Land Loans
Louisianalandsource.com Partners Land For Sale In Louisiana Network With First South Farm Credit
August 18, 2010 -- This partnership between LouisianaLandsource.com and First South Farm Credit in Mississippi has enabled these Associations to embed thousands of searchable farms, ranches, timberland and recreational properties for sale into their websites. Now visitors browsing these websites can search the largest database of rural land listings in Louisiana provided by LouisianaLandsource.com.
The majority of LouisianaLandsource.coms properties are advertised by rural land brokers and real estate agents. This makes the partnership even more beneficial to the association because rural land brokers are the key to driving real estate financing business to the association. Through advertising the rural land brokers' properties on the First South Farm Credit websites, the association is able to drive buyers to the rural land brokers, who in return will hopefully finance those properties through First South Farm Credit.
"The partnership with First South Farm Credit has been a perfect fit, we both share the same objective of providing the best service possible to rural real estate agents and brokers," said Chuck Magee, of LouisianaLandsource.com, LLC. "We are excited about the increased exposure this partnership will provide our rural real estate agents that use our network to advertise their listings."
Another key aspect of the partnership is the Land Financing Center that has been sponsored on LouisianaLandsource.coms website. Many of today's buyers are new to the way rural land loans work compared to residential loans. These Land Financing Centers will assist these buyers in understanding how these rural land loans differ.
This partnership with LouisianaLandSource.com will allow our customers to both find rural real estate and obtain financing information on the same website, Plus it helps generate business for the rural real estate agents and brokers in our area who are key to loan origination.
First South Farm Credit is the Farm Credit System's largest lending institution in Alabama, Louisiana and Mississippi, and the only institution offering uninterrupted loans and financial services since 1933.
LouisianaLandsource.com, LLC. is an online real estate marketing service for brokers specializing in Land For Sale In Mississippi. Their network of 64 websites advertises their members' properties to thousands of monthly visitors. The company was formed in 1999 and is headquartered in McComb, Mississippi.
Frequently Asked Questions
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QUESTION:
looking for best financing options for recreational land loans?
15 acres of bare land. All riverfront property. Rural Arkansas Ozarks, yet known resort type area. I feel like the local bank that has agreed to lend without the appraisal is a bad deal and closing is coming up. We verbally agreed to 3 yr ballon with 10 year Amt. I don't know how to shop for a land loan in today's market place. Credit great. 20% down, no prob. ? How do I shop around for a loan without hurting my credit just by asking?-
ANSWER:
Lenders who specialize in land loans, or are members of the Farm Credit System, often have better deals than run-of-the-mill banks. See one of each in the following links. Good luck.
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QUESTION:
You have two loans.one current home and the second is a land loan, which should you make extra pymts on first?
If you have extra money to make extra payments, should you make extra payments on your current home mortgage or should you make extra payments on your land loan (plan to build a home on the land in the next 1-5 years). If one of the loans has a 1% higher interest rate, is this the one you should try to pay off faster?-
ANSWER:
Given your timespan, why are you looking to pay off more of the home loan? There's little to gain.While we're at it, why would you want to pay off extra principal on the land loan? Knowing what you expect to gain from doing that might shed some light on this.
I'd suggest that you save the extra cash to go towards construction of the new home. You can take out a smaller home construction loan.
Second to that, I'd put the money towards the land loan, since I'm expecting that you plan on living them for many years.
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QUESTION:
Are there any lenders in NSW Australia that do land only loans?
I have found a parcel of land that I would like to purchase. The land is not currently zoned for building, however I believe with its location it will eventually be zoned to cope with population demand (near shops and train station).I am looking for a lender in NSW Australia that does land only loans. I am not obviously not after a construction loan, just a simple loan using the land as security.
Does such a lender exist?
Thanks
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ANSWER:
the bank of Queensland do well i am sure they do i am in VIC and my son got a loan from them hope that was some help
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QUESTION:
loans for land with mobile home for people with bad credit?
My mom is looking to get almost an acre of land with 2 mobile homes on it for 25,000$ but she has really bad credit. She just got on disability so she does have an income. Does anyone knoe of any way that she could get a loan for the land?-
ANSWER:
No, the micro loan makes it harder. Loans that small are usually personal loans, not mortgages. She has to pay cash or obtain a personal loan.
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QUESTION:
Can FHA loans cover land and modular homes?
Would I be able to use an FHA loan to buy a plot of land and put a modular home on it?Say... ,000 for the land...
Say... ,000 for the modular home....
Add in surveying, foundation laying, septic, water, electricity, etc.
Is it a possibility with an FHA loan?
Provided certain guidelines are followed?-
ANSWER:
No. Land cannot be purchased with a mortgage.
FHA mortgage is for a home that is habitable, meaning move in ready
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Fha Loans
Are FHA Loans the Replacement For Subprime Mortgage Lending?
The story of the collapse of the housing market is familiar to every American. How too many people took out subprime mortgages that they could not afford, and when home prices fell and adjustable interest rates rose millions of homeowners were forced into foreclosure. Today, many prospective homebuyers, especially those with poor credit, have heard about loan programs offered by the U.S. Federal Housing Authority (FHA).
Borrowers, especially those with poor credit, may wonder if FHA loan programs are a replacement for subprime lending. The risks and history of the subprime market make many borrowers jittery, but many consumers don’t know the facts about FHA programs and what it takes to meet FHA qualification guidelines.
Subprime Mortgages
To compare FHA loan programs with subprime mortgages, you first need to understand the subprime market.
Subprime lending means making loans that are in the riskiest category of mortgage loans. Risk is determined by many factors including the borrower's credit rating (typically a FICO score below 640), the size of the loan, the structure of the loan, the ratio of the borrower’s debt to income, the ratio of loan to value, and the documentation on loans that do not meet Fannie Mae or Freddie Mac underwriting guidelines for prime mortgages (these are called "non-conforming loans").
In recent years, culminating in the 2006 and 2007, subprime lending grew into a huge segment of the mortgage industry. By March 2007 the total value of subprime mortgages in the U.S. was estimated at .3 trillion. But borrowers defaulted in record numbers, and by the third quarter of 2007 subprime adjustable-rate mortgages (ARMs), which comprised only 6.8% of U.S. mortgages, accounted for 43% of the foreclosures. Approximately 16% of subprime ARMs were either 90-days delinquent or in foreclosure. By May 2008 the delinquency rate was 25%.
The basic fact is that a subprime mortgage, just like a conventional mortgage, uses a house as collateral for the loan. If the loan defaults, foreclosure proceedings commence and the borrower ultimately is faced with losing their home. A U.S. government safety net is not part of the equation in this scenario.
