Get Things Straight: What You Should Know About Hard Money Loans

Posted on by George Cummins in Money Times | Comments Off on Get Things Straight: What You Should Know About Hard Money Loans

Mortgage and Loan Keys on KeyboardYou may have heard the term hard money lending, but are unsure of what it really is. Briefly, hard money loans are a type of short-term financing and asset-based loans with higher rates than conventional mortgages. These are a great choice for developing real estate and flipping houses or those who don’t have an excellent credit but needed financing for a renovation project.

Hard money lenders in Miami note that despite its obvious benefits and uses, many are still hesitant in getting this type of loan. If this is the same for you, this might be due to the myths and misconceptions associated with hard money lending. It is time to get things straight by addressing these common concerns about hard money loans.

Are hard money lenders really loan sharks?

Those who give out hard money loans are mostly experienced and successful business people who are willing to help private investors. Do take note that such lenders do not simply offer financing, unless they think that the investment will produce good returns. It is still important, however, to do some research to find reputable lenders and avoid illegitimate ones whose goal is to take the property away from you.

Are these loans the last resort for desperate borrowers?

While these loans have lenient requirements than banks and conventional lenders, they are not for people who cannot borrow anywhere else. In fact, many of those who apply for hard money loans are successful individuals or business. They usually turn to hard money to immediately finance an investment opportunity that banks and other lenders don’t usually approve of. Hard money lenders can only complete the application in ten days or less, while for banks, it may take several weeks or months.

Do hard money loans cost too much?

Sure, these loans have higher rates than traditional financing, but their benefits outweigh the risks. If you, for instance, want to get the loan within a few days to proceed with buying and flipping a house, this type of financing will work best for you. This can also let you sell the house a lot faster, making it a more cost-effective option than traditional financing.

It is not really a bad idea to get a hard money loan to finance your investment. Just be sure to do your homework and work with legitimate lenders. You should also understand the terms and conditions of the loan before signing anything.


How Realty Professionals Can Help Commercial Rentals Earn More

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a commercial propertyThere is so much more to property rentals than simply houses for rent. If you happen to own one of these profitable commercial spaces, your business potential can be lost without the guidance and services of real estate professionals. Here are some of these non-residential pieces of property that can benefit from these experts’ advice.

Commercial Spaces

Business owners need to find the best commercial stalls or spaces for their ventures. Those who rent them out also need to fill them with tenants to make a profit. By asking the advice of real estate professionals, you can find the right target market and be given pointers on how to reach them. With a long-term lease in place, you can easily complete your property loans while your hired Salt Lake City realty experts like American Loans can even whip up their mortgage payment calculator to create a more workable deal for you.

Office Units

Some companies find it more profitable to rent spaces rather than purchasing them or putting up their own, especially if they’re still starting. Real estate professionals can help them find the best ones for their locational and spatial needs. Your possible leasers can save both time and manpower since they don’t have to do the looking themselves and neither will you.

Event Venues

Companies are required to do a lot of advertising, but they would still need to be more aggressive when the off-peak season comes in. Times like these can lead to the closing of businesses if they are not careful in creating effective offers, promotions and events. Handlers of real estate with wide business networks can assist these companies to find you. Meanwhile, they can also help you find firms that would be interested in holding events in your space.

It doesn’t matter whether you are renting or owning a commercial space because you can benefit from the advice of a real estate professional both ways. Take the time to look for a reputable, trustworthy and affordable realty company. The search is worthy of your time since it can affect how your business will fare in the future.

Instances You Shouldn’t Refinance Your Home Loan

Posted on by George Cummins in Money Times | Comments Off on Instances You Shouldn’t Refinance Your Home Loan

Couple signing a home loanRefinancing your mortgage might seem appealing to some homeowners. However, it doesn’t always make great financial sense. Depending on your specific circumstances, refinancing could make your finances worse.

While the appeal of reduced monthly payments and interest rates might seem great, it’s vital that you understand the risks involved. With this in mind, below are certain situations when it’s best NOT to refinance, explains an experienced refinance specialist in Tempe.

1. If You’re Moving Out in a Few Years

When thinking of refinancing, you need to pay attention to the breakeven point, which is basically the length of time it would take you to recover your new loan’s closing costs.

