Hard Money Capital Group » June 14, 2015

Daily Archives: June 14, 2015


Hard Money Investors

Hard Money Investors Take Heed

Hard Money Investing

Hard Money Investors

Interest in investing is getting heavier by the month as people are realizing that they have to take control of their own destinies with their financial futures. More and more people are understanding what it means to get in there and find out what they are actually making. (there are many that are still paying huge fees for brokers to lose their money, it’s true)

Benefits Of Hard Money Investors

So what can you as a private investor do to take control and further your financial stability for you and your family? Becoming a private investor is definitely a great place to start. It’s not rocket science as to how it works. It does take a specialist or broker to get it right on the paper work. (It helps if there’s an attorney on hand as well)

Rate Of Returns For Hard Money Investors

Historically the general populace was relegated to menial returns of 1-2 sometimes 3%. That was through the traditional CD or Money Market Account. Since private lending took flight and the banks made way for that kind of commerce available and possible, many of those that had those kinds of returns have changed their thinking and are moving their money to where they are making between 8-18%! How is this possible? Through using a broker that can vet opportunities to lend to Active Investors that want to “Fix & Flip” real estate, Private investors can change their financial destinies. IT is by securing a note and mortgage or trust deed that they are able to secure greater returns on their cash. Why not? Banks do it every day! Be the Bank!

Starting Out As Hard Money Investors

How hard is it to start? You can start with us here at Hard Money Capital group. We are after all a group of passive investors ourselves that invest in real estate and vet deals all day, all week, all year. We see the opportunities and vet them according to our investor risk tolerances. They vary, but with the way we usually set up opportunities to lend it is quite safe. Usual Loan to Value ratios are around 45-55%. Sometimes we will go higher for cash outs because we know investors willing to lend on properties that are in greater areas and easier to believe that the borrower is going to repay.

Sometimes there are other factors needed to feel comfortable enough to lend on a property.  We get that, and are willing to do a bit more than most just to be sure.

Hard Money Investors Training 101

Here’s the bottom line, if you don’t feel comfortable with your broker, and want to earn more than 1% while paying 10% as a fee, you need a new one. Come get to know us us and get a couple of our opportunities under your belt to see how we work. You’ll be pleasantly surprised. Not to mention the interest earned.

This article was written by Michael H. Kaleikini, President and Chief Operating Officer of Hard Money Capital Group

Related> What Are Hard Money Loans?

Related> Investing In Hard Money Loans

Related> Do I Qualify For A Hard Money Loan?


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Blog Hard Money Loans with Bad Credit Interest Rates Investing in Private Money Loans

How Should I Prepared When High Interest Rates Strikes?

When High Interest Ratess Strikes

Interest Rates On Private Money Loans

High Interest Rates On Hard Money Loans

I love talking with people; especially when I have the chance to help them secure a loan for an investment property.

That said, there’s always one thing that is a common thread in every conversation when it comes down to cost….Why is the interest so high?

I had a conversation today on that very subject and explained that some of it has to do with supply and demand. Some of it has to do with region, and some of it with risk.

Investing In Private Lending

When there are a lot of people looking to lend money, the high interest rates go down. Why? Competition. Everyone wants to earn a return on their investments and they know their cash on cash is worthless in a bank account, CD or money market account. So they turn to private lending.

What happens at that point is competition for borrowers becomes a pricing war. The borrower wins. As you go further east though, that changes. People are more into ownership than lending. For some reason it hasn’t caught on quite as well yet east of the Mississippi. So money there is a bit less abundant as far as lenders go. And conventional lending is still a hard nut to crack especially now that there are no more stated income loans or no or low doc loans either.

How Does Credit Scores Impact High Interest Rates

So whenI spoke to the person today about the fact that even though they have good credit they may still be paying 16%, they needed to understand the money isn’t as plentiful where they are at. Risk tolerances are much lower. (meaning they aren’t as willing to just lend money out to anyone on just any kind of property) Investors have gotten savvy to how things work and they want to be sure they are making a return on their investment.

Interest Rates On Private Money Loans

If you’re out east, well it gets much higher. Again, the law of supply and demand are in effect and there’s a lot more demand in the Midwest and east coast. That said, when you really look at what is required, there are ways to effectively reduce the actual interest rate you agreed to pay. Well talk about that next time.

This Article Was Written and Published by Michael H. Kaleikini, President and Chief Operating Officer of Hard Money Capital Group

Related> Fix Rehab Flip Loans

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