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Pros and Cons of Hard Money Loans

Hard money is the borrowing of money without the use of traditional lenders. Hard money loans are good for cases where a loan is needed quickly or when traditional lenders wouldn’t approve the loan. Traditional lenders require proof that you can repay the loan. They also look at your credit score and your income to determine your ability to repay the loan. This is normally a slow, tedious process even when your income is good, and your credit score is impressive.

On the other hand, hard money lenders, lend based on the collateral you use to secure the loan. They care less about your ability to pay the loan. Shouldn’t you repay the loan, they recover their money by taking the collateral and selling it. Most hard money loans are between one and five years. Before you apply for this credit facility, it is important for you to weigh the pros and cons of taking hard money loans.

 

PROS

 

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Speed

Since the hard money lenders are more concerned about the collateral you offer than your financial situation, hard money loans close within a short time. This is because no time is spent reviewing your bank statements, verifying the source and level of your income, etc. It even gets faster once you establish a relationship with the lenders.

Flexibility

Hard money terms and conditions are more flexible than it is with traditional lenders. These lenders have no standard method of underwriting the loans. Each loan is evaluated separately and individually. Thus you can negotiate off the repayment plan, period and even interest.

 

Collateral

If you are taking a hard money loan to buy property, the property itself acts as collateral for this loan. In other cases, you can use personal assets to secure the loan. Most of these lenders use a low loan to value ratios. This helps the lenders recover their money quickly in case you default on the loan.

 

CONS

 

Cost

Although hard money loans are quite convenient, they are more expensive compared to traditional loans. Most of these loans have double-digit interest rates. The loan also includes other costs such as closing costs, originating fees, and loan servicing fees. These additional fees make the loan even more expensive.

 

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Short Repayment Period

Due to the nature of the loans, they tend to have a shorter repayment period compared to those from traditional lenders. Hard money loans typically have a tenor of between one and five years. As you choose the lender, ensure that you get the clear repayment plan and period. Due to the short-repayment period, this type of loans is mainly used ideal for a fix and flip investments. This is because the money collected from the loan is used to buy and renovate the investments. These investments are normally sold at a higher price than market value due to the renovations. As such the borrower makes money quick, repays the loan and remains with some profit. It is also used to buy and hold investments.

There are many hard money lenders to choose from. Take time and identify the one with the most favorable and negotiable terms for you.…

Cryptocurrency

What Makes a Good ICO?

Investment opportunities crop up with each inch of improvements that spin-off economic dynamics. Once upon a time, people dreamt of education, securing a good job, and raising a family as they awaited their retirement benefits. Times have changed as more and more people think of entrepreneurship and feasible investment options that are out of the ordinary. This is the reason why people are investing in the stock, bullion or the cryptocurrency market. It follows that you can be on the watch out for either an Initial Public Offering (IPO) or an Initial Coin Offering (ICO).

ICO

Many tech-oriented people go for the ICO option owing to its safety features that safeguard short and long-term entrepreneurial ventures. This form of digital currency is not affected by market crash incidents, and neither is it eroded by inflation and the commodity market oscillations. The challenge lies in choosing the cryptocurrency brand that befits your investment prospects, making it significant to keep vigilant.

Return on investment (ROI)

The world is full of excellent coders. These are people who can formulate a cryptocurrency brand given sufficient resources. However, not all of them command solid business acumen. Subsequently, they can write excellent codes, but they cannot transform the genius behind their codes into empires worth your time as an investor. Consequently, your checklist should consider the cryptocurrency’s ROI. Look at the market excitement over an upcoming ICO and speculate on its possible returns. Note that a cryptocurrency’s ROI features are determined by various factors.

Factors to consider

The checklist should entirely point at the ROI aspects of the cryptocurrency that you may choose. Do this by considering the developers behind the blockchain currency. Reputable developers often command huge following that makes their products valuable. People believe and invest in them because they know that their value rises exponentially within a short time after the ICO. You can count on for a solid investment portfolio these currencies. Other factors to mull over include:

  • Legal and tax issues are also significant to consider though cryptocurrencies are devoid of government and tax scheme influences.
  • When and where the ICO is bound to take place as this provides for ample preparation that you need to make wise investment decisions.
  • The extent to which the ICO has been promoted in the mainstream media. This often shows the strength and the validity of the organization behind the ICO.
  • Other factors include the whitepaper aspects and future supply in addition to a clear roadmap that is meant to uphold its future integrity in the cryptocurrency market.

Dealers & advisors

BITCOIN 3You can be a jack-of-all-trades but a master of none. This means that you cannot possibly know everything about the cryptocurrency market, but you can always hire someone who does. Pick on affordable ICO dealers and advisors who you can reach at any time of the day or night. They should know what is trending in the blockchain currency market and work with you to emerge victorious in any ICO that you may wish to make part of your investment portfolio.…

financial records

Advantages of Hiring a Financial Advisor

When it comes to making a financial decision, it is never easy since there are specific considerations which have to be considered. When it comes to making financial decisions, you have to carefully weigh your options since there are short-term and long-term financial investments.

Making the right moves and decisions could help you be successful in whatever venture that you decide to take. Similarly, making the wrong decisions could spell doom for your business venture. Let us look at some of the advantages of hiring a financial advisor.

Proactive service

financial trendsOne of the advantages that you will get when you hire a financial advisor is the proactive service. Before they advise you on any matter, they would need to know your business standings.

That is they will evaluate your bank statements first and see whether you have the money that is needed for the project. By reviewing your financial statements, he will help you to come with strategies that will help you meet your financial goals.

Expertise

Another advantage of hiring a financial advisor is that you will get the expertise that is needed. One of the mistakes that many people usually make is hiring the wrong people for different assignments. To manage your finances well, you will need a financial advisor. Financial advisors are skilled and learned in matters to do with finances. You will, therefore, get the right advice that is needed to make you successful in your venture. The financial adviser brisbane will treat you with the professionalism that it deserves.

Business records

Bookkeeping is essential for any business. You need to keep track of all your expenditure and income. The financial advisor will help you in coming up with such records. Secondly, you also need to audit your books regularly to ensure that everything is being done in the right manner. The financial advisor is likely to help you with the auditing aspect and help you in pinpointing some of the areas in your business that needs to be strengthened.

Return on investments

Whenever investors decide to invest, they typically expect to get returns after some duration. You can as well view the financial advisors as investments since you will be able to reap from their counsel in future. They will point out the likely pit holes which you should avoid; this means that by following their advice you will be able to make your business successful.

Coordination

financial records You might have different employees working for your business. These employees might be the sales manager, the taxation guy, and the accountant. It is prudent that you have someone to coordinate such individuals since their roles are dependent on one another.

A financial advisor could help you with the coordination of the different services. The video below talks about benefits of having a financial advisor.