going back to “buying right,” if you got your repair costs estimated correctly, then you shouldn’t have a lot of problems at this stage.You will have enough money to fund the repair costs.

The final stage of course is executing your exit strategy just like you planned at the very beginning of your project. Here’s where you put the deal on the market and either sell it to an end buyer or you hold onto it as a rental property.

As you can see, hard money loans for real estate can really help make the process of investing and profiting with real estate so much smoother. Take advantage of these special loans and use them whenever possible.

Prosper Loans – Peer-To-Peer Lending Creates Opportunity

Many people assume there is only one source of borrowing. This source would, of course, be a traditional bank. While banks truly are a major source of lending, there are other opportunities for borrowing. One such method would be peer-to-peer lending. Among the common peer-to-peer lenders, Prosper remains an increasing popular provider.

Prosper Loans (Prosper.com) is a company that also does offer something unique to the financial market. It provides a means in which investors can a nontraditional and potentially profitable vehicle for their money. How so? Investors become lenders and reap the interest on the financing they provide.

The numbers tell the tale. There are over 1.1 million members and they have borrowed $264 million in funds. Such figures clearly show that this is a well established and serious lender. How does the program designed by Prosper work? The answer to this is found in the answer to what exactly peer-to-peer lending entails.

Basically, the process eliminates the traditional lending institution by connecting borrowers with those that are looking for viable vehicles in which to invest their money. New and innovative investment vehicles will always be popular which is why this company is raising eyebrows in financial circles.

The actual borrowing/lending/investing process is a rather streamlined one. A borrower merely needs to determine a loan amount along with a stated purpose for the loan. Immediately thereafter, the borrower will post a classified ad promoting a loan listing. Those interested in investing via funding loans will examine the classified listing.

Investors are not under any obligation to cover any loan. However, if the investor sees a loan listing that meets his or her risk level, the investor may wish to fund such a loan. Again, there is no obligation for the lender to accept a loan offer so no one is locked into funding weak loan offers.

As soon as a loan is approved, the borrower will make repayments in the same manner they would to any other lending source. They will make fixed monthly payments which will go to cover the loan and the interest.

The money that is paid back will cover both the investor’s actual investment although a portion of the payments will go to Prosper.com. This should be considered a given because the service does have to make money in order for it to remain solvent. That is just basic common business sense. This is where certain misconceptions arise where the service is dubbed fraudulent. Accepting fees for providing a lending and investing service is perfectly understandable. The key here is that the service does what is needed to do to provide all parties with a viable means of seeing both their needs met. Accepting a nominal fee in order to provide such a service is logical.

Prosper.com does offer a unique peer-to-peer lending and investing service which can help all parties involved. Many are seeking a viable means of acquiring lending when other forms of lending have been cut off. The same can be said that there is a need for effective investment vehicles as well.

Exactly How to Make Sure You Receive the Building Your Business Deserves

The majority of organizations today are usually started with borrowed money in a rented space and with a lot of prayer. Usually, those that succeed, typically also have a top-notch web site. In case they were simply unable to get to rent it at first, then likelihood is, it isn’t really extremely long before they may be able to build their particular center. Based on the true nature and also scope of your building, this could be a tremendous undertaking, the one which entails employing a wide variety of pros like city/county managers, the particular zoning dept, an architectural organization, a civil engineering organization, professional builders and more. Whilst lots of work plus most likely demanding, the total outcome is a properly sized, state-of-the-art center that was created to satisfy your distinctive wants, that’s valuable.

A person can see here from this page a number of the countless advantages associated with getting a construction which was manufactured with regard to a particular purpose. It isn’t necessary to “make do” when the particular space inside which one operates appeared to be made to cater to every facet of a person’s company, from the foyer into the customer locations to the restrooms or even the production floor. From airports to barns to processing plants to pediatrician offices, they each have a distinctive purpose, distinct needs and the actual enterprise by itself gains advantage from having its space organized based on its particular purposes.

Even your location will be connected with important importance. This is true whether or not you can find heavy vans rumbling their own way to and from a storage facility every day and reliant upon industrial bridge designs created to tolerate the loaded weight and it is actually also a fact any time visibility counts, and dreams are usually high that potential clients moving past by on their path to other spots might stop in as they were captivated by the business’s sign, window display or even landscaping. The Realtor’s preferred phrase, “Location, location, location” applies to industrial/commercial real-estate as well as residential. Demographics matter. Zoning permits do, also. The price tag on water, waste removal as well as the actual distance to the nearby fire department are crucial considerations. First, utilize paper plus pen to find out all of your enterprise location’s applicable concerns, and then commence choosing all the professionals you need to produce all that you have envisioned possible.

The Best Investment Strategy for 2013

For the average investor, the best investment strategy for 2013 likely won’t be the traditional investment strategy commonly recommended by the investment companies and their representatives. Change is in the wind, and one of the best ways to deal with this is to make adjustments to the asset allocation strategy in your investment portfolio.

