Hard Carry
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Hard Carry
Borrowing from Hard Money Lenders 101
For investors who have been in the real estate business for years, borrowing from hard money lenders is nothing new. Even those who already have personal money to fund their projects sometimes opt to use this kind of financing because it has many advantages. But before you go on hunting hard money lenders to seek financing for your project, here are a few things you must know about these lenders.
They usually operate on their own. Unlike banks and other traditional lenders, they do not employ a large staff. This is advantageous to borrowers like you as you will only need to convince one person to get a loan. If the lender gives his nod to your request, then you’ll get the financing. Traditional lenders usually release loans only after they are approved by a certain number of personnel.
They are also known as private lenders. Apart from its obvious meaning, “private” can also mean “discreet.” You won’t find them in classy offices. They often work at home. Lending could also be a secondary job for them so you are unlikely to find signage in front of their property that a private lender lives there. Your neighbor could be a private lender without you even knowing it. It’s understandable if they are a bit discreet about their business. After all, they are people with extra money and this could draw danger to them and their family.
Private lenders care about your deal, not your income. In a way, we can say that hard money financing is project-based. The approval of your loan will depend on the project you are presenting. Private lenders hardly care about your current income, your credit score, or credit report. If you want to flip a house, then hard money lenders will inspect the property and determine whether it is worth rehabbing your way. If they see the potential of the property to yield profit under your plan, then they will likely fund your project. They will not place their bet on a certain failure.
They impose a high interest for loans. Sometimes, the interest of hard money loans is twice that of traditional loans. An 18% interest is common. This is their way of making sure their business survives. Banks assess borrowers’ credit scores to make sure you have the capability to repay the loan. This is their means of ensuring their survival. The high interest is also the consequence of funding that can be released in just days, compared to traditional lenders who take weeks or even months to process applications.
Learn more about hard money financing and hard money lenders through REIwired.com. The website is an excellent source of information on anything real estate investing.
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How hard is it to get a Carry a Concealed Weapon (CCW) licence in California?
I'm just starting the process to get a Carry a Concealed Weapon licence.
I know the actual technical process; I'm just curious about people's personal experiences. Have you gone through the process? How long did it take? Was it smooth, or rough? Did you end up getting you CCW licence? Any tips?
Thanks in advance.
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