The Benefits of Hard Money Loans for Real Estate Investors
Real estate investors who need funding are often unsure of where to turn for the resources they need to secure an investment property. They usually turn to standard loans to get the required funds to move forward, but they can face a range of setbacks with that path.
Not all investors have a good credit score, and others find that standard loans take too long to process and face several other issues they would like to avoid. Those who want to combat those problems use hard money loans and get several benefits as a result.
Skip Credit Checks
A poor credit score is an issue that stops many real estate investors from taking action on a promising investment. They see a property they want and go to the bank to get the required funds, but the loan officer denies their application. Hard money loans use the property as collateral and don’t require applicants to pass a credit check. The amount an investor can expect to get depends on the current and projected value of the property in question. By crafting a viable business plan, investors can improve their odds of getting the loan they need to secure their new asset.
Even in small towns, promising pieces of land won’t stay on the market for long. Those who don’t buy quickly could lose their chance forever. Standard loans often require people to wait weeks or longer to get the funds into their account, and the property won’t always be there when the finance company completes the paperwork and approves the loan. Hard money loans, on the other hand, let investors get fast access to the funds so that they can act without delay.
Include Repair Fees in the Loan
With standard loans, investors often need to use separate financing options to cover repairs and renovations. Although they can opt to skip this step, doing so is not always a wise move. Renovations increase the value of any property and allow the investor to make impressive returns. The good news is that anyone looking to include repairs and renovations in the loan can do so when they opt for hard money loans.
Since hard money loans depend on the value of the property, finance companies usually support any decision that increases the value of the property. Investors who wish to get the best possible returns are thrilled to discover this fact when learning about hard money loans. The ability to add repair costs to the property loan attracts those who would have otherwise overlooked this option.
Real estate investors looking to skip the problems associated with standard financing options turn to hard money loans for the solutions they need. Bypassing credit checks, getting fast approval times and including possible repairs in the loan are the main benefits people can enjoy when using this option. All investors must review the paths available to them with an open mind so that they can decide what option stands out more than the others.
Those who compare the options with their needs in mind won’t have trouble choosing the right path for their situation and long-term goals. Hard money loans can offer hope to investors who have no or few options when it comes to securing an investment property, and the ones who choose this road are often glad they did.
What Is a Waist Trainer?
A waist trainer is a high compression garment that helps one to lose weight at the midsection of the body. The clothing shapes the waist by reducing the waistline. It is excellent, primarily when used alongside diet and exercise routines. Waist training involves doing exercises that help in slimming the waistline by utilizing a waist trainer corset.
Many women have given reviews and positive outcomes of wearing a waist trainer. The garment works by stimulating the thermal activity around the waist region. You are then able to sweat a lot with minimal effort. The sweating helps in burning the fat around the midsection thus reducing the size of the waist. The high compression provides the shape that the midsection should take. The process provides short-term results to anyone who would like to get results in a short period. The garment also functions by initiating less. The high compression on the waist allows you to eat small portions of food in a day. The less food you eat, the faster you reduce your waist size.
• Workout waist trainer
The garment has a design that is suitable for an intensive exercise. It supports high rates of perspiration, cardio, and strength training. If you have an active lifestyle, the design is best for you.
• Everyday waist trainer
The garment is appropriate for daily life and fits casual and professional occasions. The design has a material that is comfortable and invisible. When you wear it, the undergarment cannot be easily noticed.
• Vest waist trainer
The clothing provides a little bit more comfort than the other designs. It offers support for your bust and back. The corset is best for casual wear.
• The steel-boned lace up
The steel-boned lace-up is a more sophisticated waist trainer compared to the other styles. It provides the optimal health benefits to an individual. When you use it in your everyday training, it gives outstanding results in a short time. It is also comfortable, and you can adjust the laces to fit your size.
Waist trainers come in different sizes of various body types. Choosing a size that suits your body is very important. Many people have the assumption that you have to wear a remarkably smaller size to get the best results. That is not true. Instead, choose a size that provides the best comfort for you. When you wear a small size, it may feel uncomfortable and hurt your waist when you walk and sit down. Various waist trainers come with size guidelines that vary with companies and garment material.
Measuring your waistline is the first step in finding out the correct size of your garment. You can use a vinyl or fabric tape measure to take the measurement. Make sure it is not too loose or tight. You can then subtract about 3 to 4 inches from the size you obtain. Another option is buying a custom-made design. The style has laces that you adjust to fit.
What is a Merchant Cash Advance?
Merchant cash advances are a unique type of funding where a third party creditor offers to advance some money to your company based on your firm’s credit card turnover. Simply put, the cash advance company is purchasing a fraction of credit card sales to be made in the future. As opposed to a traditional loan that requires monthly repayments, you will settle the advance payment through the periodic and automatic deduction of the settlement amount from your company’s credit card sales.
Merchant cash advances have lenient eligibility requirements as opposed to traditional lending alternatives. It is important to realize that your company does not necessarily need to have good credit. The most important factor that is considered in determining your eligibility is having a strong credit card transaction history. Once you prove that your firm processes most of its finances through credit cards, your application is likely to succeed.
Other specifics vary from lender to lender. However, in general, you may qualify if you meet the following requirements.
• You have been in business for over one year
• You accept payments via credit cards
• Your company processes a few thousand dollars every month
Some MCA companies may need additional requirements, such as a minimum amount of credit card sales every month. The previously mentioned requirements, therefore, should be used as a starting point to weigh your firm’s likelihood of getting advance funding.
Differences between Loans and Advances
MCAs are quite different from traditional small business loans. However, the biggest difference between the two is that in a cash advance agreement, you repay the funds automatically through a fraction of your credit card sales. Rather than wiring a loan settlement amount every month, the cash advance company will deduct a fraction of your credit card revenue until the debt is fully settled.
The advantage of such a system is that during financially lean periods, you will be required to pay smaller settlements. In other words, you do not have to find cash to meet a fixed payment amount. This is a welcomed relief for firms that are cash-strapped.
The downside is that not having a fixed payment amount can make financial planning a tall order. Moreover, since you lack adequate control over the repayment processing, you do not enjoy the possibility of paying less interests by making additional payments as in traditional loans.
Loans are regulated by law. Since merchant cash advances are not loans, they are not subject to regulatory conditions. Generally, cash advances might be more expensive than traditional loans. This is because cash advances are considered to be of greater risk to the lender.
When to Apply for a Merchant Cash Advance
Borrowing money is always a risk, and the downsides associated with loans are also evidenced in cash advances.
You should always consider other funding options, especially if you are in debt, going through a tough business period, or if you are eligible for traditional loans with better interest rates.
Although cash advances do not have monthly settlement amounts, they are still debts. Consequently, they always require a percentage of your firm’s income to repay. If you are struggling to meet your financial obligations, adding debt might only compound the problem. On the other hand, if your company is in stable financial shape, a cash advance can act as a good growth stimulator.