While aimlessly seeing a brochure of one of the famous mobile phone service providers I saw ‘Conditions Apply’ statement in a miniature font at the end of the brochure. I agree there are certain conditions for any products introduced by a company in any business. But I tried to think vice versa. What if unlimited prospects and no conditions apply in hard money lending business?
What are Hard Money Lenders? I think they should be called opportunity lenders. I must say that hard money lenders are the finest solution for today’s real estate crisis. And the major reason behind this claim is that every time a hard money loan is given there is an opportunity to help impact the market and the largely the economy of the state for betterment. Let’s talk about all the people who benefit themselves when a hard money loan is granted.
At very first place, the previous owner of the property whether a bank, government with FHA, private owner, an owner who wants a short sale, or a family whose house owner is passed away. Any among these sellers are the first beneficiary for that property as they are going to sell it for some reason. At second place, the Title Company will be benefited which is going to close the transaction. Now there is good news that some local title companies are attached with title companies; which is going to bring money to the local economy.
The next person that is going to help is the real estate agent that actually sells the property. That real estate agent who is going to earn money and ultimately he will spend it in local economy. He also pays taxes on that money, which will help as well as the Title Company and sales officers with their taxes, which will help the overall market place as well. The next person that is going to benefit is the repair man, the handy man and all the people who are doing labor on that property. They are benefited because they are going to be paid as they do the work on that property. There is a term in economics called trickle down effect, which basically means when money is generated people will trickle down; they will spend money with other things, which helps the overall economy.
The next people that are going to benefit when Hard Money Loans are given is the local supply shops including plumbing shops and those types of places because they are going to have to buy materials there. Then you also have the insurance company. There is going to be an insurance company that provides hazard insurance on the property and there is going to be an insurance agent that is going to get paid for that that is also going to spend money in the local economy as well.
Next let’s talk about the sale of the property because when a property sells there is going to be another real estate agent that is going to drive revenue. He is going to pay taxes and spend money. There is also going to be a mortgage broker that is going to provide the loan, a new loan that is going to be a good new loan on a property. They are going to drive profit and spend in the local market place.
The next thing you are going to have is the new buyer that buys the home. Typically when a hard money loan is done some one is fixing up the property so they can buy a nice new house even though the house may not be brand new the inside is brand new. So they sell it for a little less so the buyer gets a discount. Now, again there is local money coming and a title company for this property. As you can see there is a variety of people that are going to benefit as Private Money Lenders grant loans for real estate investments. Now see there are unlimited prospects and No Conditions Apply……
Awaiting for your comments as usual!!!
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