I attended a breakfast meeting with Terry Donahue, former illustrious UCLA Head Football Coach, and he mentioned “Life is About Opportunity”. Terry currently give’s high school football players opportunity to receive a college football scholarship at his California Showcase. (http://cashowcase.org) In 2012 450 player athletes worked-out in front of 30 College recruiters. These schools offered 74 scholarships and changed the trajectory of 74 lives. Terry said, “Just giving the kids a chance is exciting”.
Similar to California Showcase giving the opportunity for High School Football Players to earn college scholarships, Private Money Loans give the opportunity for an equity rich borrower or real estate investor to succeed. The following 6 scenarios describe the “Opportunity” to acquire and benefit from a Hard Money Loan.
- When time is of the essence: Sometimes a seller needs to sell the property quickly. A Hard Money Loan can compete with all cash buyers and close in 7 to 10 days. Whether the timing situation is a short sale with a bank deadline or the need to replace a conventional loan that was denied at the last minute, hard money loans can be fast.
- When a borrower has not sold their home yet and wants to buy a new home: Bridge Loans for a purchase of a new home give time for a borrower to sell their principal residence.
- When a person’s credit is temporarily impaired: Short sales, foreclosures, sudden medical expenses, loss of job can all impact a Credit rating. Borrower’s with less than stellar credit can qualify for a Hard Money Loan based on the equity in the property
- When a person is self-employed and does not have enough W2 Income for conventional financing: While being self-employed offers many advantages, W2 income which required by Fannie and Freddie is not one of them.
- When an investor wants to leverage their cash and fix and flip or fix and rent a property: Many fix and flip loan programs offer loan to value’s above traditional financing when the rehab funds are included in the loan amount. Borrowers get to conserve and leverage their cash to invest in additional real estate investment opportunities.
- When business owners need cash out for a business purpose: Business owners may have opportunities to buy other businesses, take advantage of strategic acquisitions, capitalize on marketing opportunities or just infuse working capital. A hard money loan to cash out of equity laden real estate is many times the fastest and least expensive source of financing for a business.
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Mortgage Vintage, Inc. provides incredible opportunities for Real Estate Investors looking to capitalize on scenarios similar to the 6 mentioned above. How have you used Hard Money to take advantage of an “Opportunity”? We would like to know. Please submit a post on our Mortgage Vintage, Inc. Facebook Page or our LinkedIn Company page. If you enjoy discussions like this, please sign up for our Linked in Group called Southern California Trust Deed Investment Group.