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“Where banks say no, we say yes, then close quickly.” – Corey Kohnke
First Capital Trust Deeds was featured in the 2019 Real Estate & Home Design issue of LA Dreams, a luxury lifestyle magazine. Brett Everett and Corey Kohnke are quoted in the article, and talk about how the find the right capital partner.
Buying a luxury home is quite unlike purchasing a conventional property. From the location to square footage, you’re paying for a premium, high-end asset. However, just because you’re purchasing a luxury property doesn’t mean you want to offer a large down payment—or perhaps you don’t have the free capital to do so.
Hard money provides a means of borrowing from someone other than a traditional mortgage lender. It can be a good option when you need a loan fast, but not everyone can get a hard money loan.
Although there was once a time when hard money loans were associated with the lower end of the housing market, today that is changing. In a bid to seize on impressive Returns on Investment (ROIs) of luxury properties, an increasing number of luxury property developers are choosing private money loans.
A hard money construction completion loan seems pretty easy and straightforward at 65-75% of as-is value of a partially finished home. And typically they are easy to get approved when it comes to the lender’s underwriting. Builders and house flippers, along with hard money lenders, often run into challenges from the title company’s issuance of a 2006 Alta Extended Lender’s Policy with 125% coverage.
The short answer is: “Yes.” Over the past year, we at First Capital Trust Deeds have been originating more and more owner occupied hard money second mortgages all throughout California.
First Capital Trust Deeds frequently works with California real estate investors who own high-end rental properties in the $1,000,000 to $10,000,000 range. For a variety of reasons, our clients cannot obtain jumbo bank financing on their rental property (or properties) and they turn to us for help finding the best private money financing for luxury rental properties that suits their situation.
Zillow published the findings from its 2015 Q2 Zillow Home Price Expectations Survey two weeks ago and the results were not much of a surprise to those who have followed the housing market over the past decade or so. The experts in the Zillow Survey believed that home values will increase over the next year and will continue to increase through 2019.
Noah Smith is a brilliant and thoughtful writer that I’ve had the pleasure of reading over the years on his blog Noahpinion and his writing on Bloomberg. He recently wrote an interesting economic column in Bloomberg View about one of the criticisms of Thomas Piketty’s work on the growing income and wealth inequality that has become ever more noticeable in society, using San Francisco as a primary example of one of the criticism’s of Piketty’s research and book.
