7 Reasons You May Need a Private Money Loan This Year
Tuesday, September 01
A private money loan is any loan that comes from a non-bank source of financing and includes hard money loans, payday loans, crowd funding, peer-to-peer loans, and bridge loans. Although banks are known for competing amongst themselves to offer the lowest possible interest rate, private money loa...
Beware of Insurance Scams from Private Money Lenders
Monday, August 31
There’s a fairly new scam in private money loans that is being pushed by fake private money lenders. Any non-bank loan from a private money source is considered a private money loan, including bridge loans, hard money loans, and all types of alternative financing. If anyone offers you a loan, but...
Trader Finally Convicted in Manipulation of LIBOR
Thursday, August 13
Found guilty in conspiring with 20 other traders and brokers to rig LIBOR to benefit his own trading positions, Tom Hayes was finally convicted and sentenced to 14 years in prison by a U.K. judge. This is the longest prison term for a banker or trader in the U.K. since the outset of the financial...
Never Fund a Loan on Real Estate Without a Trust Deed
Wednesday, July 29
Real estate investors have long used private money lenders to finance their real estate investments. A real estate investor, who we funded loans for in the past, confided in me that he was preparing to do a new property acquisition using a friend’s private funds. I asked how the lender planned t...
Private Money Lenders Poised to Fund SBA Loans in Limbo
Tuesday, July 28
Should Congress fail to raise the lending limit on the SBA’s 7(a) loans, the program will be out of money in August. Since no more loans could be backed by the program again until October 1st when the new fiscal year starts, this represents an opportunity for private money, non-bank lenders to fu...
R.E. Investor Hesitates to Back Out of Deal to Save Sunk Costs
Tuesday, July 21
There’s a term in business and investing known as a, “sunk cost.” When entering into a real estate acquisition, an example of a sunk cost could be money spent on inspections or on other due diligence, time spent in analyzing the property, etc. These are all examples of sunk costs. The rule with s...