The hard money lending industry is a fantastic opportunity to earn income as a non-public money lender. In the result of the economic recession, property investors really like hard money loans over conventional lending establishments. Most investors in property are often buying troubled bank owned properties for flipping or rehabbing.
Sadly, fresh lending policies passed by banks have made it virtually impossible for anybody without pristine credit and massive asset reserves to get financing to get properties to rehab. In reality even with pristine credit and good money reserves the basic fact that the subject property needs to be rehabbed or has any functional inadequacies can kill the deal since the property cannot qualify for traditional financing.
Many times the former owner may have been a foreclosure party on the way out and annihilated or took everything in sight before eviction. This is the most typical reason investors require access to private money.
Investing in real estate as a moneylender singapore is the final everybody wins scenario for you, the financier and the community as entire. By providing real estate investors with quick trouble-free financing you can charge a steeper rate, sometimes in the 15% range and earn an additional 3% to 5% by charging points on the loan.
Since these loans are short term and generally paid back within 6 to 9 months; the quick return of capital will permit you to lend the money continuously. Thereby making yields above 25% a year.
In this business you not only have command over your investment dollars but you have the power to structure deals that leverage the time and experience of your borrower.
The normal property financier has to do a lot of footwork finding and vetting the deals, but as a private money financier you have other stockholders going out finding the properties and bringing you the deals. Similarly it will only take a short amount of time before your customer base knows your investment style well enough to only bring you the deals they know you can have an interest in.
Even in economic downturns the business is there. Thanks to all of the repos and short sales there are more than needed properties available for cents on the buck.
Banks need to get these REO's off their books and smart financiers wish to flip them. As a personal money lender you will be ready to get these investors the funds needed swiftly and put a 15% to 20% profit in your pocket and theirs each time.
Sadly, fresh lending policies passed by banks have made it virtually impossible for anybody without pristine credit and massive asset reserves to get financing to get properties to rehab. In reality even with pristine credit and good money reserves the basic fact that the subject property needs to be rehabbed or has any functional inadequacies can kill the deal since the property cannot qualify for traditional financing.
Many times the former owner may have been a foreclosure party on the way out and annihilated or took everything in sight before eviction. This is the most typical reason investors require access to private money.
Investing in real estate as a moneylender singapore is the final everybody wins scenario for you, the financier and the community as entire. By providing real estate investors with quick trouble-free financing you can charge a steeper rate, sometimes in the 15% range and earn an additional 3% to 5% by charging points on the loan.
Since these loans are short term and generally paid back within 6 to 9 months; the quick return of capital will permit you to lend the money continuously. Thereby making yields above 25% a year.
In this business you not only have command over your investment dollars but you have the power to structure deals that leverage the time and experience of your borrower.
The normal property financier has to do a lot of footwork finding and vetting the deals, but as a private money financier you have other stockholders going out finding the properties and bringing you the deals. Similarly it will only take a short amount of time before your customer base knows your investment style well enough to only bring you the deals they know you can have an interest in.
Even in economic downturns the business is there. Thanks to all of the repos and short sales there are more than needed properties available for cents on the buck.
Banks need to get these REO's off their books and smart financiers wish to flip them. As a personal money lender you will be ready to get these investors the funds needed swiftly and put a 15% to 20% profit in your pocket and theirs each time.
About the Author:
Tim Tavender is an author with ten years experience running his own personal loan in singapore . He has written for State Papers and Mags about personal loan .
0 comments
Post a Comment