FHA Loans Provide Insurance
The FHA can provide a safety net. But in contrast to banks and other lenders, the FHA does not make loans. It does not build, buy, or sell houses. To get a mortgage or a home equity loan, you have to go to a lender such as a bank, just as you have always done.
What is commonly called an "FHA loan" is really an insurance policy. If a borrower meets the FHA credit requirements, The FHA provides insurance to the lender and makes it possible for the lender to assume less risk. If the homeowner defaults, FHA will pay a claim to the lender.
How FHA Loan Programs Can Help You
If you are a poor credit risk, you may not qualify for the best (or prime) lending rates. Since the global financial crisis, lenders have tightened their requirements and many borrowers who qualified for subprime or even prime loan packages are being denied credit. What an FHA loan program can do for you is get you better terms from your lender and perhaps make the difference between getting a loan and being denied.
Here's the process: when you go to an FHA-approved lender such as a bank or mortgage company, the lender may ask that you apply for FHA mortgage insurance. You may also request that you be considered for FHA mortgage insurance. A loan that is offered to you must meet certain requirements established by FHA to qualify for insurance. The FHA then investigates your finances and credit history. If you meet FHA credit requirements, the FHA insures the lending institution against loss of principal in case you fail to pay your mortgage. In some cases the lender may be able to give you a lower interest rate than you otherwise would have received.
If you have good credit you may not want an FHA loan because the FHA charges a small fee to you, the borrower, and therefore you may be able to get private mortgage insurance at a lower rate. But if you have poor credit, it is definitely worthwhile to consider an FHA loan.
Frequently Asked Questions
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QUESTION:
FHA Loans?
We are looking to purchase a house that requires some repairs. Ok, more than some...the previous owner removed the entire kitchen including the sink and all cabinets along with a missing bathroom cabinet/sink and missing waterheater. What requirements does FHA need to make this loan possible? We would really like to buy the house and do the rehab ourselves.-
ANSWER:
Ask your lender about a 203b loan or a rehab loan. If they tell you they aren't available, call another lender until you find one who uses an FHA underwriter that will approve a rehab loan. They are called different nicknames in different regions, but the bottom line is that FHA will approve a purchase with needed repairs. They will approve you, based on your credit, for the value of the house AFTER repairs would be done. You would finance the entire amount, they would escrow the amount for repairs and you would be given the money to do repairs as you needed it for supplies.
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QUESTION:
FHA loans?
where do I go to apply for an fha loan? Do you have to have good credit and a down payment?-
ANSWER:
You don't need good credit; usually you need 3% down but there is likely a way to roll that into the loan or have the seller pay it. A good loan officer can help you apply for it. I recommend First National Banc Corp. They do business in most states and are your best opportunity for someone to say yes. ADDITIONALLY, IF YOUR CREDIT IS SUSPECT, THEY SOMETIMES FRONT THE MONEY TO GET YOU INTO A CREDIT RESTORATION PROGRAM SO THAT YOU CAN QUALIFY FOR A LOAN. Check out the free evaluation form at the source website and a First National loan officer will contact you within 24 hours. Good luck.
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QUESTION:
How does an FHA home loan differ from other home loans?
I'm looking at houses online and some of them say FHA buyers welcome. Does this mean that some people don't want to deal with someone who has an FHA loan? Please also tell me anything you know about FHA loans. Thanks.-
ANSWER:
Ok...Dan P doesn't know the full scope of how FHA loans work.FHA only insures loans...they do not make loans directly. They are technically "FHA insured loans" because they are insured by FHA, but private lenders lend the funds for the loan.
FHA does NOT HAVE STRICT GUIDELINES ON WHO CAN DO FHA LOANS.
The reason smaller lenders choose not to do FHA loans is that the application fees to get approved are in the thousands of dollars..small lenders don't see FHA insured loans as being profitable enough to go to the trouble.
Loan officers do not have to have any type of special certification or training to do FHA insured loans...neither do Realtors.
FHA underwriters, however, do have to be approved by HUD to underwrite the loans....and it's not an easy certification to get.
The only thing that is different is a few extra documents that the bank has to process and a couple of extra guidelines...all designed for your protection.
People think that FHA loans are difficult to close or some kind of mystery...there is no mystery for those that understand how they work.
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QUESTION:
Are there any loans that are alternatives to FHA but have similar downpayments and terms?
Some places I have found that I like say no FHA loans in the listings.Also, I wouldn't mind a house that needs a little minor work but I have heard FHA loans are very strict about the inspections.
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ANSWER:
No, they are their own ball game.VA is pretty good, but requires the seller to pay money, so not all go for that.
Either go conventional, or avoid foreclosures and bank owned if you want to go FHA.
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QUESTION:
FHA loans What are the pros and cons of FHA loans? I am in California if that makes a diffrence?
What are the pros and cons of FHA loans? I am in California if that makes a diffrence. Thanks!-
ANSWER:
FHA Loans are designed for borrowers who may have limited funds to close and less than the most desirable credit scores. FHA loan have FHA mortgage insurance, an initial premium that is financed as a part of the loan amount and monthly renewal premiums that are added to the mortgage payment. The property being purchased must pass FHA requirements which are more stringent that conventional loan requirements. In addition, the seller is required to pay some closing costs on an FHA loan that they are not required to pay on a conventional loan. FHA loans are assumable via fully qualifying assumption which can assist the owner is selling the property if rates have risen since his acquisition. Finally, FHA has FHA loan limits which are a yearly average of the sales prices in the particular FHA region. If prices in an area have risen dramatically in the last 11 months, the FHA loan limit may preclude an FHA loan for the amount now required by appreciation.
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Residential Hard Money Lenders
Hard Money Lenders Florida Fund Loans That Others Cant
Hard money lenders Florida can provide you the total 100% budget you need for your real estate deals. Tried and tested and true. Other sources of financing cant do that. So why go to banks, relatives, and friends if you can get what you need from non-traditional loans.
Why choose hard money loans over bank loans? First, hard money loans are easier and faster to process. Floridas real estate market is continuously booming. Investors must act quickly when a great deal come their way. Hard money lenders Florida acts as quickly as investors do. These lenders understand that the way to beat the competition is by acquiring cash as soon as possible. They dont do credit checks like banks do. They just take a quick look at your property to see if it is a good one. If they are sure that you can earn huge profits from it, they give a green light to your loan.
Private money from your friends or relatives is no match to what hard money loans can give you. Hard money from lenders is always available no matter how huge the amount is. Once lenders are convinced that they can earn from your investment, they can finance you right away. It is possible that your friends money cant sum up to the amount you really need. Worse, they can ask you to wait until they have the money they can lend you. It is difficult in your part to demand because youre the one asking favor from them.
