Hey, Hard Money Lender, Lend a little Money to Me

To understand whether or not a buyer should engage in a hard money loan, it is beneficial to look at other sources of funding other than from a bank. So what if you want to do a fix-and-flip? What if you’re afraid of prepayment penalties? What if you have a poor credit score? Something to consider is hard money loans …

Housing Bubble, you Again?

In the wake of 2008 Housing Crisis in South Florida, many fear the current market is in a bubble. Looking at the median sales price for homes in Miami, Florida in the graph below, the trend for 2016 looks eerily similar to the one that was approaching 2007. But before, abandoning your property there are many differences in the real …

So what is a Lien?

A lien gives a bank or lender the right to sell the dictated collateral property if a borrower does not meet the terms of a loan. A lien is released when the loan is paid off. For instance, an individual takes out a mortgage on a house and the bank gets lien until which the homeowner pays off the debt. …

Loan-to-Value (LTVs) what does it mean?

The loan-to-value ratio (LTV ratio) is a value that reveals the mortgage amount in comparison to the actual value of the property. It gives an assessment of lending risk for lenders or banks to examine in approving a mortgage. What does this mean? Usually the higher the LTV the higher the risk is to the lender; as a result, it …

What is a Pre-payment Penalty? Should you Have to Pay It?

  A pre-payment penalty is a fee that establishes the terms in which a mortgage lender or a bank has with the borrower that puts re strictions on the amount and time that the borrower can pay off that loan. It is originally used by lenders to ensure a certain amount of interest payments per month, for example, taking 80% …