15
Feb

Collateral Loans – Pros and Cons

download (23)These are also referred to as secured loans. When taking out a collateral loan there are many pros and cons, which a person should consider before taking out such a loan. There is no risk to the lender because if the borrower does not pay back the loan the lender has the collateral that the borrower used. Many times with a collateral loan you can get a lower interest rate and a longer period of time to repay the loan. Before applying for a loan figure out how much money you are going to need. You should avoid taking out excessive collateral loans because in the end you will paying back more money. To get an idea of how much you can borrow you should calculate your monthly expenses and monthly income and then decide after seeing how much you have left, how much of a monthly payment you can afford.

Next you will decide what you will offer as collateral because many times what you offer as collateral will help to determine what the rate will be for your loan. A collateral loan can be used to consolidate a debt, home improvements, vacation, or major purchase. When applying for this loan the loans that the bank or lender will give you against collateral will usually be percentage of the estimated market value. For example, if you are using a car that is worth twenty thousand dollars the lender would most likely offer you a collateral loan of seventeen thousand dollars, or approximately eighty-five percent of the value of your collateral.

Pros

• It is an easy loan to get and usually is quickly approved
• The borrower can usually borrow more money that they could with an unsecured loan, which is the type of loan that you would need a good credit score, steady employment, good income to get it.
• If you are turned down for an unsecured loan many times a person can get a secured loan.
• There is not a cap on how much a borrower can borrow.

Cons

• What the borrower used as collateral is at risk if they cannot pay the loan back in the time agreed upon.
• A collateral loan is not available to just anyone as you will need to own a vehicle, house, or another piece of property that can be used as collateral and if you do not have any of the three you cannot get this type of loan.

As you can see there are more pros than cons when considering a collateral loan but do make sure that you do not borrow more than you can pay back.

 

11
Feb

Find an Appropriate Hard Money Lender

download (22)Find out a hard money lender is not a tough work. The internet can help you most about it. The tricky part is finding out a hard money lender that has low rates, a lender in your local market and is experienced. Many lenders charge more than 15% so it is important to find out a perfect one.

There are great hard money lenders available, but they are not always very easy to find. There have many companies that call themselves hard money lenders and most do very small lending. Maximum lenders are also localised to one state or even one area where they understand the market. However, there have some bigger lending companies that work in many regions and have smaller rates that a typical lender may have.

How does It work?

These loans are not coming from banks. In this loan situation, a company borrows fund from investors and then lends that amount to other investors searching too but real estate at a higher rate. The investors who lend money to the lending company wants to see a good return because of the risk. The lender then has to charge the real estate investor a higher interest rate to make any fund. With a hard cash lender, you will find rates in the 14 to 18% range, along with they will charge from 2 to 5 points on the loan.

Why Investors Pay So Much?

The reason investors are showing interest to pay such high rates on this type of loan is that they have no other option. It is very difficult to get short-term financing from a traditional lending company like a bank, and that is what this loan is for. The loan program is very good for six months to 1 year, where bank lending may be good for around 30 years. Many lenders will also allow investor put less than 20% down payment on properties where banks will not.

How Find A Cheap Lender?

Many of hard money lenders will charge 15% or more, but still there are many lending companies offer affordable rates for debtors. The reason these companies can charge less to the real estate investors is that they are getting more money from larger investors who do not need as high of returns as the smaller individual investors. Many hard cash lenders have rates as low as 11% with 2 to 4 points. Getting bellow 12% with any lending company is going to be difficult. Below are hard money lenders that lend in many states and have good rates for hard loans.

Find A Local Lender

If you like to work with a local lender, you should be careful who you deal with. Referrals are the best option always to find a reputable partner. Here a few process to find some good hard fund lenders. At first, you should ask around at a local real estate investor meet up. Many times lenders will sponsor as well as speak at the meeting. You can ask your real estate agent or a lender if they know any lending company. There also have a chance they don’t know any lender, but it does not hurt you if you ask. You can also check online to find out a real estate investor. When you are searching online, be careful because there has many fraud lending companies are available in the market.

This loan program can be an excellent way to flip houses and expand your returns when flipping by using less of your fund. Hard fund can also be used to buy a rental asset and then be refinanced. Finding the right lender can be challenging work, and if you select the right one, it can cost your deal.

