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Call:0795 637 092 / 0789 858 854
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Call:0795 637 092 / 0789 858 854
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For Enquiries Call: +254 207 766 666, Whatsapp: +254 742 866 677 or Email Us: info@helacapitals.com

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HARD MONEY LOANS ARE AN ADVANTAGE IN TODAY’S ECONOMY

Finance

One of the biggest advantages of using a hard money loan is the speed at which loan approval and loan funding take place. In many cases the approval for the hard money loan can take place in just one day. The hard money lender is going to consider the property, the amount of down payment or equity the borrower will have in the property, the borrower’s experience (if applicable), the exit strategy for the property and make sure the borrower has some cash reserves in order to make the monthly loan payments. As long as everything seems reasonable in these areas approval will most likely be granted.

Real estate investors who haven’t previously used hard money will be amazed at how quickly hard money loans are funded compared to banks. Hard money loans can be funded with 3-5 days if needed. Compare that with 30+ days it takes for a bank to fund. This speedy funding has saved numerous real estate investors who have been in escrow only to have their original lender pull out or simply not deliver. This is a perfect situation for a hard money lender to step in, provide financing quickly and save the deal.

As discussed previously, hard money lenders have few requirements, especially when compared to bank loans. They include the borrower having sufficient equity in the property, enough cash on hand to make the monthly payments, a reasonable exit strategy and ample experience if needed. Fewer requirements means higher likelihood of loan approval. Banks have lengthy lists of requirements a borrower must meet in order to qualify for financing and are known for saying “No” more than “Yes”. Their list of requirements increases each year and many of them seem arbitrary.

Banks also have a list of issues that will raise a red flag and prevent them from even considering lending to a borrower such as recent foreclosures, short sales, loan modifications, and bankruptcies. Bad credit is another factor that will prevent a bank from lending to a borrower. Most banks will not lend to a borrower who already has 4 mortgages even if the borrower’s credit is perfect with no other issues.

Luckily for real estate investors who may currently have some of these issues on their record, hard money lenders are still able to lend to them. The hard money lenders can lend to borrowers with issues as long as the borrower has enough down payment or equity (at least 25-30%) in the property. This 25-30% equity is the security for the loan that ensures the borrower is going to make the agreed upon monthly payments and also make the balloon payment (usually via sale or refinance) at the end of the loan term.

In the case of a potential borrower who wants to purchase a primary residence with an owner-occupied hard money loan through a private mortgage lender, the borrower can initially purchase a property with hard money and then work to repair any issues or wait the necessary amount of time to clear the issues. Once the issues have been remedied, the borrower will be able to refinance to a lower cost loan with a conventional lender such as a bank or credit union.

Banks are also unwilling to provide home loans to borrowers who are self-employed or currently lack the required 2 years of employment history at their current position. The borrowers may be an ideal candidate for the loan in every other aspect, but these arbitrary requirements prevent banks from extending financing to the borrowers. A hard money lender would be able to provide a short term loan (1-3 years) to enable the borrower to purchase their property. In the case of the borrower without sufficient employment history, they would be able to refinance out of the hard money loan and into a lower cost conventional loan once they obtained the necessary 2 years at their current position.

 

 

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WHY YOU NEED AN ONLINE LOAN

Uncategorized

As a small business owner in the market for a small business loan, you may have more than once come across terms such as online lenders, marketplace lenders or alternative lenders. These are phrases that are all used to describe the new category of non-bank and unregulated lenders that have recently emerged with the main aim of providing financing to small businesses that banks and other lenders may consider too risky.

To be honest, resorting to online business lenders comes with its advantages and disadvantages. Nevertheless, this is not only a futuristic wave, but it is also the wave happening right now, especially to small businesses that are looking for loans. This should obviously be a prominent option for small business owners seeking finances for their businesses. More often, online lenders offer these three main products to small businesses; lines of credit, term loans and accounts receivable financing. Here are some advantages for considering online lenders.

Advantages of Online Business Loans

There is arguably no other way to save time when it comes to looking for loans than going online. Unlike a hard application for traditional loans, applying for online loans is as easy as it can get. All you have to do is visit an online loan website, where you can compare the offer they give you to the offers of several other lenders. For example Hela Capital offers the lowest interest rates among the well-known online lenders.

When you are satisfied with an offer, you will fill in the information required and wait for their response, which in most cases, can take as little as a day to get the financing you require. As for Hela, it takes only a few minutes and you are done! Loan is approved and money disbursed to your MPESA.

Considering that the internet has made just about every part of our lives easier, you can apply for an online loan as well.

Whether you decide to apply online while out for lunch, traveling or while watching a nice movie, you can actually do it when the time is convenient for you. This is based on the fact that the internet is open 24/7 and so are the online loan application websites.

With online lending, small business owners don’t have to worry about numerous lenders having to access their credit reports every now and then. While too many requests for your credit report can have negative effects on your credit score, applying for an online loan or line of credit ensures that this negative effect is discarded because you only have one source tapping onto your credit report and information.

