FCTD Blog

Current updates on the real estate market, private money, hard money, and trust deed investing.

10 Problems in Cannabis Mortgage Financing

From 2016-2017, I received five calls a day from people looking for hard money loans on cannabis properties. I spoke to a variety of people and heard all kinds of financing scenarios. Most didn’t go anywhere, while others led to some excellent hard money loans still on the books with the lenders that funded them seven years later.

Picture of Ted Spradlin Ted Spradlin Apr 25, 2023 8:52:32 AM

Hard Money Loan to Stop Foreclosure on Your Primary Residence

If you’re facing foreclosure, you’re probably searching for ways to save your property from potential sale at auction. Logically, this makes complete sense since many people associate hard money loans with low or bad credit scores. However, as I’ll explain, using a hard money loan to stop foreclosure is not as easy as you’d think. I’ll detail what you need to know, what you’ll need to document, and what your options look like.

Picture of Ted Spradlin Ted Spradlin Feb 21, 2023 7:47:57 AM

Are Hard Money Loans Considered Cash?

Hard money loans are considered "cash" in instances where the property seller mandates the buyer pay with cash rather than with bank financing. You’ll see this in real estate listings where the property has an extensive amount of deferred maintenance, or when the property owner needs to sell fast to acquire another property or meet an immediate deadline.

Picture of Ted Spradlin Ted Spradlin Feb 20, 2023 11:28:58 AM

What are Hard Money Loan Requirements?

An average person — and even real estate agents or conventional mortgage lenders — may have some questions on how hard money loans work. Maybe you know that more equity in the property, in the 30-40% range, is required than with a typical loan. Hard money loans are generally considered asset-based, so lenders used to look at the protective equity position (the difference between the real estate value and the loan amount) to decide if it was a good loan. But that mentality has changed significantly, as hard money loan requirements have expanded to keep pace with the demands of an ever-evolving industry.

Picture of Ted Spradlin Ted Spradlin Feb 6, 2023 12:53:31 PM

5 Common Mistakes to Avoid with Hard Money Loans

Hard money loans are a popular option for borrowers to quickly fund real estate projects with minimal documentation. However, these loans come with specific risks and challenges. Borrowers need to know the most common mistakes when applying for and using these loans. In this blog post, we'll discuss the top five common mistakes to avoid with hard money loans.

Picture of Ted Spradlin Ted Spradlin Jan 19, 2023 2:12:37 PM

Who is a Good Fit for a Hard Money Loan?

If you’re like most people, you always buy or refinance with a traditional 30-year fixed rate mortgage. You've never considered using a hard money loan — and maybe aren't sure what it actually is. But, there is an entire group of people in the real estate profession who use these short-term private loans several times each year to buy, sell and renovate properties. This blog post will explain who these people are, and why they're a good fit for a hard money loan.

Picture of Ted Spradlin Ted Spradlin Jan 19, 2023 9:07:07 AM

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