Asset-based lending, also called asset-based financing, is a type of financing that’s secured by collateral. Many businesses use loans from asset-based lending companies that are designed to work as revolving lines of credit. This lets organizations cover expenses or investments as needed by borrowing from their assets on an ongoing basis.
Generally considered a higher risk type of loan, a hard money loan can be used to purchase or refinance a property for both individuals and corporations. With considerable differences from a traditional style loan, a hard money loan is an excellent option for those looking to sell and recoup their investment money fast.
FHA, APR, DTI, PMI, FICO, and LTV are just a few of the acronyms you’ll see in the mortgage and banking world, but what do they mean? Whether you are a borrower or a lender, you should know what all these stand for, and more importantly, how they impact your loan.
Whether you are looking at commercial properties or trying to build your dream home, a construction loan is a great way to finance your project. Learning what a construction loan is, how it works, the types of loans you could get, and the requirements for obtaining one can help you decide what the right option is for you. Continue reading “What is a Construction Loan & How Do They Work”
Finding a good real estate deal is only half the battle won; getting the best financing is the other half. Hard money loans and soft money loans are two great ways to fund your real estate purchase or investment. Both of these financing options have their pros and cons, which you have to carefully consider making the right decision between them. Take a detailed look at the differences between hard and soft money loans.
If you’re new to flipping houses, you may have heard of the 70% rule but not know exactly what it is. Longtime house flippers used their years of experience to create a quick tool called the 70% rule. This tool helps them quickly analyze a potential purchase to determine whether they should put an offer on the property.Continue reading “What is the 70% Rule in House Flipping?”