Kuala Lumpur, Malaysia (IRIN) – Graduating from primary school was just a dream for Rohingya teenager Ali Tofik, who, until 2010, lived in Myanmar’s northern Rakhine State, where access to education, particularly secondary education, is limited.

In recent decades, this ethnic and religious minority has been stripped of its citizenship and property rights by Myanmar’s military-dominated government, leading to human rights abuses and exploitation and resulting in mass exodus.

Some 200,000 fled to Bangladesh over the years, with smaller numbers to Indonesia, Malaysia, Thailand and elsewhere in the region by boat.

Now the 17-year-old is keen to get ahead, learning the Malay language with a group of younger students in the two-room Malaysian school. English, Malay, mathematics and science are taught on the second floor of a business block in the suburbs of Kuala Lumpur.

“I would like to become a teacher so that I can help my people and I can teach them and talk with the international community,” explains Tofik, who fled Myanmar with his family a year ago.

The local NGO-sponsored school, established in 2009, is accessible to Rohingya, but remains a rarity in Malaysia, with fewer than a dozen similar schools nationwide. Officially, Rohingya children in Malaysia cannot study in government schools without birth certificates or any other official documents.

“Most of the young children are actually born in Malaysia but can’t attend the public schools because refugees do not have access to the Malaysian education system, including primary schools,” Chris Lewa, coordinator of the Arakan Project, an advocacy organization for the Rohingya, told IRIN.

Illiteracy among the Rohingya is estimated at around 80 percent, with a higher percentage among women, according to the latest available data.

Without a proper education and work permits, job opportunities are severely limited for Rohingya, Lewa said.

But she has also witnessed some improvement in Malaysia’s handling of arrivals by providing them with access to the UN Refugee Agency (UNHCR) , as well as halting forcing them into unscrupulous hands along the Thai-Malaysian border.

According to UNHCR, there are some 30,000 ethnic Rohingya seeking asylum in Malaysia today, including 20,800 registered with the agency.

“Based on information gathered from the refugee communities, it is estimated that there are about 10,000 more asylum-seekers who have not yet been registered,” Yante Ismail, an external relations officer with the agency, explained.

At the Rohingya Society in Malaysia (RSM) , a community-based organization, deputy president Abdul Ghani and a small staff assist in registering asylum-seekers for UNHCR, which then determines their status.

It is a difficult process as most Rohingya arrivals are male and often seen by authorities as economic migrants.

But Ghani is quick to deny this. “Please don’t link Rohingyas to economic migrants. We Rohingya left our country because of harassment, because of torture, the confiscation of our land. That’s why we left our country to get protection from a third country. We ran away from the military regime’s harassment.”

Indeed, many at the RSM center tell of the struggle to earn enough to survive and feed their families in Myanmar.

“It’s impossible to maintain a peaceful family life, so I had to flee,” said one young man, awaiting an interview. “Nasaka [paramilitary] forces would order us to work at their camps. If we don’t go, they come to our houses during the night and take us. They lock us up in the stockade and beat us.”

For many new arrivals, assimilation into Malaysia’s Muslim-dominated culture is easier than in their former homeland, but until solid legislature is implemented for proper work permits, the refugees are in limbo, say aid workers.

According to UNHCR, those Rohingya who are working are in the informal sector, including irregular, low-paying menial work in construction, domestic positions, or in the local markets.

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– Provided by Integrated Regional Information Networks.

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You are just fed up of your job and want to make it big for earning profit. You are no more needed to show all of your financial documents including bank statements, tax return statements or bad credit scores. You are not dealing with conventional lenders but with Hard Money Lenders, and they don’t ask you for all of such things. They want you to make good choices of properties and then come to their places for private money loans. You can buy a brand new house with the money and even invest in old ones.

Even Hard Money Lenders provide you with Rehab Loans that are going to be used for buying old properties. Here are lots of good properties and especially houses in wholesale market. These houses are abandoned by the owners due to death or other factors, and they are available at a much discounted rate than the retail market. You can buy old properties and make lot of changes in it. There are so many people and even retail brokers who think of investing in old properties as a waste of time. They want to invest in something that is going to pay them instant money. But your hard money lenders provide you with Private Money Loans to get involved in rebuilding of making repairs of houses.

