All Forum Posts by: Corey Dutton

For real estate investors who don’t claim salaried income, the disappearance of stated income loans has created a huge demand in the market. Since stated income loans have disappeared, investment real estate loans serve as an alternative for those stated income borrowers who don’t have consistent income. And these investment real estate loans are used by real estate investors to accomplish a variety of real estate goals.

Most real estate loans now come from hard money lenders or bridge lenders. Because banks won’t fund as quickly as a bridge loan lender, investment real estate loans have become the top choice among real estate investors in recent years. But are these loans really replacing stated income loans? Read more here: [url]http://privatemoneyutah.com/investment-real-estate-loans-replace-stated-income-loans/

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Thanks Amir Levi, well said. I completely agree. The hard money industry has a tough image to overcome. This is why I believe it's one deal and one borrower at a time. That's how we make a difference and consider ourselves successful, to help real estate investors accomplish their goals. It's a good feeling when it all comes together but geez is it tough when it doesn't and something like this happens....

Real estate loans for bad credit are in high demand by real estate investors. And real estate investors who have experienced bankruptcy or foreclosure in recent years are still able to get real estate loans for bad credit. But who is doing these types of loans? Hard money lenders are making the majority of real estate loans to investors. Interest rates charged by private money lenders are higher than bank rates. But real estate investors don’t mind paying.

But why? A real estate investor makes offers on several investment properties. The investor gets several accepted offers at the same time. So what does the real estate investor do? See the article here: [url]http://privatemoneyutah.com/real-estate-loans-for-investors-not-based-on-credit/

To learn more about our real estate loans, click here: http://privatemoneyutah.com/loans-for-investment-purchases-and-refinances/

We were approached to do a loan on a property for a man whose sister is suing him over a property that they both own jointly. The man’s sister felt she wasn’t getting her fair share. So the man sought to obtain a loan against the real estate in order to buy his sister out of the property altogether.

If you are unable to negotiate a buyout with a family member, then the alternative is to sell the property. “Your most expensive money is your own money, and your second most expensive money is your family’s money.” This comes from a real estate investor that I know. For those of you who have been in real estate investments with family members, you can likely identify well with that quote.

Because there are so many unforeseen costs involved with investing in real estate with family members and friends, people come to us for private money loans against properties to buy out family members. Think of all of the costs involved before investing with a family member or friend.

To learn more, please visit http://www.privatemoneyutah.com

The SAFE act is interpreted on the State level. Doesn't really matter what you think or believe about the law, the law is the law. If you get caught lending money on residential property in a State that requires licensing to do so, you will get into trouble. Regardless of whether you say you are only making commercial loans to real estate investors, if your State requires you to be licensed to make loans on residential property (regardless of use of funds) you could get into trouble.

Hans Restuccia we go up to 90% on rehabs if the ARV is right. Mostly 75-85% on all others. I'm sure you're more conservative because of the backlog of inventory in FL?

Hans Restuccia, just curious, why such a low LTV?

We are busy raising another bucket of capital to lend out between 9-11% interest only with 3 points for a 9-12 month term. We have plenty of investors ready and willing to put their money on the street in the form of trust deeds at 12%. But we are finding with certain risk weighted factors, many investors who are currently earning 1.5% on their CDs would love to earn between 9-11% per year.

We should have this bucket of capital lined up for the summertime and I'm certain we'll have a waiting list. In the Western States, the only other hard money lender I know who offers the 9% rate is Bruce Norris, but he only lends in California. That's a great program and soon we'll have a similar program available in the West, so stay tuned.....

Thanks Marco Santarelli - Glad I'm not crazy for thinking this way....

Warren Buffet really opened up a can of worms when he made the statement in the Spring of 2012 that he would buy "a couple hundred thousand" single family homes and hold them for a long time, at low mortgage rates. The moment that statement left his lips, every hedge fund in the Country decided they were going to get into the business of single family homes, and they certainly have!

Blackstone, the largest real estate hedge fund in the U.S., was the biggest to follow Buffet’s “advice.” This hedge fund has since invested over $3 B into the purchase of single family homes for use as rental propertie and recently completed a $2.1 B loan via Deutsche Bank. This new loan will allow the group to take down another $2 B of inventory over the next 2 years.

Particularly in the Southern California, Las Vegas, and Phoenix markets, hedge funds like Blackstone have created what many are calling an “artificial mini-bubble.”

If Wall Street investors fail to see their expected returns from their mass purchases of single family homes, will they rush out of the market and cause prices to take a nose dive? I would love to hear what you have to say on this topic. Please share your comments below.