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Read our most recent blog posts for information and updates on private money investing, hard money financing, the housing market and everything in between.

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3 Things That Millennial Home Buyers Want

Flipping homes seems simple, right? You find a low-cost property on the market, the location is great, and all you need to do is a little renovating before you feel the windfall of cash fall into your pockets. Or, that’s what those who make it look easy would have you believe.

Whether you’re new to fix and flip investments or you’re navigating new changes in the market, you’ll know that your renovation efforts need to provide an edge over other investors in the area doing the same. One way to achieve this is to target a unique market of home...

Guide to Getting a Luxury Home Mortgage

Buying a luxury home is quite unlike purchasing a conventional property. From the location to square footage, you're paying for a premium, high-end asset. However, just because you're purchasing a luxury property doesn't mean you want to offer a large down payment—or perhaps you don't have the free capital to do so.

Below, we outline what makes a home a luxury property and how you can secure the mortgage to buy the home of your dreams.

How a 'luxury home' is defined

Luxury homes are generally defined as homes exceeding a value of $1,000,000, although this varies from state to...

Non-Qualified Mortgages 101

Following the biggest economic crisis of the 21st century, federal and state regulators tightened the laws around mortgage lending. In response to a crash that largely due to activities in subprime lending, the government introduced the Ability to Repay rule. In short, this rule sets strict criteria outlining who is likely to repay a mortgage successfully. Those individuals then qualify for a loan called a qualified mortgage (QM).

As you might have guessed, not everyone fits the criteria for a qualified mortgage. As the mortgage finance market and housing market slowly recovered under the more stringent lending laws, mortgage lenders...

Why a Blanket Loan Can Benefit Landlords

A blanket loan is a mortgage used to finance more than one property. It can be utilized when investing in rental properties. If you’re a landlord, this type of loan can provide several distinct benefits so it's definitely worth your consideration.

1. Lack of a 'Due on Sale' Clause

One of the most attractive features of a blanket loan is the lack of a ‘due on sale’ clause. Here, you can sell one or more properties on which your loan is secured without needing to completely refinance. You will be required to pay back the mortgage amount represented...

Home Equity Lines of Credit vs. Second Mortgages

If you want to unlock the value from your home while you're still living in it, there are two main options available to you. A home equity loan, commonly known as a second mortgage, allows you to extract value from your home as a lump sum payment, which is added to your primary mortgage debt. A home equity line of credit (HELOC) can be a useful alternative, with this option allowing you to draw money from your property as you need it rather than as a lump sum.

What is a home equity loan?

A home equity loan is...

Commercial Mortgage Loan Alternatives

When you’re on the brink of starting a new business and you want to own a property rather than rent, you may need to take out a commercial mortgage. Regardless of where you’re at in the application process, the chances are you’re feeling a sense of frustration. Commercial mortgages are notoriously difficult to get. They come with a higher degree of risk, which means banks ratchet up their minimal qualifying criteria.

Whether you’re worried that you’re about to face a rejected application, or you’ve recently been given a “no,” it’s worth looking at commercial mortgage loan alternatives. They come in...

When Two Mortgages Are Better Than One

The property market can be a complex place at the best of times, with people often looking to simplify their options in order to make things easier to manage. When it comes to mortgages, however, the complex solution can potentially save you a lot of money. Sometimes, two mortgages are better than one. While taking out a second mortgage might seem like a counter-intuitive way to save money, an 80-10-10 loan can be a powerful way to avoid the costs and pitfalls associated with a jumbo loan.

What is an 80-10-10 loan?

Also known as a combination loan, piggyback...

3 Reasons To Be Thankful for Trust Deeds

From family and friends through to finances and investments, sometimes in life, it's easy to take things for granted. Thanksgiving is a time to sit back, look around, and appreciate the things that you do have. Rather than focusing on the negatives, you can learn to take advantage of your opportunities in order to grow and reach your potential.