You can calculate your breakeven point based on your new interest and closing costs. Generally speaking, closing costs make up 2–5% of the property purchase amount, so you need to wait a couple of years to get to your breakeven point.

2. If It Isn’t Going to Save You Money

There’s no guarantee that you’d save money when you refinance, and depending on your financial situation, it could even cost you more.

For example, if you have been repaying your existing home loan for quite some time, you’ve most likely paid more money toward your interest instead of your principal, which means that refinancing to a mortgage with a longer term to secure a lower rate would mean that you’d be paying interest twice.

3. If You Can’t Afford Closing Costs

If you can’t put up the money up front for the closing costs, you might be able to roll it over into your refinanced loan. However, even if the closing costs are moderately low, it could add a couple of thousands to your loan.

4. If You’re Just Looking to Use Equity

There are particular situations where tapping into your home equity might make sense — for instance, debt consolidation, paying for college, starting a small business or needed home repairs.

But unless you could really afford your monthly payments in the long term, you risk losing your house if you default on your mortgage.

When considering a refinance, you have to crunch the numbers to see if it makes financial sense for you. In the event that your calculations don’t really add up no matter how you want it to, this might indicate that refinancing isn’t right for you — at this time at least.

A 3-Point Guide to Keeping Your Construction Costs Low

Posted on by George Cummins in Money Times | Comments Off on A 3-Point Guide to Keeping Your Construction Costs Low

Construction workers looking at a blueprintConstruction projects can be financially overwhelming, especially if you are inexperienced in the industry. Some of the things that will likely take up a considerable chunk of your budget are raw material purchases, construction of the foundation, and labour. Fortunately, this article provides you with critical but straightforward methods of keeping your construction costs as low as possible.

Develop a good plan

First, you need to know the size, type, and design of the house or apartment you want to build. Then, do your research. Ask on what it takes to pull up such a project from friends and colleagues who have previously undertaken projects of the same nature. Using professional advice may be costly, but it also pays to have them give an opinion. When you plan and make decisions beforehand, chances of wasting money and time on your projects are significantly minimised.

Draft a budget

People invest in real estate with the hope of making profits. Thus, you cannot afford to spend your money without a budget, given the fact that securing a mortgage these days can be an uphill climb. In fact, you need a budget that is accurate and thorough. The best way to draft your budget is shopping for material quotes, labour costs, and professional services early on.

Use readily available materials

Some materials, including concrete surface retarders, are usually plenty in supply than others. The reason for the difference between such supplies is the demand. Generally, materials that are readily available are often used and relatively cheap compared to those that are rare to find in ordinary shops. Also, the longer your project takes to complete, the more costly it becomes. Since the last thing you want is see your work at a standstill due to lack of materials, the most appropriate option would be to go for cheap and readily available supplies.

Having everything in its rightful place during the pre-build phase relieves one of the heartaches that come with poor planning. Also, make sure that you use modern technology to your advantage.

When Is the Right Time to Use Payday Loans?

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US dollars and a penPayday loans can be life-saver for those who need a quick fix to a financial problem, such as paying for emergency healthcare or repairing your car. However, there are some nuances that you should consider before applying for one.

If you live in Utah, consider a lender who provides cash loans in Provo as they might offer a lower rate than those in Salt Lake City.

Right Timing

Medical emergencies like a dental appointment are a good reason for taking out a payday loan. Another reason to do so involves a check that requires enough money.

A bounced check affects your credit score, so using a payday loan helps in avoiding this. Since payday loans charge a larger interest rate, think hard whether the expense is indeed a one-time emergency.

Most people make the mistake of using payday loans too often to manage their monthly expenses, while some use them to repay credit card debt just to avoid paying finance charges. However, this practice can be a difficult cycle to break, especially in some states where credit card debt remains high.

Most Indebted States

Credit card debt in California reached around $107 billion by the end of 2017, which led the state to have more credit card payables in the country. This doesn’t mean that every person there routinely borrows money, but it indicates a higher risk of default among users.

Texas ranked next with $67.3 billion in credit card debt, followed by Florida with $59.2 billion. Nationwide, American credit card users charged around $931 billion in 2017 with each average household having a balance of more than $15,600.

You shouldn’t rely too much on payday loans frequently to save yourself from a financial crisis, especially if you only need to make ends meet. In case there is no other option, compare rates among at least three lenders and choose the one with the most convenient payment terms.

