Avatar's Blog
» Does This Loan Make Sense For You?
Avatar Financial Group funds loans that make sense for both the borrower and the lender. To determine whether a loan makes sense for a borrower, A Avatar Financial Group takes a look at P&Ls (profit and loss statements) for about two years' history for the business entity that is going to support the monthly interest-only payments for the life of the loan. When preparing your financials, take a look to see whether you are bringing in at least 1.2 times the sum you have to spend on all your expenses, including the Avatar loan in any given month. This will provide you with a reasonable cushion of cash flow. In the event that you run into a bump in the road during the loan, you will be able to get over that bump rather than run into serious trouble or disaster.
Create a list of your expenses. Remove any existing loan payments that will be paid off with the Avatar loan. Insert the Avatar loan expense instead and take a look at the numbers. You'll know whether this hard money loan is going to make sense for you.