The Sunshine State is a best place to put your investments. Real estate investing is a popular venture in Florida. So you have a plenty of ways to meet hard money lenders Florida.
Attend real estate investing group seminars and meeting. Some tenured investors are also into money lending venture. Talk to them personally so you can present your project right away. Most partnerships are fueled by referrals. The more investors you know, the more money lenders you meet.
The Internet is the best tool you have. With just one click, you can see a lot of websites and related pages to hard money. RehabHardMoney.com has a complete list of active lenders across the United States. Just type in hard money lenders Florida and all the information you need is there.
Dont settle for less. Dont settle for something uncertain. Hard money lenders give you an offer that no one else can.
Frequently Asked Questions
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QUESTION:
Where Can i find a pool of hard money lenders for residential remodeling?
Looking for an investor to build a beneficial partnership.-
ANSWER:
try the Scootmans guide
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QUESTION:
Looking for OC hard money lender w/ distressed residential deal to salvage on TV show. Anyone?
I am looking for a hard money lender of non-owner occupied residential property who has made an investment in a property and needs help. A very popular TV reality show is looking for a project to salvage on TV and then help the lender find buyers to help recover their investment. Legit hard money lenders only please reply...no private owners...thank you.-
ANSWER:
We didn't see any "hard money" for 20 years and now it is back in a big way. Most of the repo's with missing appliances and cabinets and garage doors have to be sold cash and no one has the cash. Go to the hard money man and pay 18% interest.
YOu can get the name of several hard money guys in OC from any of the local mortgage brokers. Everyone knows at least one. The one tough part is that those guys are very shy. No tv cameras. Why? Because they are charging 18% interest and lots of people hate them. Really hate them.
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QUESTION:
Where can i find a Hard Money Lender that is not credit based?
I am looking for a residential hard money lender that lends 65% arv and does not use credit for decisions making only the subject property. No doc. Basically only concerned with the property and if the numbers work. I live in michigan. Also looking for a fast closing.-
ANSWER:
That is pretty much the definition of "hard money". All they look at is the value of the property versus how much you owe.
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QUESTION:
How can a become a hard money lender in Florida?
I was wondering if I need a license to become a hard money lender in the state of Florida? I want to specialize in Owner Occupied Residential. What other requirements/regulations are there to lend hard money? I can't find any more information online, everything is just ads or listings of Hard Money Lenders in the State of Florida.-
ANSWER:
Hard money is not regulated by the EHL (equal housing lenders) like the banks and country wide are. Hard money means private money therefore, you can become a hardmoney lender simply by starting a LLC. Obviously there are some regulations and what not once the LLC is started, but the attorney or CPA under going the company start up process will go over those with you
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QUESTION:
Does anyone have a hard money lender that they reccomend that does residential loans in virginia.?-
ANSWER:
Join CREI-Alliance in Yahoo groups you can find what you are looking for in just about any state in the US.Graywolf
http://finance.groups.yahoo.com/group/CREI-Alliance/
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Financing A Home
Home Mortgage Loans After Bankruptcy - Financing A Home After Bankruptcy
Financing a home after a bankruptcy doesn’t have to be an ordeal. When you find the right lender, you can secure reasonable rates on your mortgage loan. You can improve your loan application with time and some cash leverage. Depending on your financial situation, it is possible to get conventional rates with a bankruptcy on your credit file.
Lenders Who Deal With Past Bankruptcies
With a recent bankruptcy, you can turn to sub prime lenders to obtain financing for your home. As soon as your bankruptcy has been finalized by the court, you can apply for a home loan. Your rates, however, will be about 12% higher than conventional rates unless you have significant cash assets.
After two years, conventional lenders will consider your loan application. Even though your bankruptcy will remain on your file for several years, lenders will be more interested in your current payment history and debt-to-income ratio.
Tips To Improve Your Loan Application
While you can’t erase your bankruptcy, you can improve your loan application to qualify for better rates. Down payments of 20% to 50% are the easiest way to become eligible for lower rates. Having cash reserves for two months or more will also help.
When it comes to terms, selecting an adjustable rate mortgage will help you qualify for more and at temporarily lower rates. Selecting a shorter loan period also lowers your rates. Furthermore you have the option of buying down your rate with points. But you may be better served by increasing your down payment and refinancing in a couple of years when your credit improves.
Research Lenders Before You Buy
Take some time to research loan estimates before you select a lender. It is the easiest way to save thousands on your future home loan. Make sure that you use the same numbers and terms when you request loan quotes from different financing companies. That way you will have precise numbers to base your decision on.
Once you have picked a lender, the hardest part of the process is over. In ten minutes or less, you can complete your loan application online. Your loan contract will be delivered in a couple of days for your final review with funds soon to follow.
Frequently Asked Questions
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QUESTION:
Financing Home Gyms and other exercise equipment?
I was wanting to get a home gym and wondering does anyone know any sites that will finance (not lease) exercise equipment for low payments each month.-
ANSWER:
A bunch of types of fitness financing here:http://www.crestcapital.com/Catalog/SearchResults.aspx?SearchTerm=fitness
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QUESTION:
Can you include a pool financing in a land + home package?
We are wanting to buy and have built a custom made modular home and since we dont own any land, we'd be wanting to do a land + home financing package that many lender companies offer. Does anyone know if you can include an inground pool into the financing or would we have to pay for the pool separate? Any info is appreciated. Thanks in advance!-
ANSWER:
They won;t finance your pool, no.
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QUESTION:
As a seller, if I pay closing costs, how can I hook up my buyer with 100% financing home loan?
I don't know their credit situation (yet), and I am willing to pay closing costs if I can make it work somehow--ANY HELP??.-
ANSWER:
If they have an established credit history, decent credit scores, and acceptable rental history (or previous mortgage history), there are still programs that offer 100% financing, although, they are not as easy to find. 100% is generally considered non-conforming, so, their best bet would be to contact some local mortgage brokers. Make sure they only inquire as to whether they have a 100% financing program available and do not provide their social security number until they have decided upon the company they want to place their application with. They may also want to find out the minimum credit score required, the average rate for these loans (they are usually higher due to the increased risk to the lender), and whether not you would be allowed to pay any of their closing (generally it is capped at 3 or 6% of the loan amount).There are also programs that allow the borrower to take out a lower LTV loan and the seller (you) to hold a small 2nd mortgage (ie: they get a loan for 95% of the loan and you hold a 2nd mortgage on the remaining 5%). Most of these programs still allow you to pay a portion of the closing costs.
