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Hard money loans: great option when buying a fixer upper

Hard money loans: great option when buying a fixer upper

If you’ve ever bought a home and didn’t qualify for traditional financing, you iliar with the terms “hard money loan” or “private money loan.”

How do hard money loans work?

The Federal Housing Administration (FHA) has been enjoying some of their busiest fiscal years, but getting an FHA-backed loan may not be enough. Many sellers prefer taking an all-cash offer to dealing with the challenges that sometimes arise when buyers offer with conventional or FHA loans.

For reasons like these, hard money loans, usually offered by private investors in exchange for a security interest in the property, have come back into style. Hard money lenders tend to take a different approach.

Hard money generally comes from individuals or groups of investors who lend money based primarily on the property being used as collateral. If anything goes wrong and you can’t repay, hard money lenders plan to get their money back by taking the collateral used for the loan and selling it. Generally, the value placed on the actual collateral is worth more than your financial position.

Hard money loans

Most homebuyers pursue a hard money loan because they either don’t qualify for a standard mortgage or they need money quickly. …

Global cash flow analysis – common mistakes & helpful hints

Global cash flow analysis – common mistakes & helpful hints

Global Cash Flow analysis is used by financial institutions to assess the combined cash flow of a group of people and/or entities to get a global picture of their ability to service the proposed debt.

Global cash flow analysis – common mistakes & helpful hints

When performing a Global Cash Flow (GCF) analysis, there are several mistakes that financial institutions make that could be the difference between approving and denying a loan request:

It may seem obvious that the above isn’t even a GCF analysis by definition, but this mistake happens. The lender believes they are performing a ‘Global’ analysis by obtaining and analyzing all of the people and businesses involved in the loan request, but it is not truly Global until all of these cash flows are combined into a single GCF. Linda Heath, president of Financial Holographix 1, emphasizes the importance of thinking “net” cash flow. …