hard money: Sub-Prime Mortgage Market Alive in San Diego County - 04/21/08 03:03 AM
The sub-prime mortgage crisis has hit San Diego County especially hard.  Declining housing prices and an erosion of alternative mortgage products leaves many San Diegans high and dry when looking for a "quick" loan.
Homeowners with solid equity positions can breathe a sigh of relief; sub-prime mortgages are still available, today.  Some of the borrowers we've helped, include:
1- Foreclosure Bailouts:  Big banks have turned their backs on borrowers who have had a notice of default filed against the property. We are able to fund sub-prime loans up to 65% of the property's value (as determined by comparable values)
2- Alternative Income Documentation: … (1 comments)

hard money: The Epicenter of Real Estate Blogging - 01/05/07 05:55 PM
A light rain couldn't spoil the excitement and enthusiasm I felt this morning as I drove into the heart of the City of Phoenix. Papa Joe Brady, my able seminar assistant, retired sales executive for First American Real Estate Solutions, and proud Luddite negotiated the streets of the boom town as we headed to the first Arizona Real Estate Bloggers Roundtable.
 The Roundtable was a trial balloon post here at Active Rain.  I had planned to be in Phoenix this first week of the new year to write some loan applications and visit my family.  I had hoped I might convince … (47 comments)

hard money: Hard Money: Beware of the Brokerage "Daisy Chain" - 12/25/06 06:46 PM
Principals or agents?  What's the difference?
Private mortgage lenders are typically high net-worth individuals or pension funds.  They are principals or people with money.  Sometimes those principals delegate certain loan origination functions to loan brokers (who are agents).  Some of the common functions we perform for our private mortgage investors are:  due diligence, loan structuring, financial analysis of a borrower,  valuation of the subject property, identifying an ability to repay the loan, and determining the credit-worthiness of a borrower.
How many agents in a private mortgage loan transaction are too many?   I think that question can be answered by asking another question; what … (12 comments)

hard money: "Hard Money" makes sense for good credit borrowers - 12/13/06 05:10 PM
Why would a borrower with a 736 FICO score get a hard money loan?
I'm deviating a bit from my earlier blog, So you want to be a California Hard Money Broker?  I know I promised more detailed information about  the disclosure process in California Hard Money transactions and I will.  Tonight, I'm not up to that arduous task.  I'll share with you some reasons why a borrower with GOOD credit would actually pay the high points and rates associated with a "hard money loan"
Introduction:  Private mortgages or "hard money" loans are all about taking on risk that is unacceptable to conventional … (22 comments)

hard money: Borrow Money Like You Would Buy A Cell Phone - 12/09/06 09:49 AM
How is borrowing money like  buying a cell phone?
I'm going to share a funny personal story with you.  I just bought a cell phone the other day. Now,  read on because it has a LOT to do with how to get good mortgage terms.
This was a big thing for me because I bought a real bad-ass cell phone.  It's the LG CU500, the first HSDPA compatible UMTS handset for the US, and probably the first to be offered by Cingular.
Now I have no idea what I just cut and pasted about my cell phone but I know the thing … (26 comments)

hard money: A Realtor's Guide to the Power of an Annual ARM - 12/07/06 04:53 PM
Why should you ALWAYS get a one year ARM rather than "locking" into a 30 year fixed rate loan?  The easiest answer is that you will NEVER be able to accurately predict interest rates.  Did you know that Wall Street gurus are wrong over 60% of the time with their interest rate projections over a 3-5 year timeframe?  What makes you think you know better than them ?Did you know that over a five year period of time, the one year ARM has always outperformed a 30-year fixed rate loan?   That statistic has held true for over 40 years. What that … (25 comments)

hard money: A Realtor's Guide to Correspondent Lenders - 11/13/06 02:15 PM
Correspondent Lenders are a hybrid between a direct lender who sells loans to Wall Street and a mortgage broker.  We (in the industry) sometimes refer to them as "Super Brokers with Big Credit Cards" because they perform all the origination functions like a mortgage broker but fund the loan in their name off of a warehouse line provided by the lender. What does that mean?  It means that Super Broker has a HUGE credit card with a spending limit of...oh...about $20 million; TLW and MLW (My Lovely Wife) could probably find a Nordstrom's or two to knock off with that big … (11 comments)

hard money: Investing in California Mortgage Pools - 11/10/06 08:09 PM
I am a private mortgage lender which means I make real estate loans (non-bank loans) to individuals who can't qualify for bank financing.  In California, this is sometimes referred to as Trust Deed Investing because the security instrument (how you secure the collateral) we use is called a Deed of Trust.  The loans can be risky of default and subsequent foreclosure.  This is why we don't make loans for more than 70% of the value of the property.  The returns, however, are very attractive.  It is not uncommon to earn 11-15% interest on trust deeds.  I think they are relatively safe … (8 comments)

