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 […]
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 […]
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 […]
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 […]
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 […]