Everybody can invest in old houses but it requires an extra energy to build a team of good workers. You need to consider the fact that the work has to be started on immediate basis after getting loan funds. You have to consult your hard money lenders and work effectively for your profit earning. There is lot of things that needed to be considered at every point. There is a possibility of getting hard money loans for rehabbing and renovation. But you need to consider an important aspect as to understand everything about your life. Profit margin is comparatively very high in dealing with Private Money Loans as wholesale prices are really very low in many contexts. People get lots of interesting opportunities if they are actually following the instructions of their lenders and if they are going to play smartly for their own benefit.

There are so many things that keep on fighting against our urge to change our course of action. You have to fight against such negative things as it can de-motivate you and let you follow that dragging path of ordinary job or business. I am not asking you to resign from your job but to start Real Estate Investment Business, as a part time opportunity. You can get easy Hard Money Loans and then purchase an already selected property, and usually a house for the sake of reselling at profitable rate. You have to make several alterations in your acquired house and then keep on looking for the best time to SAIL it again in market for new buyers.

Hard Money Loansserve as a gateway to enter into world of fortune and wealth. When you have gone through one or two successful deals then your confidence would be at a new height. It would be a right time to say BYE to your boss and completely focus your attention on real estate investment business. You have to read different guidelines provided by real estate investors on different forums. Then you can actually visit the Real Estate Investors Club in different towns and counties. You need to listen to every advice with care and then develop a curiosity to ask different questions, as a source of understanding the legal process in detail. Most of the times, you may get a good investor there who would offer you internship and even free training.

Property sale and purchase is not a new profession introduced but we can easily say that it has taken a new shape, all due to presence of Hard Money Lenders in this business. These guys are true friends of real estate investors, and they are always ready to help out the new entrants in this field. They offer Hard Money Loans at such practical and feasible conditions that everybody can get great benefit from them. You need to be all active and decisive at what actually you are doing, and how would you manage the loan funds for boosting the face value of your newly acquired property. Think about your greater plans of investing in bigger and better properties after your initial success and familiarity with the business deals.

Jerusalem, Israel David E. Miller – Poetry, fiction, philosophy and literary criticism – areas of expression usually regarded as too other-worldly to concern governments – have been falling into the arms of the Saudi bureau with its traditional combination of financial largesse and censorship.

Under directives approved by the Ministry of Culture and Information last Friday, the country’s literary clubs must now have a license to operate. They must have the stated goal of promoting Arabic literary and cultural activities. The new rules impose a host of other requirements governing membership, voting for leaders, residency and professional requirements. They set a uniform annual membership fee of 300 riyals ($80).

But, if the muse isn’t free in Saudi Arabia, it is paid for. Already heavily financed by the government, King Abdullah bin Abdulaziz in February allocated an additional 160 million riyals ($43 million) for the clubs as part of a package of handouts he announced after returning from extended hospitalization in the U.S.

Human rights advocates say that the money and the rules are two sides of the same coin — a policy of ensuring that no dissent arises in the kingdom and that no group is ever far from the government’s watchful eye or deep pockets. While Saudi Arabia and the other Gulf kingdoms have largely avoided the wave of democratic protests gripping the Middle East, they have ensured quiet with generous subsidies and job creation programs while imposing new restrictions.

In late April, Saudi Arabia introduced new amendments to its media law. The amendments criminalize publishing materials that harm the Grand Mufti, members of the religious establishment and government officials. The fine for offenders was raised 10-fold from 50,000 riyals to 500,000.

The Ministry of Culture has a special department for literary clubs, and its director-general, Abdullah Al-Afandi, told Al-Sharq Al-Awsat daily that his ministry believed in the “role of the intellectual in spreading awareness in society.” In fact, the new rules for literary clubs don’t entail any direct censorship, but critics say their aim is to clamp down on organizations that risk acting too independently and might serve as a springboard to overt political activity. Government subsidies further limit independent activity.

“Why do you need the government to tell you how to run a society?” asked an anonymous talkback in the English-language Arab News. “Ah, of course, they are afraid you might get the idea that you can do things yourself.”

Cristoph Wilcke, a researcher at Human Rights Watch who specializes in Saudi Arabia, called the Culture Ministry the “main censor” of the government. “When literary clubs host controversial writers, for instance, the police clamps down on them.”

