Bank statement loans, also known as self-employed mortgages, allow borrowers to secure a mortgage without the documentation that would normally be used to verify income, such as W-2s and tax returns. These loans, sometimes known as “alternative documentation loans,” are largely used by entrepreneurs and other self-employed borrowers who may not have consistent income or a single […]
Minimum Loan Sizes for Private Money
In the hard money lending business, many companies have shied away from making smaller loans. Some companies will not look at or fund loans under $100K. Many companies prefer the large loan to the small loan. Why is this the case? Often, the time spent on vetting the loan, acquiring the paperwork, and coordinating with […]
What is Your Exit Strategy?
In order to obtain a hard or private money loan, the prospective borrower must let the investor know how the loan will be paid off by the end of the term. Hard money lenders do not want to own the property they are lending on. They do not want to go through the expense or the […]
Bank Declines
In 2018, approximately 2.65 million home loans were denied a mortgage loan, which equated to a 24.7% denial rate, per CoreLogic. Many of these borrowers are ideal candidates for private or non-QM mortgage money. While home improvement loans were denied at the highest rate, rate and term refis and cash out refis also exhibited high denial rates, all […]
What Is a Bridge Loan?
If you’re selling your home and looking to buy another one, your realtor may have mentioned the term bridge loan to you as a possibility. Residential bridge loan lenders will offer a loan to a buyer who needs to buy another home before their current home sells. If you’re selling a home but are hoping […]
Can you use Hard Money to Buy a Foreclosure or Short Sale?
The short answer is yes! So long as there is a strong equity, a reputable escrow and title insurance, private lenders will fund short sales and foreclosures. A short sale requires banks to take less dollars than owed on the loan. The owner must first be willing to cooperate. The short sale will cause a […]
35 Strategies to Grow your Business
I found a great article to help real estate and mortgage salespeople to maximize their income potential with the best of today’s marketing strategies. The article was written by Megan Marrs, and offers 35 strategies to grow your business through great marketing ideas. Set Yourself Up For Social. Make sure you have social media accounts […]
HOW LONG ARE THESE HARD MONEY LOANS FOR?
Hard money loans are commonly obtained for short-term needs to refinance or purchase real estate when banks will not approve the borrowers. The length of the hard money loan is typically written for between 6 months and three years; however, sometimes, situations call for longer terms and some private lenders will write the term for as […]
LAND LOANS
Most banks have gotten out of lending on land in California. There are a few Lenders that will still finance land, but the parameters are very narrow. Often, it is a Seller carry back financing of a few years, if anything. This makes for a slowdown in land sales and refinances. Yet, there remains a […]
Bankers and Brokers Tool Box
As a conventional mortgage broker or banker, you will work with a variety of clients interested in buying or refinancing many types of real estate. Some can be helped via traditional institutional lenders, others will require a more specialized approach. The unconventional borrower will often can find mortgage financing with private money. You, the lender, […]