3
Feb

Unemployed? Bad Credit? 3 Types of Loans You May Qualify For

download (21)Everyone finds themselves short on cash once in a while. That is even more true when you’re unemployed. Often times you need extra cash just to pay for bills and necessities. Being in debt and having bad credit doesn’t help. This may make it seem impossible to get a loan.

Most lenders want you to have a steady income and good credit in order to be approved for a decent loan. These ‘decent’ loans are the best ones with the lowest interest rates. However, there are many lenders now who are offering loans for those who have no source of income or who have bad credit. While these loans may not offer you the best rates, they can help ease your financial troubles and build your credit so that better loans are a possibility in the future.

Traditional banks don’t often offer these types of loans. They don’t want to take the risk. The easiest way to find a lender willing to give you a chance is to look online. If you do a basic search for “unsecured loans” you should end up with plenty of results. You can also search for “bad credit loans” if your credit is less than good.

The types of loans you will find will vary a little. There may be different criteria that needs to be met, different interest rates and varying repayment options. Here are the 3 most common types of loan offers you will find that you’re eligible for:

1. Payday Loans

Loans like this are meant to be very short-term. Most lenders will require that the loan be paid back within 2 weeks. You have to have some sort of income for payday loans, even if it’s unemployment benefits or social security benefits.

Generally, the lender deposits a small amount of money (usually under $1000) into your checking account and it is due to be paid back the next time you get paid. The insurance on Payday loans is very high and the lenders do not report to the credit agencies, so it will not improve your credit even if it’s paid back in time. These loans are good for emergency situations where you need cash within a day or two.

2. Loans for Unemployed Borrowers

The amount of the loan that you will be eligible for will be directly related to your credit history. The better your credit, the higher the loan amount is and the lower the interest rates will be. These loans are the hardest to qualify for and are usually reserved for those with excellent credit. Repayment plans will vary, so you want to shop around.

3. No Credit Check Loans for the Unemployed

These loans are harder to qualify for than Payday loans and loans based on good credit. While the lenders do not check your credit, they do background checks instead. They look for a steady employment history and what kind of jobs you’ve done. This gives them some idea of whether they can count on you to obtain employment again and how much money you’d be able to make. Based on these results, you may qualify. While the rates may be high, they shouldn’t be as high as Payday loan rates and you will have longer to repay the loan.

1
Feb

A Few Things You Must Know About The Probate Process

download (24)Probate is becoming an increasingly important term, which is also commonly heard of these days. Therefore, it is definitely something that you must essentially know.
So, here is this article we shall discuss a few things about probate.

• Death – Following the death of a loved one, when you have grieved and paid your respects, it is the administering the property that must be concentrated on. You can hold off any legal process until you get the death certificate. But, once you receive the certification of death from the respective doctor or hospital, then you must begin to take care of administering the property.

• Get the papers in order – Once you are done with the funeral, it is imperative that you get the papers and the will of the deceased in order. This will help you and your estate planning attorney to set things in motion. The executor of the will shall require all such documents to carry on further with the process.

• Title to the real property – In case the deceased owned any property, then that property cannot be put up for sale until and unless the probate court appoints an executor. However, even if the process of sale cannot begin, the executor can start the process of retaining a specialist that deals with probate realty matters.

• The death certificate – As already mentioned, obtaining the death certificate allows one to begin with the legal procedures. Administering of a state is a complicated process and it is better to appoint a probate attorney for the same. You must have the will of the deceased if there is one. You must also carry necessary documentation like financial statements, a copy of the deed of the property, etc.

• File a petition for probate – The next thing that you must do is file a petition for probate in the court which is in the country of the deceased. Normally, a hearing schedule is within thirty to forty five days from the date of filing. The main reason as to why a period of about a month is given is to ensure that all people having an interest in the property are duly informed and can make the necessary arrangements.

• Sale of other items – Forms of any personal belongings of the deceased such as furniture, art, jewellery, etc can be carried out by the family members without any formality. However, if the will of the deceased states that certain items must be passed on to certain individuals, then that must be carried out in a proper manner.