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5 Biggest Myths About Hard Money Loans

5 Biggest Myths About Hard Money Loans

 

myth-v-truthBeing a Hard Money Broker for over 25 years here in Sonoma County but licensed for the entire state of California, time and time again I hear such myths or questions similar to these.

 

This should hopefully dispel any last vestige of concern or uncertainty about the value and use of hard money in real estate.  Be it to buy your own home or a 2nd home, a flip, an investment property, land to build on, etc. – hard money can be the best choice for you.

 

The myths so aptly covered in Trust Deed Capital BLOG, by Ken Meyer on July 21, get cleared up by providing the facts:

 

 

 

Myth #5: Only the Desperate Seek Out Hard Money Loans

One of the most difficult myths to dispel is that anyone who goes outside the traditional lending structure (banks, for the most part) must be desperate for a loan. This is the furthest thing from the truth, since most of the people who seek out hard money loans are smart business people who would rather work with an individual investor on a project than deal with a huge lending institution.

Myth #4: Hard Money Lenders Are All Loan Sharks

Hard money lenders are business people, just like their clients. A hard money lender provides money based on the investment, rather than based on the person’s credit score, which means that the lender’s eye is on making the investment succeed. Fairness and good business sense means you get return business. Setting impossible, harsh terms on the other hand means that people won’t come to you unless they’re desperate, which is something hard money lenders want to avoid at all costs.

Myth #3: Hard Money Loans Are More Expensive Than Traditional Ones

You get what you pay for when it comes to financing. If you need to get money in the next two days so you can acquire and flip a property for a huge profit, then time is of the essence. If a traditional lender can’t get you the money in the time frame you need, then it simply isn’t a valid option.

Hard money loans provide flexibility, but their costs are also affected by the loan in question, the profit to be made, and the laws of supply and demand. All of that said, the interest rate on a hard money loan can sometimes be higher than a traditional loan, but they are also usually shorter term and can close quickly. Time is money in investment real estate, so when you look at the big picture, a hard money loan is usually more cost effective than a traditional loan.

Myth #2: Hard Money Loans Have Draconian Rules

Hard money loans are given by an individual, which means that the rules will change from one lender to another. Generally speaking, hard money loans have different restrictions put on them than consumer loans. This is for a specific reason; the lender is looking out for the investment. Lenders and borrowers are encouraged to negotiate until they reach terms they feel they can work under, which is often not the case for banks and other traditional lenders.

Myth #1: It’s One or the Other

Perhaps the biggest myth when it comes to hard money loans is that you can’t also have soft money loans (the more typical sort you get from the bank). There are no rules that say this, and often those who need as much financing as they can get will draw from multiple sources to make sure they have enough capital to get the project done.

oOo

 

Original Trust Deed Capital Blog link: http://www.trustdeedcapital.com/blog/5-biggest-myths-about-hard-money-loans?success=true

This same blog comments on how scary hard money can seem to be, but this only comes about because of the lack of understanding and knowledge required to properly invest with or borrower hard money.

I hope that if you or someone you know that is having trouble getting a loan elsewhere, has a time sensitive purchase requiring financing, etc. that you honestly check out hard money as an option.  You may well be very glad that you did!

 

 

Best, Forest – The Guy in the White Hat

Hard Money Broker Serving all of CA Since 1988!

 

Sun Pacific Mortgage & Real Estate, Family owned & operated (707)523-2099.

www.Sunpacmortgage.com; CA Bur of Real Estate license #01009559 and NMLS #299456

What is a Bridge Loan?

Real estate agents, investors, home buyers and home sellers alike should know about this short term real estate loan, or should I say smart home buying strategy. A Bridge or temporary loan is a type of Creative Financing that some Lenders offer.

 

It is a short term loan, 12 to 18 months only.  It gets paid off with longer-term financing down the line or from the sale of a property.  It essentially Bridges a Borrower from one point to the next.