“Saudi Arabia has no form of civil society, everything is government controlled,” Wilcke told The Media Line. “There’s no law that governs NGOs [non-government organizations], and each entity functions under a law created uniquely for it.”

The literary clubs, which exist in almost every Saudi city, are tiny outposts of free expression and women’s rights.

Many Saudi writers aren’t allowed to publish their work in the kingdom because they are censored by the Ministry of Culture. They often end up sending their manuscripts for publication in Beirut; back at home their work is disseminated by readings at the clubs.

Fawzia Al-Bakr, an education professor at King Saud University in Riyadh, said the risk of political opposition spreading was small since the clubs are attended mostly by small crowds of intellectual elites and the government closely monitors their activities.

“These meetings are usually allowed to go ahead because authorities are given the program in advance and know exactly what is going to be said,” she told The Media Line. “Everything here is dependent on the government. It’s the government which finances the activities, so we need to obey the rules.”

Al-Bakr said clubs weren’t limited to literature, but discussed such diverse topics as philosophy and poetry.

In a country that practices strict segregation of the sexes, women were officially allowed to join the literary clubs last June, and on Monday Culture Minister Abdul Aziz Khoja told Okaz daily that he didn’t object to women heading the clubs. Wilcke said that in the past Saudi religious police harassed clubs that opened their doors to women in cities, such as Taif.

Fawzia Al-Bakr, who was herself was offered membership in a club last year but declined it, said the literary clubs are some of the only venues in the kingdom where men and women could congregate together.

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MOMBASA, Kenya (IRIN) – When police in Kenya’s coastal tourist city of Mombasa conduct night raids, it is not unusual for a large number of sex workers arrested to be under 18.

The government faces a struggle to end a trade that many young girls see as a fast way out of poverty and into a more glamorous life.

Munirah* spends her days looking for customers at the city’s Kenyatta Public Beach. Just 15, she already has one child and is the sole breadwinner for her household.

“My widowed mother lost both her hands while working at a steel processing factory in Mombasa, forcing me to do what I am doing,” she told IRIN/PlusNews.

Munirah says she has been selling sex for six months and has already slept with several men, mainly tourists. Most of her clients prefer sex without a condom. When asked if she was aware of the risks of HIV, she shrugged and admitted she had never been for an HIV test.

According to Grace Odembo, a field coordinator with the NGO, Solidarity with Women in Distress, SOLWODI, many of the girls on the streets have limited formal education and therefore little chance of gainful legal employment.

She said “beach boys” – young men who hang around the beaches – acted as pimps for tourists seeking young girls and were paid handsome commissions, fuelling the cycle of child sex work.

“This large number of small girls you see loitering along the beaches looking for wazungu [white men] and even those engaging in legitimate businesses such as selling curios… they fall prey to beach boys who [tell] them they’ll be introduced to perfect rich suitors, only to have them end up in the arms of sex pests instead,” Odembo said.

According to a 2006 study by the government and the UN Children’s Fund, as many as 30 percent of teenage girls in the coastal towns of Diani, Kilifi, Malindi and Mombasa were involved in casual sex work. More than 10 percent of girls began transactional sex before the age of 12.

The study also found that 35.5 percent of all sex acts involving children and tourists took place without condoms.

In 2004, Kenya introduced the “Code of Conduct for the Protection of Children Against Sexual Exploitation in Travel and Tourism” to create awareness and prevent commercial sexual exploitation of children. However, the code seems to have done little to deter tourists seeking sex with minors.

Members of Kenya’s tourism sector say poverty is the main reason young girls turn to sex work, and why it is so difficult to fight the phenomenon.

“The parents, most of whom happen to be poor, instead encourage their daughters [to sell sex] so as to supplement their family earnings,” said Titus Kangangi, chairman of the Kenya Association of Hoteliers. “In many cases, a guardian sides with the accused whenever sexual abuse charges are brought.”

Out of court settlements are the norm in such cases, with tourists paying off families of young girls to avoid jail terms.

Action needed

Tourism Minister Najib Balala told IRIN/PlusNews it was important to rid the coast of its reputation of a haven for child sex tourism.

“This embarrassing tag must be dealt with right from the community level; it is a cartel that needs so much attention if we have to win,” he said. “It has cost the region and country credible tourists and investors, who now see the country as a sex destination.”

