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  • Closing before the 31st

    Posted on 12/19/2004
    Many borrowers have deadlines, either paper-driven or personal goals - of December 31st or sooner. If you have a loan request that needs funding before the end of the year, the fastest way to submit your request is through our online form. Be sure to have backup documentation on hand to speed the processing. If Avatar has financial statements, P&Ls, photos of the property, and bank statements to review, it is still possible to fund before the New Year.
    Posted in Miscellaneous

  • Hard Money Funding Time

    Posted on 12/18/2004
    Hard money lenders are known for their ability to fund "in a heartbeat." In order to get your hard money loan funded quickly, be sure to have your paperwork ready for the lender's review. Documents you will need include personal financial statements, P&Ls for income producing properties, personal/corporate income statements, and purchase agreements for the subject property. Do not get a written appraisal. Your hard money lender will do that, so do not pay twice. Just get an estimate before you begin.
    Posted in Miscellaneous

  • Appraisals

    Posted on 12/17/2004
    When refinancing a property with a hard money loan, DO NOT order an appraisal for your property. Use an estimate from a real estate agent who will provide 'comps' of similar properties. The hard money lender must order the appraisal. If you already have one, you will need to pay TWICE for that. Save your money - do NOT order an appraisal for a hard money lender.
    Posted in Miscellaneous

  • Bridge Loan Terms

    Posted on 12/16/2004
    Bridge loans (aka gap loans) are designed to 'bridge the gap' between now and long term financing. 'Now' can be a situation in which the borrower has property that is not profitable, not yet completed, or doesn't meet requirements for conventional financing. 'Now' can also be a time when the borrower's personal financial status does not meet conventional financing requirements. Hard money bridge loans for real estate provides the luxury of time to get the house in order and refinance with a long term lender at more advantageous rats.
    Posted in Miscellaneous

  • LTV - What To Expect

    Posted on 12/15/2004
    Hard money for commercial income producing properties can yield you 65% LTV (value = purchase price if you are buying).

    Hard money for raw land can yield you about 50% LTV

    Hard money for residential real estate can yield you about 70% LTV

    Hard money for rehab can yield you about 70% LTV with 'value' being the appraised after fixup cost of the subject property.

    ... and hard money for construciton can yield you a percentage of the value after the project is built - so you will be well in excess of 100% LTV on current costs.
    Posted in Miscellaneous

  • Bridge Loans in Two Weeks

    Posted on 12/14/2004
    Hard money loans can be funded in two weeks... it's really true. But (you knew there was going to be a 'but', didn't you?) you need to have all your documentation ready and in the hands of the lender before you start counting those 'two weeks' to closing.

    Get ready by having the following documents completed and ready:

    * personal financial statement & income statement
    * appraisal w/photos of the subject property
    * 2 years P&L if the property is incoming producing
    * purchase agreement if your are buying the property
    Your lender will tell you what else is required, but you'll be well on your way if you have these papers ready to fax or email.
    Posted in Miscellaneous

  • Hard Money for Raw Land

    Posted on 12/13/2004
    Hard money loans are generally used for commercial real estate purchases. You can get hard money loans for raw land as well as improved commercial properties. Rates for raw land loans will be somewhat higher and the loan amount is generally limited to 50% of the purchase price. You will be asked to have a minimum of 20% equity in each hard money raw land project.
    Posted in Miscellaneous

  • Hard Money for Your Residence

    Posted on 12/12/2004
    Generically speaking, hard money loans are loan based on the value of real estate, not on your personal financial scores. Most hard money is used for commercial purposes. However, hard money is also available for private residential properties. If you need a hard money loan for your personal residence, look for a hard money lender who is licensed to lend in your state. The loan may come under a different name - search for "non-conforming" mortgage loans to see if you can locate a lender who can fund what you need. Expect to pay more than bank rates, but do NOT pay a lender to 'look at' or 'review' your loan. This is an 'upfront fee' that you should not pay.
    Posted in Miscellaneous

  • Fees Before Closing

    Posted on 12/11/2004
    If you have taken out a residential mortgage with a conventional bank, the bank probably paid for the appraisal, etc. before funding your loan. This is not the process in hard money lending. Before closing on a commercial property hard money loan, be prepared to pay about $5,000 toward the costs of due diligence, including appraisals, inspections, document fees, financial reveiws, etc.
    Posted in Miscellaneous

  • Refinancing with Hard Money

    Posted on 12/10/2004
    Although hard money is typically used to buy commercial properties, it can also find a place as a re-financing tool. Typically the loan being converted must already have a very high interest rate or be on the verge of ballooning. Avatar Financial can be a particularly good choice for this type of deal because of our ability to close quickly and our lower than normal hard money rates. If a commercial property requires re-financing between low rates loans or to avoid high interest penalties, hard money can be an option.
    Posted in Miscellaneous