Exit Strategies and Financing Options in Real Estate

A fireman once commented how unsafe it was to enter a burning property without knowing where all the exits were. This same logic applies to the real estate sector. While making any offer, at the back of one’s mind, the exit strategy should be decided preferably incorporating means to generate wealth at the same time. The exit strategy plays a major role in deciding the financing options required. One needs to think of questions like whether one wants to use the profits to buy a new property or invest it somewhere else, how much money is one hoping to make, when will the money be required?

Short term financing is a temporary source assuming one will refinance or resell the property quickly. This usually involves a higher rate of interest with a payoff deadline within a year. This can be sourced through commercial banks or private hard money lenders. Short term financing is a viable option because of its availability and speed in transactions.

Long term financing on the other hand gives you a variety of options provided one is not hard pressed for time, renting the property is an option or loan – to – value isn’t an issue. These include the likes of fixed rate, option adjustable rate mortgage, interest only payment loans, and adjustable rate.

An alternative financing method is Seller financing. In this case, the owner/seller lets their existing loan remain and the buyer takes over the payments. In most of the cases, the buyer gives a down payment and continues to pay interest each month.

Interest rate swaps and caps are also increasingly becoming an important component of real estate financing transactions.

One can consider any of the following three exit strategies -

- Sell subject to – This implies offering the property to sellers under the existing terms of the mortgage. Since it is difficult getting financing in the current market and you are offering a down payment, the property seems really attractive.
- Offer owner Financing – This is similar to the above exit mode except that you get to hold onto the property until it is completely paid off.
- Lease options – This route can help reduce stress on the budget and in time sell off the property entirely. In such a situation, a portion of the monthly rent is attributed to a larger payment made to the owner at the end of an agreed term.

Refinance Your Car Loan And Save On Your Monthly Payments

If you want to lower your monthly payments and expenses, you might want to refinance your car loan. You may be asking what kind of savings you can expect and that can vary based on your original terms and interest rates, but many people are finding that they can lower their monthly payments, assuming they shop rates and consider the online lenders. If you want to refinance your car loan, there are lenders that offer a variety of programs.

While many of them might not allow you to take out cash, there are some that will offer title loans on a paid off vehicle, for this purpose. Another factor might be your credit score, income ratios and whether you owe less than the vehicle is worth. These are factors you would need to consider if you were trading the vehicle in to a dealership and they can make a difference in whether you are able to refinance your car loan, too.

You might be searching for ways to save on your monthly payments and this is an attractive way to lower your expenses, assuming you meet the basic criteria. There are pretty lenient guidelines for those that have average or better credit, but those with bad credit might be able to find subprime lenders that offer more attractive financing terms. If you consider the advantages of saving on your monthly expenses, it is possible that lower interest on your vehicle loan can help you realize an immediate savings. This is the primary reason you might want to refinance your car loan.

There are many people that are striving to be debt-free and if you have a vehicle you plan to hold onto, you can refinance your car loan and have more money to pay off your credit cards quicker, for example. This is only one reason that it might make better financial sense to refinance your car loan than to take out a personal loan, but there might be others that can help you save on your total monthly expenses.

Regardless of why you are trying to make more room in the budget, it is possible you can use your automobile financing to help. For most people, this is the second largest expense, next to their house payment and it can make the difference of more than a couple hundred dollars a month, depending on how much you owe and what your original terms were. For those that have seen improvement in their credit score and their debt-to-income ratios since they obtained their original vehicle financing, you may realize a substantial drop in the interest rate.

When you decide to refinance your car loan, you can take advantage of simple and easy approvals because there are Internet lenders that have practically automated the entire process. You might not have realized that the interest rates can be lower through these private lending institutions because their overhead is lower, but it can amount to a savings to your monthly payment and the total amount of interest paid, when you refinance your car loan. For many people, this is the best option to start saving on their monthly expenses.

Hard Money Loans and Benefits

Capital is one of the most important factors of any business. Not only is capital important but is also the one of the most difficult things for a business to acquire. It can be safely said that not all businesses manage to take care of all their financial requirements on their own. They often fall short and sometimes even find themselves with losses. During such times, getting the necessary credit for the sustenance of the business becomes imperative. There are many sources from which the necessary financial assistance can be obtained. For most businesses, financial institutions like the banks can be a very attractive option. There are also numerous limitations and restrictions imposed by these financing agencies making it extremely cumbersome and difficult. These agencies primarily require a credit score check and will also look into various aspects of the business like the credit worthiness, repayment capacity, and at times, can also impose limitations on the scale of finance. All these can be rather difficult for a small business when it is in rough waters.

This is where factoring companies can be quite useful to businesses. These companies will be able to advance the money and provide the financial assistance to the business in return for a few of the assets of the business. This is basically a case where the business will be selling some of its assets or placing them as collateral for immediate cash. The hard money loans given by the factoring companies are an example of asset based lending. The businesses will be able to get the required cash in return for the collateral that they place with the factoring company.

There are numerous companies which provide hard money loans. The loans provided by these companies will enable the business to come out of the financial difficulties that it finds itself in. The assets are placed as collateral in the hands of the company providing the hard money loans and acts as security to reduce the risk borne by the lender. The secured loans provided by these companies will be extremely useful for businesses in numerous ways despite the fact that interest can be rather high on these loans.

Businesses which aim to achieve growth in a short period of time by investing all the gains can make use of such hard money loans to finance its working capital requirements. The businesses may also make use of these loans when all other financial assistance alternatives are not feasible. This kind of asset based loan can be extremely useful when the businesses are looking to get out of any kind of financial troubles. The greatest advantage of this is that the assets that you place as collateral are not necessarily sold and after repayment of the loan, the assets can be released and utilized. Bernard Linney and his staff have shown proven results for thousands of businesses in the US.