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 […]
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 […]
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 […]
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, […]
What is a Bridge Loan?
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 […]
