What Are Investment Property Lenders and How to Find Them?

Investment property lenders are generally property lenders that loan you money when investing in property.

These lenders are better known as hard money lenders or private lenders.

Let me explain the difference between the two.

Hard money lenders usually are private lending institutions that will loan on investment property only. Which means you’ll be buying an investment property of sorts.

However, most hard money lenders will only loan you money for a short period of time.

It’s more than likely you’ll be using these types of loans for your real estate flips.

With that being said here are some of the fee’s you can expect to pay for hard money. Typically, these types of lenders will charge anywhere from 3 to 9 points plus your closing and repair costs upfront. Also, expect to pay a 10 to 15% interest rate for your loan.

It sounds expensive; I know but think about it for one second. If you’re going to be buying a property as a real estate flip, paying 10 to 15% interest for a loan that you received without any credit checks, is really not that bad.

Once you have established a relationship and have proved yourself with your lender you can negotiate for a much better rate and you can also try to roll over payments into the loan.

You can find a hard money-lender by conducting a search on the internet by simply typing in your city of choice followed by the word hard money lenders.

Another great way to find a loan on investment property is the use private lenders.

Private lenders can be just about anyone with capital to invest. There great because you can offer a safe, secure, guaranteed investment with returns of 8 to 15% and you don’t have to pay any points up front.

Having private lenders on your side can be a win, win for all parties involved.

Here are some helpful hints as to where to find private money lenders.

The first thing you must do is ask yourself “who do I know?”

Do you go to the doctors?

Do you go to the dentist?

Do you have an attorney?

Do you know someone in upper management?

These are just a couple of helpful ways to get you thinking about important people you might know.

Build a strong relationship with your investment property lenders and you’ll never have a problem getting an investment property loan.

Drowning in Student Loan Debt? Who Is to Blame?

What do you do when your child tries to make up her mind among different colleges she’s been accepted to? Would your conscience allow you to give up the best possible college for a cheaper college that wasn’t as good? Could you ever live with yourself in the knowledge that you didn’t give your child the best education you could? Isn’t an education an investment that will pay for itself many times over anyway? Perhaps that was how it used to be. Seeing education in this way is no longer something that can hold water though. There are many families today that find themselves in debt for close to $100,000 from having considered a child’s education an investment that can pay for itself. Many graduates who find themselves in a merciless job market that doesn’t pay a fraction of what they hoped it would, find themselves enrolling in night school three years just on the hope that they can keep creditors for their student loan debt at bay.

Does putting off paying your child’s student loan debt off really make sense? The longer you put it off, the more the interest accrues. Does all of this sound like déjà vu? This does sound like the mortgage crisis that brought on the recession two years ago. Just as homebuyers five years ago thought that they could just swing it buying a home that would appreciate in value and make it worth their investment, students and parents today are trying to buy an education that they really cannot afford. They just hope that the investment they make will appreciate in value and somehow bring them great returns. They’re finding out just as homeowners did a couple of years ago, that reality can be very different.

It’s all panning out exactly as it did with the housing loan crisis. Colleges are enrolling students no questions asked, for courses that cost $200,000 over the duration of four years. They bring on banks that will underwrite those loans, and they all hope just like that, that those students will graduate and go on to make fat paychecks. If the jobs market happens to be disappointing, they can’t just declare bankruptcy with student loan debt either the way they can with a home loan. Federal bankruptcy law makes sure of that. Far from opening doors, an education for these young people pushes them into years of debt they can’t possibly get out of.

Typically, families that get themselves into this kind of situation start off applying for a federal loan from Sallie Mae. But after a while, Sallie Mae by the time the child gets to the final year, rejects any further advances and directs parents to apply for a private student loan with a private bank. Typically, when an application for a loan s rejected on account of maxing out credit, that person should set red lights flashing. But it usually doesn’t, because parents naively see an education as something that is worth any kind of sacrifice. Perhaps more balance is called for.

Save My House – What Do You Do If You Can’t Afford A Loan Modification Specialist?