3 Ways You Can Use Home Equity as a Source of Funds

Posted on by George Cummins in Money Times | Comments Off on 3 Ways You Can Use Home Equity as a Source of Funds

Calculator with coins on top of some documentsYour home can be your ATM when you need to come up with some extra cash. You can use the home equity you have built over time to get low-cost funds. Here are three ways you can borrow on your home equity.

1. Home Equity Line of Credit

A home equity line of credit (HELOC) is a flexible loan with no or few closing costs. The interest rate is variable, but your lender may offer a fixed rate for some years. A HELOC is like a credit card in that it’s a revolving source of cash. The homeowner accesses the pre-approved credit line as needed.

Wasatch Peaks Credit Union notes that you could access your HELOC funds in Ogden in various ways. You may use an online transfer, special checks, or a credit or debit card linked to your account.

2. Home Equity Loans

Are you looking for a specific amount of cash for a one-time expense? Since it’s disbursed as a lump-sum amount, a home equity loan can suit you perfectly.

Home equity loans usually offer fixed interest rates. So, the loans come with predictable repayment costs. The loan may be tax deductible if used to improve the value of the home.

3. Cash-Out Refinance

You could convert your home equity into funds by replacing your existing mortgage with a larger home loan. You will then pocket the difference of the two mortgages in cash. A cash-out refinance may be a good option if mortgage interest rates have gone down.

Home equity is a valuable resource. If you have enough equity, you can tap it for a loan with a competitive interest rate.

You can take a home equity loan if you need cash for a one-time expense. A HELOC can suit you if you need a cheap loan to finance ongoing expenses. If you have accumulated significant equity, need cash, and want a better-terms loan, you may consider a cash-out refinance.

How to Apply for Social Security Disability Benefits for Your Child

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Accounts Receivable Solution Many parents of children with disabilities struggle financially with the continuous increase of medical care costs every year. One way these parents can get financial support is through the Social Security Administration’s (SSA) Social Security Income (SSI) Disability Program for Children.

But do you ensure social security disability eligibility for your children? Here are some ways you can secure the benefits your kids need:

Age Requirement

A child has to be under 18 years old to be considered for the SSI disability benefits. However, the child can be exempted to that rule if he or she is still enrolled in either high school or junior high full time. In these special circumstances, then the child will still be eligible until he or she reaches 22.

Medical Requirement

You need to show documentation of your child’s disability, whether it’s a physical impairment that limits his or her physical functions or a mental impairment that may last for more than a year. You may check with the SSA the list of all impairments included in the requirement. If met, there’s a higher chance that your child will be eligible for the disability benefits.

Financial Requirement

A certain level of income is also checked to see if the child is eligible for SSI benefits. According to the SSA, it may also consider a portion of the parents’ salary together with their resources, as if they were free for the child to have access. The government may also consider a portion of a stepparent’s monthly income if the child resides with a biological parent and a stepparent.

Social security benefits for disabled children is a great way to provide kids with pre-existing health conditions the help that they need. You might want to work with a company that knows a lot about the matter to get the customized solution for your child’s medical needs.

Improve Your Restaurant’s Business

Posted on by Tsfp6 in Money Times | Comments Off on Improve Your Restaurant’s Business

A group of friends enjoying a fine-dining experienceOne of the things that makes any business a success is people. People who work in the enterprise, as well as the customers that a company provides products or services for. With this in mind, every restaurant owner should make an effort to make people happy to ensure the longevity of his/her business.

How to Make Customers Happy

The term ‘hangry’ describes a person who is irritable or moody because s/he is hungry. This just shows how people can change when they are in need of nourishment. Incidentally, this may also demonstrate the importance of restaurants within the foodservice industry.

Any restaurant owner desires to provide sumptuous fare as well as impeccable service and surroundings to his/her customers. However, s/he can only do this with updated equipment. And because restaurants need money regularly to keep them in operation, sometimes it may be difficult to find funds to allocate for repairs or the purchase of new equipment. This problem can be properly addressed with ARF Financial‘s restaurant financing.

