All Forum Posts by: Corey Dutton

Prime area with low to NO inventory. Local developer with over 30 years developing lots and building beautiful homes in Marin County. All 6 lots are fully entitled.

Seeking pre-construction bridge loan, OR alternatively, a spec construction loan for 1 spec home in Marin County. Property is located in San Rafael, California. Six lots, all fully entitled and ready to go. Developer wants to build one home at a time, and seeks either a pre-construction bridge loan for road infrastructure, or a combo loan for road and cost of construction of new spec home. Prime location and experienced developer with seriously impressive track record.

If interested, we will send executive summary and all supporting documentation. Please email if interested or call. Email: info ‘at’ privatemoneyutah.com and use subject line: Marin County Loan. Or call,

Phone: 435-565-1768.

This is a tough market to be in I imagine and I feel for you. With the largest bulk REO purchase ever this year in ATL by Blackstone, this is a tough walk to tread for any investor in SFRs in ATL. Good luck....

@Jason Merchey it depends on where the property is located. In some states, if you are originating a loan on a residential property, it doesn't matter if it's your own money, you still have to be licensed under the SAFE Act. Each State has it's own interpretation. The wisest thing to do is to call the Division of real estate at your State level and/or the Division of Mortgage lending. Pose the question to them, tell them it's non-owner occupied, residential property for rental or resale. Ask them if you need a mortgage license to originate residential mortgage loans on this type of property. They will give you the answer or direct you to someone at the State level that can. If you're lending your money through a "company" in that State, they should be a "broker" or should be licensed if your State deems it to be so.

This is my 2 cents!

Thanks Ann.

Yes you are correct Joe. But I think for investors getting hard money loans, it's important to compare apples with apples. If another lender's "points" or loan fees seem higher than another lender's points, make sure one of them doesn't have a bunch of junk fees charged on the final settlement statement. These fees can add up, and in this example, can equate to over 1.5% of a $150,000 loan amount. Just something to be aware of. And you're right. Investors are getting taken advantage of every day because they don't haven another option for a loan....

Don’t you hate it when a lender gives you or your client loan terms for a loan and they look so great. And then, you see all of the “junk” fees. A junk fee is a term used in the lending industry to describe a loan fee that is not an origination fee or broker fee but is a fee that pads a lender’s pocket. A good example, I won’t use names here, is a lender that offers a popular private money loan at 7.75%. The rate sounds great ,but what they don’t tell you is you’ve got to bring in 60% down to get the rate!! What they also don’t tell you about is the junk fees they charge you at the end of the road. These include the following:

-$1,495 Underwriting fee (on some loans this can be equivalent to 1% of the loan amount or more!!!)

-$450 internal review fee

-$250 review fee (wait isn’t that the same as “internal” review fee?)

-$150 tax service fee

-$100 background fee

The grand total for junk fees in this example is: $2,445 !!!! And then you’ve got to pay the loan fees or points on top of that!

Always read the fine print when a lender offers you loan terms. Most of the time, if the terms seem good, the reason is because the junk fees really add up. In this example, if this were a $150,000 loan amount this would be an additional 1.5%+ in junk fees. In this case, the lender is paying for his overhead with the junk fees you paid on the loan. Tired of paying junk fees? We don’t charge them and we think they’re annoying to boot !!

This is good news for us private money lenders, particularly on the FHA multifamily front. All of the delays on FHA fundings for apartment complexes is pushing many of them to seek out financing alternatives.

A list was compiled recently by Jones Lang LaSalle of the 10 most expensivestreets in the U.S. to rent office space. I decided to highlight the top 5 on the list. Before you look at the list below, close your eyes and think of the top 5 in your own mind. Then open your eyes and see if you’re right:

1.

Menlo Park, California: The highly coveted street, ‘Sand Hill Road,’ has a 1 mile stretch with over 20 VC firms. The average rental price per square foot is $110.76.

New York, New York: Fifth Avenue in New York fetches an average rental price of $102.02 per square foot.

Palo Alto, California: The infamous ‘University Avenue’ in Palo Alto was where Google started out. This street fetches $94.92 as an average price per square foot for office rent.

Greenwich, Connecticut: Home to high end shopping and restaurants, Greenwich Avenue in Connecticut gets an average of $92.96 per square foot in office rent.

Washington, D.C.: If you want to claim the same street address as the President, the famous Pennsylvania Avenue, home to the White House and the U.S. Capitol, gets an average of $75.83 per square foot.

But what about the rest of the Cities on the list of Top 10? California Street in San Francisco made the list, along with Boylston Street in Boston. To see the entire list, check out the cool infographic at this link: http://www.prnewswire.com/news-releases/bicoastal-cities-top-list-of-most-expensive-streets-for-office-rents-225790131.html

Hi @Mike Gallagher , we are very active in Northern Utah. We assist an investor there to do 1 flip a month. Let me know if I can be of any assistance. All the best!

I think in some people's cases, just getting a loan is what matters. For those who have refinances with loans coming due, or for those who have stellar acquisition opportunities, waiting for an FHA approval could mean losing a property.