Category Archives: Personal Finance

The Ins and Outs of Hard Money Lenders

If you want to invest in real estate but you don’t have cash, you have to fund your investments through a loan. Bank loans are a possibility, but they require a substantial down payment that can really put a strain on your finances. Most banks require about 20% down, which equates to $20,000 on a $100,000 home. As a real estate investor, you might be interested in any alternative that doesn’t require as significant of a down payment. That is exactly what hard money lenders provide and it’s a great opportunity to get funding for a real estate investments. One alternative to hard money lenders are direct payday lenders but they usually deal in small loans amounts.

Hard money lenders DO charge higher interest rates than banks

Despite what another source may have told you, hard money lenders typically have higher rates than a bank. They use your real estate investment as collateral for the loan, which means it’s a much shorter loan than a traditional bank loan would be. Once you’ve sold the property, your hard money loan would then be paid off in full. The shorter the loan is, the more interest they have to charge you in order to make a profit and that’s why hard money lenders charge the interest rates that they do.

Hard money lenders charge very LITTLE upfront as a down payment

Since hard money lenders provide real-estate backed loans, they have collateral in case the investment doesn’t work out. This is why they are comfortable charging very little upfront. The benefit to you as the buyer is substantial. This means that you won’t have to pay a high down payment like you would with a bank. On a $100,000 home, you might only have to pay $2,000 – $5,000 down with your hard money lender, opposed to the $20,000 that the bank would ask for. Hard money loans are an excellent way to fund your real estate investments without breaking the bank.

Hard money lenders DO hold you liable for what you owe

Unlike a bank where you can sometimes use a short sale or foreclosure process to get out of your loan, a hard money lender is still going to hold you liable. In fact, the property you are buying is used as collateral. If you are unable to sell the home and pay back the loan, your hard money lender can take the home as payment and your loan will be forgiven. This is why hard money lenders never provide loans for higher amounts than the value of the real estate that you are buying.

Hard money loans CAN help you afford renovations

As a real estate investor, you are likely to make your profit by flipping homes and making them more valuable than what you purchased them for. Hard money loans require very little upfront, which means that you will have more money to afford renovations. Some hard money lenders will even provide you with a loan that includes the money you need to complete the remodel. This can be very beneficial to your finances and it can help you flip homes without stressing out about the money that you are spending.

Hard money lenders DO NOT use credit as a determinant for your approval

A hard money lender is very unlikely to use credit as a determinant for your approval. This is unlike banks that have strict policies that they must abide by. Your approval will be based on your income, the property that you are purchasing, and the value of the home. This allows an individual with poor credit or even no credit at all to still qualify for a loan. Additionally, since hard money lenders require such a small down payment, you don’t need much money to get started.

Manage your Finances and Help Others at the Same Time

Have you ever found yourself wishing you could manage your finances and help the less fortunate at the same time? If you have, then you’re in luck. The combination of 0% credit cards and an ethical commitment can really make a difference. Interest free credit cards have always been popular and now they are developing a helpful edge, too.

Manage your finances

Having a 0% credit card is something you can build into your financial management processes. These cards generally offer a 0% interest rate for a limited time, so that any purchases you make on your credit card during that time are interest free. This is ideal if, for instance, you are looking to put a large purchase on your credit card (within your credit limit, of course!) and then pay it off in instalments over several months.

You can do this through your minimum monthly payments, which you are required to make as part of your credit card conditions. Just remember to check when your 0% deal ends as this will give you a deadline by which you need to clear the card, or else you will start to be charged interest on the balance you carry over.

Help others with your card

Increasingly, you can find some very good charity cards that give you a chance to help other people when you use your credit card. It works like this: you make a purchase on your credit card and are given a value of that purchase back (usually around 1%). You then donate the money you get back to a charity of your choice, which is great for helping good causes as well as giving you an added incentive to use your card on a regular basis. Helping charity while you shop responsibly – it’s certainly an attractive prospect!

Top Ten Financial Tips

Thinking about improving your financial situation is a good decision to make at any time of the year; many people find it easier to make it at the beginning of the year. It’s not important when you begin. The basics still remains the same. Here are the top ten strategies that will keep you stable financially.

1) Get paid what you are worth and spend less than you earn It looks very simple when you read this line, but most people struggle through this first basic rule. Know the worth of your job in the marketplace. Evaluate your skills, productivity, job tasks, contribution to the company, and the going rate, both inside and outside the company, for what you do. If you are getting less paid, it will have a downward effect in your working tenure.

Once you have determined your earning potential, don’t spend more than what you earn. You will never get ahead in life. It’s very easy to spend, but it takes a lot of time, patience and skills to earn. A little cost-cutting effort in a number of areas can result in big savings. You don’t need to make big sacrifices all the time.

