Do you keep money in the bank?
Is a real estate loan in your near or medium-term future?
I think almost all of us would answer a resounding “yes” to at least one of those questions, and many of us would answer both in the positive. But if you’re a person who wants to make sound plans for your financial future, the recent news on interest rates would be confusing, at best.
Fed Chair Janet Yellen earlier this month said that the Federal Reserve would consider pushing interest rates below zero – to a negative interest rate – if the U.S. economy went south. That means banks would be taking your money just for the privilege of keeping it in their “vaults.” Obviously, it’s much smarter to put your money somewhere that pays a good positive interest rate.
On the other hand, many observers are now speculating that the Federal Reserve will start jacking up interest rates soon. This would make money more expensive in the near future.
No matter which of these predictions turns out to be true – or if things stay about the same – smart managers of their money will recognize a good deal whenever and wherever they see it and they’ll take advantage of it.
This fact influences our clients who take out California hard money loans through Evoque Lending as well as our investors. For our borrowers, we’re making real estate deals happen that would otherwise be impossible. We’re writing interest-only First Trust Deed loans that allow folks who run into a roadblock with a conventional lender to get into their homes or expand their real estate holdings. This is usually on Orange County real estate, Los Angeles real estate, and San Francisco area real estate.
At the same time, our First Trust Deed investors are getting a double-digit return on their money, which is fantastic in today’s market and would still be great no matter what Yellen and the rest of the Federal Reserve board decide to do in the future.
I was trying to illustrate something by starting this article with those two questions. I wanted to demonstrate how “unpredictability” is really the biggest bogeyman in financial planning. It’s easier for us to achieve the growth we need and make sound plans when we can count on financial markets to behave in a certain way.
When you borrow through Evoque Lending or invest through Evoque Lending, you get the kind of predictability that makes it easier to assure your financial future. Further, whether you’re a borrower or a lender, we work with you to determine the term of your loan, or investment.
In other words, with a California hard money loan, you control the time frame and the interest rate, not the Fed Board or some anonymous institutional investors who are playing by their own rules. Evoque Lending takes the interest-rate guesswork out of your future.
Acting on knowledge
Is it time for you to take some of the uncertainty out of your financial future? I’ve only given you the briefest of introductions here. There is much more to know about hard money loans on Los Angeles real estate specifically and California real estate in general – from both the side of the borrower and investor.
I would welcome the opportunity to give you more details. Borrowers who have been turned down by a bank or conventional lender will certainly want to know how we approve loans, and investors will want to know what safeguards we have in place to protect their money.
Give me a call today or drop me an email and I can get all the hard money loan answers you need to make sound plans for your financial future.