Direct Hard Money Lender
The direct hard money lender is a reliable source of fast money to make a deal sing. The lender is the source of money that can be had within a matter of hours or a couple of days. With these lending agreements, there is no need to look at banking or lending legalities. This will be a private deal between two people; not a loan officer present and no committee discussion or the need to email a credit check company for the pedigree of the borrower. This transaction is strictly private and might be struck over a golf game, at a restaurant, or in one of the parties' living rooms. One thing is for certain: this conversation is about big cash, or at least big as far as most of us think big is.
The appeal of the direct hard money lender is that the money comes directly from him. Not a lot of namby-pamby paperwork, but there will definitely be a very legal contract. The appeal is that this loan source can provide money so fast that heads will spin. Take the general contractor that has been driving past the Over the Hill Strip Mall for nine years. The contractor has been studying the movement of young college graduates moving into the area because of cheap housing. Visions of coffee bars, gourmet restaurants and a high flying bookstore dance in his head. One day the For Sale sign goes up by the road and a quick call tells him the price of the mall is one and a half million dollars firm. He has two hundred thousand, but he is short well over a million dollars.
The contractor has had credit problems and so the bank in these troubled times would tell him adios, but the loan officer does give him the name of a direct hard money lender who lives about five miles from the mall. In most cases, the private loan resource for projects such as this will live within twenty miles of the opportunity and will be already well aware of its either possibilities of making cash or of being a folly. A phone call gets an invitation to the investor's home. The investor was well aware of the situation. He had the contractor over a barrel even before the man sat down because sources had told him there were already potential buyers swarming nearby.
A direct hard money lender doesn't really care about the credit score of potential borrowers. This kind of transaction will be created totally for the security of the one providing the cash. In almost every case, this source of currency only agrees to fund between sixty and seventy percent of the full request. In this particular situation the loan offered was for nine hundred and fifty thousand dollars. The contractor would have to find the other three hundred and fifty thousand dollars. But a direct lender is often very interested in how the borrower funds the balance of the loan, often requesting that the borrower put up personal property as collateral for the second mortgage. Since the contractor had often put his home's value on the market as collateral for other building projects, he would do so again, thus sealing the deal.
They don't call it hard money for no reason. A direct hard money lender will always be tough on the borrower with his loan terms, interest rates, points and brevity of the loan life. Hard money will carry with it very high interest rates, much above what a bank would charge. The quick cash supplier will also demand as many as four or five points for the privilege of borrowing his money. Since each point is one percent of the total loan value, the privilege of borrowing this direct hard cash will be almost forty thousand dollars and get this, early payoff of the loan by the contractor will cost another point and a half, standard fare for a direct hard money lender contract. But the contractor would have his mall, and by the time the twelve month loan is due, he would already have most of the property remodeled and most of the stores leased and the mall would be sold for a substantial profit.
Had the direct hard money lender not lived in the area and had intimate knowledge of the property involved, the deal may have taken weeks to complete. A cash supplier such as this will probably be a business person of some kind who wants to make a profit, but also see his surrounding area prosper as well. The hard cash transactions this person deals in may not be well known except in financial circles and it may often takes some investigation to find him. Whenever a project is cited as being funded by private sources, that's most likely code for a direct hard money lender.
Consensus seems to say the wisest man who ever lived was Solomon who, as a business man and king, knew the value of being wise in all things. He once wrote, "Wisdom is the principle thing; therefore get wisdom and with all thy getting get understanding." (Proverbs 4:7) These cash suppliers of quick financing are usually very honest, but be sure and perform due diligence before linking with one in business. Investigate the person by checking references, and try to find others who have borrowed from the cash supplier. Go into the transaction knowing that most all of the agreement that is signed will be in the lender's favor.
Credit Card Debt Reduction ServicesCredit card debt reduction services provides the consumer, who holds a certain amount of debt, with a professional reduction counselor who gives options to eliminate or reduce what is owed. These options include alternative ways to establish reductions and can be private or non-profit entities, The services are usually offered for a small fee, or in some cases, free of charge. Reducing the amount of monies owed should be a top priority for those that have a long history of charging and paying only the minimum payment due. Consumer debt in American society has surpassed 2 trillion dollars. That equates to over $18,000 of debt per household. This fact gives additional light on the wise words of our Lord, "The rich ruleth over the poor and the borrower is servant to the lender." (Proverbs 22:7)
It is no wonder that these services are becoming more popular. Credit card debt reductions are needed if society is going to dig itself out of the large hole of monies owed. In an age where using credit to buy a home, a car, and an education are almost mandatory, it is no wonder there are so many different agencies to assist with this. Those whom offer assistance with credit card debt reductions establish their own business relationships with certain creditors. This benefits the consumer during negotiations or when working out long term payment plans.
These service agencies act as a third party intermediary between the debtor and the creditor. This third party is already familiar with the authorities and limitations a creditor representative has in regards to arranging payment plans, and debt settlement. The first action of credit card debt reduction services is to lower the balances on the credit card accounts. This can be done primarily by negotiating the interest being charged on the account. Most consumers are unaware that they can protest a high interest rate and 7 out of 10 times convince the creditor to lower it. Credit card debt reductions can only be achieved if the consumer is ready and willing to make a commitment to pay the monies off.
Most times this will require sacrifice, but in the end, the reductions made will actually give the consumer the ability to spend more and not less. With a large percentage of an income going into repayment, the consumer is sacrificing more than they realize already. Lessen that amount with the help of a credit card debt reduction services, and the consumer has more freedom of spending, and less needs to be sacrificed. Before enrolling in one of the many services, caution is recommended. Not all reduction organizations are of quality, and choosing the right one can require patience and accurate research and referral.
Commercial debt reduction companies are those that can help a business stay in operation by repaying as little as two percent of their debt each month. They can help reduce a business' debt and spread the repayment out over time, as they work with creditors and encourage them to accept a payment of what is affordable for the business rather than what has been set as a minimum limit. A commercial debt reduction company provides the service of business financial restructuring and thereby allows over-extended businessmen to avoid bankruptcy.
These usually try to employ counselors that have experience both with borrowers and lenders. A commercial debt reduction company expects to negotiate a reasonable and fair repayment plan with a business' creditors while at the same time leaving the business operator with enough cash flow to stay in business and meet his normal cash flow needs. It is a win, win situation. They provide the financial restructuring needed to allow a business owner the peace of mind to continue his work without worrying about monies owed. A commercial company can provide the answer for a business on the verge of closing its doors or having to file bankruptcy.
Commercial companies can pay off all of a business' lenders and incorporate all of their debts into one payment. This can be done by reducing payments by thirty percent or more and increasing the bottom line and cash flow. Commercial debt reduction companies can help preserve vendor relationships and protect assets, both which are crucial in the world of finances. A commercial debt reduction company can save a business from financial disaster through careful budget planning and this, can then provide the wisdom to avoid encountering the same problems in the future. Another name for debt reduction is accounts payable management.
Bankruptcy places the running of a business into court-appointed receivership, but commercial debt reduction companies involve third-party negotiations with all creditors. Most commercial companies decrease the payoff amounts in return for more rapid settlement. "For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?" (Luke 14:28) In the business world, careful planning is essential. If planning turns out to have had an error, it is a real benefit to have a commercial debt reduction company to help over the hump and get back in to the game.