Open House Incidents

Open House Incidents

It was late on a Saturday afternoon. The day before, Susan, a real estate agent, had confirmed the Saturday afternoon open house for one of her clients. When Susan arrived, she let herself into the home, as instructed, and saw that the house was a little messy. Wanting to present the home in the best light to potential buyers, Susan washed the dishes in the sink, folded some laundry, and tidied up rooms. The time for the open house came, a few people arrived, and Susan showed them the property. About 45 minutes into the open house, another real estate agent...
Setting the Standard

Setting the Standard

A Brief Overview of the CFP Board’s New Code of Ethics and Standards of Conduct Effective October 1, 2019, CFP (Certified Financial Planner) Board’s new Code of Ethics and Standards of Conduct (“Code and Standards”) was issued. The Code and Standards sets forth the ethical standards for CFP professionals, and replaces CFP Board’s current Code of Ethics, Rules of Conduct, Financial Planning Practice Standards and Terminology. The enforcement date for the new Code and Standards is June 30, 2020. The new Code and Standards includes a range of important changes,...
Factors for Evaluating Whether a Loan is for a Business Purpose

Factors for Evaluating Whether a Loan is for a Business Purpose

Part 1 of 2 – Federal factors. Although lenders are perhaps more familiar with the regulations involved in making loans to consumers, it is important to keep in mind that different rules apply to business purpose loans secured by real property.  The first step in the analysis is, naturally, to determine whether the loan is a business purpose loan, or a consumer purpose loan. In Part 2, we will examine some of the state considerations.  Part 1 we focus on some of the federal considerations, starting with the Truth in Lending Act (TILA).  Along with its federal...
Keeping Things Interesting – How Federal Interest Rates Work

Keeping Things Interesting – How Federal Interest Rates Work

To anyone who has ever had a credit card, borrowed money or deposited money in a savings account, you know firsthand how interest rates impact the amount of money you have at any given time.  A somewhat complex system directs how interest rates are set at any point in time.  If you’re interested in how federal interest rates work, this information will help you. How Do Interest Rates Work? Interest rates can be thought of as essentially the price of borrowing money.  It is the amount charged by a lender for use of an asset, expressed as a percentage of the...
Hard Money Loan Requirements

Hard Money Loan Requirements

When it comes to securing a mortgage, there’s no one-size-fits-all solution. Conventional lenders, with their stringent rules and endless paperwork, may not be a viable option for everyone. In such situations, hard money loans emerge as a beacon of hope. Yet, a common misconception persists: “Can I get a hard money loan based solely on equity?” In reality, there’s more to the story. Let’s examine the truth about hard money loan requirements. Understanding the True Nature of Hard Money Loans A common misunderstanding is that equity...