INVESTMENT PARAMETERS WHEN MAKING A PRIVATE MORTGAGE LOAN - PART 2
Wednesday, August 11
Cash Flow of PropertyThe third investment parameter we’re concerned with is the cash flow or income potential of the property being put up as security for the note. Although many private mortgage lenders are liberal in this area, the monthly interest payments to keep the note current must come fr...
INVESTMENT PARAMETERS WHEN MAKING A PRIVATE MORTGAGE LOAN - PART 1
Wednesday, August 11
The investment parameters for private mortgage loans differ considerably from those of institutional mortgage loans, as we partially discussed in the previous section. The most important parameter to be considered when evaluating a private mortgage loan request is the loan to value. This is the ...
WHY REAL ESTATE INVESTORS ARE WILLING TO PAY HARD MONEY RATES - PART 3
Wednesday, August 11
The Borrower and/or the Property Does Not Qualify for a Conventional MortgageLoan.This can be anything from low borrower credit scores or too much borrower debt, to the borrower’s properties not producing a sufficient enough income. Further, the property itself may not support the type of loan th...
WHY REAL ESTATE INVESTORS ARE WILLING TO PAY HARD MONEY RATES - PART 2
Wednesday, August 11
Borrowers May Not Want or be Able to Provide Personal Financial InformationThe borrower may not have all financial information on all his real properties and businesses up to date or complete; he may have filed for an extension on his latest tax return; his accountant may be behind in preparing h...
WHY REAL ESTATE INVESTORS ARE WILLING TO PAY HARD MONEY RATES - PART 1
Wednesday, August 11
When interest rates of 14 to 18% are added to 4 to 8 points, the real estate investor/borrower is paying 20% plus annually for the money borrowed. It’s obvious why this is a great deal for the private mortgage investor/lender and the broker, but why should real estate investors be willing to pay...
CREATE THE NOTE YOURSELF OR PURCHASE THROUGH A MORTGAGE
Wednesday, August 11
If you wish to begin investing in private mortgages, you have two choices, either create the lending opportunity yourself or go through a hard money mortgage broker who specializes in private mortgage loans. Each approach has advantages and disadvantages, however, due diligence is required for s...