Lastly, there are still some down payment assistance programs available for FHA loans if they qualify. They may can get up to 97% on a FHA loan and then a 3% DPA. You as the seller pay the DPA back at close, so you may want to reduce the amount of closing costs to make up for the amount you will have to pay out. These programs offer the best rates, so, they may want to inquire about these first.
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QUESTION:
Do you need full coverage insurance with in home financing?
Trying to buy a car, but im only 20 and full coverage insurance is expensive. Im looking for other options and wonder with in home financing do i need full coverage insurance???-
ANSWER:
If your financing the vehicle the lienholder demands you have a certain amount of coverage. If you get your insurance with them, it's much more expensive and they only offer certain coverages unless your very specific. Be careful and read the fine print.
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QUESTION:
Where do someone get home financing?
Is it possible to get financing for a home, these days with bad credit? We someone rejected automatically with FICO scores in the 550, or will they just have an high interest rate? If you know of any banks that will help. Thanks in advance.-
ANSWER:
Most lenders now require a mid score of 620 or better but there is at least one wholesale lender ( available only to brokers ) that will do a manual underwrite down to a 530 mid score. Of course it will be a higher rate. The first thing to do is review your credit. There are things that can be done to increase your scores in a short period of time. For example: If you have a collection account and you negotiate a pay for delete you can raise your score by around 20 points for each account you get deleted.
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Home Improvement Loans
The Easiest Way To Compare Home Improvement Loans
What should you be thinking about when you compare home improvement loans? Well, the first thing to consider is the amount of money that you need to get financed for. This is what will help you to determine what type of loan that you should apply for.
Are you going to be renovating your entire home? In this case you are going to need a significant amount of money, and it will be a better choice to apply for a secured home improvement loan. This is the kind of loan where you have to give some collateral. Collateral is property that the lenders will technically keep ownership of while they are waiting for you to pay the loan off. Usually, you will have to use your home equity as collateral. The advantage here is that you will be able to get a much lower interest rate since the lenders won’t be taking as much of a risk. The disadvantage is that you will be taking a risk yourself. You will end up having to turn over your home to the lenders if you are unable to make your monthly payments toward the loan. Then the lenders will sell your home and keep all of the money that comes from the sale. You will be able to get fairly low monthly payments though, because the loan can be spread out over a long period of time.
Your other option would be to get an unsecured loan. You will find that this kind of a loan is better for financing smaller amounts of money. There is no security involved for the lenders, so the interest rate is higher. Additionally, without offering the lenders any form of security, you will have to have a decent credit history in order to get this kind of financing.
When you start to compare home improvement loans, you will need to know how much equity you have in your home. This will likely be the determining factor in how much money you are able to get. To find out how much equity you have, you simply find the difference between the amount of money that you still owe on your mortgage and the current value of your home.
If you are trying to get a secured loan, the lenders will actually pay more attention to how much equity there is in your home than your credit rating. The only time that your credit rating affects things is when they are trying to decide how much money to loan you. With perfect credit, you will be able to get close to 100% of the equity in your home. The lower your credit score is, the less you will be able to get financed for.
You can find a lot of websites online that will enable you to get free quotes from lenders. Just fill out a quick form giving your most basic information, and you will then be presented with quotes from various lenders. This is by far the easiest and fastest way to compare home improvement loans.
Frequently Asked Questions
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QUESTION:
Are people who take out small home improvement loans to increase the value of their homes?
betting that the value of their homes will appreciate faster than the modest interest payment on their mortgage plus the improvement loan.. are these people stupid Libs living beyond their means?(Assume this scenario is before wall street deregulation in repackaging home loans as investments occurred - destroying the housing market)
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ANSWER:
I don't think that is related to one's politics.
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QUESTION:
What are the best options for home improvement loans?
My husband and I filed for bankruptcy six years ago. Our credit scores, we recently found out are still only in the upper 600's. When we recently bought a car we were told we did not qualify for the 0% interest because we had filed bankruptcy. We now would like to get a home improvement loan but not sure what the best option for us would be. Should we just wait longer?-
ANSWER:
You must get advice from a professional before you decide on a course of action.I took really useful advice from the people at www.probankruptcyassistsource.tk when I was looking at bankruptcy and because of their advice they gave me for free I was able to avoid losing my home and pretty soon I'll be rebuilding my credit score and can get on with my life.
Check them out, it'll be a massive weight off your shoulders knowing best course of action is and what your options are.
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QUESTION:
What is the percentage of home improvement loans that are financed?
Where can I find such information?-
ANSWER:
100%, obtaining a loan is considered financing.
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QUESTION:
Would Dave Ramsey consider a Home Improvement loan as credit card debt or mortgage?
After my wife and moved into our house we got a home improvement loan for windows, it acts as a second mortgage. We have paid off student loans, credit cards and vehicle loan, saved ,000. My question is with a home impovement/ second mortgage loan are we at step 2 or three. The plan is to pay off the windows as quick as possible, but should we start saving like step 3 according to Dave Ramsey. Thanks.-
ANSWER:
I know Dave Ramsey is a great man to many
But you have to consider the interest rate you may be paying on this home loan.
If that home improment loan is costing you more than 10% interest - I would pay it off.
Mentally (to me) interest rates above that are part of the evil world of credit card debt.
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QUESTION:
Need a Home Improvement Loan for a house I purchased 2 years ago in Texas?
I looking to get a Loan for 00.00 - 00.00 to fixup my house. I'm a first time home owner and purchased the house as a forclosure through an FHA Home Morgage Loan. I don't have much equity built up, but I'm looking for any options available. Government Loans or Grants, First Buyer Home Improvement Loan, Any advise will be appreciated. Thanks-
ANSWER:
Because you don't have much equity built up, you should look at an FHA 203k loan. The way this loan is set up is pretty simple and unique.
Lets say that your house is valued at 0,000 right now. With the 203K loan is it will use the value of your home AFTER the improvements. So as long as the improvements increase the value you don't need to have the equity right now. Does that make sense?
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Bank Loans
Bank Loans Can Be Difficult For Insurance Agencies
Granted, well-run, highly efficient insurance agencies are profitable. While they take in money consistently, some agencies may have expansion plans and often seek funding for these purposes. There are a lot of agencies that look to banks for funding and loans, and are surprised to find that it is harder than they expected.
“Banks often fail to understand the insurance business. When they see insurance agencies looking for more money, they just don’t understand it,” said Rene Lacape, Marketing Manager for Equote Life Insurance. “There are quite a few lenders out there who do realize that this business is profitable and worth the risk.
There are some new lenders out there that have started to understand this dynamic and the way that it works. Some of these lenders have actually been put together by independent agencies that understand the needs of the agencies themselves. InsurBanc, for example, located in Farmington, Connecticut, is one of the banks that understand the needs of these agencies.
