Loan Philosophy: The Difference Between Lenders and Investors

An investor is concerned with maximizing the return on his equity. A lender approaches a loan as an "investment," as well. In fact, in the loan business we often call our lenders "investors." The property that the investor views as a growing asset the conventional lender views solely as security for the loan.

As a mortgage broker, I have the pleasure of seeing quite a number of potential loan transactions.

I used the word "potential," because not all of them work out.

Actually, there are quite a few turkeys in with the swans!A common scenario is a refinance or a purchase where the investor comes to me with something like:

"Man, this is the BEST property in the area, it's worth $5 Million Dollars, and I'm buying it for $3 Million! I need a 90% loan and I need it NOW!" OK ... so I've exaggerated just a bit.

In reality the value of the property will probably be accurate for the market, but I'll still get the request for the high loan to value.

Until recently, I probably couldn't have gotten a 90% loan on a commercial property except in the limited case of a Small Business Administration guaranteed acquisition loan.

First, because no one offered a 90% loan on commercial property and second, because the property most likely wouldn't have supported the debt service.

The big change in that scenario has been the advent of the "small balance commercial lender" in the last couple of years.

They blend commercial and residential underwriting methods to get higher LTVs.

I'll save an article on this kind of lender for later because I want to focus on the reason why a conventional commercial lender doesn't really care how great of a deal the investor is getting in a particular property.

It's because there is a very basic difference in philosophy between lender and investor.

An investor is concerned with maximizing the return on his equity.

Whether through leverage, adding value by making improvements, or adding value through improving a property's cash flow, the goal is to make as much money on the equity investment as possible.

The return he receives is commensurate with the risk he takes with his equity investmentA lender is concerned with something entirely different:

Getting paid back! A lender approaches a loan as an "investment," as well.

In fact, in the loan business we often call our lenders "investors." But these investors approach their investment from the standpoint of managing their risk in return for an acceptable rate of return:

The note rate on the loan.

The property that the investor views as a growing asset the conventional lender views solely as security for the loan.

(Again, I'm not talking about private lenders who might have other motivations).

So when you hear an investor say something like:

"I don't understand why they didn't give me the loan! The property is worth SO much and they can always take it back if I don't pay!" Well, the reality is that the lender doesn't want the property back ... they just want their money back, as agreed.

Author :
’Craig Higdon, “The Investment Property Insider,” works as a commercial mortgage broker. He publishes the weekly “Investment Property Insider” e-zine and blog, Visit the blog and get a complimentary report on commercial financing techniques.’

6 Key Points to Evaluate Online Lenders

The internet is teeming with lenders who are vying for your business. It seems like everyone wants to loan you money. You are truly in the driver’s seat by going online for your mortgage, refinance, and consolidation needs. But how do you select a lender? How do you choose the right institution? How do you know who to trust?

In this brief article, we will cover the 6 simple, practical, and essential key points that we feel you should evaluate, when exploring online lenders: Feel free to print this out, and use it as a free guide, while pointing and clicking your way to success:

3.Popularity and Reputation
4.The Short Form
6.Points, Fees, Terms and Rates


In the modern world of ecommerce, it is essential that all respectable businesses honor your right to privacy:

a)Check for a posted PRIVACY POLICY, prominently displayed on the homepage of your prospective lenders site. Read it. Does it make sense to you? Does it address how they will use your email address, your name, and your private information?

b)Do they ask for things that may seem unreasonable at this stage of the game? Be wary of requests for credit card numbers, social security numbers, and similar information that may not be appropriate early on, for example, when you are filling out the initial, short form. Naturally, your lender will need that information down the road, but certainly not right out of the gate, when initiating the first steps towards a relationship with you.

c)Is the lender a member of a posted, third party, privacy program? For example, TRUSTe is one such independent company that will designate a member site. You can look for their emblem, and similar third-party companies. This is not a requirement for securing a good privacy policy; however, it is worth noting.