Having access to funds is an important part of life, with private and hard money lending providing a range of solutions for people who need accessible, flexible, and fast capital in a practical and hassle-free package. Let's take a look at...

Grow Your Business With Bridge Loans

If you're thinking about repositioning your debt or purchasing a new property to add to your portfolio, it's important to consider all of your finance options. Bridge loans are a great choice for people who want to access capital quickly in order to expand or alter their property business. Bridge loans are a fast and efficient way to raise funds between a short-term cash requirement and long-term loan.

Benefits of a bridge loan

Whether you need short-term financing as a way to acquire a property quickly or a mechanism to reposition existing debt across multiple investment properties, bridge loans...

Use a Bridge Loan to Buy Your Next Home Before Selling Your Current One

If you're looking to buy a new home, it's important to explore all of your financing options. An owner-occupied bridge loan is a great solution for people who want to generate capital from their existing property and make an offer on a new home in a highly competitive seller’s market without a sale contingency.

Bridge loans provide unparalleled flexibility and control over the sale process, including the ability to make interest-only repayments before you sell. If you're considering an owner-occupied loan, it's also critical to research the source of your financing, with traditional routes available alongside private money lenders.

...

7 Ways to Make More Deals & Earn Higher Profits with Hard Money Loans

If you're a real estate investor, you'll know that you often need speedy, dependable capital to fund your property investments. A lack of capital affects the number of deals you can make and the profits you can expect to accumulate, but there is a solution way to avoid this frustration — private and hard money loans. Below, we outline ways that private money loans can help you secure more deals and reap higher profits from your property investments.

1. Hard Money Loans Are Easy to Apply for

Approval turnaround times for hard money loans can be as little as one...

Use Real Estate Market Tools to Get Ahead

Flipping a property is an exciting prospect whether it’s your first or your fiftieth. But, some of that excitement blends in with the nervous anticipation associated with not knowing whether you’ve picked the right location.

Before you plow ahead and invest in a property that could sit on the market for months, it’s worth doing your research. If time is of the essence, there are some tools you can use to spot those locales where prospective homeowners want to buy. Even better still, some will send alerts to you ahead of time, allowing you to jump in on opportunities before...

4 Reasons Why You Can’t Get a Hard Money Loan

Hard money provides a means of borrowing from someone other than a traditional mortgage lender. It can be a good option when you need a loan fast, but not everyone can get a hard money loan.

Where Does The Money Come From?

Hard money and private money loans are typically backed by investors or individuals who lend money based on using the property as collateral. Depending on your financial situation, a private money loan may be your best or only option for purchasing an investment property.

Hard money loans are relatively easy to acquire, especially in terms of approval time....

West Coast Fix & Flip: The Best Up and Coming Cities for Investors

If you’re a fix and flip real estate investor, you know your profit hinges on finding the right deal, financing, and contractor. You’ll need to decide what repairs need to be made, value the property, oversee the repairs, then maintain it until it is sold. So where do you begin?

The key to a successful fix and flip investment is finding the right location where you will be able to sell quickly and make a profit. Some of the hottest, up and coming areas for doing just that can be found on the west coast.

Los Angeles: Orange County, Highland...

How to Save Money During Fix & Flip Remodeling

Money doesn’t grow on trees, and as a fix and flip real estate investor, you know that better than anyone.

Every square inch of your fix-and-flip remodel will eat into your profits—from the foundation to the paint on the walls. You’ll, of course, pay more for high-end materials but depending on the feel and flow of the home, high-end materials might be just what you need to turn the house into a dream home for prospective buyers.

But how do you accomplish a high-end look when you’re trying to maximize profit? Even more importantly, how do you save money no...

Hard Money and Private Money Luxury Home Loans

Although there was once a time when hard money loans were associated with the lower end of the housing market, today that is changing. In a bid to seize on impressive Returns on Investment (ROIs) of luxury properties, an increasing number of luxury property developers are choosing private money loans.