Balala said the government was putting more effort into adhering to the code of conduct by cancelling the business licences of establishments allowing tourists to check in with underage girls.

SOLWODI counsels young women and offers alternative incomes through microfinance loans. However, its resources are limited and for many girls, the small loans from NGOs are no match for the income they earn from wealthy tourists.

Poverty is key

Odembo said the government needed to be more vigilant in keeping young girls off the streets. “The government needs to come up with enough rescue centres within the region,” she said. “They should also get to the bottom of why a child found loitering in the beach isn’t attending school.”

According to James Weru, programmes director for the NGO, African Pro-poor Tourism Development Centre , tackling poverty is key to ending child sex tourism.

“Tourism is one of Kenya’s biggest income earners, but less than 20 percent of this income trickles down to local economies and as a result, locals remain very poor,” he said. “The government needs to spread the income out to benefit the locals so that there is less temptation to go into sex work.”

He noted that it would also be important to enforce adherence to the code of conduct and to back this up with serious legal consequences for defaulters.

“We also need to carry out education for tourists and ensure that we are getting the right kind of tourists,” Weru added. “Many governments have lists of paedophiles who are blacklisted from entering their countries, but we have no such measures in Kenya.”

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*Only one name used to protect the child’s identity

– Provided by Integrated Regional Information Networks.

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Manila, Philippines (AHN) – Philippine Airlines continued to face labor issues on Friday even as it assured passengers that it was ready for the worst — the first strike by the carrier’s biggest union in more than a decade.

“We apologize to our passengers for whatever anxiety and inconvenience threats of work stoppage have spawned,” president and chief operating officer Jaime Bautista said in a statement. “Rest assured we are doing everything we can to ensure that your flights will proceed as scheduled.”

PAL plans to rely on 134 partners, including 12 carriers in Southeast Asia, 11 in North America and two dozen in Europe, during the work stoppage, which would be the first since the union crippled operations in 1998.

The Philippine Airlines Employees’ Association voted last week to strike in response to the company’s refusal to include an outsourcing plan in negotiations for a new contract.

The carrier, Asia’s first airline, averted a strike by flight attendants last October with the intervention of the government. But then it announced it was seeking funds for peso 2.5 billion ($58 million) worth of severance packages to outsource three non-core units.

The union representing administrative employees says 2,600 workers would be laid off if the company’s airport services, call center and in-flight catering businesses are outsourced.

But President Noynoy Aquino last week upheld the decision of labor officials allowing the plan, which is part of PAL’s cost-cutting measures to recoup losses during the global recession and weak sales.

PALEA wanted airline officials to negotiate without preconditions but PAL demanded that any new collective bargaining agreement exclude the issue of outsourcing. The impasse dragged on for five months, even while another union representing cabin crew accused the airline of “outdated sexist policies” such as a 40-year retirement age and “discriminatory” maternity rules.

Labor officials on Friday maintained its ruling in favor of the Flight Attendants’ and Stewards’ Association of the Philippines, and for the second time rejected PAL’s arguments.

The same day, PALEA held a massive rally in the nation’s main business district along with other labor groups.

A government-mandated cooling off period has kept the union from holding a strike. Early March, it filed a notice of work stoppage, which was approved by 86 percent of participating members.

The vote was held on Mar. 25. PAL submitted its counter-proposal three days later, on Monday.

“It’s not true that management refuses to convene negotiations for a new Collective Bargaining Agreement ,” Bautista said on the day of the rally. “The union’s claim that there is no justifiable reasons for the spin-off of three units… likewise have no leg to stand on.”

The submission of the counter-proposal “is the best proof that PAL is willing to negotiate,” added Bautista.

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Sydney, Australia (AHN Sports) – On the night of June 12, 2007, Jon Fitch submitted Roan Carneiro with a rear-naked choke in the second round.

The win was his fourth stoppage in his first six UFC bouts and tenth in 19 pro fights overall. Only two UFC fighters were able to take him into the third round, let alone take him the distance.

Since then, Fitch has been the UFC’s iron man, not missing a moment of work. He’s had eight fights, and eight decisions.

After fighting just 64 of 90 possible minutes in his first half dozen UFC bouts, Fitch has fought 26 full rounds, 130 minutes, 24 judges scorecards read at the end.