 

The Benefits:

  1. A Bridge loan is deemed cash by Listing Agents.
  2. Your Buyer does not have to have a contingency of their home selling to use a bridge loan.
  3. A home owner can buy another house now and sell their home later.
  4. There is no fear of the buyer finding their dream home because they still have to sell their current home at the same time.  This is not required with a bridge loan.
  5. Your buyer can buy a fixer, fix it up and have their dream home that way.

The Requirements:

  • This will be a 12 month loan.
  • A minimum of 3 months payments are due.
  • You have to have at least 20-25% for the down payment on a purchase.
  • You have to have decent equity in your existing property on a refinance or pulling cash out.

The Uses:

While there is really no limit on when a bridge loan can be used, as long as the borrower is comfortable with the terms, most bridge loans are typically sought when another sale is pending and the funds are needed to consummate the final deal, permit approvals hold up a project or, most typically, in a “fire sale” situation when a seller must close a deal within a specified period of time.

 

Some instances of when you might use a Bridge Loan are:

  • Pulling some cash out from the equity in your current home and using that money as a down payment to purchase another home.  This allows you more time to sell the home you are currently in.
  • Buying a house to fix and resell, also known as Flipping.
  • Using the Bridge loan to acquire a home that is in disrepair, fixing it up to live in it and then converting the loan to a 30 year fixed rate loan within the 12 to 18 month period.

 

The Costs:

Rates and costs for Bridge Loans can vary by Lender, of course.  Generally speaking however, rates range between 9-12%, interest only.

 

How We Can Help You:

We are licensed for the entire state of California and have been in business for over 27 years now.  Call our office at 707-523-2099 and within just a few minutes, we can let you know what we can do for you!

 

You can also find out all the we offer on our website at www.sunpacmortgage.com and you can email us through our website or at the email below.

 

I hope this has helped you understand more about what a Bridge loan is.

Keep Your Real Estate Market Hot!


The real estate market is really heating up –

not only for Agents but also for potential home sellers and home buyers.

 

This means multiple offers on properties for sale which is good for a home seller but what about you home buyers?  Or, what if you are a “Seller–Buyer” and need to get your home sold before you can buy?  Contingent purchase offers can be less appealing than an all-cash offer or no-contingency offers.  How about letting our short term Bridge Loan help you out!
 

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We recently did a loan for a lady who needed fast cash so she could close on the property she had her eye on for some time.  We were able to get a Bridge Loan done on an existing property she owned, in 14 days from start to finish.  With this money she was able to buy the house that she otherwise would not have been able to get.
 

Our Bridge Loan program is a hard money loan thus more forgiving than conventional lenders, it can fund fast, and hard money is virtually cash so it can assist in strengthening purchase offers too. 
 

We have helped many, many others so let us help you too! Call today (707) 523-2099!

 

Best,

Forest, Ken, and Lynn – The Guys in the White Hats

 

 

Click this link for our rate sheet,
showing the programs we offer

 

 

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Read some of our customer testimonials here

 

 

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       Alternative Finance Lenders Serving California since 1988!

800 Mendocino Ave. Ste 2
Santa Rosa, CA 95401
(707) 523-2099
www.sunpacmortgage.com

 

 

California Bureau of Real Estate Broker Corporate License # 01464899.

Nationwide Mortgage Licensing (Registry) System Office NMLS # 360993

It Is That Time of Year in Real Estate To Have Alternative Financing Readily Available


It Is That Time of Year in Real Estate

To Have Alternative Financing

Readily Available

 

“Forest and his team have performed for my clients on multiple occasions. As always, with great results and timing. Very knowledgeable in their field and would not hesitate continuing to recommend them when my clients need their services.”  Realtor® K.D.L

 

“Sun Pacific is a go to team in my book. If you need it DONE, go with them!” C.M.

 

We love hearing from our Borrowers directly as well as other Lenders and Agents we work with. It is always a pleasure to help rescue a home buyer turned down elsewhere for a mortgage. As well as be able to help out another Agent or Lender who just found out their borrower’s loan was disapproved and Escrow closes in a week! Or using a Bridge Loan to help someone buy a new home while waiting for their current home to sell.