If you’re looking into alternative means of finance, you may opt for a hard money luxury home loan for a variety of reasons. Whether you’re attracted to the rapid turnaround times or your credit score is letting you down, there are plenty of reasons to wander down the private...

Hard Money and Private Money Second and Third Mortgages

When it comes to second mortgages, you probably fall into one of two camps. The first sees refinancing their homes as a terrifying financial prospect. The second sees a unique opportunity, which presents plenty of benefits in the right circumstances.

Second, or even third, mortgages will work to your advantage in certain situations. Like all forms of credit, you're probably going to need a decent credit score to get your hands on one. However, if yours is less than perfect but you still want to maximize the credit you can obtain against your property's value, hard money and private...

Hard Money and Private Money Owner-Occupied Loans

At one stage or another, there will come a point in your life where you need to access cash quickly. As the name suggests, an owner-occupied loan is a loan which you will take out and secure against the property you live in. While some people use these loans for meeting personal expenses, others will use them to fund investment projects. Such projects usually take place in the real estate industry. If you’re trying to secure a private money owner-occupied loan, you may find that doing so with a view to expanding your current property portfolio works to your...

The Real Story Behind Fix & Flip TV Shows

We all know how entertaining it is when the complex details of the property market are summarized in a half hour TV show. Whether you're hooked on Property Brothers, Love It or List It, or Fixer Upper, reality TV shows make renovations and property flipping seem easy. While real estate investors can definitely learn a thing or two from these shows, there are lots of things going on behind the scenes that are completely left out and just as important. Let's take a look at what you can and can't learn from reality TV so you can set realistic expectations...

Real Estate Investing: Going from Part-Time to Pro

Investing in real estate can be a financially rewarding experience. While it's possible to become a successful part-time real estate investor, it's true that the more time and energy you dedicate to something, the more likely you are to succeed. Property investment is no exception. Most new investors don't know how to make the leap from a part-time side job in real estate to investing full-time, but the good news is that it's possible as long as you're willing to put in the work.

Here's what you need to know about going from a part-time to a pro real estate...

How to Choose Trustworthy Contractors

One of the most important elements of flipping a house is the team you put together to work on it. An ideal team is made up of knowledgeable, trustworthy individuals that aren’t afraid to get their hands dirty. Your team is likely made up of a design guru, a plumber, an electrician, and a contractor—or five.

A contractor or contracting team is one of the most important additions to your team and its crucial that they’re trustworthy and accountable. If not, you could find that deadlines aren’t met and work is sloppy. But how do you know if a contractor...

Hard Money and Private Money Construction Completion Loans

In the construction industry, every project is time-sensitive and speed can make or break the success of the project. When you’re confident that your efforts will result in excellent profits, you don’t want to wait around for slow financing. Although traditional finance is available for construction completion loans, it isn’t always quick and easy to get an institutional loan. Even when you are eligible, you may find that the application to delivery time is too slow for your construction project. Another option is to choose a hard money or private money loan for your construction completion project.

What is a...

Do You Offer Hard Money Second Mortgages in California?

The most popular question I've received over the past two weeks has been, "Do you offer hard money second mortgages?"

The short answer is "Yes, no, maybe, maybe not."

In other words - it really depends on the property, use, protective equity, and much, much more.

For those not familiar with the hard money second mortgage market in California, it dried up in 2008 with the bursting of the first housing bubble. Many of the trust deed investors making second mortgages up to 70% combined Loan-To-Value (CLTV) against the inflated home values of the bubble years lost their entire principal when...

Four Scenarios When Private Money Loan Are the Right Choice

While traditional forms of financing are always an option, private money loans are becoming increasingly popular. Alongside their fast turnaround times, they're often more accessible to those with a less-than-ideal credit history.  Private money loans aren’t the right choice for every borrower, but if you find yourself in any one of these four scenarios private money loans may be worth exploring.

When your credit score is less than stellar

As one of the toughest financial obstacles you can overcome, real estate investment calls for excellent credit scores. From a bank's perspective, this makes perfect sense. They want to know that their...

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