The string includes a lopsided five-round loss to Georges St. Pierre in his only title shot. That setback ended a 16 fight winning streak, including eight in a row in the UFC.

Saturday night, in Sydney, Australia, Fitch has the chance to earn a second chance. UFC President Dana White announced that the winner of his UFC 127 main event showdown with BJ Penn will be named the number one contender for St. Pierre’s Welterweight title.

“They’re definitely in the title picture,” White said. “Either guy that wins that fight, let’s face it…Fitch has fought for the title and has literally dominated that division for a long time, just couldn’t win the title. Either one of these guys that wins the fight is in the mix. They’re the number one guy.”

Of course, Fitch has heard that before. Supposedly, his fight with Thiago Alves at UFC 117 was supposed to earn the winner a title shot. When Fitch added to his string of decisions in his victory, however, he was passed over for the shot.

Instead, Jake Shields will fight for the title at UFC 129 in Toronto.

“We’re in the sport of selling fights,” Fitch said, “and trying to get into every household, selling tickets. Jake Shields came over from Strikeforce with two belts. I understand that its’ a business decision.”

“I think I’m better than Jake Shields,” Fitch added. “I think I should be fighting for the title.”

Fitch appears to have learned his lesson. In the run-up to UFC 127, he spoke not just of winning, but seemed to indicate that how he won was just as important. “I’ve been chasing this title since my loss to GSP years ago,” Fitch said. “I absolutely feel like if I can put in a fantastic performance with BJ, there’s no denying a title shot.”

While Fitch’s lackluster performance against Alves was the final straw in White’s decision to bypass him, the inability to get Alves into the cage further solidified Fitch’s reputation as a dull fighter.

The two were supposed to fight at UFC 107, but Alves tore a ligament in training. Forty three days before fight night, Mike Pierce was named a replacement. Fitch beat him 29-28 on all cards.

The bout was rescheduled for UFC 111. Two days before fight night, however, Alves failed a pre-fight brain scan, and Ben Saunders replaced him. Fitch won 30-27 on all cards.

“When you’re fighting guys that don’t have the name power and aren’t built up, fans won’t get behind the fights,” Fitch said.

Still, fans are more accepting of a lesser known opponent if the fighter in questions knocks them out, a fact Fitch understands. “My last few fights haven’t been ideal, exactly,” Fitch admitted. “I’ve had a lot of replacement fights, short-term undercard fights, but I still expect more of myself. I expect to be finishing these fights.”

In Saturday’s fight, Fitch has everything that’s been lacking in recent outings. No undercard this time, he’ll be fighting in the main event. And few opponents have bigger names or move the fan reaction needle more than BJ Penn.

“It’s a big fight, title or no title,” Fitch said. “I don’t want to waste time thinking about anything but fighting BJ. If I don’t give him my full attention and full focus, I’m making a huge mistake.”

BJ Penn is the only thing standing between the UFC’s iron man and a second title shot. Those stakes might be worth taking off a little early, instead of putting in the full 15 minutes.

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Two weeks is the average turn around time for private lenders. That’s perfect timing if you are about to bid on a foreclosure or an estate sale. That’s about how long the trustees usually give you to pay the balance. Bankers may be keeping longer hours, but they still don’t work that fast and with the economy the way that it is right now, they are denying as many loans as they approve. It often takes two weeks just to get a “sorry we can’t help you”.

There are no instant funding hard money loans, because anytime that you want to borrow a large amount of money, a process has to be completed. Credit card companies might offer instant approval for a few thousand dollars, but that approval is based solely on your credit score. Your credit score alone is not enough to convince a lender that you are a good risk and a few thousand dollars will not help you buy or build a house.

In addition to your creditworthiness, hard money lenders will want to look at your income, your employment history and your experience. They will also want to know that you have a plan. They say that no one plans to fail, but many fail to plan. In the world of real estate investing and rehabbing, planning is extremely important. If you skip the background work, then you may end up with a property that you cannot sell, rent or repair and of course, that means that you probably cannot repay the loan. If you get everything lined up properly, there should be no need for instant hard money loans.

