What to look for when evaluating the quality of construction? Many hard money loans in Orange County involve a borrower rehabbing or repositioning a property before a sale or rental. The resulting property sale or rental will happen faster when the rehabber deploys proper project management and quality construction. A well-run project will facilitate a…
Mortgage Vintage and CrowdTrustDeed offer full Spanish speaking capabilities to all stakeholders Mortgage Vintage provides hard money lending guidance in both Spanish and English. As a fluent Spanish speaker, I easily communicate with our Hispanic borrowers. The opportunity to speak in Spanish allows the Hispanic borrower to comfortably review the loan scenario without concern…
How does constant process improvement make better hard money loans? As CrowdTrustDeed enters its 4th year, I want to thank you for your continued support. When Mortgage Vintage founded and established CrowdTrustDeed on January 1, 2015, our vision was to use technology and data to help our borrowers and brokers receive a more streamlined origination process…
How can hard money lenders help someone in need? After graduating from UCLA Allen purchased his dream lot in Malibu in 1984. He purchased a used Motor Home that first paraded to a UCLA vs. Cal football game in Northern California filled with delirious sorority and fraternity members, but then became his temporary home on…
Recent examples of borrowers executing on ideas with their Business Purpose Cash-Out Loan. Home Equity continues to provide fuel for Entrepreneurs and Self Employed borrowers looking to grow their business and make their dreams come true! Why go to Shark Tank, Angel Investors, Venture Capitalists, Crowdfunding, Initial Coin Offerings or other high cost business…
How to solve real problems with hard money loans? In a recent top-rated business Podcast, Tony Robbins stated that “The Best Business’ Solve Real Problems.” Besides being simplistic, direct, transparent, and fast, Hard Money Loans and Trust Deed Investments solve real issues that finance seeking professionals encounter. This month’s Blog analyzes the problems facing Orange…
Why are hard money loan rates dropping? Hard Money loan rates have dropped 50 to 150 basis points over the past 18 months, depending on the market and type of property. This market trend provides more favorable rates for borrowers and reduced yields to Hard Money Lenders. Hard Money Loans, and in some instances called…
5 underwriting criteria to determine the viability of a Hard Money Loan Scenario Every year, NFL executives, scouts, coaches, and analysts fly to college football games, scour videos, and scrutinize statistical reports about potential draft selections. The NFL conducts the Combine where NFL prospects try out in front of representatives from the 32 NFL…
What is happening in the Fix and Flip marketplace? Change and upheaval constitute Fix-and-Flip finance today. FinTech (High-Tech Lenders) companies, Wall Street and others have entered the Fix-and-Flip lending arena with an avalanche of capital. This new capital benefits borrowers with lower rates but is creating havoc with traditional lenders who are scrambling to keep…
How Proven Underwriting Guidelines lead to successful loans and stable investor yields? During the successful 2016 8 Year Old Little League season, our coaches kept reiterating to “Keep Your Eye On the Ball”. Whether catching a fly ball, fielding a grounder or trying to hit a fastball, the message was the same to our CrowdTrustDeed…
What are the reasons a borrower would need a hard money loan? We often get the question, “Why would a Real Estate Investor, Self Employed Individual or Business Owner need Hard Money?” Followed by, “Why would anyone pay those rates?” Well, after having underwritten and funded over 330 loans, we have learned there are…
How do Fintech principles and the Internet make for a better Hard Money Loan? The Internet continues to destroy old and create new business models. Disintermediation runs rampant. How does a financial services business survive and thrive in the Financial Technology “FinTech” space and create a profitable business model in today’s Internet world? Old…
One of the most important underwriting elements for Hard Money Lenders and Trust Deed Investors is the Loan to Value Ratio (LTV). The Loan to Value Ratio is defined as the Loan Amount divided by the Value of the property. The question is: Which Value? LTV provides guidance for lenders and investors on how much…
“A team is only as strong as its weakest player.” “A chain is only as strong as its weakest link.” Do you remember these sayings? The mantra also applies to a Hard Money Lender’s team and specifically to their Title and Escrow Company. Having a solid Title and Escrow Company in any real estate transaction…
