Christian Instant Hard Money Loans
Instant hard money loans are usually lending agreements between the Christian owner of a parcel of property or an investor who wants to buy a piece of land but lacks much of the funds for purchase and a local financier who is willing to take some risk to make a high rate of return amount. There are many unregulated states where hard money lending agreements can take place, however Tennessee and Arkansas have placed such tight restrictions on these types of transactions that there is almost no activity in those particular states for this sector of the lending business. Instant funding are deals struck that provide the borrower currency within hours of the agreement. It is the absolute last resort of last resorts for a desperate individual who cannot find any other source of monies and needs dough right now and not tomorrow. It is a agreement that will take full advantage of someone's misfortunes due to poor decision making or just a bad set of circumstances to make a lot of profit.
One will never get one of these types of situations from a bank because a banking institution deals with currency depositors who have been entrusted with the financial organization, and because in most cases, stockholders demand conservative and trustworthy practices. Even credit unions, which are more friendly and willing to work with a person on an individual basis rather than on a template like traditional banks will not make quick decisions. Additionally, large nationally known chain lending companies typically do not have this kind of notes in their repertoire of lending possibilities. Going online to look for fast moneywill not bring up too many possibilities, although some of the sites that are available boast of ten thousand or more companies interested in providing immediate dollars for this type of agreement. With most all of the agreements, a credit check starting with a social security number is never required. The cold hard financial facts are the only criteria for approval.
So a real estate agent/investor has found a very desirable parcel of land that could someday provide home site for five hundred families. The tract has just been placed on the market within the past seventy hours for a million dollars. The agent investor knows that the property will be gone within two weeks because all of the growth of the nearby city is moving in that direction. Through her dealings with real estate in the area, the agent/investor approaches a wealthy rancher who is also a provider of quick financing and asks of his interest in providing at least a seventy percent lending agreement. The rancher knows the value of the parcel of land quite well and knows the land will one day bring a high rate of return of the developer. After some negotiating, the agent/investor has secured a settlement resulting in a seventy percent, seven point three year situation. This scenario would be based on the realtor/investor putting up one hundred thousand dollars of her property and the rancher helping her find another investor for the other two hundred thousand within forty eight hours.
Making such a deal will put the realtor/investor in a position to immediately begin plans to develop and build the five hundred home sites that could eventually bring her a thirty or forty million dollar payoff. The rancher knows the realtor and feels secure in her ability to pull the while deal off and the rancher will make about a hundred thousand dollars on the three year note. It is, as the saying goes, a good deal for everybody. This scenario had all the trapping of fast negotiation: urgency, a form of desperation and a chance to make a lot of profit. "For I say unto you, that except your righteousness shall exceed the righteousness of the scribes and Pharisees, ye shall in no case enter the kingdom of heaven." (Matthew 5:20)
If anyone has traveled the toll roads of America, the fact that food at the gasoline stops is pretty expensive compared to the same stuff a few miles away in the middle of a town is not hard to see. Travelers are paying for convenience and the fact that there is no other choice on the toll road. Kind of like convenience store food bought in the middle of the night. Three dollars for a small can of tuna, yikes! The same is with getting fast access to dollars from others. If a person is so desperate and so needy and so stressed about no other possible way to turn, this may seem like a beautiful alternative. And in some cases, these scenarios might be a viable alternative but much care should be taken before making so costly a financial decision.
Where does a person turn when there seems to be no answer to the impossible situations of life? The reality is that all people face tough times and all people look outside themselves for relief. Drugs, alcohol, sex, amusement, pleasure, thrills and bright lights are many people's prescription for relief from tough times, but the problem is that after all those things are over with, people's problems are still there and no change has taken place on the inside. We are what we are. Jesus Christ says that He has come that people might have life and have it more abundantly. A person may pray for cash to satisfy a certain obligation, but what God wants is for people to pray to have Him in their lives, for He is the final and absolute source of truth and light. In Him are all the answers to any issue we can ever face.
Christian Mixed Use Hard Money LoansCombination borrowing is a type of instrument utilized by those wishing to invest in commercial and residential properties for money-making purposes. These agreements are usually provided via private lenders, rather than via banks and mortgage companies, and the interest and pay back terms may be a bit more stringent than traditionally as far as level of interest rate and number of years required to pay off the balance. For example, banks may provide money for mixed use purposes for 6-85, while private organizations may ask for 10-15% interest. These types of notes are not meant to be long term, although terms as long as 30 years out can be obtained. Rather these types of mixed use borrowing instruments are also called bridge funding, and are for investors needing cash right away for the short term.
One example is for investors buying apartment buildings which will be rehabbed and then put right back onto the market and sold for a profit. The borrower is only interested in obtaining the cash to purchase and flip the property, hopefully selling it off before the terms of the agreement become due. Some investors will want to buy vacant land or commercial property that will be used for a variety of reasons: retail, storage, health, etc. These types of investments are considered to be non-conforming and are more suitable for private investors. Some lenders are particular or picky about lending for strictly residential reasons, but most are open to this.
Companies are interested in getting their cash back with the interest, and therefore if something can be worked out with people who have experienced bankruptcies, foreclosures, difficulty in coming up with down payments, self-employed situations, etc. then they will go ahead with the deal. As long as the broker thinks they can get their cash back out of the collateral or property plus interest then everything should be copacetic. The process is extremely easy, and in most cases, the individual can get the funds in less than 7 days. Application can be done online. In some cases, there are websites that will have organizations compete for the borrowers business, which only serves to help drive down the interest rate on the note and works for the client. This may be the best way to go to ensure the interest rate is the most competitive in the market. "If any of you lack wisdom, let him ask of God, that giveth to all men liberally, and upbraideth not; and it shall be given him." (James 1:5)
For investors interested in new construction, mixed use borrowing can be the solution, especially if the builder is just starting out in the business, and there is no reliable way to tell if the product will be good or not. The funds are usually put into an escrow account to be used as needed in the form of draws as the construction is completed stage by stage. A bridge note may not work here, because if the property being built is a large apartment complex, most likely it will take two to three years to complete all the phases, and most bridge funds are for no longer than two years. Therefore, a lending instrument will need to be obtained that will be sure to cover all the months of build out needed for the project.
There are those that specialize in providing millions of dollars for commercial uses such as building assisted living centers, medical centers, storage facilities and entertainment parks. These providers are interested in the note to value ratio, searching for equity in property generally not above 70%. That is, the borrowed amount will not be greater than 70% of the worth of the property. In all cases, the provider is interested in understanding how the debtor plans to pay back the dough. The client needs to have all of that figured out at the time the process is started.
Christians who are looking are probably ones who understand the real estate market, and so want to ensure they get the very best deal. Seasoned investors are used to negotiating all kinds of financial instruments and fully understand what level of interest rates can be handled with various types of properties for which the funding will be used. These notes would be appropriate when an investor needs cash to buy property being sold at auction, where the sellers expect the buyer to have the dollars in hand at the time of the sale. Proof of funding is required when registering for these types of events. Short term needs are also appropriate for these types of investments but would be classified as a bridge loan, as explained earlier in this article.
Providers may request that an appraisal of the property be conducted as part of the process of approving this type of situation, because they are making decisions based on the value of the property in question. This is why they can by-pass all the traditional lender paperwork requests required in putting together traditional mortgages. This is also why things can be put together in a relatively short period of time, which is ideal for people who need to cash close on an investment closing.