15 Tips For Selling Your Property in Just 30 Days

15 Tips For Selling Your Property in Just 30 DaysWhen you need to sell your home fast at the price you want, simply listing it with a real estate agent just won’t cut it. Especially, if you need the funds from the sale to go towards buying another house. There are many other things you can do to make your house sellable and attract plenty of offers. Here are 15 top tips for selling your property fast and for top dollar.

Know your property and your buyers

You need to have a sound knowledge of your property and who you’re selling to. Look at the qualities and features of your property, and then make a list of who you think will live in or buy your property. For example, a ground-floor apartment with a courtyard will be suitable for either a young or an elderly couple, whereas a top-floor apartment with no lift will be more suitable for a young couple or investor. You should get into the mind of your buyers to understand what they’re looking for in a home.

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How to Get a Million Dollar Mortgage

How to Get a Million Dollar MortgageWhen looking to buy a million-dollar home, you need to consider whether you’ll be able to afford a million-dollar mortgage (also known as a jumbo mortgage). A property worth $1 million will have lots of bedrooms and bathrooms and maybe even a swimming pool or tennis court. You need to know that you can pay for all the expensive utility bills, any repairs or renovations, and maintenance of the property to keep it standing for years to come.

You should also think about how much you’ll be expected to pay each month on your mortgage repayments, including the fact that interest rates could rise, therefore increasing the payments and term of your loan. It’s important that you can avoid defaulting on your loan or going into foreclosure.

When you know you’re ready for such a huge undertaking, here’s what you need to do to get a million-dollar mortgage:

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Work for Yourself? How to Be an Attractive Mortgage Candidate

If you’re self-employed, you may face problems when applying for a mortgage. For some lenders, their main concern is that you won’t earn enough income to meet your monthly mortgage repayments, while other lenders don’t want to deal with the extra paperwork. You may also need to prove your income with the last two years’ tax returns, which could show reduced income.

It’s not easy to qualify for a mortgage, but there are mortgage products available for you and steps you can take to become an attractive mortgage candidate.

 Work for Yourself? How to Be an Attractive Mortgage CandidateMortgage options

It can be difficult to obtain a mortgage when most lenders see self-employed people as high-risk candidates. But the good news is that you can qualify for one of the following loans:

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10 Reasons Why Private Lending is an Attractive Option for Investors

10 Reasons Why Private Lending is an Attractive Option for InvestorsIf you’re seeking an alternative to investing in the stock and bond markets, you may want to consider private money lending in the property market. By being careful and diligent, you can earn greater returns on your investment while minimising your risks as a private lender. You’ll also have many opportunities available to you and low levels of responsibility. As banks now have stricter requirements for loan applications from borrowers, private lenders are in high demand.

If you have the funds to invest and want to improve your earnings, simplify the process of investing or diversify your portfolio, you may find that being a private lender is the smartest decision you’ve ever made. Here are 10 benefits of becoming a private lender:

1. Secured loans

When lending on private mortgages, your money is secured by a registered mortgage against the borrower’s property. The borrower will then pay you interest until the loan is repaid. If you offer a 70% loan-to-value ratio (LVR) and you’re forced to foreclose on a non-performing loan, you could already have 30% equity built up in the property. A specialised solicitor will prepare and register all your mortgage security documents to ensure that your mortgage is fully secured in order to eliminate foreseeable risks. Plus, the borrower will be the one to pay the solicitors’ fees.

2. Secure lending process

Having an attorney verify your paperwork (e.g. a Promissory Note and Lenders Agreement) or draft a contract will protect you completely. Reviewing the terms with the borrower will also help you to avoid legal complications that cost a lot of money. Furthermore, if you search for and use a good escrow company and title company, you can guarantee your money will be handled professionally and legally, meaning you know you’re going to get paid.

3. Choose your own loan criteria

Your lending criteria can be more flexible than the banks. For example:

  • You can choose to lend money for either residential or commercial property.
  • If you prefer to lend money for residential property, you can specify whether you want a townhouse or a four bedroom house, a single family or a couple, or any other type of situation.
  • You can also choose whether the property is non-owner occupied, owner-occupied or a short-sale property.
  • You can choose how much money you want to loan, e.g. 60% or 80% LVR.
  • You can also determine the type of return you’d like on your money within a certain time period, e.g. 6% return on investment (ROI) within 3 months or 8-20% ROI within a year.
  • You can get a broker’s price opinion or a comparable appraisal by an appraiser so you don’t get sued and know that the investment you’re going into is actually worth what the borrower says it’s worth.
  • You can ask the borrower to hand in a proven credit track record showing that they can make payments and repay the loan.

To get the greatest returns, pick your criteria and stick to it.

4. Multiple ways of making money

As part of your loan criteria, you can also choose how much interest you’ll charge the borrower (e.g. 6-15%) and if it accrues monthly. Or you can charge points (which is the percentage charged monthly and at closing), e.g. charging 2 points for a $100,000 property means you make $2000 a month and when the loan closes.

5. Fixed yield returns

Investing in private money loans gives you fixed yield returns and pays off at maturity. For example, if you loan $100,000 at 8% interest per annum and require only interest payments, then you’ll earn $8,000 a year. If the borrower doesn’t default, the loan will be paid off at or before it reaches maturity and you’ll get back the original principal amount.

6. Short lending periods

With private money lending, you can recover your capital in a shorter period of time, which means that you can better protect yourself against different types of risk. Most private loan terms range from 9-12 months. Your loan criteria can also specify how many months you want the loan term to last for, e.g. short-term (3-6 months) or long-term (6-12 months).

