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  • How much cash to close a hard money loan?

    Posted on 1/8/2005
    Generally speaking, count on a hard money loan requiring out of pocket expenses of $5,000 +/- for the third party costs of due diligence (appraisal, inspections, financial review, etc.) and the costs of escrow, points, etc. If you are working with Avatar Financial Group on a hard money loan, you can ask to wrap points and closing costs into the loan to reduce out of pocket expenses.
    Posted in Miscellaneous

  • Escrow

    Posted on 1/7/2005
    If you are closing a property purchase with a hard money loan, you will use and escrow agency, just like any other real estate purchase and sale transaction. Be prepared to wire funds to the escrow company before the date of funding. The hard money lender will do the same. When all funds are collected in the escrow account, closing can proceed.
    Posted in Miscellaneous

  • Be Prepared for Closing

    Posted on 1/6/2005
    Everyone wants a hard money loan to close quickly. Be prepared on your end to help make that happen. Gather financial documentation in advance of requesting a loan, including personal financial statements showing your net worth, corporate financial operating statements showing gross income, expenses and net income, purchase agreements for property you intend to purchase, comps and photos. Finally, be prepared to show with bank statements, etc. where the balance of the cost of the real estate is going to come from.
    Posted in Miscellaneous

  • Broker Outlook 2005

    Posted on 1/5/2005
    The commercial real estate sector is heating up for 2005. With many investor lending groups spotting the landscape across the country, there is still a plethora of lenders compared to deals to be funded. However, good news for brokers - there are more deals and the deals are more solid and fundable now that the New Year has broken. the start of the year generally brings a flurry of "new year's resolution' deals, but the signs for health and growth are definitely there and the increase in realistic hard money loan requests should continue past the first few weeks of the year.
    Posted in Miscellaneous

  • Residential Hard Money Loan

    Posted on 1/4/2005
    Want to get a loan for your private residence and need to use hard money? Put the residence in the name of a corporation or LLC. Either of those entities will qualify for commercial hard money loans.
    Posted in Miscellaneous

  • Negotiating Interest Rates

    Posted on 1/3/2005
    While Avatar Financial's rates are typically fixed at Prime + a modifier, we are sometimes flexible on deals that have very low risk, high borrower equity, or fit our niche particularly well.

    If you think your deal might work for Avatar, give us all the details in advance and we'll let you know if there's room for the interest rate to move down.
    Posted in Miscellaneous

  • What's a REIT?

    Posted on 1/2/2005
    A REIT is a real estate investment trust. The function is to lend money based on the borrower's equity in real estate. REITs are commonly known on Wall Street as an alternative to stock & bond investments, typically falling between the two in terms of risk.

    While Avatar Financial is technically a REIT, we are not publicly traded or available to invest in.
    Posted in Miscellaneous

  • Outlook on Commercial Mortgages in 2005

    Posted on 1/1/2005
    Conventional commercial mortgage money is still very 'tight' as we begin 2005. With commercial building, purchases, and refinancing requirements continuing to recover, look to hard money lenders to keep the wheels on finance turning in the US and abroad.
    Posted in Miscellaneous

  • Assistance with Paperwork

    Posted on 12/31/2004
    Sometimes the hardest part of completing a hard money or bridge loan deal is paperwork. Due to the large size of the transaction and the many legal issues that surround hard money, having experienced help can be critical.

    Make sure you select an attorney, broker & title company that have experience with hard money or non-conforming loans. It can mean the difference between getting your money in 2 weeks and getting it in 8.
    Posted in Miscellaneous

  • Title for Your Property

    Posted on 12/30/2004
    Hard money lenders fund loans based on different criteria than conventional banks and mortgage lenders. But they do not entirely ignore the conventions of good business. Be prepared to provide clear documentation to get your loan funded. Before you even begin to search,you might want to start collecting such basic documentation as clear title, a purchase and sale agreement, tax returns for yourself and/or the business property, etc.
    Posted in Miscellaneous