| As
potential borrowers
inquire about hard
money loans against
their property, we
contact investors in
certain areas and present
the details of the
loan transaction for
their immediate consideration.
We do not guarantee
a minimum of trust
deed investment opportunities
to you, nor do we guarantee
the performance of
any borrower in meeting
his or her obligations
under your Note and
Deed of Trust.
You
may have to file the
legal paperwork and
foreclose on a property
in order to recover
your investment in
the event of a borrower's
default on your loan.
In the event that you
select a 2nd or 3rd
Trust Deed position,
you may have to "cure" the
notes in front of yours
if the borrower defaults
on superior liens in
order to protect your
investment. A fundamental
understanding of "debt
service" is important
if you make subordinate
loans in 2nd or 3rd
position.
As
a hard money broker, we provide
you with the borrower's current
1003 loan application, current
credit report (if required),
and preliminary title report
if using our preferred title
company, as well as all relevant
details of the transaction
to you for your consideration.
If you require an appraisal,
we can also arrange
for this service at
the borrower's expense.
Our
long-standing private real
estate investors usually
perform their own due
diligence and consideration,
draw their own loan docs, and
service their own loans. If
you are a new investor, we request
that we service your loan for
a low monthly fee, draw loan
documents (at the borrower's
expense), and process your transaction
through our preferred escrow
and title vendor, FCI. In
the event that foreclosure
is required, we will handle
assignment of a reconveyance
firm to handle all necessary
services in that regard at
the borrower's expense. |
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The
investors we primarily use to
fund our loans are typically
high net-worth individuals with
broad experience in real estate
lending and investment, and are
capable of making a commitment
to lend (or not) within a matter
of hours or a day or two. We
will, in some cases, use newer
or first-time investors with
smaller amounts to invest, but
we are highly reluctant to use
investors who need many days
or weeks to scrutinize a potential
investment before making a decision
to lend, as our borrowers are
usually in need of immediate
funds and will go elsewhere if
there are long delays in pre-approving
a hard money loan application.
The exception to this is when
an appraised value is questionable
and/or a more thorough review
of the property is warranted,
as is the case with some rural,
unique, very expensive, or mixed-use
real estate.
Our
general minimum brokered hard
money loan for "owner-occupied" residential
property is $100,000, though
loan amounts less than $100,000
for owner-occupied property will
be considered on a case-by-case
basis, with an appropriate and
lawful commission fee paid to
us. The exception to this minimum
investment standard is for investment
property, commercial, and land
transactions, which allow for
substantially higher points and
interest. Our minimum brokered
loan for these property types
is $25,000.
You
may submit your criteria for
your preferred investments at
our Investor
Registry. Any additional
interest in specific investment
and/or property types, LTV/CLTVs,
demographic areas of interest,
etc, may be made in the "Comments" section. |
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