7. Diversify your money and lower your risk

You can work with other private lenders to diversify your money and lower your risk. For example, you can invest in a pool that gathers funds from other investors to create one entity for loaning money to borrowers. Or you can diversify your money by using multiple fractional loans with ten investors, e.g. each investor lends $100,000 for a $1 million loan. Loan decisions will be handled by the pool/fractional loan manager and your money is diversified across different types of loans.

8. Earn higher returns with junior liens

A junior lien is a second mortgage. You can earn a higher rate of return by investing in a first mortgage and then buying a second mortgage or other more junior liens. If you choose to go down this path, another benefit is that there’s less initial cash outlay.

9. Spend less time managing your portfolio

If you don’t have enough time but you have enough money, you can work with a private lending company with a good track record to manage your money. If they invest in real estate, they’ll know how to best manage your portfolio and could probably guarantee you a 6-8% ROI. Working with a private lending company will also allow you to free up some of your time.

10. No costs or setup fees

You can apply to become a private lender at Easy Settle Finance, where we help facilitate lending transactions between lenders and borrowers. You don’t have to take a course or fill in an application form. Just call us or register your details online and we’ll determine what lending options are best for you depending on how much money you have available. After you’ve registered, we’ll give you all the information you need to become a successful private lender.

Clearly, there are many benefits to becoming a private lender. Investing in private money loans give you better returns and is a secure process. It’s also low risk if you do all the right things and approach it the right way. As an investor, it makes sense to become a private lender in today’s economy because private money lending offers a safer way for you to generate income compared to other forms of investment. Investing in private money loans is ideal if you’re looking for an easy and cost-effective way to increase your wealth.

Get On Top Of Your Debts: A Simple Guide to Debt Consolidation

If you are juggling bills and struggling to manage your finances, one option available to you is to consolidate your debts. This could help you manage your debts more effectively and allow you to get your finances back on track. This article looks at the benefits of debt consolidation, the ways it can be achieved and some possible pitfalls to avoid.

Advantages of debt consolidation

Debt consolidation is the process of combining all of your individual debts into one single loan. This has several major benefits:

  • Get On Top Of Your Debts: A Simple Guide to Debt ConsolidationIt allows you to manage your debt more effectively – because all your individual debts have been combined into one single debt, you only have one payment to keep track of and one set of terms and conditions to abide by.
  • If you have moved to a loan with a lower interest rate (which is the aim of debt consolidation), you will have more money available to pay the debt off faster.
  • Because you are now able to meet your repayments, your credit rating will slowly begin to repair itself, if it has been damaged by your previous inability to pay your bills on time.
  • Your new loan may have useful features and add-on products that your previous loans did not offer.
  • By rolling all your debts into one, you will have fewer ongoing account management fees.

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Controversy Over the Coalition’s Changes to Financial Advice Laws

Controversy Over the Coalition’s Changes to Financial Advice LawsChanges to the former Rudd Government’s Future of Financial Advice (FOFA) reforms have been causing a storm of controversy of late. The Coalition government, which recently made the changes, claims they were necessary because the FOFA reforms went too far in their regulation of the financial advice industry.

Opponents claim the changes were made by the Abbott government under pressure from the Big 4 banks and have effectively opened the floodgates for more financial disasters like the collapse of Timbercorp and Storm Financial.

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What Should Your New Financial Year Resolutions Be?

What Should Your New Financial Year Resolutions Be?With the new financial year upon us, there’s never been a better time to take control of your financial future. While most people have trouble keeping one new year’s resolution, here are five you’ll want to try sticking to, if you’re serious about getting your finances back in the black.

Take stock

You can’t improve your finances if you don’t know where they’re at. A good place to start is to prepare a personal financial statement. This can be as simple as a spreadsheet containing all your income and expenditure on a month by month basis.

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A Comprehensive Guide to Investment Property Renovations

A Comprehensive Guide to Investment Property RenovationsWhether you’re renovating to sell or to rent out an investment property, the object of the exercise is to make money. If you’re planning to sell after renovating then increasing the home’s value should be your goal, while if you plan to bring in tenants then you’re after maximum rental returns.

Either way, the golden rule is to spend less than you will make from the project, so how you renovate is vitally important. This guide describes what kind of property to look for, some of the things you’ll need to consider to make your renovation happen, and some useful tips when tackling the renovation project itself.

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Non-Conforming home loans for business or personal finance

It is estimated that one in five Australians that could benefit from a mortgage or non-conforming financial product are unable to meet the lending and serviceability requirements of the large banks.

This can be for a number of reasons, perhaps you’re self employed or have an unconventional financial structure. If you fall into this category a non-conforming home loan can give you access to the funds you need without having to conform to bank requirements.
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What Questions Should You Ask Your Private Mortgage Lender?

What Questions Should You Ask Your Private Mortgage Lender?A private mortgage is a great option if you are having issues borrowing from a bank or if you are looking to have your mortgage application approved quickly. A private lender provides the loan with less red tape and processes your application in a timely manner, so you can make an offer on the property sooner rather than later. Whether you are borrowing for personal or business purposes, these are some of the questions to ask your private mortgage lender.

What types of mortgages do you offer?

Private mortgage lenders may offer a range of mortgages, such as caveat mortgages, equitable mortgage, first-ranking mortgage or second-ranking mortgages. If you are looking for a specific type of mortgage, check with the lender about the types they offer so that you can find the right type of mortgage for you.

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