Category Archives: Real Estate

Using Hard Money Loans When Investing In Real Estate

hard-money-for-real-estate-investment-in-city-of-toronto

Hard money (private) loans for real estate investment often result in quicker portfolios and greater wealth for investors. Investments can often provide a consistent flow of cash and long-term wealth for your family and yourself. Hard money is generally borrowed by an investor who’s looking to buy a renovated property and traditional mortgage lenders typically won’t fund it. It’s more or less a shorter term loan which is backed by the property itself rather than the borrower.

If you’re looking to purchase a house “as is” and renovate it yourself, traditional lenders will usually pass on them which means you’ll need to look elsewhere. You may be approved for a mortgage though if you have a good track record in the commercial real estate business. Other than that, one of the best options is a hard money lender. In general, the rates for hard money loans are higher than a traditional mortgage, but you may be able to negotiate terms with the lender. They’re usually short term and have built-in penalties if you need to extend the timeframe or if you pay it off early.

The terms and fees are typically based on the borrower’s track record and experience if applicable. Many lenders will fund just 65 per cent of the ARV (after repair value) and some lenders could ask for money in escrow until the house has been completed. The lender will want you to have a mortgage and may want to be named on your homeowner’s insurance policy. The loan is usually disbursed in several draws with each one coming after a portion of the work project has been completed.

Once you’ve acquired a loan from a hard money lender, you may find yourself doing regular business with them. Many borrowers end up being private or hard money lenders themselves after they fully understand how the process works. This helps other real estate investors complete deals and many neighbourhoods are revitalized due to the funding of numerous renovation projects. For more information on hard money loans, please contact our team of professional brokers at MortgageMeister.com at your convenience.

MortgageMeister.com is a Toronto-based mortgage company, providing traditional and private mortgages for residential, commercial and investment properties in Ontario.

How Tarion Home Warranties Work in Ontario

How Tarion Home Warranties Work in Ontario

Most major purchases are covered by some type of warranty or guarantee, but people don’t realize this can also be true when buying a new home. Homeowners in Ontario are often worried that their new investment may not have met lawful standards when it was constructed. However, the Ontario New Home Warranties Plan Act regulates…Continue Reading

Buying Investment Properties in Toronto

Buying Investment Properties in Toronto

The real estate market in Canada has continued to increase over the last seven years, and with Toronto being one of the faster-growing cities, you might be thinking about investing. While the idea of passive income from an investment property sounds great there are several things that you need to consider before diving in:  …Continue Reading

What is a Home Appraisal For?

What is a Home Appraisal For?

Home appraisals are utilized for lending purposes, most commonly issued by the lender. In some cases, however, homeowners will commission an appraisal. Let’s take a closer look at what home appraisals are for, and how you can get the highest appraised value possible.   What Is A Home Appraisal? Essentially, a home appraisal is an…Continue Reading

What Expecting Parents Should Know About Buying a Home

What Expecting Parents Should Know About Buying a Home

If you’re planning on starting or expanding your family, your current home may not be ready for the challenge. In fact, many expecting parents often wonder if their home is the right fit for their growing family. When it comes to purchasing a home for you and your children, there are a few things to…Continue Reading

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