If you’re in the research phase of trust deed investing, you are probably looking online, talking to mortgage brokers and to friends who have experience funding private money loans. There is a lot of information available about the Note, Deed of Trust, and Security Instrument. However, there’s not much information about the real-life problems that arise with trust deed investments.
First Capital Trust Deeds is a California-based mortgage broker specializing in mortgages for real estate investors, including Private Money, NonQM, Conventional, and Bank Portfolio programs. FCTD holds broker and/or lender licenses in five states:
Like most of First Capital Trust Deed’s current trust deed investors, you have funded private money loans in the past and are familiar with how the process works. Maybe you’ve worked with other private money mortgage brokers over the years and working with FCTD is new for you.
Usually when a lender does a bridge loan, the borrower will improve the property and the advance rate will decrease, not increase. This blog post discusses the how trust deed investors need to beware of predevelopment margin erosion on the loans they fund.
At First Capital Trust Deeds, we run background checks to underwrite private money and hard money loans, especially when working with a new borrower for the first time. Background checks have helped us discover some red flags or helped fill in the information gaps when something in the conversation with a potential borrower didn’t seem right and we couldn’t figure it out but knew something was off.
Are you a real estate investor or house flipper looking for better hard money fix and flip financing pricing on your next acquisition? Or, are you new to flipping houses and want to know what it costs for hard money fix and flip financing for your first project?
Everyone we talk to at FCTD has an opinion about the COVID-19 pandemic, from borrowers, Realtors, mortgage brokers, lenders, escrow officers, and everyone else we talk to during the day. Listening to people is fascinating because it shows where people get their information from. Sources of information are far ranging, from scientists, doctors, friends on the front lines or in the medical field, financial analysts or journalists, right-wing and left-wing media, along with YouTube conspiracies that go viral on social media. Everyone has facts, alternate facts, opinions, and fears that come out in conversation.
Hard money constructions loans during COVID-19 are evolving with each passing week as construction lenders are shifting on the fly into a more cautious mode. This blog post will give a quick run down of what First Capital Trust Deeds is seeing the hard money construction loan market in the middle of April 2020, one month into the forced shutdown of the economy.
Despite interest rates dropping across the board from Treasuries to 30-year mortgage rates, hard money interest rates have been rising during the first forty-five days of the COVID-19 pandemic.
One of the most common questions we receive are, “What are the closing costs of a hard money loan?” Everyone wants to know about costs on a loan and FCTD makes sure to discuss closing costs with borrowers.