Rehabbers, for example, start by looking for a property that “needs work”. They check out the house, check out the neighborhood, determine what repairs will cost, determine what the “after repair value” will be and then make an offer to the seller. A small deposit will usually be enough to hold the property for a few days. If you get approval from the right financer, you can get a proof of funds letter, so the seller has no reason to look elsewhere for a buyer. If you get pre-approval, you can close the deal within two weeks, so you won’t lose a motivated seller. So, while there may be no such thing as instant hard money loans, there are ways to get funding fast.

Remember, if someone promises you instant funding hard money loans, they’re probably not telling you the truth. You can get money relatively quickly, but it will always take at least a couple of weeks.

James has been in real estate for over 30 years and is an expert on residential and commercial hard money loans. He is a regular contributer to Hard Money Lending, a comprehensive resource for those looking to secure funding for real estate projects.

Author: James Whitmore
Article Source: EzineArticles.com
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Hard money loans are a specialized type of real estate backed loans. Hard money lenders or private lenders provide short-term loans based on the value of real estate that has been collateralized for the loan.

Hard money loans typically have a much higher interest rate than bank loans because they fund deals that do not conform to bank standards and have higher risks. Hard money loans are more expensive than traditional loans because they are not based upon traditional credit guidelines. Hard money lenders may not require the income verification, credit score, etc. that typical lenders do, but their interest rate and points are higher.

“Points” on a hard money loan vary widely, some lenders may charge 1 to 3 points, while other lenders may charge up to 7 or 8 points. Some lenders base the points charged on the rehab experience of the borrower with regular clients getting reduced points the more business they do.

New rehabbers should not do more than 1 project at a time, especially in this economy. You don’t want to be stuck with a couple of houses when you do not have the finances to maintain them until they are sold. Also, as a new rehabber, you should get yourself registered (qualified) with a Hard Money Lender first so you can act fast when you find a house to rehab. You will able to get a “proof of funds” letter quickly from your Hard Money Lender to be qualified as a cash buyer. It is important to be a cash buyer since the sellers of foreclosed or distressed properties want fast deals. In fact, most ads or MLS listings require a pre-approved buyer and request the proof of funds letter to be submitted with the purchase contract. With most Hard Money Lenders, it is not difficult to get qualified. Usually it takes a simple application, a bit of information about your experience or lack thereof and some personal information.

The advantages of using Hard Money Loans are:

1. No Credit history, tax returns, W-2′s or job history
2. You can make All Cash Offers
3. The property value is used to determine the loan, not your income.
4. Close in a very short time frame.
5. Purchase the property and have the funds available to rehab it in one loan.
6. The Hard Money Lender understands all aspects of rehabbing and can, if necessary, be flexible on their programs.

THINGS YOU NEED TO THINK ABOUT WHEN PURCHASING A HOUSE FOR REHAB

Pricing your home is one of the most important aspects of your rehabbing. You should determine a selling price when you purchase the property. However, sometimes things change and the original price you calculated to sell it is not longer an option. Always remember that you make a profit when you BUY the property, not when you SELL it!! This means that if you do not make a wise and well thought out purchase, there is no way you are going to make money. It just doesn’t happen because you want it to happen. This is a process that needs to be calculated to the end and that includes the SALE of the property after it has been rehabbed.

Pricing: Realize that because of the economy and the current housing market conditions, there are many properties on the market. Some are in great shape, some need a little work and some need a lot of work. Also there are a lot of pre-foreclosures, foreclosures and short sales. Ask yourself some questions:

1. Would I buy this rehabbed home before buying a pre-foreclosure, foreclosure or short sale (distressed properties)?
2. How is the new buyer’s appraiser going to evaluate the home; equal to the distressed properties in the neighborhood or better? Sometimes appraisers don’t look at the upgrades you may have put in to your project. A “budget” buyer might buy the short sale or foreclosed house that needs a little work for less money than what you are asking.

Test the neighborhood:

1. Are there many distressed properties in the area?

2. Are there a lot of vacant lots?

3. Do the neighbors keep up their properties?

4. Are there schools nearby?

5. Are shopping areas convenient? Within walking distance?

6. Are there streetlights and sidewalks?

7. What about transportation? Bus lines? Train Lines?

8. Do comps in the neighborhood. Have your Realtor pull rehabbed properties in the same area that have recently sold (within 6 months), or do drive-bys yourself and look up the comparables with www.zillow.com or www.realtytrac.com. These sites will give you approximate values and can help you make the decision whether this is the right house to buy for rehab. Don’t fudge the numbers. Make sure you comps are similar size, number of bedrooms and baths, design, frame or brick, etc. If one or more of your “test items” does not work out, then move on to another property.

