New college graduates are on the loose and out building their new work wardrobes for their first job. Are you a proud parent and grandparent? In addition to celebrating with them over parties and gifts, now is the time to give them the gift of financial independence too. As they start their first jobs, you might ask yourself, “Is my child prepared for the financial responsibility that comes with a full-time job and living on their own?” Right from the start, you want them to develop savings priorities and healthy spending habits. Here are some tips to help you point them in the right direction:

Explain the importance of saving

As young adults start receiving a paycheck, they may find it tempting to spend their funds a lot more on “wants” rather than “needs.” You can help by reminding them of the difference between the two and sharing the importance of saving. Whether it’s saving for unexpected expenses and emergencies or to eventually buy a car or home, encourage your young adult to put a set amount aside from every paycheck. You may also tell them to check with their employer and see if they can direct the savings portion of their paycheck directly into a savings account with only the remainder going to their checking account for spending.

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Real estate investors rely on the properties that they purchase to produce income. While a strong buyer’s market certainly favors investors, it does take a great deal of financial savvy to successfully navigate real estate investments. After all, conventional financing, such as the FHA loans used to purchase residential homes, often aren’t available to investors. Instead, many investors turn to private money lenders – also known as hard money lenders – to finance their purchases.

Hard money loans, which are also called private money or equity-based loans, are designed to meet the needs of real estate buyers who can’t use traditional financial products. In many cases, banks and other lending institutions won’t finance real estate purchases because they don’t meet stringent criteria about the types of properties that qualify for financing. In other cases, individuals are unable to secure financing because of past foreclosures or credit problems.

Buyers and investors who want to purchase real property but don’t qualify for traditional financing may be able to utilize this type of private financing. Before you apply for one of these private loans, it’s essential to understand what types of products are available.

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As a real estate investor, it is important to have someone who can back you up financially, especially if you are just starting out in the housing business. One way to obtain funds for your investing business is to approach banks, mortgage companies, and credit unions. But if you’re not qualified to obtain a loan from these lending institutions, don’t fret because there is still someone who’s still willing to help you.

When it comes to securing funds for real estate investing or REI, the loan provide by hard money lenders is the best. Known as a hard money loan or HML, it is one of the most common types of creative financing. Unlike in traditional financing, hard money lenders verify a loan’s eligibility according to the value of the property that serves as the collateral. If the property can attract a good deal, the lenders would likely approve the loan application.

Aside from this, acquiring HMLs has a lot of advantages compared to traditional loans. Listed below are some of them:

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