What are the 2020 opportunities in ADU lending? This Blog is an update to our Additional Dwelling Unit (ADU) Blog published in Sept. 2018. Many new developments have happened in the last 1½ years relating to ADU’s that influence ADU requirements, development, construction, laws and financing. Recently I organized and spoke on a California…
What are the current opportunities in ADU Lending? New California laws effective in 2017 and 2018 provide clarification and fee assistance for the creation of ADUs. These new regulations clarify and improve various provisions of the law to promote the development of ADUs, including allowing ADUs to be built concurrently with a single-family home, opening…
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…
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…
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…
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…
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…
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:…
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 is the real need of the Borrower and then solve for that requirement I received a loan scenario recently and the request was for a large new 1st Trust Deed that was paying off an existing Bank First Trust Deed while providing cash-out to the borrower. When I discussed the loan with the…
10 borrower characteristics that should be considered while underwriting a hard money loan Real Estate provides the collateral for most hard money loans however there are many borrower characteristics that should be considered while underwriting a loan. One of the best ways to avoid fraud and determine if a Hard Money Loan makes sense is…
Having provided close to 200 Private Money Loans to Real Estate Investors and House Flippers gives us a perspective and experience on best practices for House Flippers. We have worked with Flippers who have exceeded their income goals and others that have lost money on the flip. A major part of the flip is to…
Scenarios where buyers, sellers, investors and business owners have chosen Hard Money. While Hard Money rates are certainly higher than conventional loan terms, in many instances the money is less expensive compared to other financing alternatives or the potential loss of potential revenue on a business transaction. Additionally, Hard Money eligibility requirements are less…
What steps should a self-employed borrower take to get a loan? Self-Employment carries many benefits including making decisions, schedule flexibility and not having to work for an incompetent Boss. However there are some disadvantages to generating your own income when it comes to applying for a home loan. Today, under new Federal Regulations, borrowers…
How do Hard Money loans give opportunity to borrowers? I attended a breakfast meeting with Terry Donahue, former illustrious UCLA Head Football Coach, and he mentioned “Life is About Opportunity”. Terry currently give’s high school football players opportunity to receive a college football scholarship at his California Showcase. (http://cashowcase.org) In 2012 450 player athletes…
4 Steps to Qualify for a Hard Money Loan Many top Mortgage Brokers that specialize in conventional lending refer quality Hard Money Loan opportunities to a Hard Money Lender. How does a Conventional Mortgage Broker know if they have a good hard money loan opportunity? Follow these 4 steps for qualifying a Hard Money…
7 key steps a borrower or a mortgage broker will need to ensure a Hard Money Loan approval. Millions in Private Capital sits on the sidelines waiting to invest in secured and well underwritten Trust Deed Investments. These are the 7 key steps a borrower or a mortgage broker will need to ensure a…
10 steps to find a Fix and Flip hard money loan Many real estate investors are enjoy buying, fixing and flipping single family residential real estate. Smart investors are taking advantage of these favorable market conditions to buy more homes using hard money loans. Hard money loans can provide leverage to stretch the investor’s…