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First of all a majority of hard money banks let you to borrow up to 65% of the value of the property. If it is for rehab purposes, the lender will use the “after-repaired value” of the house as a frame of reference. I have seen on occasion that went as high as 75% but 65% is the norm.
These loans are very situational and very flexible so there is some wiggle room if the package makes sense. It can be a strike against you if you are new to the game but fortunately that can usually be offset with sufficient cash reserves and a good plan of action.
Let's take a look at an investor rehab loan to see how the numbers work.
Let's say you came across a beat up old house in a decent neighborhood where homes sell for $100,000. The seller walks you through the home and you determine that the property needs approximately $12,000 in work. You've gotten pre-qualified for a rehab loan and know you are wondering what is the maximum you should pay for the subject property.
To keep it basic, you will want to take $100k x 65% - loan costs – repair costs/holding costs = Purchase price. Loan costs, for hard money loans, may run from 8-13% of the total loan amount. They are not cheap but it's less money than you'll pay to a partner! For now we can assume costs of 10% and holding costs of $2,000. Given those numbers, you probably shouldn't invest more than $45,000 for the house. If you pay more, that just means more money out of your pocket to get the deal done.
Here are a few great tips you can use to maximize the likelihood of being approved for hard money loans, in general:
1. The more equity in the investment property after the loan, the better,
2. The higher your credit score, the better
3. The more credit history you have, the better!
4. The more liquid assets you can prove that you have personally or have guaranteed access to (lines of credit, partners, rich uncles.. .) the better
5. The more populated the area, the better
6. The faster the properties in that area sell, the better
7. The more solid the appraisal value, the better! A lot of hard money lenders like to use fire sale values as the basis point of the loan so don't be shocked. This is definitely not the time to use inflated values.
All in all, this is a numbers game. Don't get attached to a home if the numbers don't make sense. Hard money lenders can be flexible but bring them a deal where the numbers don't add up and it could cost you a relationship. Credit doesn't always matter but it does help, tremendously, if you can show good credit history.
It’s not really about you. Google has standards to which they adhere and there are certain sites that they don’t want their advertiser’s ads on. Check the Program Policies for an exhaustive list of what kind of content sites are not acceptable. For the most part, they do not allow ads to be placed on any site that has excessive profanity. This is probably the hardest one to decipher as the word “excessive” could mean one thing to a publisher and another thing altogether to the Google Adsense program. To be on the safe side, if you notice more than a couple instances of profanity on a site you are considering using for the Google Adsense program, you might want to consider another site.
Sites that contain ads for beer, liquor or tobacco products are not allowed to participate in the Google Adsense program.
Sites that promote hate or racist attitudes are not allowed to participate in the Google Adsense program.
If the site you are considering promotes gambling, drugs, even prescription drugs then it is not suitable for the Google Adsense program.
A good guideline to go by might be if a site is family oriented. That may not cover everything but it’s a starting place. Again, check the Program Policies for more information.
Why Your Should Not Pay for Your Own Blog Site
If you already have a website that showcases your wares or you’ve been thinking about getting one, that’s great. Since you’re working on building a business anyway, you can only profit more by implementing Google Adsense on your site. As long as it conforms to Google Adsense Program Policies of course. Most people feel frustrated that they cannot generate the revenues they expected! Get your Free $97 Adsense Secret Ebook on Adsense Tips today.
If, however, blogging is your interest, I say stick with the most popular blogging site you know. Or even two or three of them. Why? Traffic. Lots of it. Blogging on an already populated site versus dreaming up your own blog site is like the difference between 5:00 traffic in New York City and an old dusty country road. Not only do the owners of , and others like it bring in the traffic, they even help you make money when you bring in more traffic.
Remember what they say in real estate: location, location, location.