Finance2007   Finance for personal business

Find me a person who doesnt want to make more money. Its nearly impossible to find! Everyone wants to make money and theres nothing wrong with that because money makes the world go round! But many people dont know that you can actually make money with a loan! Did you know that? Its true! One way that you can get more money is with a secured loan.

Wait a minute, youre saying. How can a loan give me more money? Doesnt a loan, by its very nature, reduce the amount of money I have?

Its true that it may seem like that, but a secured loan is an ideal way to make money. Heres how:

A secured loan is a loan that provides some kind of asset as a guarantee to a lending agency. So when you apply for a loan, you also suggest that if you cannot pay, you have some kind of asset that will cover the default amount. For some people, its their car. For others, it may be their jewelry or some stock certificates.

Whatever it is, lending institutes like secured loans because it reduces the risk they have when lending money. Unsecured loans are high risk endeavours for them because if someone defaults on the loan, there is little they can do to get their money back. On the other hand, secured loans have some kind of guarantee which makes them a risk-free investment for the lending agency. And because there is little risk to them, they are willing to pass some of that savings on to you in the form of reduced interest rates and longer repayment terms.

So heres how you can make money from it. First, collect all of your credit card bills together. Add up how much you own. Many people owe in the thousands and are shocked to discover that the interest rate is abysmally high. Second, find an asset that you can use to get a secured loan. Third, shop around and find a loan provider.

Collect those debts together and consolidate them under one secured loan. That way, youll reduce the amount of interest you pay on each debt because secured loans have lower interest rates than credit cards. And, youll stretch out your repayment period beyond the short term that credit cards give you. And, even better, youll have a fixed amount of money you know you have to pay each month, rather than get surprised every few days with another bill from a credit card company.

Since people often pay half as much above the purchase price in interest on credit cards, youll make money you would have spent by consolidating your loan into a UK secured credit card consolidation loan.

We are able to base LTV on the true value of a property, as opposed to purchase price; frequently our savvy investors are able to buy under value and thus

this makes a significant difference.

We are able to base LTV on the projected value of a property when rehab or construction is involved.
We will allow a seller carry back in second position when a buyer is able to negotiate this type of arrangement to his/her advantage. (We loan up to 75% LTV,

but allow CLTV to exceed 125% under certain circumstances.) We will allow a borrower to pledge other real estate assets as additional collateral to make up

for a shortfall in down payment money or earned equity. Besides these options, there is one additional and very effective tool for bridging the gap when the

LTV ratio is running too high: My father has often said that the difference between being able to do a loan and not being able to do a loan is generally our

fee. And there was a time when that was too often the case.

Well, we at California Private Money Loan have made a conscious policy decision to not let that happen ever again. Based on the premise that a dollar

tomorrow is better than no dollars today, we have decided to carry some or all of our fee (as a small second) any time that this is necessary to make an

otherwise good loan fit our LTV criteria.

This is no small thing, as our fee generally runs 4% of the gross loan amount, and our originating brokers (when involved in a transaction) charge anywhere

from 1-5% for their part in the loan process; so with combined fees ranging from 5-10% (I never claimed that private money was cheap; I said that it is fast

and flexible), and assuming broker cooperation, we are able to stretch 75% LTV to as high as 85% LTV. That is a big stretch and frequently it has made the

difference between doing a loan and frankly the opposite of that.