Online lending websites are advantageous in the sense that they let you compare several loan offers all at once on the internet. This is crucial and makes it easier to compare and get the best interest rates and terms possible. Again, remember that online lending can be a suitable option if you do not qualify for a bank loan and need funds immediately.

 

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Ways to Grow Your Business

People

Business growth is one of those terms that is thrown around a lot nowadays. For me, this used to simply mean increasing revenue.

As a business owner myself, I’m focused. My eyes are ‘on the prize’.

However, in my pursuit to continue to grow my own businesses, and start-up new ones – I have come to a realization. Actually a few… And I’d like to share these three quick tips that I hope you seriously consider taking on board, so that you can start growing your business a little faster in today’s market.

#1 – Give Stuff Away for Free!

Giving something of great value away for absolutely nothing is huge in today’s market. In his book ‘World Wide Rave’, author David Meerman Scott talks about creating a trigger that encourages people to share something, anything, with others – and people will naturally arrive at your doorstep. I followed his advice, wrote a number of free eBooks, and they’ve since been downloaded by over 15,000 people collectively – and I know for a fact that many, many people have passed them on to other people, and so – my own personal little World Wide Rave began, and is still if full swing!

Create something of massively high value. Something that you would SELL, to make money. And then simply give it away, baby!

#2 – Innovate, Don’t Duplicate!

Nobody likes a copy-cat! Seriously. Nobody. I spoke about this recently. Think about it – you’ve seen products or even service related companies before in the past, that have blatantly ripped off someone else’s idea… right? I know I have, and I have even had it happen to me, too!

Copying or duplicating someone else’s idea might, in the short-term make you a little cash, but long-term? Forgeddaboutit!!! (said in a Tony Soprano voice!).

To grow your business proactively, and with long-term in mind, you must be seen to be doing something differently. Or, at least doing something that other people are doing in a totally different way – whatever that may be.

If someone else has a dog walking company that is doing well, and you’re also passionate about walking dogs – by all means, start a dog walking company, too. But, perhaps add a little spice into the whole thing and promise ‘doggie aerobics’ as part of your sales package, or something similar. Business growth is about being different. Standing out. Making things happen on your own terms… and most importantly – its about PASSION!

#3 – Build a Personal Brand!

People want to do business with other people. Seriously. This is something that I go into quite a bit of detail on in my 7-Day ‘New Business’ Bootcamp – and for good reason.

The way we build and marketing our companies has changed drastically. We can build credibility, authority and genuinely help our prospective customers by solving problems for them, and inspiring them in different ways, in relation to what we can provide to them.

Getting active on social media channels, recording helpful ‘How To’ videos and uploading them to YouTube, even creating a podcast are all great ways to help people, and build a brand for yourself and your business.

It’s golden! Build a personal brand, people!

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REASONS PEOPLE APPLY FOR A LOAN

Economy

5 COMMON REASONS PEOPLE APPLY FOR A LOAN

Everyone needs help at one point or another. The same is true or financial help! As a loan provider to locations throughout North Carolina, Virginia and Georgia, we’ve heard countless reasons as to why someone is requesting a loan. Some of them can be pretty bizarre but most of the reasons people need a loan are common. Here are five of the most common reasons people apply for a loan.

1.) Automobile purchase

Auto loans are one of the most frequently issued types of loans. As our family, work or just personal situations change, so too do the requirements of our vehicles. Whether you’re buying a new or used car, truck, SUV or even scooter, most people don’t have that kind of cash just lying around. That’s where the auto loan comes in to provide a means to finance this new automobile purchase!

2.) Bill consolidation

Just about everyone has bills or debt of some sort. Mortgage, car payments, schooling, power, water, cable, phone, credit cards… it’s just a fact of life! Many people choose to consolidate some or all of their debt into just one loan. This is done for two reasons.

Consolidating debt provides consumers with the convenience of only having to deal with one loan instead of several instances of debt. One payment is much easier to handle than several! Many people also choose to take out a loan for bill consolidation purposes because they can achieve a better interest rate. This will save them money in the long run on their interest.

3.) Medical expenses

As unfortunate as it is, many people require a loan to cover unexpected or even planned medical expenses. As family members get sick or require procedures to improve their quality of life, it can leave behind costly bills. A loan can help with these medical expenses by paying the doctor or hospital up front and allowing you to make payments on this large expense over time.

4.) Home improvement projects

It always seems like there’s something else that needs to be done around the house, right? These could be smaller projects like landscaping and painting the windows or larger projects like replacing the roof or adding a deck. Instead of continuing to put it off, many people take out a loan to pay for the expenses involved with tackling the home improvement project. Many people also use loans to pay for their new HVAC or water heater system.

5.) Vacations or Getaways

Some reasons to apply for a loan are more fun than others! Vacations, while costly, are an important part of most people’s lives. Some people choose to finance their vacations and getaways using a loan. This gives them the up-front cash they need to enjoy this special time with friends and family.


Regardless of your reason for needing a loan, we can help! Federal Financial Services provides personal and automobile loans to individuals throughout North Carolina, Virginia and Georgia. Click below to apply online!

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