“Because it was started by people who understand the needs of the business, it’s much easier for agencies to get the money that they need,” added Rene Lacape. The banks need to understand why these agencies want the money and use the money. If agencies do not have enough money to cover growth costs, they begin to dip into funds that can lead to bankruptcy. Obviously, these agencies do not want to dip into these funds. The loan gives them the opportunity to take the agency to the next level and not having to depend entirely on internal funding.
For obvious reasons, good agencies are very careful with money. Insurance agencies revolve around taking in money, and paying it out. Lending is a way for agency owners to ensure that they have the money they need and can invest it in ways that will be beneficial to both the bank and the agency itself.
“Before agencies get into borrowing money from the banks that will offer lending support, they need to realize the negatives that exist from the whole situation,” warned Rene Lacape. “It’s not that this is a dangerous and risky move, but the negatives do need to be understood, just to make sure no one gets caught up.”
If a company is looking at borrowing money from a bank, they need to make sure that the loan is a “win” “win” for all parties involved. Borrowing money can be expensive for businesses. The interest rates can often be higher than one might expect, and can catch some agency owners off guard. As long as they understand exactly what they are getting into and understand fully how the monthly loan payment may affect the business, everything should work in favor of the borrower.
“If you are going to secure a loan for your business, make sure that you can pay it off. There is nothing worse than trying to better your position, only to find yourself dipping into funds that can lead to bankruptcy,” said Rene Lacape. “In the end, it’s all about the planning.”
Frequently Asked Questions
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QUESTION:
bank loans?
is there any bank or student loans a 18 year old could get? i really need to move somewheres.-
ANSWER:
Unless you have a very high credit rating, a co-signer, or some good collateral to put up you probably wont get one from a bank with a decent interest rate, if you can even get one from a bank.Your best bet is to try an get a government student loan like a Stafford loan. Those are pretty easy to get and the interest rates are not bad. These loans don't have to be paid off until you graduate too.
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QUESTION:
Bank Loans....?
I am having trouble trying to get a loan with major banks. I am trying to consolidate exitsting loan & credit card buy getting 1 loan. Does anybody know where or who are offering good loans (ideally - not having to have a current account with them) where i dont have to have perfect credit rating. (am only looking for aroung 2k)-
ANSWER:
Abbey National do a good loan rate and I dont think you need to have an account with them and I have heard that Halifax are quite good. I've always got my loans from the Yorkshire Bank but I have a current account with them. I would suggest giving them a call though and asking ! good luck.
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QUESTION:
what is the best bank to consolidate student loans through?
I need to consolidate my bank loans and federal sudent loans, which is the best. I am looking at citibank right now. Anyone have other suggestions? Thanks.!-
ANSWER:
You're going to hate my answer but....The best bank through which to consolidate students is the one that will give you the lowest interest rate and who will actually approve your loan. This is really something you need to research yourself. The best bank for me or anyone else will most likely not be the best bank for you because our credit reports are different.
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QUESTION:
What happens to bank loans in case the debtor company goes insolvent?
I would like to know the fate / process of recovery of bank loans in case the debtor business goes insolvent / bankrupt with particular reference to UK laws. What could be the precautions which a lending banker may take while lending to ensure recovery in case of insolvency / bankruptcy?-
ANSWER:
If it is a debt you owe the company, you still owe it. The precaution is good qualification and an appropriate interest rate based on risk to price comparable loans at a rate where the estimation of profit exceeds the estimation of loss. That's how banks make a profit.
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QUESTION:
Why does the world revolve around bank loans?
It seems 90% of the people will take out some sort of loan, whether it be to pay for a costly education or for a home and will end up paying for it most of their lives. Who decided that homes should cost an insane amount of money, who decided that bank loans should result in massive profits for the banks? Why is it that our money in the bank is allowed to be used by the bank, yet they give us such a puny return, but if we borrow money from them, they want massive interest?-
ANSWER:
greed and the market place determine prices.as long as people are willing to pay the asking price and banks are prepared to lend the money houses will always be expensive .
Interest rates are set by the money markets, the cost of buying money and the strength of the spending power of the consumer, wages and prices.
Banks do use our money to play the short term money markets , however it is not considered our money as soon as we deposit with the bank ,it is kept for us in trust, that is why it still takes 24 hours to electronically transfer funds or 3 days to pass a cheque.
banks dont really want people to save , saving ties up money and the market slows down, it also affects the amount people need or want to borrow. This in turn impacts on the economy if people stop spending, if people spend to much it can put inflation up.Either way banks always win.
Very delicate balance.
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Hard Money Residential Loans
How To Qualify To Get A Hard Money Real Estate Investor Loan
Hard Money Lender Loan Qualifications.
Many times investors ask me to send them information on a hard money loan. As a mortgage broker with many programs and options it is hard to tell them exactly what the qualifications are for financing their project. They are many because hard money lenders are private investors. Each private investor makes up their own guidelines. Unlike conventional financing there is no secondary market and there are no quasi government organizations like Fannie Mae or Freddie Mac that establish uniform or conventional guidelines. There are qualifications that each bridge and real estate rehab lender have in common. They are:
1. The property and after rehab value.
2. The exit strategy.
3. The down payment.
4. The investors experience.
5. The investors credit.
6. The investors cash reserves.
The Property.
There was a time and will be again were the property and the after rehab value of the property was the sole consideration of doing a short term loan to a real estate investor. Whether the deal is commercial or residential investment property the collateral remains the most important criteria to qualify for funding. The reasons it is not the only criteria are the lenders have been burned by the economy and the declining value of properties plus excess inventory of properties available. This means that if they have foreclose on collateral the property has been more difficult to sell and they get less money for it. Yet the collateral still remains the most important criteria. The lower the loan to value the better the deal. Even though some lenders will go as high as 65 to 70% of the after rehab value those deals are tough when so many are available at or below 50%.
The Exit Strategy.
Almost of equal importance to the collateral to many purchase rehab lenders require a solid verifiable exit strategy. This means if you say you are going to sell it you should have a buyer who is pre-approved and their information needs to be verifiable by the lender. If you say you want to refinance the property then you need to have the income, credit and assets to qualify for a conventional refinance loan. Whatever your exit strategy is it must be verifiable by the lender. This is good for the lender and for you. No one wants to get stuck with a non performing asset.
Down Payment.
Though there are programs that do not require down payment they are fewer than ever. Most purchase rehab lenders require a down payment. For this reason it is good to be prepared to invest 20% to 30% in your projects. There are so many projects available for these lenders yet funds are limited, a down payment makes your project more attractive, less risk and easier to fund. Also if you have poor credit assets help.
