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...Read More
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...Read More
Cannabis Lending: Marijuana Loans for the Hard Money Broker
Do you remember when your parents said your love of marijuana would get you a first-class ticket on the road to nowhere? It turns out they were wrong. These days, that skunky pot odor translates into the sweet smell of success thanks to the booming cannabis industry. You just need to get a marijuana loan to open a business, then you can start raking in the profits. Considering that marijuana is a $2.75 billion industry in California, those profits can be huge. There is one problem though, and it could cause your entire plan to go up in smoke. You don’t have the...Read More
Questions To Ask Your Lender
There are many factors that come into play when shopping for a mortgage. For some, their interest lies in the size of their monthly payments, however, from my experience I find that the majority look for the lowest interest rate. Now, for someone venturing through this process, there are several common questions that come to mind that you should discuss with your lender. Let’s take a moment and address them one-by-one before you consider signing on the dotted line. What kind of interest rate can I get? Of course this is one of the most common questions one would...Read More
Putting The Home Loan Pieces Together
There aren’t too many endeavors in life where totally opposite strategies can be equally as sound. But consider these two approaches to real estate investing: – You can buy your home, live in it for decades, raise your family, and end up with a piece of real estate that has greatly appreciated in value over the years. And during those years when its value is increasing, you’re busy enjoying your life. When the time is right, if you want, you can cash in on that value. – In the second approach, you purchase a property that needs a little work. You...Read More