However, the work doesn’t end once the kitchen equipment is updated and overseen. Additionally, the restaurant atmosphere should also be well-maintained. This includes the upkeep of physical assets such as chairs and tables, as well as other design accouterments. Of course, service also plays a big part in the dining experience. Sometimes this may be the key in heightening the enjoyment of diners. Making sure that customers are happy, not just with their food but also the whole dining experience, will keep them coming back for more.

Apart from service, foodies also greatly value creativity. The introduction of unique dishes or drinks for given periods of time, as well as attractive promotions, will draw existing customers, and even new clients. Posting these novel offers on social media will undoubtedly grab their attention and make them want to visit your restaurant real soon.

Could You Use Your Vacation Home for a 1031 Exchange?

Posted on by George Cummins in Money Times | Comments Off on Could You Use Your Vacation Home for a 1031 Exchange?

a couple looking at their vacation houseSo you have a vacation home that you’d like to use for a 1031 exchange. The question is, could you? The simple answer is yes, your vacation home might qualify for a like-kind exchange considering that you follow specific guidelines and your vacation home meets certain rules. So how do you know if yours could meet the IRS’ stringent eligibility rules?

Qualification Requirements for 1031 Vacation Home Exchanges

Say, you stopped using your vacation home, lease it for several months, and then decided to exchange it for like-kind property. In this scenario, you’re now a landlord, and your vacation home is now an investment property, meaning that you could potentially use for a 1031 exchange in Nevada, notes 1031 Exchange Place. However, if you don’t actually have regular tenants, your vacation home won’t probably qualify.

The key is timing, meaning that the more time that passes after renting out your vacation home, the better. While there’s no set standard, six months to one year should be enough.

However, if you’re looking to use your exchanged property as a primary or second home, you won’t be allowed to live in it right away. According to the Safe Harbor Rule of the IRS, it won’t challenge the eligibility of a replacement dwelling as an investment property provided that it meets the Safe Harbor qualifications below:

  • You own the property for a minimum of 24 months immediately after your 1031 exchange;
  • You should rent out the property at a fair rental rate for a minimum of 14 days; and
  • Your use of the property shouldn’t exceed more than 10% of the days you’re renting out the unit or 14 days.

Other Vital Things to Know

After you’ve successfully completed a 1031 exchange using your vacation home, you won’t be able to convert your newly exchanged real estate to your primary residence and benefit from the $500,000 exclusion, as was the norm before the IRS modified the law in 2004. Currently, if you obtain real estate in a like-kind 1031 exchange and then later try to sell it as your primary home, the $500,000 exclusion won’t apply to you for five years starting from when you obtained the like-kind property. Put simply, you’d need to wait for some time to utilize the primary home capital gains tax benefit.

If you’re seriously considering a 1031 exchange using your vacation home, consult an experienced qualified intermediary to find out your property is eligible for an exchange.

Selling Property in the U.K.? Here Is What You Need to Know About Stamp Duty Tax

Posted on by George Cummins in Money Times | Comments Off on Selling Property in the U.K.? Here Is What You Need to Know About Stamp Duty Tax

House for sale signSelling property requires several conveyancing steps — submitting documents, paying taxes and duties as well as sorting other documents.

The stamp duty land tax is a form of transfer tax on the land transaction, in the form of the property sale documents. Websites such as the Stamp Calculator have an online stamp duty land tax calculator, which can compute the amount due depending on the value of the property sold.

A Place in the Process

Whether there is any amount you need to pay or not, you have to submit a return to the HM Revenue and Customs office within a specified amount of time. If the HMRC does not receive the return within the given time frame, the taxpayer will have to pay a fine.

Once the HMRC accepts the return, they release a certificate to the taxpayer, who then has to register a change in the property ownership.

The stamp duty land tax uses a graduated scale of values. There are no taxes for transactions worth up to £125,000; for transactions worth £125,001 to £250,000, 2%; from £250,001 to £925,000, 5%; from £925,001 to £1,500,000, 10%; and over £1,500,000, 12%.

For second homes, buyers will pay an additional 3% aside from the figures above. The value considerations do not need to be cash; they could also include improvements or some other civil work stated in the document, which could increase the worth of the property in terms of stamp duty.


There are special rates for other types of purchases. These categories include properties bought by corporations, purchases made by individuals involving six or more properties in a single transaction, or multiple purchases and transfers between the same set of buyer and seller — collectively called linked purchases. The stamp duty could have some tax relief for these circumstances.

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