The storefront of the online world, is the website. Therefore, it is important that you examine the sites design, and evaluate it, much the same way that you evaluate an office or store as you walk in the front door. Let me give you a couple things to consider:

a)Is it a fast-loading site, or are you waiting forever?

b)Is it straightforward or elusive? Can you glean important, direct information from the homepage, or does the site appear to coax you in deeper?

c)Are you inundated with pop-ups, pop-unders, and other in-your-face ads, or does the site seem helpful?

Remember, how the lender presents themselves online, is a reflection of their business philosophy, and it tells you a lot about what kind of lender they may be, after you sign on the bottom line.

3.Popularity and Reputation

I’m sure you learned in high-school, that popularity and reputation aren’t everything. However, just like in the real world, it is important to gather information on these two key points, and use them as a gauge.

a)By typing your lenders URL into, you will be able to ascertain how popular your lenders site is, because Alexa will tell you how much visitor traffic the site gets. This isn’t a science, and popularity isn’t everything. For example, an extremely popular website could treat you like a number, and a relatively new lender or smaller institution, might not be frequently visited, but still be a perfectly viable choice. So, review popularity alongside rock-solid common sense.

b)Say, why not check out your prospective lenders reputation, by going to the online Better Business Bureau, and checking the Reliability Report? This report will provide you with corporate information (such as name, address, phone number), BBB membership information, whether or not the lender is a participant of the “BBB Online” program, along with a complaint history, and each complaints final resolution.

c)These aren’t the only methods for gauging popularity and reputation, of course. You can talk to people, go to chatrooms, conduct search-engine research, etc. Again, popularity and reputation aren’t everything, but keep them in mind while exploring lenders, both online and in the real world of course.

4.The Short Form

The Short form is a term used to describe the basic application that you initially fill out, when seeking a loan from a lender or institution.

a)Is it short indeed? Does it ask you for basic information, relevant information, and is it presented in a simple and concise fashion, perhaps no longer then 1 to 2 pages?

b)Is the short form organized and appropriate? Does it make sense, is it simple to fill out, and is it easy to understand, and appropriate for an initial application?

c)Consider this form as an introduction to your lenders style. If the form is simple, concise, and easy to fill out, this may tell you a lot about the lender. On the other hand, if the form is complex, difficult, and requesting a little more information than your comfortable providing, this too might spell out a word of caution, and provide important information about your prospective lender.


Never underestimate the importance of communication. How the lender chooses to communicate with you from the get go, might indicate choices the lender will make later on in the process.

a)Does the lender have an “about us” page, and do they provide meaningful information about their business, such as how long they’ve been around, where they are located, their phone number, their physical address, and perhaps even their corporate structure? Or, are they a ghost in the machine, providing little to no information about themselves?

b)You will ultimately be speaking with a live person on the phone. How do they strike you? Are they pleasant, cordial, and polite? Are they low-key, helpful, and respectful? Or, do you see signs of pushiness, or over marketing?

c)Never make an immediate decision. Talk to 3 or 4 lenders, and then give yourself a pause to reflect on who provided the best deal, and, who might be the easiest and most appropriate to work with.

6.Points, Fees, Terms and Rates

a)Obtain several offers from competing lenders, and compare the nuts and bolts.

b)Who offers you the best savings? Who seems just too low to believe? Who is way too high to consider?

c)Check out the current interest rates, and make some market comparisons. Our site has a free RateWatch updated frequently throughout the day, or, you can easily find this information at any search engine or at other reputable websites online.

We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

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Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, lossHealth Fitness Articles, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Author :
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Some Reasons For Bad Credit

,Sometimes we are anxious for Bad credit that possibly we can have. One day everything seems okay, and then the next day, you find out that your credit score has declined into the ground. Most individuals don't know what happened to their credit because they've got no idea what could be the reason why credit sometimes to turn sour. Many assume that if they pay their bills up to date, they're fine. If keeping your credit clean were as simple as keeping the wolf at bay, many people wouldn't see themselves in trouble.