 

Spring has sprung and real estate inventory is increasing, as is buyer demand.  Agents, Lenders and Buyers need their best foot forward when submitting offers. Our Hard Money programs can help sweeten a deal as well as quickly fund if needed, despite poor credit, bankruptcy, short sale, difficult to prove income, etc.

 

See below for some of our recently funded loans so you can get a better idea how we are here to help you! 

 

Call US today (707) 523-2099.

 

Best,

 

Forest, Lynn & Ken  – The Guys in the White Hats

P.S. We love referrals!

 

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NOTE: We finance Bridge loans, Owner Occupied purchases and refinances, non-owner purchases single and multiple units, commercial and some land. Get our financing despite poor credit, self employed-difficult to prove income, need fast financing, property a fixer, etc!

 

 

SANTA ROSA, CA

Type:  Short term Bridge Loan

Amount:$290,000

Days to fund: 13 days

Reason needed: Needed fast cash to buy another home while current house up for sale

 

HAYWARD, CA

Type: Owner Occupied Cash-out Refinance

Amount:$111,000

Days to fund: 17 days

Reason needed: Poor credit

 

SANTA ROSA, CA

Type:  Cash-Out Non-Owner Property

Amount:$270,000

Days to fund: 7 days

Reason needed: Owned numerous properties

 

COBB, CA

Type:  Non-Owner Purchase

Amount:$300,000

Days to fund: 14 days

Reason needed: Foreclosure on credit

 

SAN JOSE, CA

Type:  Investment Purchase Bridge Loan

Amount:$200,000

Days to fund: 10 days

Reason needed: Needed fast cash

 

INDIAN WELLS, CA

Type:  Short term Bridge

Amount:$997,000

Days to fund: 27 days

Reason needed: Still had current house up for sale but needed funds for new home

 

SONOMA,CA

Type:  Non-Owner Rate and Term Refinance

Amount:$232,500

Days to fund: 10 days

Reason needed: Bankruptcy on credit

 

 

Click this link for our rate sheet, showing the programs we offer.

 

CALL TODAY, The Guys In The White Hats at

(707) 523-2099

 

See our website at: www.sunpacmortgage.com

 

 

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       Alternative Finance Lenders Serving California since 1988!

800 Mendocino Ave. Ste 2
Santa Rosa, CA 95401
(707) 523-2099
www.sunpacmortgage.com

 

 

California Bureau of Real Estate Broker Corporate License # 01464899.

Nationwide Mortgage Licensing (Registry) System Office NMLS # 360993

5 Reasons to Use A Licensed Professional

Experienced and licensed Brokers, Realtors & Lenders are important for all your lending and/or real estate transactions.

 

I recently read an article about the importance of using an experienced and licensed Lender as well as Real Estate Agent and how not using one of each actually added time, money and ended in some loss of the Buyers.

 

Here is the original link to the below fun and informative infographic with really good reasons why one not only wants to use a licensed Real Estate Professional but also applies to licensed and experienced Brokers and Lenders:

 

5 REASONS TO LOVE USING A REAL ESTATE PROFESSIONAL [INFOGRAPHIC] – The KCM

http://www.keepingcurrentmatters.com/2015/02/13/5-reasons-to-love-using-a-real-estate-professional-infographic/?utm_source=feedburner&utm_medium=email&utm_campaign=Blog_Promo

 

It truly does benefit the Buyer and Borrower alike to find a local expert who can help them through the real estate or lending transaction.  So don’t make the mistake and try to do it yourself, unless of course you are a licensed and experienced Broker, Real Estate Agent or Lender.

 

Best, Forest – The Guy in the White Hat

Sun Pacific Mortgage & Real Estate

 

Forest Tardibuono is Co-Owner and CA BRE Broker known as “The Guy in the White Hat” of family owned & operated Sun Pacific Mortgage & Real Estate – Your California Alternative Finance Lender since 1988.

