Whois & Analysis for lendinghome.com

Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit.

Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development.

Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent.

If these factors are not well understood and managed by the investor, real estate becomes a risky investment.

The primary cause of investment failure for real estate is that the investor goes into negative cash flow for a period of time that is not sustainable, often forcing them to resell the property at a loss or go into insolvency.

A similar practice known as flipping is another reason for failure as the nature of the investment is often associated with short term profit with less effort.

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property.

Hard money loans are typically issued by private investors or companies.

Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk and shorter duration of the loan.

Most hard money loans are used for projects lasting from a few months to a few years.

Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers.

The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.

A mortgage loan, also referred to as a mortgage, is used either by purchasers of real property to raise funds to buy real estate; or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged.

The loan is "secured" on the borrower's property.

This means that a legal mechanism is put in place which allows the lender to take possession and sell the secured property ("foreclosure" or "repossession") to pay off the loan in the event that the borrower defaults on the loan or otherwise fails to abide by its terms.

The word mortgage is derived from a "Law French" term used by English lawyers in the Middle Ages meaning "death pledge", and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.

To invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future.

In finance, a portfolio is a collection of investments held by an investment company, hedge fund, financial institution or individual.