hard money: High Noon in Long Beach, CA - 11/02/06 09:45 AM
The California Association of Mortgage Brokers, the same organization that sponsored the trade show that featured completely irresponsible lending practices,  has drawn a line in the sand with this statement that all loan originators need to be licensed. 
"We believe there should be a barrier to entry besides being able to fill out a job application form," said Michael Faust, CAMB's government affairs chairman.
Sounds pretty good, doesn't it?
Not to be outdone, the California Mortgage Bankers Association, fired a shot across the bow of the brokers' association with this statement refuting their demand today.
Dustin Hobbs, spokesman for the California Mortgage Bankers … (12 comments)

hard money: How Mortgage Originators Lie to Borrowers - 11/01/06 01:00 AM
Mortgage originators constantly advertise that they will find "the perfect loan for you" and that they will "work hard to find you the absolute best terms".  You may find, after reading the compensation agreement, ....that is bunk.
It has been said that the "devil is in the details" and in mortgage origination disclosure documents, nothing could be more true.  Contractual relationships mortgage originators have borrowers sign, hidden carefully in a stack of disclosures, clearly state that there is not a fiduciary relationship but an independent contractor relationship between the borrower and the mortgage originator. The National Association of Mortgage Brokers (NAMB) defines … (4 comments)

hard money: Do Lenders Have a Fiduciary Responsibility to a Borrower? - 10/13/06 02:44 PM
I have been enjoying this banter about fiduciary capacity in the real estate transaction as it related to lending.  Clearly, this has been a fun "academic discussion" for me today and probably a pain in the patootie for many other posters in the Active Rain Real Estate Community.
A brief history:  Lenn Harley wrote a nice blog yesterday about The Evil Press. Normally, I would agree with Lenn that members the press are drama seekers with a lack of imagination and an inflated sense of self-importance.  Actually, I retain the opinion about the press.  In this instance, Lenn paraphrased an article about … (24 comments)

hard money: There is no such thing as the "best" or "lowest" rate - 10/09/06 06:18 PM
I am continually amazed at the misrepresentations mortgage brokers use on their advertising:
Lender411.com uses terms like "best" and "lowest" rates for their mortgage shopping portal.
AAXA Discount Mortgage offers the "best rates possible" and tells us that if we're "searching for the best possible rate, our search ends right there"
LoanSnap is my personal favorite.  It tells me that the dispayed rates are "today's best mortgage rates" 
Finally, in my home state. e-mortgages tells me that they have the "lowest rates in California" 
So why am I so worked up about this ???    Here's the answer:  It  is absolutely impossible to advertise that you … (25 comments)

hard money: Did you receive a Notice of Default? - 10/08/06 08:06 PM
If you receive a notice of default (NOD) for your mortgage, you need to act quickly.   A NOD is a notification given if you have not made payments by the predetermined deadline (usually specified in your Deed of Trust).  It spells out repayment  (sometimes called curing) schedules and spells out  the foreclosure process and timeline.You have until five business days before the foreclosure sale to cure the default. To cure the default you have to pay off missed payments, late charges, and fees for initiating the foreclosure. If you do not cure the default, the trustee can take steps to hold … (9 comments)

hard money: So, you want to be a trust deed investor? - 10/05/06 12:57 AM
So, you want to be a trust deed investor and earn double digit returns?  Let's see what I can tell you about investing in trust deeds in 3-4 paragraphs.  a more detailed explanation can be found here.
A trust deed is what we call a deed of trust or mortgage in California.  When you "invest" in a trust deed, you are the bank (or the lender).  We usually get you rates of 10-14% and 1-2 points on the deal.  Most loans are short-term in nature and have a term of one to five years,  The average loan we make is paid off … (5 comments)

hard money: New website - 09/25/06 04:44 PM
Tonight I released the beta version of our new website about trust deed investing.
I built it through register.com with their 5-page now website kit.  I have no doubt that it looks amateurish to all of you e-pros out there but I got it upand running within 2 hours.  I had nothing before.
I spend a lot of time on the phone and in person networking with investors and brokers to build my private money lending business.  Now I have something to show people.  It may not be perfect but you all know the old saying..."An imperfect plan today is better than a … (3 comments)

Brian Brady, 858-777-9751 (San Diego VA Home Loans/858-777-9751) Rainmaker large

Brian Brady


San Diego, CA

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San Diego VA Home Loans/858-777-9751

Address: La Jolla, CA, 92014

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