P.S. We love referrals!  www.sunpacmortgage.comBRE license #01464899/NMLS #360993

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Alternative Financing for 2015!

 

Alternative Financing 

for you in 2015!

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(Click here or the image above the watch the video)

2015 has begun and Sun Pacific Mortgage and Real Estate is here for you! If you or your clients are in need of a hard money loan or alternative financing, please give us a call today! 

We have several programs availabe, click this link to our regularly updated rate sheet:

https://www.sunpacificmortgage.com/SPM_Programs_Rate_Sheet.pdf

Best,

Forest, Lynn & Ken, The Guys in the White Hats

P.S. We love referrals! 

Approval is based on just 2 criteria:

 1. Good Down Payment or Decent Equity    

2. Ability to Repay

• FAST private money purchase financing throughout California.

• Owner Occupied, Bridge Financing, Investor financing, Commercial and some Land financing.

• FICO is not a factor.

• Up to 80% loan-to-value, case by case basis.

• Lower rates with Good Compensating Factors, case by case basis.

• Loan amounts starting at $100,000.

(Sonoma County areas can be lower amounts, case by case.)

SPECIAL NOTE: We can do a loan for someone fresh out of foreclosure, bankruptcy, or short sale!

CALL TODAY, The Guys In The White Hats at

(707) 523-2099

Or email our Broker at forest@sunpacmortgage.com

See our website at: www.sunpacmortgage.com

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       Alternative Finance Lenders Serving California since 1988!

800 Mendocino Ave. Ste 2

Santa Rosa, CA 95401

(707) 523-2099
www.sunpacmortgage.com

California Bureau of Real Estate Broker Corporate License # 01464899.

Nationwide Mortgage Licensing (Registry) System Office NMLS # 360993

 

 

Superhero Hard Money Lender Saves The Day Again


 

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Ready To Save More Loans!

 

The fact is, people still want to buy a home even with tarnished profiles and people still look to refinance their homes to buy another property, do home improvements, get extra cash for the holidays, etc. 

 

Hard Money loans is the only option out there if a Buyer or Borrower has been turned down by their favorite bank or savings & loans, mortgage broker or mortgage banker.  Or all of the above! I’ve said it before and I’ll say it again – Hard Money is here to stay. 

 

This loan is absolutely critical for Buyers and those looking to refinance.  It is a vital tool for the busy Broker and Real Estate too.  2/3 of the loans I do are for purchases. The Buyers are so grateful as they thought they had no chance for home ownership.  Or they were in contract and the Lender all of a sudden said “declined”. 

 

Hard Money is the only loan program I offer.  I invite you to drop me an email or give me a call if you are in California to see how Hard Money will work for your own situation or for one of your clients.    When you need it, you need it and I am here to help!

 

 

Best,

Forest

 

P.S. – We love referrals! 
 

 

 

Approval is based on just 2 criteria:

 1. Good Down Payment or Decent Equity    

2. Ability to Repay

 

FAST private money purchase financing throughout California.
Owner Occupied, Investor financing, Commercial and some Land Financing
FICO is not a factor.
Up to 75% loan to value, Case by case basis.
Loan amounts starting at $100,000*
Lower rates with Good Compensating Factors, Case by case basis.
Fast refinancing. 
 
*Sonoma County Loan amounts vary, call today!

 

SPECIAL NOTE: WE CAN DO A LOAN FOR SOMEONE FRESH OUT OF FORECLOSURE, BANKRUPTCY OR SHORT SALE!

 

 

CALL FOREST, The Guy In The White Hat at (707) 523-2099

Or email him at forest@sunpacmortgage.com

See our website at: www.sunpacmortgage.com

 

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       Hard Money Lender Serving Sonoma county since 1988!

800 Mendocino Ave. Ste 2
Santa Rosa, CA 95401
(707) 523-2099
www.sunpacmortgage.com

 

 

CA BRE Broker – California Bureau of Real Estate Broker.   Corporate License # 01464899.