2) Stick to a budget Everyone needs to do a proper budgeting of their finance to know the inflow and outflow of your money. It will be tough to set spending and saving goals if you don’t know where your money is going.

3) Pay off credit card debts credit card debt is the number one obstacle to getting ahead financially. Credit cards are so easy to use and it’s even easier to forget that it’s actually real money and needs to be paid when payments are due. If we don’t pay in time, we end up paying the principal at highest interest rates and fees that could have been saved otherwise.

4) Contribute to a retirement plan if your employer is providing you a 401(k) plan and you are not taking the benefits, you are walking away from one of the best deals. If your employer has such plans, sign up for it today. If you are already contributing, try to increase the contribution. It will help you only after retirement. If your employer doesn’t offer a retirement plan, consider an IRA.

5) Make a savings plan Pay yourself first! If you wait until you have paid all your debt obligations and then see whether there is any amount left for saving, chances are that you will never be able to make a healthy savings account or investment. Always try to set aside at least 5% to 10% of your salary before staring to pay the bills and utilities.

6) Keep investing first try to put money as much as possible towards a retirement plan and a savings account, and then see if you can stretch more towards making some investments. Your finance will get all better in your future.

7) Employment benefits Employment benefits like a 401(k) plan, flexible spending accounts, medical and dental insurance, etc., are quite expensive. Make sure you’re maximizing yours and taking advantage of the ones that can save you money by reducing taxes or out-of-pocket expenses.

8 ) Insurance cover you need to have enough insurance for yourself and your family to get protection in case of death or disability.

9) Update your Will protect your loved ones. Write a will. Most people in US don’t have a will. But if you make one, this will be for good reasons and beneficial to your family members.

10) Keep good records Always do book keeping perfectly. If you are not doing it, you are probably not claiming all your allowable income tax deductions and credits. It will be much easier instead of scrambling to find all the details during filing taxes. There will be chances to save more money if you have every income and expense documented.

Common relationship between bank failures and private money lenders

Due to the recent economic crisis, there has been a tremendous greed and competition to attract more customers between different banks and the lending institutions. This can be a great opportunity for the new homeowners to make a good investment.

While credit from the bank has dried up, there are so many private money lenders who are looking for some opportunities to invest their money. In today’s market of economic crisis, real estate can generate extra ordinary returns for the investor and their private lenders.

The simple reason is buyers who are backed by their money lenders can literally name their price. They can avail deep discounts of 20% to 40% of the market value. The investors can further sell that house to the homeowners at a great discount and still make hefty profits.

Wouldn’t it be exciting if you knew the secrets of getting private money from anyone? How to get money from Friends, family, private investors, funds?


For family and friends, their consideration is influenced by their investing experience with CD’s or the stock market. So, for private investors who are friends or family, consider offering returns of 10% or higher. On the other hand, private lenders of high net worth (like angel investors) regularly look for investments with much higher returns. To be at all interested, they would expect returns of 15% or higher.

Wouldn’t it be even better, if you could borrow private money without having to make regular interest payments? Then consider offering instead of interest, an equity share-a percent of the profits. And if the private lender does want regular payments, you can use mixed funding. That is, offer low monthly interest payments supplemented with an “equity kicker”. So the investor can supplement his yield by receiving a share of the profits.

How to find the perfect car? Seven important tips!

Most of the American have a deep love for an automobile. If you are planning to buy a new automobile, there are many places to find the wheel of your dreams. Here are some tips for the automobile lovers so that you can buy a good vehicle for yourself.

Match your personality: It is very important to have a car of your choice. Know the things that you want to have in your car. This is a car that you will be having for a long time and you must make sure that you are driving it with comfort.

Consider theft prevention: Check with the National Insurance Crime Bureau to find out the cars that are often stolen. If you are planning to buy that model, make sure that you have a strong theft protection system in your car.

Lemon aid: You should check with the National Highway Traffic Safety Administration to know the vehicles with most consumer complaints. This will help a lot in your decision making.

Think ahead of time: A vehicle is a long term investment. If you are a single and are planning to get married sometime in the future, you may consider a bigger car, with plenty of space in it for the baby strollers and playpens.

Keeping an eye on the gas prices is important: Gas prices are rising up frequently and it is very important that you have a car that is fuel friendly and does not hit strongly on your budget.

Your car should have the value when you need to resale it: You must consult with the Consumers reports to know the resale value of your car that you are planning to buy.

Narrow your options: As you are getting close to the date of purchase, peruse all the options on the car and streamline it according to your requirements. This will help you in getting the suitable car according to your needs.

You want to make sure that the car that you purchase gives you the real value of your money. These seven tips will prevent you from making a big mistake.