The Investor.
The credit, assets and experience of the investor plays a role in the qualification process. For a real estate investor qualify the should have good credit, assets and experience. If they do not and are short in any of these areas they need to be stronger in others. Meaning they should have a deal with lower than 50% loan to value, a strong exit strategy and or a down payment. Because each private investor has different criteria, it is hard to say one deal will qualify and another would not based on one criteria or another. But, the first three are the most important. Most deals that the real estate investor has that requires funding will qualify based solely on the after rehab value of the property, the exit strategy and the down payment. Even though there are no down payment deals available you need to be a strong investor to qualify for them.
Frequently Asked Questions
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QUESTION:
Does anyone have a hard money lender that they reccomend that does residential loans in virginia.?-
ANSWER:
Join CREI-Alliance in Yahoo groups you can find what you are looking for in just about any state in the US.Graywolf
http://finance.groups.yahoo.com/group/CREI-Alliance/
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QUESTION:
Is a license required to broker a hard money loan in the state of Georgia ?
I know that a license is required for loan officers for residential, in Georgia.-
ANSWER:
No it is not required. You can see businesses in the paper, phone book, and online that say unlicensed all the time.
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QUESTION:
Las vegas hard money loan?
Where to get hard money mortgage loan for Las Vegas residential property? Anybody know some lenders?-
ANSWER:
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QUESTION:
Do I need a license to do hard money lending in Arizona?
I operate a real estate investment fund and we are seeking to lend hard money to a limited degree. Will I need any licenses (ie mortgage banker/broker license) to do so? The Partnership is headquartered in AZ but incorporated in DE and loans will only be for AZ residential real estate. Thank you.-
ANSWER:
Hello,i am Mrs Becky Moore from Texas Us,i saw your question on how you needed a loan,i think you should contact one legit loan firm by the name Kings global loan firm because two weeks ago i got a loan from them and their ways was very simple,no credit check,no collateral needed,no cosigner with just 2% interest rate,so i will advise you to contact them via email,kingsgloballoanfirm@yahoo.com
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QUESTION:
Any hard money or private lending companies out there lending nationwide?
Does anyone know of a hard money or a private investor that would lend in the state of WI? I am looking at residential and small commercial properties, loan amounts as low as 50k. I am looking to buy and hold. I am looking for terms of 3 to 6 months and would then refi into a convetional loan.-
ANSWER:
no
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Small Loans
Small Loans No Credit Check: Take Money Fast
The loans have become the most sought after and easiest solution of the people whenever they need money. These loans dont create any problem for them and they can fulfill their all fiscal requirements with these loans. Since there are a lot of loans running in the loan market, the borrowers have ample chances to go with any loan option that can bring money to them. Well, small loans no credit check is also one of the most popular loans, which is frequently availed by the borrowers.
Small loans no credit check are known as the payday loans that are offered for time tenure up to 31 days. The borrowers need to clear their loan debts only when they have money through their next payday. In this way, these loans are easy and fast solution of anyones urgent occurred financial problem. Payday loans oblige you in the right way where you can meet all problems with ease and you dont need to show your credit rating to the lender.
The received loan amount through small loans no credit check ranges from 100 pounds to 1500 pounds with repayment duration of 4 weeks. The borrower can easily repay the loan without facing any hassle. Another good thing with these loans is that they are also offered for those who are suffering from bad credit score. They can also apply for these loans without caring for their bad credit that makes the negative impacts on the lenders. Now, the lenders also understand the worse conditions of the borrowers and thus, they are also ready to help them out when they need fast money.
Well, it will be good for you to take cash through these loans by online lenders that approve your loan application very fast. On the other hand, the local lenders take a very long time in approving your loan application.
Frequently Asked Questions
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QUESTION:
What is the name of the site where private individuals put up small loans for people?
I saw a site last year that had people willing to make small loans for people...does anyone know what site that is?It was people loaning money to others for things like small investments or taking board exams....so on and so forth.
It's not a financial institution or related to the finance industry...it's just people making loans to others without the hullabaloo most folks have to go through.
Thanks!
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ANSWER:
Prosper.com
They make about 1% of the proceeds from your loan.
They are the only ones that I know that are legit.
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QUESTION:
Does anyone recall the database started so people could provide small business loans to developing countries?
I saw it on TV a year or so ago. If I'm not mistaken, the creator was in the running for the Nobel Prize. It was started so anyone who had some money to invest, could provide small loans to individuals in developing countries to start their own businesses. Then the loans were repaid with interest and the satisfaction of helping develope the economy of a small country. I think the preliminaries were had positive results, as people were repaying as they should. Does anyone have any information on it or a link?-
ANSWER:
It was Mohammed Younus, the economist who put the word "microloan" on the map with the Grameen Bank in his native land of Bangladesh.Here is his profile on the BBC website:
http://news.bbc.co.uk/2/hi/south_asia/6047234.stm
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QUESTION:
Is it a good idea to consolidate a bunch of small loans into one personal loan?
I have a bunch of small loans ( auto, credit cards, etc) and it's really annoying keeping track of. Would it be a good idea to apply for a perosnal loan, payoff all my little loans and just have one bill a month instead of 5 that are due at all different times?-
ANSWER:
Depends on what your intentions are going to be. Are you trying to prolong your debt? or trying to pay it of faster?If you consolidate and just start charging again it makes no sense. If you consolidate and your new payment is 500 a month instead of 1000 you pay at different times, pay the 1000 even though its a 500 dollar payment.
It will help your credit to only have one bill instead of 5 other open bills.
If you are trying to get rid of debt thats one option, if you just want one bill that works too. I dont see anything bad about it, unless you are prolonging your debt.
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QUESTION:
I'm looking for the name of the company that gives small loans 0-0 to home based businesses to stay open
It was shown recently on the news. This company offers to help people who are basically self employed with small loans to help keep their business operating. You pay the loan back by giving to another person in similar circumstances. If anyone has their contact info I would really appreciate it.-
ANSWER:
Small business loan are a great financial help for small business owners. Without monetary support, a business, whether it is big or small, can not be run smoothly. With a small business loan, financing in small business is always possible. Can a borrower with bad credit score apply for a small business loan? Yes, they can. With thevarious purposes with a bad credit small business loan. With this loan, they can start a new business, they can expand their present business, they can purchase some necessary equipment, they can buy a new office premises, and they can repair their present office. Even more, they can use a bad credit small business loan as business capital as well.
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QUESTION:
What is the best online application for small loans?
