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Private Money Earnings Beyond Interest

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  Are you interested in learning more about hard money earnings beyond interest? For example, did you know private lenders also earn money from loan fees ? The interest charged to the borrower for using the funds is the most typical source of earnings for a private or hard money loan investment. However, other possible revenue streams and methods to arrange loan agreements might result in a higher return than the interest rate listed on the promissory note. In addition, loan fees and deal structure can impact the return on investment in a hard money note. Fees Fees might be applied up front, upon loan origination, or over the life of the loan. The following are standard fees in which investors participate: Points The borrower pays points on a private money loan as part of their closing loan fees. As a yield improvement, it is usual for an investor to want .5% to 1% of the loan total. Underwriting Loan Fees A l oan doc or underwriting fee is charged to the borrower to draw up the n...
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Private Lending Rental Market - The Impact of Rising Interest Rates

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Accurately forecasting the Fed's next move with our fiscal policy is impossible, but we can keep a watchful eye on public statements they put out for the general public. For example, following a speech by Janet Yellen and her colleagues at the Federal Reserve in March, analysts at Time Money expected a rate increase to come in June of this year. So how are interest rates changing, and how does the rise in interest rates impact private lenders and the private lending rental market ?  How Are Interest Rates Changing? Interest rates have risen dramatically. In the final week of January, the average 30-year fixed mortgage reached a 3.5 percent interest rate, the highest rate since the COVID pandemic began. And since that time, rates have continued to rise. The Fed anticipates that short-term rates will continue to rise throughout 2022. These hikes are meant to battle the present inflationary surge, which remains a key goal for the fed. As interest rates continue to increase, the highe...
Location: Lee's Summit, MO, USA
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Appraisals - What Every Private Lender Should Know

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  Appraisals for private money loan differ from regular assessments. Many investors have become accustomed to relying only on an appraiser to assess the loan value . Most bank transactions are like this because the loan officer or banker does not have the time or knowledge to analyze all collateral types . Hard money and private loans are not the same. If you are investing in a private money loan, the best way to protect yourself is to determine the value. You don't have to be a professional appraiser to determine value. However, you must know what tools to use and the proper method for determining value. Different forms of collateral necessitate different evaluation methods; however, here are a few pointers to help hard money / private money investors perform due diligence on the collateral's worth. Valuation Pointers Obtain several points of value rather than relying on a single valuation estimate . Below are some examples of the different types of estimates : Appraisals A...
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What is Asset Based Lending for Real Estate Investors

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Asset Based Lending When a real estate investor obtains financing for a property based on the borrower's assets, this is referred to as asset-based lending . In asset-based lending, liquid assets are assets that may be converted to cash in a relatively short amount of time, such as cash or marketable securities. A person's income, stocks, bonds, mutual funds, and cash on hand are all examples of liquid assets. However, asset-based lending is not usually associated with liquid assets. The asset is more frequently known as property. In summary, asset-based loans demand collateral, and real estate investors frequently employ asset-based loans for fix-and-flip homes, distressed property improvements, or long-term leases. Asset-based loans are almost often for business purposes rather than ordinary homeownership. Benefit of Asset Based Lending However, one big benefit of asset-based financing is that it is far faster than dealing with banks and traditional loans. It also demands les...
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Top Reasons to Automate your Loan Process

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Manual loan processing is often time-consuming, error-prone, and labor-intensive in the mortgage industry. You'll need to acquire skilled professionals to arrange, grasp, and examine loan applications without missing anything. When loan paperwork arrive for processing, loan processors can only do so much before their productivity begins to decline. So, how can we address these concerns? With best-in-class automation, you can speed up your lending process, increase efficiency, and delight your consumers. Private lenders are becoming increasingly aware of the need to improve their lending processes in a variety of ways in order to increase efficiency, decisioning speed, and output while also improving the customer experience. The benefits of automating your lending process are countless. Borrowers and lenders alike want prompt service and replies. As new loan needs develop, lenders want a strong solution to stay one step ahead of their competitors. Lenders will be able to handle lo...
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How to Become a Hard Money Lender

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Ways to Become a Hard Money Lender How to Become a Hard Money Lender Real estate has been a tried and tested technique of wealth accumulation for many decades, through all of the ups and downs. Anyone with a strong grasp of how real estate investment works may prosper. Assume you built a fortune in real estate and are now earning a significant profit year after year. The following inquiry should be, "What are you going to do with the profit?"  You undoubtedly want to improve your lifestyle so that you and your family may enjoy the finer things in life. However, you must balance this with wise money management so that the money pouring in may continue to increase for you. You do not want to leave this money in a bank account since it will not increase.  You may always continue to invest in real estate, or you may try something new. Another way to invest is to become a hard money lender in real estate. Many real estate investors prefer to adopt this method since the inve...
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Location: United States
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Mortgage Loans after a Pandemic

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The Impacts in the Loan Industry after a Global Pandemic We here at Liquid Logics are extremely close to the impacts the 2020 global pandemic has had in our market place when it comes to Loan Servicing . Find our latest update under the loan articles section on our website. Loan Servicing Professionals for all your Loans
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Location: United States
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