For over 30 years the investment industry recommended that the best investment strategy for most investors was an asset allocation of: 50% to 60% in stocks and 40% to 50% in bonds. The investment vehicle promoted was mutual funds – stock funds and bond funds. This kept things simple and actually worked quite well. Losses in one asset class were often offset by gains in the other. This investment portfolio produced both good growth and income for average investors over the years.

As 2013 unfolds it’s time to review your asset allocation. Sometimes the best investment strategy is to be a bit more conservative than the tried and true strategy of yesterday. The stock market has more than doubled in value since early 2009. Bond prices are near historical highs, with interest rates pushing all-time lows. The markets are in a state of uncertainty, as Americans in general are fed up with the lackluster economy and the Congressmen who represent them.

Having followed the markets for over 40 years, I have never seen a tougher environment to invest in. Putting together the best investment strategy has never been more difficult. All of the investment asset classes appear to be selling at high price levels, with real estate being perhaps the exception. So, let’s take a look at the things to consider in your asset allocation strategy.

If you are one of the millions of every-day Americans who are relatively heavy into bond funds, consider cutting back on your asset allocation to these funds. Bond funds are NOT safe investments in today’s low-interest-rate environment. Your best strategy: no more than 30% or 40% invested in bonds or bond funds. Even U.S.Treasury bonds (T-bonds) will lose significant value if interest rates go back up to normal levels.

Also, if you hold long-term bond funds, consider moving to intermediate-term funds that hold bonds with an average maturity of about 5 to 7 years in their investment portfolio. Bond funds that hold long term bonds, maturing in 20 years or more, can lose significant value when interest rates head upward. With this investment strategy you will receive a bit less in dividend income, but you will gain by significantly increasing the safety factor.

Millions of Americans have lost faith in the stock market, and many have sold their stocks funds to buy bond funds. The average diversified stock fund gained more than 100% between early 2009 and early 2013. If you missed this opportunity, it is not the best investment strategy to jump in big time and play catch-up now. But, depending on your risk profile and age, you should consider an asset allocation with 20% to 50% going to stock funds.

In times of high uncertainty diversification is one of the investor’s best friends. Let this thought guide your investment strategy and asset allocation when picking stock funds for 2013 and beyond. Include a variety of stock (equity) funds in your investment portfolio. The perfect place to start is with a diversified large-cap equity fund like an S&P 500 index fund. With an S&P 500 index fund you own a small piece of 500 of America’s largest, best known companies. Make this your largest holding in the stock portion of your investment portfolio.

Then, add an international equity fund to your portfolio. Also include specialty funds in your investment strategy that focus on specific sectors like real estate, gold, natural resources and basic materials. These funds have sometimes been the best investment when the stock market in general is weak.

Now that you have cut your asset allocation to stocks and bonds, where do you invest those proceeds? Cash is your other friend when uncertainty is high. Cash refers to safe, liquid investments like money market funds or money in bank savings accounts. Sometimes the best investment strategy includes keeping some powder dry awaiting future opportunity.

Your best investment strategy for 2013 is to modify your asset allocation in stocks and bonds so that risk is only moderate. Diversify broadly across the asset classes, and have cash available so you can take advantage of future investment opportunities. This strategy will keep you in the game, with less risk than yesterday’s conventional investment strategy.

Best Mutual Fund Investment for the Clueless in 2013

If you’re clueless in 2013, your best investment and the best mutual fund is one and the same: an investor-friendly mutual fund sometimes called a fund of funds. I call this the best investment for the inexperienced investor because it offers two huge advantages.

Investors need a balanced investment portfolio of stocks and bonds to smooth out the risk of investing. Few investors have the experience or inclination to go it alone. The first advantage of what I call the best mutual fund for most folks in 2013: the fund company (investment company) does the investment management for you. You simply decide whether you want to be conservative, moderate or aggressive in terms of risk.

To find your best investment, go to the investment company’s website and search for the mutual fund category called BALANCED or ASSET ALLOCATION. When you invest money, you will actually be buying shares and will own a small part of a large investment portfolio of stocks and bonds. Often times, the portfolio will simply consist of stock and bond funds managed by that investment company. That’s why I say your best mutual fund is sometimes called a fund of funds.

Now let’s talk about the other big advantage, using a $10,000 investment as an example. It can cost you $500 off the top in sales charges and more than $200 a year in fees and management expenses if you go through a sales representative. Or, you can go with a NO-LOAD fund company like Fidelity or Vanguard and pay less than $100 a year for expenses, period. That’s what I call the best mutual fund, your best deal and best investment.

Some folks are lead to believe that you get what you pay for in the investment world. I spent over 20 years as a financial planner, and I know the truth. The best investment company is a low-cost investment company. The two I mentioned above qualify, plus they are the two largest in the business. Every dollar you add to the cost of investing in a mutual fund is a dollar subtracted from your net investment return.

If you are clueless in 2013, and want to own a very small part of a large professionally managed investment portfolio… the best investment and the best mutual fund for you is a no-load, balanced fund. Simply search for “no-load funds” on the internet, and you’re on your way to investment success and low-cost investing.