I am a bit short on money this week and I am trying to find the best option for me to choose online, so I can apply for a small loan. I need it asap please help me!!!!!!!!!!!!-
ANSWER:
Try to find one that isn't 100% a scam - which most are. Don't pay an up front fee & don't give them any personal info driver's license #, date-of-birth, bank account #, credit card #, etc. This is how identity's get stolen.Good luck. Your going to need it, trying to find an online loan that isn't a SCAM!!!
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Construction Loans
Private Equity Fund Providing Construction Loans (m+)
The traditional commercial lending market has dried up, especially for construction loans. Anyone seeking a commercial construction loan will need to find a private equity fund to accomplish their funding needs. I have discovered just such a fund that is actively lending large commercial construction loans for both domestic and international projects.
The private equity fund has B in liquid cash and B in stand-by letters of credit from their investors. The fund uses a bond wrap around the note in Germany to recoup their cash and replenish the fund every 60-90 days. This private equity fund for commercial construction loans (M+) is very transparent, after NCND agreements are executed with their master broker. They will provide capacity and proof of funds through an attorney affidavit and will also provide title company contact information to verify closings. The bottom line is these guys have money and are funding projects.
This private equity fund will finance 100% of the construction cost (including land acquisition) as long as the appraised completed value is 80% or less of the construction loan amount. Typical rates and terms for a quality domestic construction project is 9.5% interest only, interest reserves until stabilization, 6 points paid out of loan proceeds, 3-5 year term with funding in approximately 60-90 days after Letter of Intent is issued. There are no "upfront" fees, yet the fund requires a 3rd party review fee ranging from ,000 to ,000 based on the size of the project after an LOI is issued and the client has received proof of funds. Also, after commitment is issued, the borrower is required to place 1% of the loan amount in a bonded and insured pre-closing escrow account which is used to satisfy closing conditions. The principal's signature is required for all disbursements and any unused balance is credited back to the borrower at closing. Other than that, this is essentially 100% financing for large commercial construction projects.
The documentation required is similar to that of conventional underwriting which includes an appraisal, environmental study, feasibility study, approved permits, corporate tax returns and personal financial statements on all borrowers. For seasoned developers with "ready to break ground" construction projects in excess of M, this may be a viable solution until commercial banks decide to return to this market. This construction loan process starts by completing a 2-page Intake Form and speaking with the master broker. Once their NCND agreement is signed, the principal will be in direct contact with the private equity fund and their attorney through closing. For more information about the construction loan program visit TheHardMoneyLenders.com. You may also contact Charlie Kartchner directly at (925) 360-1175.
Frequently Asked Questions
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QUESTION:
How do construction loans work?
My husband and I are working with a builder of a subdivision we are planning on building in. We chose a home from the options this builder has for the sub. To get started on the house, we need to give him ,000 down. However we do not have the funds saved so we are able to do a construction loan. I've heard so many things about construction loans and how the fees are horrible. Yet, its been so hard for me to find any information. Would the fees be that steep, even though we only need 00 down? Is there any specific banks/companies out there that make this process easier that anyone would recommend? Any help or information would be greatly appreciated. Thank You!-
ANSWER:
It doesn't sound like you are being required to get a construction loan. The builder is asking for an earnest money deposit. Typically, builders require ,000 to start the home and would ask for an additional 5 or 10 during different phases of the project. If they are going to build something to your specifications, they want you to have enough money into it so you don't back out. The only financing you will need is a normal mortgage, once the house is complete. You will be able to use the money given to the builder as the down payment. Otherwise, you can buy the model.
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QUESTION:
Construction Loans?
Do you have to be finished with the house by the end of the 9 months? What if your doing it all yourself not contractors. Some things are taking longer. Is there anything the bank can do to you if your not finished in the 9 months?-
ANSWER:
Call your bank and ask them to extend the date. I used to work in a mortgage dept at a credit union and I know one time we did extend the date, but it had to be approved by the president and he wanted to know exactly why. I know everyplace is different though! If its not done within the time frame, the bank already has a lien on it, so you would be in default and they can forclose and resale etc. But like I said every place is different! Call them though, cuz the hassle of foreclosure and resale is not that easy, its a pain. So most places should be willing to work with you. Good luck!
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QUESTION:
Where can you get construction loans for Earth sheltered or Bermed homes?
Dose anyone know were we can go to get a construction loans for earth sheltered house. Local banks tell us they would loan us the money if we would build a normal house. Please Help.
Our home design meets all building codes.-
ANSWER:
When they finally chose Home Federal Savings and Loan of Xenia, they made a special effort to sell the lender on their idea.They added an electric furnace o the plans even though they felt the wood stove would be adequate. They figured it would increase its resale value. Schroeder, a commercial artist, drew a color sketch of the proposed house to show that it would have aesthetic appeal. They also stressed the energy-saving features of the house, noting that the money they would save from reduced heating bills would strengthen their ability to meet mortgage payments.
The savings and loan bought the idea and approved their mortgage.
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QUESTION:
Who is providing construction loans to build first home?
I've been approved for a mortgage loan but need a construction loan to build a home.
In Texas. Great fica score 840 or higher. Have enough money in the bank. Have tried builder contact, waiting since month ago. A big lending company on-line bluntly told me that he didn't know of any bank that was offering construction loans because of the way things are with the economy right now?-
ANSWER:
what Col Kurtz didn't mention is that when you pay retail to a direct lender you end up with a higher rate and the lender gets more on the back end then a broker would, it's called SRP or service release premium.Here's another little fact/difference.
The brokers yield spread premium has to be disclosed on the HUD1 settlement statement but the bank does not have to disclose their premium.
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QUESTION:
how exactly do construction loans work?
right now we rent a house and it is costing us 1100 a month. Its a big house. My wife and i would like to downsize and have lower monthly payments.we were looking at a first time buyers loan and a construction loan.
How does either work.
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ANSWER:
Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing officemortgage brokers or institutions that are authorize to administer the program. These agencies are normally listed on a pamphlet.
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Money Loans
Commercial Hard Money Loans - Three Business Scenarios
The primary rationale for a business considering a commercial hard money loan is that traditional commercial financing options are not viable. There are three financing options for most commercial real estate scenarios: traditional banks, intermediate lenders and hard money lenders. In those situations where traditional banks and intermediate lenders both say "NO", it then makes good business sense to explore under what terms a hard money commercial loan might be available.
Many viable business projects can be funded ONLY via a hard money lender. Before accepting "NO" from the traditional banks and intermediate lenders as the "FINAL ANSWER", a prudent small business borrower should determine if a hard money lender will say "YES".