I hear a lot of people say “I’d really like to save my house” but it’s just not going to happen. These are good folk who have invested their lives in their homes. They didn’t buy it as a speculation to make money, they bought it because it was their dream. This is the home they wanted and never thought they could have. This is the home they thought they would raise their family in. This is the house they thought they would grow old together in. If it hadn’t been for the recession, most of them never planned to leave. What happened?

There are a lot of good folk out there that could care less if they owe more for the home than it’s currently worth. Most people don’t buy a home for its investment value, they bought it because they wanted it. The recession may have stunted their plans. They may have lost an income stream or not gotten promotions they were promised. Had everything remained the same, they could and would still be making the payments on time.

If you are in this situation, you already qualify for a home loan modification.

The key here was something changed that affected your ability to make the payments. Your first step is to write the story. Start with this is where you were financially when you bought the home. Explain why you assumed you would be able to meet the payment schedule. Then explain what changed to make the home unaffordable. Did your spouse get laid off? Did you know the payments were going to go up? Did your hours get cut back at work? Use anything you can think of and verify it with paystubs, W-2′s, P&L statements if you are self-employed, etc. What you have just done is to write a hardship letter.

You are well on your way to saving your home.

My advice would be to get someone familiar with home loans and specifically home loan modifications to help you. Bankers do have a type of code-speak all their own. It is paramount that you or the person you choose to represent you knows the lingo and the rules. You are trying to save an asset that is valued in the hundreds of thousands of dollars. If it was in cash, I’m sure you would trust it to an uneducated person to invest for you, why would you trust your home to someone who doesn’t know what they are doing (you)?

Unfortunately good loan modification specialist don’t work free. You probably wouldn’t want to use someone who works for free anyway would you? What’s in it for them if you get approved? Nothing. So why would they work hard for you?

On the other hand, many people are in so deep they can’t afford a specialist. If you are in this category, at least invest in a course to teach you the basics. You want to arm yourself as well as possible if you are going into battle.

How To Invest: 3 Ways To Start Investing Like A Pro

We all love the idea of making money. However, we often don’t recognize some of the best and effective ways to do just that such as saving and more importantly, investing. Some of the highest income earners in the world invest a huge portion of their money. However, if you are going to invest your money you have to do it wisely. You can’t just throw money at any opportunity and hope for results. You have to look for good ROI’s, which is Return on Investments. There’s a ton of ways to save and there’s also a ton of ways to invest. Additionally, there’s a plethora of ways to do both! In this article, I will be covering some of the simplest and effective ways to invest your money like a pro!

Let’s Begin!

  1. Bank Accounts – This has to be the easiest way to invest and save your money! It’s not the most effective, so don’t expect to invest $50 and achieve a return of $1,000 in the next coming months. However, it’s all a gradual numbers game! If you don’t play, you don’t win. If you don’t already have a bank account, get one! However, make sure this bank account comes with a Savings Interest Account. That will allow you to build interest over time from the money you put in.You can take this money out at anytime for emergencies so it’s not like you’re losing your money at any time. You’re just storing your money, if you will. Most interest accounts provide interest of 0.01%. Don’t lose hope! If you have $100 in this account, which means (for most accounts) you will build $1 per month. Read that a second time if you have to. You will be profiting $1 each month for doing absolutely nothing! If that’s not easy, basic and smart investing, I don’t know what is. Before we move on, imagine a millionaire with a couple thousand sitting in their interest account. There’s a reason individuals use this funnel of investing.
  2. Pay Off Debt - I hope by now you have read several other articles, maybe even have watched a few videos over the topic of proper investing. If you have, I’m almost positive this tip has come up multiple times. Why? Because it works! Let’s use logic for a moment if we can. Let’s say you make $5,000 a month but you have credit card bills, medical bills, layaway bills and many others. These “bills” can be paid off and never to be seen or spoke of again. Let’s pretend that all of these bills take out a whopping $1,000 each month out of your income. Now, you only make $4,000 a month. I understand that times are tough for many and easy for few. However, if you were to be able to start chipping away at all that debt and get yourself 100% debt free, you will have that extra $1,000 again to invest with such as putting it in your interest savings account. It may sound silly at first, but examine and research at some point the actions of increasingly rich individuals. The first thing they did when they began to achieve financial success was paid off all their debt. Financially successful people don’t have time to pay off unneeded debt. If this article appears silly, do this tip for just one of your debts and see the results.
  3. Dividend Stocks – Stocks are always fun to tinker with. Some are a waste of your money and time but others are a fantastic way to invest! It’s all about making wise decisions. Don’t just throw your money into any stock! Do some research and look at the analysis of every stock you come across. As a hint, most “penny stocks” are a joke! Look for a stock that projects massive growth as well as offers dividends! Also, feel free to get in touch with a stock broker but remember they are certainly not required. If you don’t mind investing a little time as well, you will be able to find a great stock that pays dividends and projects massive growth. For example, I have quite a few stocks in the marijuana industry (to make it simple). Why? Well, although I do not use any drugs at all, it is very clear that the USA is going in the legalization direction. This means, growth in terms of stocks in this industry is certain! It’s also important to decide the best way to use these dividends and to remember that they are generally quarterly and won’t be a huge whopping amount of money. I personally, take my dividends and slam them right back into the same stock! It’s a slow process, a very slow process! However, after 40 years I will be in very good shape.
  4. Invest In Yourself!! – Consider this a bonus tip. I cannot express this enough. If you desire a vast amount of income and/or time to vacation or spend with family then begin investing in yourself and your future immediately. By immediately, I mean right now! Today! You could start your own business which could quickly or slowly lead to establishing a huge amount of steady income. You could invest in your own education by going back to school or taking some side courses. You could do many things! The point is, to invest in yourself and your future and I promise you will see dramatic, positive, and effective results provided you do it wisely!