NMLS – Nationwide Mortgage Licensing (Registry) System.  Office NMLS # 360993

Get a Head Start on the Holidays with Hard Money

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(Click or tap here to view the video)

Mortgage Rates – Its How You View The Outcome

As you have seen, the housing market values are only going up.   Despite news about rates increasing, the interest rates are still within the range of 50 year lows!  The bottom in home prices and interest rates has passed. Waiting no longer makes sense.

I have saved the bacon for agents and conventional lenders on multiple transactions this year, closing many of them in a week.  I have also helped many, many individuals (and families) over the years consolidate their debts or get a loan against their existing equity for use over the Holidays.  It is always a nice feeling to have extra cash over the Holidays either to make it less stressful or to be able to give more.  If turned down elsewhere, I most likely can help if they have a decent down payment or other equity to work with.

Basically considered “all cash”, such loans are extra strong and can be used to purchase or refinance dump property, bad credit

borrower, irregular income borrower, large cash out borrower, Bridge loans, etc.

Some timely articles make good mention on the value of homeownership:

Fannie Mae “Homes have accounted for 23.5% of American’s wealth on average since 1959. That’s nearly double the proportion U.S. households and nonprofits have invested in stocks.”

Wall Street Journal “A measure of owners’ equity as a share of the value of real-estate holdings hit 53.6% in the second quarter, up from 53.2% in the first quarter and below 50% a year earlier. For most Americans, a home is their biggest asset, so the growing level of home equity suggests improvements in the economy are now reaching more Americans.”

If rents go up in the next 30 years at the same rate they did over the prior 30 years then someone renting today for $1,600 will be paying $4,496 in 30 years. Why rent when you could buy?

Don’t be 30 years older, paying an outrageous rent and no accumulated wealth because you paid your landlords mortgage for all that time.  An increase in rates will obviously impact each home owner’s monthly mortgage payment so if you wait, you will end up just having to pay more!

Whether you get a hard money loan to purchase your home now or you get a bank loan, it has the same outcome: Home ownership is not only desirable, it is the correct financial decision to make right now.

Best,

 Forest

Approval is based on just 2 criteria:

1. Good Down Payment or Decent Equity

2. Ability to Repay

• FAST private money purchase financing throughout California.

• Owner Occupied, Investor financing, Commercial and some Land Financing

• FICO is not a factor.

• Up to 75% loan to value, Case by case basis.

• Loan amounts starting at $100,000.

• Lower rates with Good Compensating Factors, Case by case basis.

• Fast refinancing.

SPECIAL NOTEWE CAN DO A LOAN FOR SOMEONE FRESH OUT OF FORECLOSURE, BANKRUPTCY OR SHORT SALE!

CALL FOREST, The Guy In The White Hat at (707) 523-2099

Or email him at forest@sunpacmortgage.com

See our website at: www.sunpacmortgage.com

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       Hard Money Lender Serving Sonoma county since 1988!

800 Mendocino Ave. Ste 2
Santa Rosa, CA 95401
(707) 523-2099
www.sunpacmortgage.com

CA BRE Broker – California Bureau of Real Estate Broker.   Corporate License # 01464899.

NMLS – Nationwide Mortgage Licensing (Registry) System.  Office NMLS # 360993

Hard Money Loans Rescue Home Buyers & Home Owners

 

Hard Money Loans Rescue

Home Buyers & Home Owners

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Hello again!

 

I always like to push the idea of home ownership.  It is still the best financial investment you can make at any time in

your life, so don’t give up if you are trying to buy!

 

In recent Trulia and Keeping Current Matters articles, the subject of Renting versus Buying was brought up; These articles pretty well covered why homeownership remains more economical than renting, throughout the United States. Nationwide, owning is 38% cheaper than renting! 