There are some basic things that is agent for bad credit. The foremost is inquiries. An inquiry can occur from a bad credit card company, a utility company, or a collateral company. The problem is that it takes 40 to 60 days for credit to show up on your report. What does this means is that if you were to apply for five credit cards, and were accepted and issued those cards, the approval would not show up on your credit report for 1 to 2 months. Hence, for the time being, you wanted to take out a mortgage for a house, the mortgage company would pull your credit, and they would be unable to tell if you were approved for the cards or not. The result could be a questionable mortgage company who is fatigue of giving you any more money when they don't know if anybody else in town has already turned you down.

Other thing that is typical and unclouded to most people is that you have to pay your bills on time. There is no excuse when it comes to a creditor concerning why you couldn't pay your bills on schedule. It is also essential to know that whenever anyone considers giving you money, they will look at the last 12 months of your life. The last year of your life is critical when it comes to credit.

When it comes to paying bills it is perceivable to people that the bills need to be paid on time. Of course, whether you do that or not is your choice, but a lender does not want to hear excuses. The lender doesn't care if you were sick or your dog chewed up the phone bill, all they need is their money. And your credit report won't echo your reasons why you weren't able to pay either.

Charge offs are another reason for acceptance of bad credit. A charge off is when you didn't pay a bill, forgot to pay a bill, and it has become perceivable to a company that you are never going to pay the bill. The company will take down off your incompetence as a loss on their books for their taxes. When a company decides to take this route, it puts a negative mark onto your credit report. This status that is made will stay on your credit report for 7 -year time, but if the company decides to update the charge for any reason, the 7 years will start over. Charge offs can be a pestering factor when it comes to bad credit or bad debt or bankruptcy.

There are other things that involve a variation on a person's credit. However, most of these things are perceivable. For instance if you come home one day to find that your car has been taken from you, it's safe to say that your credit will be affected. If you come home to find that your home is now a part of the government's property, chances are that your credit is suffering. If you owe someone money and you have decided that you are willing to let them take you to court in order to force it out of you, credit is the least of your worries (know that it will be bad).

Occasionally when people are armed with the right education, they can recoil clear mistakes. Not knowing everything there is to determine about strong point for credit problems could be hazardous to your financial well being. Try to stay up to date on your finances and the information that regards them.

Having the special tools can constitute all the variety in a project. In this case, the special tool for formation good credit and maintaining it is knowledge. The more you know, the better your financial well status. All you need for bad credit is education. By this, you can avoid for bad credit or bad debt Incomprehension is not felicity, it only causes more stress. You want to stay up to date on your finances and the information connected with them.

Stephen C Campbell (MBA, MSc) is an Entrepreneur & International Business Consultant, he has published more information on making money at

Beating Online Payday Loan Lenders at Their Own Game: Tips

* Take advantage of no-interest payday loans for new customers, just as long as you are absolutely sure you can pay them back on time or they'll go from free to expensive. After all, the biggest risk for any kind of cash advances are the enormous fees if you don't pay on time. If you can avoid paying interest, your problems are mostly solved.

* Make sure your online payday cash advance or loan lender is legit. Check to see whether the lender is a member of the Better Business Bureau--the site will display the logo prominently if the business is a member.

* Before you get your payday advance, create a quick budget for how you are going to pay the loan when it is due. Take into account any additional bills or expenses that will come up between now and payback day and between payback day and your next pay check.

* Mark the payback due date on your calendar, your computer at home, your computer at work, your cellphone, your refrigerator magnets--you get the idea. Online payday loans only become risky and expensive when you don't pay on time.

* Compare lenders' annual interest rates and fees. Make sure you know the exact cost of repaying the loan so you can make an accurate comparison.

Author :
Joel Walsh is a regular contributor to">Online Payday Loans"> Go to">Online Payday Loans for tips on getting the best payday advances online.

