Hard money loans are very similar to bridge loans. Bridge loans typically have similar criteria for lending. They also have similar costs to the borrower. The primary difference between a hard money commercial loan and a bridge loan is that a bridge loan frequently refers to a commercial property or investment property that is in transition. The property may not fully qualify for traditional financing yet. Hard money commercial loans refer not only to asset-based loans with a high interest rate but also loans for a financial situation that is possible distressed. Examples of this include cases where someone is arrears on an existing mortgage or where bankruptcy and foreclosure proceedings are already in process.

Hard money mortgages, both commercial and residential, are made by private investors. They typically make loans only in their local areas. The credit score of the borrower is not important because the loan is secured by the value of the collateral property. The maximum loan to value ratio is 65-70%. This means that if a piece of property is worth $100,000, the lender would give the borrower $65,000 to $70,000. This low LTV (loan-to-value) ratio gives the lender added security in the event that the borrower cannot pay and the lender has to foreclose on the property.

Commercial hard money lender programs are similar to traditional hard money loans in terms of the LTV requirements and interest rates. A commercial hard money lender is typically a strong financial institution with the deposits and abilities to make discretionary decisions on loans that are non-conforming. These borrowers do not conform to the standards of Fannie Mae, Freddie Mac, or other residential conforming credit guidelines. Since it’s a commercial property in question, the loan does not generally conform to a standard commercial loan guideline either.

Traditional commercial hard money loans are very high risk and have a higher than average default rate. Just like in a normal commercial loan, when a property owner defaults on a commercial hard money loan, he or she can potentially lose the property to foreclosure.

For more information on hard money lending, please visit http://www.pitbullmortgageschool.com.

Joseph Devine

List With Real Estate Brokers

Having decided that 1031 Tax Deferred Exchange is what you want, you must then list with a real estate broker all of your existing properties and also ensure that such list includes an agreement that clearly states that you are using your property to complete 1031 Tax Deferred Exchange.

To be sure, if you go in for 1031 Tax Deferred Exchange, you will then be in a good position to roll-over all of the monies you receive when you sell your investment property which monies in turn must be used to purchase one or even several similar (like-kind) investment properties. However, during closing the proceeds must be transferred to a Qualified Intermediary who will keep the proceeds from the sale till such time as these proceeds are to be used to buy new like-kind property.

As mentioned, 1031 Tax Deferred Exchange permits you to also defer your capital gains tax as long as the entire amount of money from the sale of a property is used in purchasing similar (like-kind) investment properties. Thus, this deferment is tantamount to getting an interest-free loan for the entire amount that you would have spent on the cash sale which means that you get to retain more equity which in turn makes it possible for you to obtain properties with still higher values while of course, using 1031 exchange.

However, 1031 Tax Deferred Exchange is only applicable as long as you sell real estate that is investment oriented and it won’t hold true if you are selling personal residential property. Also, the properties in question must be similar or more precisely like-kind which means that if you are exchanging real property then the two properties in question must both be real properties. In fact, there is also nothing stopping you from exchanging a single property for many properties or even buying a single property from the proceeds of many properties.

Gary K. Landry is the CEO of TIC Advisors, Inc. If you are looking for the most complete information on a 1031 exchange or TIC property ownership, then you should visit one of the TIC Advisors, Inc. websites: http://www.tic.com and http://www.ticadvisors.com

Estate investing can be an everyday learning experience for both novice and successful property investors. What matters really is that if you want to deal in the property market and build a property portfolio you would need to buy properties sensibly and well researched. To get firsthand experience in real estate investing you could start by working with a property investment company. This is how many property investors have started their property portfolios.

Financing your Property Investment

This aspect of the property investment is being discussed first as it is the most important criteria. It is important that you work with right bunch of professionals who can help you arrange the best balance of finances. It is the first piece of the puzzle and there are a number of professionals that would help you. These professionals are financial advisers; mortgage brokers and finance experts who can help you get some of the best deals on your financial requirements. Ensuring you finance your property the right way is the very first crucial step towards a successful return on your endeavor.

Join a Property Investment Club

If you are good at residential property investments and would like to increase your profits then property clubs are quite lucrative. This would provide you with the opportunity to interact with other successful property investors and help you learn much more about the property investment market. Over a period of time you will network with some heavy-duty investors at the property investment seminars that are held by such clubs.

Why they help

The members of such clubs have plenty of experience in real estate consulting and some of these people invest in overseas real estate. Besides learning about property investment locally, you will also become skilled at making international property investments. Some of the opportunities that you may get can be some of the best property investments you may ever make.

Being a Part of Property Management Companies

If you are not satisfied with the property investment appraisal that investment clubs offer, you can also try your hand at property management companies. The advantage that you will have with such companies is that besides the usual property investing they are also into rental real estate investing. The rental property business is very profitable but carries a fair amount of risk. The rental property investment involves both residential and commercial real estate investing.

What Else

Residential income property concerns profits by leasing apartments and flipping real estate by using off-plan property investments. If you want to make money by flipping real estate you must have a sound financial plan so that the investment deals can be closed quickly. You would need to have strong knowledge about the real estate market and find sellers that are in a rush to make a sale. Once you close the property deal, you would have to market the property correctly so that you make a sale with a sizeable profit.

Ian Clark is a real estate consultant and advisor in UK. He has extensive experience in all aspects of Real Estate Investment built over 20 years . He is also the Director of Midas Estates, an online real estate website offering property investment opportunities in UK and overseas. Midas Estates is a Property Investment company with an aim to provide maximum capital growth for the clients as the majority of the clients are looking to secure financial security in the shortest time possible. Ian’s honest presentation of the real estate investing business, including both profit and risks is respected for his sincere, candid approach. He is highly regarded as one of the most sound, dependable source for the specifics behind the sometimes tricky and exigent facets of real estate investing.

To get more information and for a 30 minute no obligation absolutely free consult in how to make your property investment strategies work log on to http://www.midasestates.com/.