 

With a Hard Money loan from us, a family was rescued on their home purchase which they were about to lose out on:

 

The Purchase price of the new home was $234,000. They put down 30% of the purchase price ($70,200) and got a hard money loan of 70% LTV ($163,800).  While working to refinance, the Buyers paid 10.5% interest rate for six months ($1,719 monthly) and finally were able to qualify for a conventional loan.  They now pay $1,300 with taxes & insurance included. Their old apartment rent was $1,200 – just $100 less but now they live in their own home!

 

When your Lender, Broker or Realtor tell you “it is the time to buy”, they speak the truth. 

Best,

Forest

P.S. – We love referrals! 

RECENTLY FUNDED HARD MONEY LOANS

(Great Hard Money rates as low as 8.5%*!)

NOTE: Get a loan despite poor credit, self employed-difficult to prove income, need fast financing, property a fixer, etc!  And, we finance Bridge loans, Owner Occupied purchases and refinances, non-owner purchases single and multiple units, commercial and some land. 

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Approval is based on just 2 criteria:

 1. Good Down Payment or Decent Equity    

2. Ability to Repay

• FAST private money purchase financing throughout California.

• Owner Occupied, Investor financing, Commercial and some Land financing.

• FICO is not a factor.

• Up to 80% loan-to-value, case by case basis.

• Loan amounts starting at $100,000.

• Lower rates with Good Compensating Factors, case by case basis.

• Fast refinancing. 

SPECIAL NOTE: We can do a loan for someone fresh out of foreclosure, bankruptcy, or short sale!

CALL FOREST, The Guy In The White Hat at

(707) 523-2099

Or email him at forest@sunpacmortgage.com

See our website at: www.sunpacmortgage.com

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       Hard Money Lender Serving Sonoma county since 1988!

800 Mendocino Ave. Ste 2

Santa Rosa, CA 95401

(707) 523-2099
www.sunpacmortgage.com

CA BRE Broker – California Bureau of Real Estate Broker.   Corporate License # 01464899.

NMLS – Nationwide Mortgage Licensing (Registry) System.  Office NMLS # 360993

 

 

Hard Money Rescues Turned Down Loans

Check out our most recent Hard Money video here:

 

Hard Money Rescues Turned Down Loans

 

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If you feel like your loan application is drowning, soon to “die” by getting
turned down, then you need to watch this video of how I can rescue such a loan.

Real Estate loans can be hard to get for some with poorer credit, who are self
employed, had a recent foreclosure or bankruptcy. Or, you may just need a fast
loan and can’t find an “A” paper Lender who can fund fast.

This sounds like your loan request needs to be rescued, so call me, Forest – The
Guy in the White Hat! (707) 523-2099.

I can help with those drowning loans! For well over 25 years I have been
specializing in loans to Borrowers who have been “Turned Down Elsewhere” as well
as offering all other types of loans. For the last 4 or 5 years I have only
done Hard Money Loans. Recently, about 70% of the loans I have funded I had to
rescue from “A” paper lenders as they were declined for whatever reason.

There are really just 2 requirements for a Hard Money Loan: #1 You have to have
a pretty good down payment for a purchase or equity if a refinance and #2 The
ability to repay the loan.

Call me! Hope to be able to help you soon!

 

Best,

Forest

P.S. – We love referrals!

 

Loan approval is based on just 2 criteria:

1. Good Down Payment or Decent Equity

2. Ability to Repay

 

• Owner Occupied, Investor financing, Commercial and some Land Financing

• FAST private money purchase financing Sonoma County & Northern California.
• FICO is not a factor.
• Up to 80% loan to value, Case by case basis.
• Loan amounts from $75k – $1mil+
• Lower rates with Good Compensating Factors, Case by case basis.
• Fast refinancing.

CALL FOREST, The Guy In The White Hat at (707) 523-2099;

Or email him at forest@sunpacmortgage.com

See our website at: www.sunpacmortgage.com

 

CA BRE Broker – California Bureau of Real Estate Broker.   Corporate License # 01464899.

NMLS – Nationwide Mortgage Licensing (Registry) System.  Office NMLS # 360993

*APR based on loan amount of $130,000 is 9.469%.

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