Thanks For Using The Performance of a Lifetime!



Chatroom Auctions & Paid Classifides DDDPL's Additional Job Search










FAQ
Last visit was: Sun Sep 24, 2017 10:33 pm
It is currently Sun Sep 24, 2017 10:33 pm



 [ 1 post ] 
 "...Why You Should Never Forget This Clause" 
Author Message
User avatar

Joined: Mon Sep 13, 2010 1:47 pm
Posts: 45372
Post "...Why You Should Never Forget This Clause"
Private Money For Real Estate Investing - Why You Should Never Forget This Clause
by: Tom Dunn



When you use private money for real estate investing there are several clauses your lending agreements should never be without. One of those clauses is the “No Pre-Payment Penalty” clause. Here’s how it works.

When you borrow private money for real estate investing, you’re accomplishing a great deal. You’re protecting your credit, and maximizing your borrowing potential, as well as gaining access to a ready and flexible source of money.

It would be a shame to go through all of that and leave yourself open to harm in one critical area… what if you’re stuck with a repayment term that’s too long?

The sure way to avoid this issue is to put a “No Pre-Payment Penalty” clause in every private money for real estate investing agreement you make. That way, when you’re ready to pay the loan off and free up those funds for a new investment, you’re not stuck paying a hefty penalty.

Here’s how the clause should be worded.

"The Borrower reserves the right to prepay this Note (in whole or in part) prior to the due date with no prepayment penalty"

Without this clause, you would be obligated to pay the lender the full interest due on the loan for the entire term, no matter how long it is. That’s not the kind of flexibility you want in a loan of this type, and flexibility is one of the main reasons to use private money for real estate investing.

Protect yourself and your borrowing capacity when your accessing private money for real estate investing by including the above clause in every one of your private notes and contracts. You’ll be glad you did.

For more on real estate investing, and information on real estate investing using private money try visiting http://www.private-money-real-estate-investing.com, a popular website that provides tips and advice on the why’s and how’s of a variety of topics related to private money for real estate investing.

About The Author
For more on real estate investing, and information on real estate investing using private money try visiting http://www.private-money-real-estate-investing.com, a popular website that provides tips and advice on the why’s and how’s of a variety of topics related to private money for real estate investing. Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. © 2007 by Tom Dunn.





Copyright © 2001-Present ArticleCity.com



[Note: Due to a size limitation, the title, above, had to be abbreviated. Apologies to the author and ArticleCity.com. - Admin]



This article was posted by permission.


Tue Dec 30, 2008 4:51 pm
 [ 1 post ] 

Who is online

Users browsing this forum: No registered users and 6 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Jump to:  






Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group.
Designed by ST Software for PTF.