FinanceReferences.com

Posts Tagged ‘Right’

  With today’s credit crunch and near collapse of the CMBS market, hard money or private money financing has become an increasingly popular option for many commercial property owners. A hard money loan can be defined as a unique type of asset-based financing, where based on the current market value of the commercial real estate property, the borrower receives a certain amount of financing. Typically, because of the increase in risk, hard money loans possess higher interest rates than the traditional commercial real estate loans. Similar to a hard money loan, bridge loans also have similar criterias and costs to its borrowers. However, the big different lies in that a hard money loan is an asset-based loan that possess a higher interest rate (due to the higher risk), whereas a bridge loan deals with a commercial real estate property that is currently in transition, but does not yet qualify for a conventional lender from a lender or lending source. Another difference lies in that a Read More

Just like anything in life, you get more by knowing more. Knowledge is power in every industry, especially in real estate investing. Knowing the right people will always give you success. Another avenue of success is by having a knowledge of the process and selecting the right option for you. BROKER VS. THE BANK Typically, a mortgage broker offers more types of financing than traditional banks. While the bank can only offer loan programs from their institution, the mortgage broker represents a number of banks and other lenders, which results in more financing options for the borrower. Even though brokers have more options to meet your needs, we recommend that you start looking for financing at the bank first. While their options are more limited, if they have an option that meets your needs you will save money because banks can offer financing with cheaper initializing costs than the broker. This may sound funny, but you need to make sure your loan officer qualifies for your Read More