Compared to traditional bank business loans, commercial hard money loans will generally involve a higher interest rate (prevailing range of prime rate plus 4-8% for typical scenarios), higher fees and shorter-term financing (one to three years). However, because many hard money loans offer interest only terms, the payments can be lower than a fully-amortized loan with a lower interest rate. Commercial hard money loans are typically completed more quickly than a traditional commercial loan.
Several common commercial financing scenarios using hard money loans are described below.
COMMERCIAL HARD MONEY LOAN SCENARIO # 1:
Need to Obtain Commercial Financing Quickly
Traditional commercial loans will normally require several months to complete. Hard money loans can be obtained within a few days in some situations. This difference will be critical if commercial financing is required within a short time frame.
COMMERCIAL HARD MONEY LOAN SCENARIO # 2:
Special Small Business Situations Not Easily Understood by Traditional Banks
• Foreclosure
• Bankruptcy
• Special Purpose Properties
• Tax Liens
• Losses
• Negative Net Worth
• Less than one year in business
• Environmental Requirements
COMMERCIAL HARD MONEY LOAN SCENARIO # 3:
Low Credit Scores
Most traditional commercial loans have very strict standards for acceptable credit scores by the guarantors for a commercial real estate loan. Hard money loans are much more flexible and low credit scores are acceptable.
As noted above, there are several common business situations in which a commercial hard money loan should be considered as a viable commercial financing option. The Commercial Mortgage Loans Guide ( http://aexcfgllc.com ) and The Credit Card Receivables Guide ( http://aexcfg.com ) will provide additional insights into viable commercial financing strategies for difficult commercial loan scenarios.
Copyright 2005-2006 AEX Commercial Financing Group, LLC. All Rights Reserved.
Frequently Asked Questions
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QUESTION:
what pays the interest the federal reserve puts on all the money it loans?
I hear the fed puts interest on all the money it loans. Which is basically all the money in the entire country, therefore a perpetual debt that is impossible to pay off.
I hear ALL of our income tax goes straight to paying off the interest (debt) generated by the fed. I also hear our income tax gets divied up amongst certain programs. Can it be possible both are true at the same time?
If the government has to pay for programs, uses our income taxes for it....what pays back the interest levied on the money loaned out by the fed to begin with? They could just SAY it goes to certain programs, which it might, but the end result is that it ends up being the same amount that is going back to the fed to pay off the interest. Such as if in reality you owe Johnny (the fed) 1$, but you pay Uncle Sammy (IRS) 1$ so he can pay it to Johnny's interest for borrowing 2.85$ on something (all programs claimed to be paid directly by income tax) that's already been paid for through other taxes.-
ANSWER:
Here's the scoop, t- Re "I hear the fed puts interest on all the money it loans."
Yes, the fed charges interest on it loans.
- Re " Which is basically all the money in the entire country, therefore a perpetual debt that is impossible to pay off."
Sort of true but not a big deal. I'll explain
By law, all currency must be collateralized (i.e. backed by something of value). When the Fed wants to add money to the economy, they create it out of thin-air and buy T-Bills.
Yes, this 0B+ in T-bills could be considered perpetual debt. When a T-bill matures, the Fed will buy another.
Why is it not a big deal? Because the Fed returns about 95% of the interest earned on those T-Bills to the Treasury. Not a bad deal for the tax payer.
- re: " I hear ALL of our income tax goes straight to paying off the interest (debt) generated by the fed.
That's just "tax law denier" nonsense. Prove it for yourself
Revenue from income taxes: 9B
(ref: http://www.publicagenda.org/issues/factfiles_detail.cfm?issue_type=federal_budget&list=7)Interest on the national debt: About 0B
Budget of the Federal Reserve: .9B
(Ref: http://www.federalreserve.gov/generalinfo/foia/frbbankbudgets/2007ReserveBankBudgets.pdf)Big difference.
There's a lot of misinformation out there on this topic. be sure to check things out for yourself.
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QUESTION:
What are hard money loans for homes like?
I have heard that if you have 40%-50% of the cost of the home that you can just get a hard money loan if you don't have credit but I have also heard that its better to try to get a sub prime lender(if they still exist) how long would they give me to pay off the loan? 20 years like a normal mortgage or less?
My credit is not horrible, I think its just nonexistent. I have lived outside the country for the last 6 years.-
ANSWER:
what are they like? U have it correct. Make sure that there is no PRE pay fees/penalties.their balloon date is usually 6 mo after the loan is made.
I assume your credit is horrible.
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QUESTION:
What do you call it in accounting when a shareholder loans the Corporation money?
I own a Corporation, being the sole shareholder. I have loaned the Corporation money. What is this called in accounting when I do the books? I know a shareholder loan is when the Corporation loans money to the shareholder. I think, possibly it is capital or equity, but I could be wrong. And does anyone know what ledger number it is given. I believe it goes in the 3000's. Are there any accountants or bookkeepers out there that can shed some light on this?-
ANSWER:
I'll take your word that you're the sole shareholder in a corporation and not a sole-proprietor in a sole-proprietorship. If you lend the co. money, it's a shareholder loan under current liabilities. The a/cs code depends on your chart of a/cs. It's equity only if you issued shares to yourself. Otherwise it's just a shareholder's loan. This is a more flexible arrangement cos you can repay yourself the loan when the co. has the funds. If you issue yourself shares you can't cancel the share and take back the money without going thru a lot of hassle.
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QUESTION:
Are those offers from other countries for loans money laundering?
I received an email from different companies stating offering loans for 000 to individuals from international companies. Also from FBI stating that money from Nigeria is being seized and not to do business with them. Please advise.If an american gets involved does that mean international legal laws?-
ANSWER:
NOBODY overseas is going to give you a loan - NOBODY. Anyone overseas promising you a loan is nothing but a scammer out to steal your money and identity. They will keep asking for more and more fees to get your money but will never send you anything. Nigeria is a developing country - why would they lend money to anyone overseas where they would have NO recourse if that person defaulted on the loan?Anyone over the internet promising you a loan is always a scam. You aren't going to get any loan if you don't appear IN PERSON at a loan office with proof of income and collateral to put up against the loan
There is a reason why the FBI issued that warning. If you choose to ignore it, you will face prosecution
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QUESTION:
How does Hard Money Loans work? When do you pay them back?
I am looking at different ways to come up with money for real estate investments and I want to know how hard money lending works. When do you start paying back the loan? If I was to rehab a home would I pay it back after I sell the property?-
ANSWER:
A "hard money" loan is just another term for a sub-prime loan, available from what we used to call a "lender of last resort", who will charge an exorbitant interest rate for a loan no one else will make.It functions just like a normal loan, with regular monthly payments. You must pay off the balance when the property is sold.
You might be better off charging the purchase as a cash advance on several credit cards, it amounts to about the same thing.
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