The investor world is full of terms, acronyms, and slangs, and they aren’t always easy to decipher. These terms are thrown around and can be misconstrued. Over time these words get bent and reshaped to mean multiple things – kind of like the game telephone we played as kids. A big example is the blanket term Hard Money Financing. Over the last few years, hard money has become the catchall term when there are any funds that bridge the gap from the purchase of a destressed property, rehabbing
Real Estate Investing
Delayed Financing: How to Handle Investment Properties
As an Investor Specialist in the lending world, we are often asked “how can I purchase investment properties without utilizing Private/hard money loans?” Our short answer is “private money loans are the best way to purchase investment real estate.” In all seriousness, there is another route that can save you a lot of money and help you close more deals with lower closing costs, which is what is referred to as Delayed Financing. What is Delayed Financing? Delayed financing is a less common
LLC Creation in Texas: A Guide to Protecting Your Assets
There are many reasons and benefits to create an LLC, which stands for Limited Liability Company. Creating a limited liability company comes with important tax benefits and limited personal liability, which is attractive to so many businessmen and women. In fact, most people don’t know that it’s a pretty simple process to submit for an LLC in Texas. Your best friend for all questions regarding submitting an LLC in Texas is the Texas Secretary of State. They provide an abundance of information
Net Zero Interest: How to Borrow Private Money
What does “Net Zero” mean? In most everyday applications of this term, it is within a discussion about greenhouse gasses, and the push towards achieving a perfectly even balance between emissions produced and emissions taken out of the atmosphere. Some would say achieving Net Zero is the goal towards achieving a healthy atmosphere and stable planet. So, what does Net Zero have to do with interest rates, and more specifically private money interest rates? First, let us define “Private
The Draw Process: What You Need to Know About Construction Loans
The Draw Process, the single most important factor associated with your real-estate investment. Your first thought is probably interest rate or maybe even lender fees, right? What about term of the loan? While these items are particularly important and can make or break a deal, they are all negotiated prior to the loan closing and the lender will not hesitate to tell you. While expecting double-digit interest rates, plus origination can seem like all that matters, there is more to consider!
Cash Out Loans: Investor FAQ
Want to see questions 1-3 from this real estate investor? Click the following links to see our past blog posts answering some very important questions. Questions 1 - 2, Question 3. Question 4) I hear interest rates for cash out refinances are higher in comparison to purchase and non-cash out refinances, is this true? Yes and no. Yes in that all initial loan terms, mortgage interest rates and lender fees are determined based on the risk assessment and the individual type of the loan