Start Investing!

Hopefully you enjoyed my 3 tips on how to invest like a pro as well as my 4th bonus tip! Keep in mind, what has been explained is only the tip of the iceberg when it comes to saving and investing like a pro! I recommend you to look around for more tips and go through more of my articles for I discuss this subject on a regular basis. Investing and saving is a process, it’s certainly not a get rich quick scheme. However, once you have mastered the process you will find that becoming and remaining financially stable is much easier!

Importance Of Investment Diversification

“It is best not to put all of one’s eggs into one basket!” This is most likely a statement that you may have heard many times throughout your life and when it comes to investing, this statement is a reality. Diversifying one’s investments is the main factor in making a success when it comes to investing. All of the people who have made great returns from their monies have been seen to develop investment portfolios that operate in different market sectors and we advise that you should do the same too!

Developing a varied investment portfolio might include purchasing various shares and stocks that come from companies that operate in different business sectors. Methods used to achieve the desired objective may consist of buying government bonds, putting funds in money market accounts or maybe even into property i.e. buy to lets, houses of multiple occupancy [HMOs] and also the standard buying and renting out homes. The key is to invest in different market sectors.

Over time all of the data shows that those who savvy investors who take the time to develop investment portfolios that are well diversified on average experience more stable & consistent returns on their investments this is when compared to those investors who happen to put their monies in one investment vehicle. By investing in those companies that operate in different market sectors [industrial, retail, consumer, business to business etc, etc] will mean that your risk factor is lower too.

For example if you have invested all of your money in one company and that company’s shares goes down, you will lose some, a lot or all worst case all of your funds. Looking at this from another perspective if you happen to have invested in say shares from ten different companies and nine are doing well while one plunges averages say that you will still make some money or your losses will be minimized..

A good investment diversification portfolio will include a number of fundamentals e.g. they will include stocks & shares, bonds, property and of course cash!! It may take time to develop a fully diversified investment portfolio. Depending on how much you have to invest at the outset you may have to start small say only investing in cash and then go onto invest in maybe property over times.

This methodology may prove to be fine – however if you can split the investments that you make at the start – it will be a fact that your risk of losing your money will be much lower and as time passes you will see increasingly more attractive returns from your monies.

The finance experts also say that you should spread your investment monies evenly among your chosen investments targets. Put another way – if you happen to start with an investment fund of £100000 & invest £25000 in stocks and shares, £25000 in property, £25000 in bonds & then decide to invest the other £25000 in a savings account that pays a decent amount of interest.

This is the foundation to building a long term diversified investment portfolio and we see property to be one of the most tried to tested methods for delivering outstanding returns on ones investment funds.