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

The Different Types of Hard Money Loans

If you’re new to hard money lending, you’re probably not aware of the many different types of hard money loans real estate investors regularly use to finance new acquisitions and renovate existing properties. This growing segment of the mortgage market continues to provide capital for properties that aren't bank-financeable due to their condition or high vacancy rates. Though hard money loans are used all the time, outside the real estate industry they're not widely known or understood.

Picture of Ted Spradlin Ted Spradlin Oct 1, 2022 5:03:47 PM

The Different Types of Hard Money Lenders

Many people, including real estate agents, conventional mortgage brokers, and escrow and title officers think of a hard money lender as someone who funds a few local loans per year, or a local lending company that funds fix and flip transactions. The reality is, the industry has expanded significantly beyond these local lenders. Nationwide, hard money lenders originate loans and sell to pension funds and Wall Street investors, leading to greater product offerings for the end user, the real estate investor.

Picture of Ted Spradlin Ted Spradlin Sep 30, 2022 8:45:34 AM

What is a Hard Money Loan?

A hard money loan is a short-term asset-based, or equity-based, loan secured by real estate and funded by one or multiple private investors, rather than conventional lenders such as banks or credit unions. Hard money loans are generally used by real estate investors as a short-term bridge loan with a duration of three months to three years, after which the investor will either sell or refinance the property.

Picture of Ted Spradlin Ted Spradlin Sep 29, 2022 6:00:29 AM

Guide to Trust Deed Investing

If you are a seasoned investor, you have probably heard about hard money loans and trust deed investing. Maybe you have friends who have diversified their investment portfolio by loaning money out to real estate investors on a project. Or, maybe you personally have borrowed from a hard money lender on one of your real estate projects and “being the bank” caught your attention, so here you are wanting to learn more about how you can do the same thing with your capital.

Picture of Ted Spradlin Ted Spradlin Sep 27, 2022 11:04:09 AM

Why Do People Use Hard Money Loans? 20 Examples

A little while back, I had a conversation with a friend rolling $250,000 from their 401K into an IRA after leaving the company they’d worked at for eleven years. The friend was asking me about setting up a Self-Directed IRA for trust deed investing, lending the money out at 9.00-10.00% compared to simply rolling their retirement money into a Roth IRA with Vanguard.

Picture of Ted Spradlin Ted Spradlin Sep 18, 2022 12:42:28 PM

Do You Offer a Hard Money Second Mortgage to Cover Down Payment and Closing Costs?

This question has come in through the website dozens of the times over the years from prospective house flippers who are short on funds to close their transaction. What they’re asking for is something called “Gap Funding,” which is a hard money second mortgage that “fills the gap” when not having funds for down payment and closing costs.

Picture of Ted Spradlin Ted Spradlin Aug 22, 2022 9:44:50 AM

Best Of Trust Deed Investments

If you’re an investor and want to get a good idea of the types of loans that FCTD originates with private beneficiaries like yourself, this Best of Trust Deed Investments blog will give you a good idea of our terms so you can see if we'd be a good fit or not be a good fit for you. 

Picture of Ted Spradlin Ted Spradlin Aug 20, 2022 6:56:54 PM

Pros & Cons of Trust Deed Investing

There are many pros and cons of trust deed investing. It could be the right move for you, especially if you want to seek out alternative investment opportunities in addition to stocks, bonds, and real estate. It could also be the wrong investment for you if the disadvantages outweigh the advantages for you and your investment goals.

Picture of Ted Spradlin Ted Spradlin Aug 19, 2022 11:31:34 AM

Trust Deed Investment - Multi-Lender Loans

First Capital Trust Deeds originates loans with trust deed investors a few different ways. Most private money loans are funded by a single trust deed investor for entire loan amount. However, another way to fund trust deed investments is with multi-lender loans, or fractional loans, where two or more investors, or private beneficiaries, fund the loan.

Picture of Ted Spradlin Ted Spradlin Aug 18, 2022 1:58:33 PM

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