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.
At the beginning of April 2020, nearly every country in the world is experiencing the impact of the spread of the COVID-19 virus, taking a human toll in lost lives and an economic toll as the global economy has essentially been shut down to slow the spread of the virus. As I wrote yesterday, the residential mortgage industry has changed significantly in the last thirty days. Hard money lending saw significant changes in March. But, hard money lending is not dead. In fact, loans are still funding. This post will let you know what it takes in obtaining a hard money loan during COVID-19.
We hope that you and your family have your health and safety during this unprecedented time of the COVID-19 pandemic. Please be safe.
A few times a month, we at First Capital Trust Deeds are asked by prospective borrowers, Realtors, and mortgage brokers what are the lowest interest rates for hard money bridge loans we can secure for financing for a customer.
