Hard Money Blog: Invest, Revitalize, Create, Prosper

What is Loan-to-Cost Ratio and How It Affects Your Loan?

September 8, 2023 by Kyle Sennott Leave a Comment

Private Lender Calculating Loan to Cost Ratio

If you discussed a deal with a private lender, you might have heard a term “Loan-to-Cost Ratio.” Private lenders use the Loan-to-Cost ratio as a key underwriting metric to assess risk, determine loan amount, and evaluate the borrower’s commitment to a real estate project. It helps them make informed lending decisions and structure loans that align with their risk tolerance and lending criteria. However, many novice borrowers and some experienced investors do not exactly understand what loan-to-cost ratio is or how to calculate it. So let’s demystify it.

Swimming Pools in a Rehab Property: Are They Worth It?

September 1, 2023 by Kyle Sennott Leave a Comment

I am writing this blog on the last day of summer. The upcoming weekend is Labor Day. Our community pool will close on Monday with a big bang: the traditional dog swim. Perhaps it’s a sign that I am not quite ready to say goodbye to summer, but today, I want to talk about swimming pools and their impact on your renovation project.

How to Read an Appraisal Report

August 14, 2023 by Kyle Sennott Leave a Comment

One of the most important elements of private lending is evaluating collateral. Anything can serve as collateral, but in real estate, collateral is typically real property such as residential homes, commercial buildings, or land. While both the lender and the borrower use various sources of information to estimate the property’s value, the final value is determined by an appraisal report produced by a licensed appraiser. As a real estate investor, you must be adept at reading appraisal reports and that involves understanding various elements related to property valuation. Let’s look at appraisal reports together to make sure you understand their key components and what they mean for your real estate transaction.

Why to Ventilate Your Property and How to Do It Right

August 2, 2023 by Kyle Sennott Leave a Comment

The purpose of this blog is to share expert advice on all things real estate related. We write articles about hard money loans, working with contractors, and choosing kitchen countertops. We share this information in hopes that it might be helpful to those who have yet to go through the process of acquiring a private loan or remodeling the kitchen themselves. Today it is going to be different. Today I want to talk about a subject that I claim no particular expertise in. To say it better, I know as much about it as anyone else reading this blog. I am talking about breathing.

What Are the Risks of Working With Private Lenders?

July 5, 2023 by Kyle Sennott Leave a Comment

Working with a private lender can offer several advantages compared to traditional lending institutions. Quick access to funds, lending criteria flexibility, and streamlined underwriting are just a few of them. But like everything else, private lending and hard money loans come with their own risks. To know them is to manage them. So let’s talk about the risks of working with private lenders and how real estate investors can minimize their on their bottom line.

Kitchen Countertops: Which Material is Right for You?

June 1, 2023 by Kyle Sennott Leave a Comment

Kitchen Countertop: How Real Estate Investors Should Choose Which Material to Use?

The kitchen is the focal point of any home. Whether you are renovating a property for sale or rent, it’s where you, as a rehabber, are likely to spend the most money and effort. It’s also the place where your buyer or new tenant will be spending most of their time basking in the warmth, security, and domesticity of their “hearth.” So much of their decision to make an offer or fill out that rental application depends on whether they like that “hearth” or not. So let’s talk about how to make it more appealing by choosing the right countertops for your new kitchen.

Hard Money Blog: Invest, Revitalize, Create, Prosper

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