1. A stock’s value fluctuates constantly. A trust deed’s value is always fixed and stable. 2. A stock is typically backed up by a conglomerate of equipment, property or services, sometimes outside the US. A trust deed is collateralized by real estate within the US, most often by homes or property within the investor’s local […]
Preparing A File For Submission
If you are planning to send me a file to review, it is important to create a favorable scenario for the investor. Of course, you are advocating for the borrower, but there must be a win-win philosophy to ensure the investor is satisfied. Keep in mind the five major criteria investors seek when making private […]
Creating a Solid and Persuasive Executive Summary
Considering the enormity of paperwork and requirements demanded by conventional lenders, it is incredulous that brokers send files that are so incomplete. The most important component of a good file is the executive summary. Sometimes called a Pro-Forma or Summary, the Executive Summary is a general overview describing the borrower, the collateral, the request, and […]
Am I Candidate for a Hard Money Loan?
If you have strong equity in or a substantial down payment for a piece of real estate yet the banks decline you, you may be an ideal candidate for a hard money loan. Unlike mortgage banks or agencies like Fannie Mae or Freddie Mac, which have credit FICO score minimums, income to debt ratios, job […]
Advantages of Private Money
If the cost of private money financing is so much more expensive than institutional lending, then why use hard money? What are the advantages, if any, to private money loans? These are important questions that need to be asked and answered. While rate, cost, and terms are advantages to Fannie Mae or Freddie Mac institutional […]
10 Reasons For Private Money
WHY PRIVATE MONEY? With the additional rate and costs, why would a borrower opt for hard money, rather than institutional financing? Here are the 10 most common reasons: 1. Time – Traditional lending typically takes 30 – 45 days to complete. Often, borrowers cannot wait, and thus a quick private bridge loan makes more sense. […]
5 Trust Deed Investment Parameters
If you are seriously considering a Trust Deed Investment, here are the five key criteria when judging whether a loan may be right for hard money! 1. LOAN TO VALUE RATIO 2. TYPE OF PROPERTY 3. LOCATION 4. CASH FLOW OR INCOME OF PROPERTY 5. EXIT STATEGY Most Investors know that equity in the property […]
