private money: The New Face of Hard Money
- 05/21/20 02:38 PM
Hopefully as you read this you are staying safe and healthy. The Covid pandemic has turned many aspects of our lives upside down. Real estate financing has not been immune to the crisis, and today's alternative loan options look much different than they did only a few months ago. Much has changed, but financing is still available! One of the first major changes we saw was the loss of most of the Non-QM market. This is the market that was filling the subprime market of the past. Most of these loans are simply not available today, with lenders suspending operations indefinitely. These were … (0 comments)
When potential clients call us to discuss their rehab or fix and flip scenarios, there are many questions that we get asked. One of the main questions asked has to do with the maximum after repair value (or ARV) we can help them with. In conjunction with this question, potential clients should also be asking about maximum loan to cost for both the project and for the purchase … (0 comments)
private money: California Luxury Home Fix and Flip Loans
- 06/04/14 02:53 AM
Recently we've witnessed a shift in the fix and flip loan requests we are receiving. For a number of years, while the market recovered, the majority of our rehab loans here in California were for entry level or step up homes. With the housing market recovering, however, we are now funding a lot more California luxury home fix and flip loans. There are a number of reasons for this shift. One big reason is it is becoming increasingly difficult to get entry level homes under contract at a purchase price that makes rehabbing the property profitable. This is not to say that … (0 comments)
private money: Eminent Domain as a Solution to Housing Woes?
- 08/07/13 04:41 AM
Recently Richmond announced they would be seeking to purchase loans for underwater borrowers at 80% of the market value of the home. They have sent letters to various lenders, and have partnered with a private equity firm to help finance these purchases, restructure the loans and help their troubled homeowners. While this sounds like a great idea, the root of the issue is that they are using the threat of seizure via eminent domain if the lenders do not sell these loans for a discount. While the big banks, and the mortgage industry in general, have been the black sheep of … (0 comments)
private money: Hard Money Loan Requirements – Loan to Value Ratio
- 09/04/12 07:43 AM
Obtaining a hard money loan is not as cumbersome with regards to requirements as obtaining a loan from a bank. The common misperception, however, is that there are no requirements when getting a hard money loan. In this post we will look at the main requirement that most hard money lenders consider when deciding to make a loan or not. The first requirement any hard money lender will look at, and perhaps the most important one, is the loan to value ratio. The higher that ratio is, the more risk there is involved with making the loan. The equity in a … (2 comments)
private money: Alternative Financing Options With Hard Money
- 08/09/11 06:39 AM
These days financing for real estate transactions can be a challenge. The banks have tightened their lending standards to the point where even quality borrowers may be unable to obtain the loans they need. This is compounded further among the smaller community banks, which make a lot of the local commercial, mixed use and other real estate loans that are not secured by an owner occupied single family residence. For those with financing issues, a potential alternative is hard money. There are both pros and cons to using hard money. The benefits include looser qualification standards. For non consumer loans, often … (1 comments)
private money: Hard Money Solutions For Commercial and Construction Transactions
- 02/05/08 04:42 PM
Commercial properties financed with hard money are increasingly becoming a viable option to that of institutional money. Some of the reasons for this include institutions wanting fully amortized payments and/or amortizing these payments over a shorter time frame than the traditional 30 years. Additionally, for acquisition of commercial property, the main concern with hard money lenders is the collateral value, not the debt service of the property, making the approval process more streamlined. Even a property that does not meet the required debt coverage for an institutional loan is a fundable loan with private money investors.Raw land and construction are additional … (0 comments)
Hard money loans are an alternative form of financing. We explore the real estate world and options that hard money lenders can bring to the table.
Chris Goulart, DRE Lic. # 01458390 NMLS Lic. # 298819 DWJ CA Broker Lic. # 01180522
Hopefully as you read this you are staying safe and healthy. The Covid pandemic has turned many aspects of our lives upside down. Real estate financing has not been immune to the crisis, and today's alternative loan options look much different than they did only a few months ago. Much has changed, but financing is still available!
;)
;)
;)
