|
|
Boise Peer Financing Blog
|
Saturday, 27 March 2010 21:18 |
|
What's the difference between hard money bridge loans and peer to peer loans? Not a whole lot, but there are some distinctions in how the terms are used.
First of all, let's start with an overview of hard money. Hard money loans are generally loans that are secured by real estate using a low Loan to Value (LTV) ratio and a high interest rate. Credit score really doesn't matter too much to a hard money lender, because they are more intersted in the high rate of return. Their security comes from the knowledge that they can foreclose on the property in the even the borrower defaults.
The loan is doubly safe for them, because the LTV is not only low-balled (60 to 70% max, generally), but the value itself is low-balled using a value that is deemed by the investor to be the "quick sale value." This means the investor can theoretically get his money back in fairly short order in case of default.
Now, let's deal with the bridge loan aspect of hard money bridge loans. A bridge loan is a short term loan that is only intended to fill a gap between the purchase (or need for capital, as the case may be) and the availability of conventional financing. Most conventional financing sources (underwriters/loan investors) require a seasoning period from the time of purchase before they will refinance a property. Let's say an investor has the opportunity to buy a property severely under market value, but the property needs a lot of work.
If a conventional lender will not loan money for the deal because of the condition of the property, a hard money bridge loan may be secured which would give the borrower time to make needed repairs during the "seasoning period." Then the hard money loan could be refinanced conventionally at a lower rate.
|
|
Wednesday, 11 March 2009 01:17 |
|
If you are having trouble obtaining financing for real estate from traditional sources like banks and credit unions, you can almost always find private investors to help you out. This is true whether you have good credit or not, and whether you are wanting to buy a home to live in, or an investment property. Capital is usually available—at a price—if you know where to look.
Hard Money Loans
A hard money loan is a privately financed mortgage on real estate, often for investment property. Terms may be the same as traditional mortgages, with the exception of the higher interest rate. While you might be able to find a hard money lender who will do a standard 30 year fixed mortgage, it is more common for loans financed with hard money to mature in a shorter time period.
|
|
Read more...
|
|
Monday, 02 March 2009 10:23 |
|
We are proud to announce that our private money investor registration is now available. There is no commitment, no fees, and no paperwork. We will simply use our site to help match potential candidates to your lending profile.
If you have money sitting in the bank getting dismal returns of 2% to 4% interest, you should consider peer to peer lending as an alternative. Deals are usually short-term - perhaps a real estate investor found an unusually low-priced short sale and just needs the money for six months. They also can be very safe investments, as you can ask for any collateral requirements you want to negotiate. Take a mortgage on a house, equity in a commercial building, or any other vehicles to limit your risk.
So I hope you'll sign up today to get into our nationwide database of potential private money lenders. Remember, there is no obligation for signing up at PeerToPeerLending.biz! |
|
Saturday, 31 January 2009 19:38 |
|
Now there is a source for Boise peer to peer lending, or p2p lending as it's sometimes called. Right here in the Treasure Valley, you can hook up with peer to peer lenders and even venture capital firms and angel investors who are interested in getting a better return on their money than the banks can give them.
Here at Peer to Peer Lending is a good place to start if you're looking for short term peer to peer loans in the Boise, Idaho area. |
|
|
|
|
|
