A good joke is always fun during the Holidays. Have you heard the one about the two people who were about to do a Real Estate Deal? One person had all the money and the other person had all the experience. Well guess what happened after the Deal happened? The person with the money ended…
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…
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…
Sandy with Congressman Dana Rohrabacher at the recent 2017 Cannabis Business Expo in San Diego. Sandy and Mortgage Vintage launched their Cannabis Business Purpose Loan Program that provides cannabis-related business loans secured by California Real Estate. The ability to back cannabis businesses with Real Estate secured loans gives this program an extra advantage in the…
As a Hard Money Lender in Orange County, we receive inquiries like: Can I get cash out of my house for my business? Can I pull money/equity from my principal residence and apply those funds towards a business acquisition or my companies working capital or business equipment? As a real estate investor, can I pull…
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…
Van Nuys, CA Download recent-transaction-2nd-business-purpose-cash-out-loan-funded-van-nuys-ca Property / Loan Information Property Type SF Condo Lien Position 2nd TD Loan Amount $150,000 BPO Value $569,900 Occup Owner Lender Rate 10.50% CLTV 45.27% Loan Type Business Purpose Cash-Out Amortization Interest Only Due 60 mos. Guaranteed Int. 6 months …
Yorba Linda, CA recent-transaction-2nd-business-purpose-cash-out-loan-funded-yorba-linda-ca Property / Loan Information Property Type SFR Lien Position 2nd TD Loan Amount $60,000 BPO Value $375,000 Occup. Non-Owner Lender Rate 10.50% CLTV on BPO 58.13% Loan Type Business Purpose Cash-Out Amortization Interest Only Due in 24 mos. (Balloon) Gtd.…
Simi Valley, CA recent-transaction-2nd-td-investment-property-cash-out-loan-funded-simi-valley-ca Property / Loan Information Property Type SFR Lien Position 2nd TD Loan Amount $65,000 BPO Value $540,000 Occup. Non-Owner Lender Rate 9.50% LTV on BPO 12.04% Loan Type Investment Prop. Cash-Out Amortization Interest Only Due in 6/2017 (Balloon) Gtd. Interest …
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…
Santa Ana, CA Recent Transaction – 2nd TD Business Purpose Cash-Out Loan Funded – Santa Ana, CA Property / Loan Information Property Type Multi-Fam Lien Position 2nd TD Loan Amount $60,000 BPO Value $810,000 Occup Non-Owner Lender Rate 10.25% CLTV on Purch 60.00% Loan Type Business Purpose Purchase…
Santa Ana, CA Download Recent Transaction – 2nd Business Purpose Cash-Out Loan Funded – Santa Ana, CA Property / Loan Information Property Type 4-plex Lien Position 2nd TD Loan Amount $143,750 BPO Value $775,000 Occup Non-Owner Lender Rate 10.25% CLTV on Est. Value 65% Loan Type Business Purpose…
“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…
Learn about Funds Control and why it is important With summer upon us, Hard Money Lenders and Trust Deed Investors should make sure a Borrower applies the funds from the Rehab or Construction loan to the rehab or construction project and not a trip to Cabo. The best way to ensure the money from…
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…
Yucca Valley, CA Download Recent Transaction – Cash-Out Commercial Loan Funded – Yucca Valley Property / Loan Information Property Type Commercial Bldg, Retail Lien Position 1st TD Loan Amount $275,000 Est. Value $1,060,000 Occup Non-Owner Occ Note Rate 11% LTV on Est Value 25.94% Loan Type Cash Put Refinance Amortization Interest Only Due in 2 years Guaranteed…
Temecula, CA Download Recent Transaction – Business Purpose Purchase – Temecula, CA Property / Loan Information Property Type SFR Lien Position 1st TD Loan Amount $516,000 Purchase Price $645,.000 Occup Non-Owner Occ. Interest Rate 10.99% LTV on Purchase Price 80% Loan Type Business Purpose Purchase Amortization Interest Only Due in 12 months Guaranteed…