Low Interest Rates, Unemployment below 5%, housing prices increasing by 5% and the improving economy are assisting borrowers improve their credit scores. The share of U.S. adults with credit scores that are considered “subprime” fell to 20.7% in April, the sixth consecutive year-over-year decline and the lowest level since at least 2005, according to…
During the recent Stock Market swoon, I kept reading the daily diaries of various market prognosticators. One day the market was down because of China, the next day the market was down because of oil, the next day the market was up because of China and the next day the market was up because of…
Happy New Year. We had an amazing 2015 and I want to thank each and every one of you for your support of Mortgage Vintage and CrowdTrustDeed. We experienced solid growth and results in our Hard Money Loan and Trust Deed Investment businesses’. Our message resonates with borrowers and lenders and we continue to build…
Why is California the place you want to be? Go West Young Man/Woman! Our Fathers, Settlers, Adventurers, Immigrants, acted on this battle cry and moved west to California. We all know about the weather, but why else do residents put up with California’s housing prices, taxes, traffic and liberal slant? Why do we choose…
Can we do a loan in 48 hours? Yes! I received a call at Noon on a Wednesday from Paul. Paul, a Fix and Flipper and Home Builder, had borrowed successfully from Mortgage Vintage before and was now building infill homes. Paul had purchased some land in Orange County and was in the middle…
Fix and Flip or Fix and Rent? Deciding whether to Fix and Flip or Fix and Rent can be a difficult decision. You may be evaluating a purchase or have already put substantial work and money into renovating a property. In either case the question is; sell now, sell in a few years, refinance:…
Fix and Flip or Fix and Rent? The new Windows 10 is about to hit the shelves. Wow. What a sometimes frustrating but exciting ride from DOS. The imminent Windows 10 Version made me think about my own personal and professional resets and upgrades and how everyone should enjoy and contemplate their own life…
What does it mean to trust but verify during the underwriting process? I enjoy meeting people and I prefer to go through life trusting people when we first shake hands. I always like to assume that people I meet are generally good people. However, these days our motto is and has to be “Trust…
How is Hard Money underwriting more art than science? High volume Conventional lenders world use Automated Underwriting (AU) engines to determine if a borrower qualifies for a loan. Fannie Mae’s Desktop Underwriter (DU) and Freddie Mac’s Loan Prospector digest reams of quantitative data and spit out the yes or no decision on a residential…
What does “Stated Income Loan” mean? Hard Money and Non-Prime Lenders offer “Stated Income” loans to fill a gap on situations where conventional loan standards deny the loan. Today’s blog will demystify “Stated Income” and describe what these loans are and are not. Importantly, we will also discuss the opportunities and pitfalls for borrowers…
The “5 C’s of Credit” are the five key elements a borrower should have to obtain credit. These same 5 “C” items are critical for Hard Money loans as well as conventional loans. Successful Mortgage Brokers understand the 5 C’s of Credit and know how to apply their scenario to a conventional or hard…
Best practices we have seen used to acquire or find a Fix and Flip! Here some of the best practices we have seen used to acquire or find a fix and flip. Common wisdom and empirical evidence shows that the profit in a transaction is acquired on the acquisition. Getting a good or discounted…
What Do Trust Deed Investors Really Want
The revelers sang “The 12 Days of Christmas” at our Holiday party the other night and our spirited late night rendition reminded me of the steps we need to take every day to get ready for Christmas Day. As my son reminds me every morning of how many days are left until Christmas, I realize…
Do you know what happens when, during a real estate transaction, a person with money meets a person with experience? The person with the experience ends up with the money and the person with the money ends up with the experience. Ha! Well, we all know experience matters. Whether the person is an NFL Quarterback,…
What is needed to get approved for a hard money loan? As a Real Estate Investor or Mortgage Broker, many times you will need to act quickly to buy or assist someone buy or refinance real estate. When time is of the essence, Hard Money financing is the best and fastest alternative. Below are…