FCTD Blog

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

What is Dutch Interest for a Hard Money Construction Loan?

Some private lenders use a method of interest accrual known as “Dutch interest” for a hard money construction loan which calculates payments based upon the entire loan amount rather than payments on partial advancements in a construction loan.

First Capital Trust Deeds works with a few hard money lenders in California, Oregon, Washington, and Florida that use Dutch interest. Most construction focused loans originated by FCTD, however, feature “New York interest”, where interest accrues on construction reimbursement advances rather than on the entire loan.

Picture of Ted Spradlin Ted Spradlin Jan 2, 2019 9:49:03 AM

Home Equity Lines of Credit vs. Second Mortgages

If you want to unlock the value from your home while you’re still living in it, there are two main options available to you. A home equity loan, commonly known as a second mortgage, allows you to extract value from your home as a lump sum payment, which is added to your primary mortgage debt. A home equity line of credit (HELOC) can be a useful alternative, with this option allowing you to draw money from your property as you need it rather than as a lump sum.

Picture of Ted Spradlin Ted Spradlin Dec 5, 2018 12:59:03 AM

Commercial Mortgage Loan Alternatives

When you’re on the brink of starting a new business and you want to own a property rather than rent, you may need to take out a commercial mortgage. Regardless of where you’re at in the application process, the chances are you’re feeling a sense of frustration. Commercial mortgages are notoriously difficult to get. They come with a higher degree of risk, which means banks ratchet up their minimal qualifying criteria.

Picture of Ted Spradlin Ted Spradlin Nov 28, 2018 12:39:09 AM

Grow Your Business With Bridge Loans

If you’re thinking about repositioning your debt or purchasing a new property to add to your portfolio, it’s important to consider all of your finance options. Bridge loans are a great choice for people who want to access capital quickly in order to expand or alter their property business. Bridge loans are a fast and efficient way to raise funds between a short-term cash requirement and long-term loan.

Picture of Ted Spradlin Ted Spradlin Nov 21, 2018 12:48:41 AM

Hard Money and Private Money Owner-Occupied Loans

At one stage or another, there will come a point in your life where you need to access cash quickly. As the name suggests, an owner-occupied loan is a loan which you will take out and secure against the property you live in. While some people use these loans for meeting personal expenses, others will use them to fund investment projects. Such projects usually take place in the real estate industry. If you’re trying to secure a private money owner-occupied loan, you may find that doing so with a view to expanding your current property portfolio works to your advantage.

Picture of Ted Spradlin Ted Spradlin Oct 10, 2018 3:36:51 AM

Hard Money and Private Money Construction Completion Loans

In the construction industry, every project is time-sensitive and speed can make or break the success of the project. When you’re confident that your efforts will result in excellent profits, you don’t want to wait around for slow financing. Although traditional finance is available for construction completion loans, it isn’t always quick and easy to get an institutional loan. Even when you are eligible, you may find that the application to delivery time is too slow for your construction project. Another option is to choose a hard money or private money loan for your construction completion project.

Picture of Ted Spradlin Ted Spradlin Sep 13, 2018 3:35:37 AM

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