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 […]
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 […]
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 […]
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 […]
WHAT IS A NON-QM LOAN
Since the advent of the recent Dodd Frank guidelines, many hard money brokers and investors have resolved to only do non-owner business loans. We are still doing owner occupied first and second loans! If you have clients that do not fit into the guidelines that come with conventional lending, please give us a call. We […]
IRS Tax Rules for 2018
Many folks have been wondering how the new tax laws are going to affect real estate. Below is a list of the major provisions related directly to real estate. Please remember, this is an abbreviated list of the tax rule changes. I found this summary of the new or changed rules written by Mark O’Toole, […]
HARD MONEY UNDERWRITING
Underwriting hard money loans is a bit different than underwriting conventional loans, but there are many similarities. It is still underwriting. As with any loan file, underwriters review every piece of the entire file and determine answers to obvious questions regarding debt ratios or debt servicing, down payment, and exit strategy. The underwriter may offer […]
Hard money lenders go where conventional players fear to tread
By Kevin Wolfer, president and CEO, Kennedy Funding Financial LLC | bio Have you ever hit a brick wall with a traditional lender when working with a borrower that has a lingering lien, a property with environmental issues or even a pending bankruptcy? When conventional lenders back away from a deal, hard money lenders are prepared to step […]
WHEN TO USE A PRIVATE HARD MONEY LENDER
Despite calls to modify the Dodd-Frank business regulations, conventional lenders have continued with very stringent underwriting requirements that prohibit many good borrowers from being able to borrower the mortgage money they need. A private hard money mortgage loan is a great alternative to the conventional lending sources. Sometimes, borrowers do not meet the bank’s minimum […]
Using a Self-Directed IRA to Loan
There are many investments to place your IRA money into, not just stocks or mutual funds. When considering what to investing in for retirement, why not consider real estate or Trust Deeds? California real estate values have remained strong for many years. So, why not invest in either a property or loan on a property? […]