Online Payday Cash Advances: Tricks of the Trade

As with everything else in life that involves money, if you don't want to get cheated on your online payday advance, you had better know everything you need to know before applying. Here are some dangers to watch out for:

# Interest and fees. Hit the "back" button when you get to websites that don't tell you the interest rate and all fees, including late and penalty fees, or try to hide this information. Legally, all payday advance lenders are required to provide this information.

# Expensive no-interest loans. Some online payday loan companies offer no-interest loans for first-time borrowers. These really can be great, but beware: oftentimes these loans stop being free if you pay even a day late.

# Long-term short-term loans. Payday loans are meant to be short term--a couple of weeks at most. But many lenders will be only too happy to let you stretch out your loan's payback date, since it means they can keep charging interest. Make sure you know exactly how much a late repayment will cost you before accepting this kind of arrangement.

Author :
Joel Walsh is a regular contributor to">Online Payday Loans"> Go to">Online Payday Loans for tips on getting the best payday advances online.

Online PayDay Loans: How to Gain an Advantage over Lenders

Online payday loans make money available when you need it fast. But many websites offering these cash advances will try to trick or trap you into paying huge interest. Find out how to beat online payday loan lenders at their own game.

When you need money today, and not just a week from today, online payday loans can be a salvation. But for many people, these loans, also called payday advances or sometimes just cash advances, have become a nightmare. Here's the good and the bad of getting an online payday loan:

* Good: applying for a payday advance or other cash loan online rarely requires a credit check. There's also virtually no waiting to get cash, and no collateral, down payments, or paperwork headaches required.

* Bad: online payday loans̢۪ interest is close to or beyond outrageous, and the true cost is often hidden in the language of the agreement. Some payday loans have charged the equivalent of 600% annual interest!

* Really bad: some online payday loan lenders are not trustworthy. In some cases, lenders have made unjustified charges to clients' bank accounts. Just remember: they can take money out of your account just as easily as they put it in. Anyone can open a website, so be sure to check out the reputation of an online payday loan lender.

Author :
Joel Walsh is a regular contributor to">Online Payday Loans"> Go to">Online Payday Loans for tips on getting the best payday advances online.

Bad Credit Car Loans Make Car Buying Easy For Bad Creditors

Does bad credit really has anything to do with a car? The answer says that it has nothing to do with a car. Still, most of the bad credit holders are found to be in puzzle whenever they are in a thought of buying a car. It is obvious however, not justified. It is not justified because when you have loans like bad credit car loans why you should get puzzled at all? There is nothing to worry when you are buying a car, at least don’t get afraid of the bad credit stint you have got.

Bad credit car loans are there to hook you off any money lacking when you are going to buy your chosen car. This car can be of any type, of any brand. For all, you can have bad credit car loans. However, bad credit car loans are also advanced for buying any old car apart from the new car. Here you are also getting a whopping 90% of your requirement as car loans for a term ranging over 2 to 7 years. And, this huge amount has hardly anything to do with your bad credit rating.

There is a huge galaxy of car loan providers waiting for you online to give you the bad credit car loans at cheap rates. Interest rates become cheap in the web market, first because there is large chunk of lenders aggravating the competition among them which makes the rates cheap enough. Also, you will have a large array of choices to find the right deal. Again, there is another benefit of going online. Here, the bad credit car loans are only clicks way from you. You have only to fill a small application form and get the best of loan quotes before you.

However, loans become incredibly cheap when they are secured in nature. In secured bad credit car loans, your collateral playing as the security of the lenders gives you the cheap loans. Unsecured bad credit car loans are also no less. They offer you the bad credit car loans without charging any collateral.

Bad credit car loans have done a great thing by simply putting forward car loans to the bad credit holders who otherwise would have remained puzzled for ever. Now, the puzzle is over as the bad credit car loans are there.

Julia Russell works as an executive in financial department for Secured Car Finance. She has a lot of experience in finance field. To find Bad credit car loans, secured car finance, used car finance, new car finance, personal car finance, online car finance, car loans visit