A bridge loan is a short-term mortgage that allows a borrower to purchase a property before selling their current home. The ideal sequence is for the homeowner to sell their current home, then shop; however, sometimes opportunities present themselves and the timing is not quite right. Bridge loans are a short-term solution for real estate transactions which […]
Cross Collateralizing Properties
Sometimes, a borrower does not have enough down payment to make the private lender feel comfortable enough to approve the loan. In these instances, adding another property with strong equity is an ideal solution! Cross collateralization is a method used by lenders to add more security to a loan transaction. It is accomplished by the […]
Self-Directed IRA Funds for Trust Deeds
In addition to funds in your bank account, you may be able to invest your IRA, family trust, or pension funds in Trust Deeds. Or, if you’re leaving an employer, you can roll your 401k retirement vehicle into a self-directed IRA, and invest that money in trust deeds. We have several recommendations for self-directed IRA […]
Does Cushner Capital Group do Owner Occupied Loans?
The hard money mortgage lending world for single family homes (1-4 units) is broken into two categories – owner occupied and non-owner-occupied loans. All hard money lenders will finance non-occupied properties, as long as the loan to value is reasonable, title is clear, and there is a viable exit strategy. It is the owner-occupied loans […]
Why Are Trust Deeds a Trustworthy Investment?
Investing in almost everything can be tricky, no matter how financially savvy you are. With the current state of the real estate market, it is no wonder that people have questions about the soundness of trust deed investing. What Is Trust Deed Investing? When an individual or entity loans money to another individual or entity […]
3 Tips for Closing Your Hard Money Loans
For borrowers who have only obtained mortgage financing through conventional banks and institutions, the process of obtaining hard money loans can be quite a different experience. This is because hard money lenders do not have the same requirements as bank loans, nor the same timing. One advantage to hard money is speed; however, to close […]
TITLE INSURANCE FOR INVESTORS
When investing in Trust Deeds, there are several key components. One of the keys is equity. Private Money is based on equity protection for the investor. Another critical piece is a clear title to the property. Why is title insurance so important? It protects the new lender from fraud and other issues that can affect […]
When Does Private Financing Make Most Sense?
I found a wonderful article discussing the most popular reasons for choosing private or hard money. Although it can be a pricier option, it also offers opportunity to those shunned by the bank. JD Esalen, a popular flipper, wrote this about three very popular reasons when private money makes sense. A common obstacle among real […]
Why is the Purpose of the Loan Important?
When the intended security property for a mortgage is a one to-four residential unit, the facts will determine whether the loan is a “consumer loan” or a “business purpose loan.” This distinction is critical in hard money lending. The Secured and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) is applicable requiring registration […]
COOPERATING BROKERS GET LOVE TWICE
Hard money loans play an important role in the real estate marketplace. They offer financing to those who otherwise would be without access to such credit, and they finance short-term borrowing needs with a quick turnaround. Conventional loan officers that refer that business to Cushner Capital Group will get two fees. One for the interim […]