All of this must be considered when making a purchase for rehab.

The actual funding of the deal, the paperwork and how it works will be discussed in my next article.

I have ten years experience in Real Estate Investing. As a Real Estate Broker with my own company, I have personally rehabbed properties and wholesaled single family and two-flats in the Chicago area.

I am currently writing E-Books on Real Estate as an Investment, Hard Money Lending and Rehabbing for Profit that will be available on my website at http://www.RealEstateRehabProfits.com. Hard Money Lending criteria is available on the website http://www.zdeinvestments.com

I will also continue contributing shorter articles on many subjects pertaining to Real Estate.

Author: Rebecca A Miller
Article Source: EzineArticles.com
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1. Scope of Work- for these specific types of loans lenders will require the investor to provide a scope of work worksheet. Every repair you plan to make needs to be written down on this sheet. The scope of work worksheet is what the Hard Money lender will use as a guide, in order to pay for the project. If repairs are done that are not on the worksheet, then you may have trouble getting reimbursed by the Hard Money lender. The lender will want to see everything written down to be sure everyone is on the same page. Lenders will normally allow investors to change the scope of work in the middle of the project if able and necessary.

2.Requirements- Most Hard Money lenders now want 20% down from the investor on all projects. The lender will also want to see reserve money sitting in a bank somewhere. The investor’s monthly income will play a big role with the lender in approving the loan. Credit score is a factor, but they do not require a stellar score to be approved for a loan. The last Hard Money lender I used did not even pull my FICA score, they just wanted to see a copy of my credit report-which I was able to order for free. There will be requirements for loan to value, but each lender will have their own set of guidelines.

3. Over estimating repairs- Repairs on an investment property is always just an estimate. When rehabbing property nothing ever goes as planned. Over-estimate the repair that needs to be done to cover yourself if any repairs are added later in the rehab. If you did a good job with the initial inspection, and no additional repairs were needed then you can return the money or keep it. If you decide to keep it do not spend the extra funds. Keep the extra money as additional reserve.

4. Process- The process of receiving money for repairs is called a draw. After your contractor finishes a percentage of the work you will call your Hard Money lender, and tell them that you are ready for an inspection. The lender will send an inspector out to verify the work has been done and completed within code guidelines. Once the inspector gives the lender an o.k., the lender will release the funds that equal to the amount stated for the cost of work. For example, if you listed carpet repair $1500, paint $1200, and new light fixtures $100; when the inspector checks all the items off: the lender will cut you a check for $2800. Now you can understand why it is important to have all repairs and cost listed on the worksheet. If the repairs are not listed then they will not pay you. Normally the lender will give you 3 to 7 inspection dates depending on how large the project is. Unless you can convince the contractor to start working without putting money down, you will have to put the money up to get things started. Expect to get reimbursed from the Hard Money lender through your draw checks.

5. Refinancing- This is the most important part in rehabbing property using a Hard Money lender. Hard Money loans are short term loans with high interest rates. These interest only loans will have an interest rate of somewhere around 15%. That may seem high, but these types of lenders understand how important it is to make their money and get out. We need these companies in order to rehab properties if we cannot fund our own projects. Hard Money lenders realize the risk they are taking, so lenders ask themselves “WIIFM” (What’s in it for me). They compensated with a high interest rate for the risk they take. Hard Money lenders expect you to either sale the property quick for a profit, or refinance into a long term loan and rent it out to a tenant. Whatever your exit strategy is, be sure to do it quick. Hard Money loans are normally due in full 6-12 months after origination.

Hard Money lenders have allowed many investors to make money in real-estate. These types of lenders are more flexible when compared to traditional ones. They allow investors to make things happen when no other lenders want to take the chance on them. Their guidelines are loser and allow an investor to spread his wings. These types of loans are expensive, but they can allow more deals to be done due to the amount of money they have access to.

Watch this video on hard money loans—–> http://www.youtube.com/watch?v=6KcUGPxM0cA. Get a Free Report “How to Buy Wholesale Property Without Any Risk” at http://www.AssetPropertiesATL.com/cheapproperty

Author: Khalid Johnson
Article Source: EzineArticles.com
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