The following are extracts from articles listed HERE.
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What long-term average return can you reasonably expect from stocks? According to some experts, a reasonable estimate is currently no more than 7% to 8%. No less an authority than Berkshire Hathaway founder Warren Buffett touts the following formula: "3 to 4% for real GDP growth + 2% for inflation + 2% for dividend yield = 7 to 8% long-term total return on stocks." And, in his most recent annual letter to shareholders, Buffett said he's "found very few attractive securities to buy."
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So truly would someone take out a Commercial Hard Money Loan verses a standard Commercial Loan? It's because there are determining factors such as Below Par Credit Score, Enterprise Track Record, demonstrative prevalent Income Level that would stop someone from getting old-fashioned money financing or prime rates, so the debtor in these cases will settle for what they can get.
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Because most lenders are almost as reluctant to put homes into foreclosure as homeowners are to be foreclosed on. Lenders do not want to be stuck with empty homes on which they are making no money, but still have to pay insurance and maintenance costs. It’s definitely to your lender’s advantage to keep you in your home, even if you are paying reduced house payments until your finances have recovered.
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There are also Hard Money Construction Loans, which is different Money Financing option that can be used for modest home projects to larger Commercial Property projects such as the development of a strip mall or tract home development project. In most cases for construction projects there is a reserve account setup to make sure that money is allocated properly as the project keeps moving forward.
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Bridge loans are of great help to those who are in urgent need of funds to close on a new residence so that the current home can also close on the contract of sale. This requirement is usually the main reason why most people avail of the bridge loan. There are two types of this kind of loan: closed loans are for those whose contract for the sale of the property have been signed, and have pushed through.
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The main reasons are that these types of money financing solutions are so honored is the pliability. I've heard of companies proposing this type of business loan collectively unsecured, with zero collateral. But these loans are under 500k. Business Cash Loans of 500k to One Billion are most often backed by Real Estate.
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People tend to use these Hard Money Commercial Loans as Procurement or "Bridge Loans". They want to close the hole meaning they will tend to use this commercial finance loan while they wait for their traditional financing kicks in. The issue with these loans is that they start at rates of 11-16%. This is approximately 5 points higher than a conventional loan.
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Extract: A bridge loan is interim financing for an individual or business until permanent ~~~ Bridge loan interest rates are usually 12-15%, with typical terms of up to ~~~ • Bridge loan - Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Bridge_loan
Extract: Many home buyers take a bridge loan thinking they will find a buyer soon for the property that they have put up for sale. Sometimes , they are unable to find a buyer for several ~~~ • Global Bridge Loans http://globalbridgeloans.com/?feed=rss2
Extract: California based private Hard Money Lender company deals in Bridge Loan,Swing Loan,Asset Based Lending etc. California Bridge Loan Hard Money Lender swing loan - Lone Oak Fund • California Bridge Loan Hard Money Lender swing loan - Lone Oak Fund http://www.loneoakfund.com/feed.rss
Extract: I think the most important step is to be realistic in what you can and cannot do. I’ve seen so many first time home buyers jump into something they cannot afford only because ~~~ • Comments on: Bridge loan or Home Equity loan? http://www.choicefinance.net/blog/2008/01/24/buying-before-you-sell-bridge-loan-...
Extract: Bridge loans are temporary financing for bridging the gap between the sales ~~~ The bridge loan is secured to the buyer's existing home. ~~~ • Bridge Loans - What are Bridge Loans - How Do Bridge Loans Work http://homebuying.about.com/od/financingadvice/qt/0407BridgeLoans.htm
Extract: Bridge Loan - Definition of Bridge Loan on Investopedia - A short-term loan that ~~~ A bridge loan could be used to secure working capital until the round of funding ~~~ • Bridge Loan http://www.investopedia.com/terms/b/bridgeloan.asp
Extract: Louisiana governor injects $30M into speedy bridge loan program • Kennedy Funding Lender - News http://www.kennedyfundinglender.com/atom.xml
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