You are who you recommend
Thursday, March 10
I think it's important to make a distinction between referrals and recommendations. Because if we recommend someone who doesn't deliver, it reflects poorly on us. It affects our credibility, and that's really important these days.So in the interest of reminding myself to be careful who I recom...
What part of "in arrears" did you not understand?
Monday, March 07
When you, as a real estate investor or rehabber, take out a construction or rehab loan, you are probably going to come across the phrase: Draws taken in arrears of construction.I think this needs some elaboration, because I think this is one of those phrases that says a lot in a few words. Borr...
Closing quickly on that great deal
Thursday, March 03
I have a favorite saying. Lack of proper planning on your part does not constitute an emergency on mine.At the same time, one of the reasons that real estate investors use hard money is speed. If you find a great deal - let's say it's bank owned - and the seller will give you a great price i...
Why can't an end buyer get a private mortgage?
Monday, February 28
It's the same old "unintended consequences" of legislation. Or was it unintended?In my lending business we lend to real estate investors who are buying properties for a business purpose only: They buy houses in serious disrepair - the ones the banks won't lend on for a home buyer - and fix them...
Which comes first, the deal or the funding?
Tuesday, February 22
I saw a post the other day from an investor who was told he had to get the contract (deal) before he could get funding. Another poster disagreed, and told him that wasn't true. In the interests of not hijacking the thread, I thought I would post some information that might be useful. It is...
Lending to real estate investors - last in a series
Monday, February 21
Part 7 in a series of 7 postsOk, we're getting down to the last three questions here. Should I form an entity to lend? It is not the same thing to lend as to borrow. Even though we can't lend to end homeowners, and lend to commercial entities only, we don't have to be a commercial entity to len...