Current yield measures cash income as a fraction of price. Internal rate of return (IRR) measures the total growth rate of every dollar invested, accounting for the timing of each cash flow, reinvestment, and the return of principal. For private lenders evaluating a note [...]
Private lending metrics separate profitable portfolios from ones that bleed quietly. LTV, DSCR, yield, IRR, weighted average coupon, and delinquency tracking each answer a different question — and every serious lender needs all of them working together, not just the headline number their broker [...]
A servicing SOP (Standard Operating Procedure) is a written document that prescribes the exact steps, roles, decision points, and exceptions required to complete one recurring task in a loan servicing operation. For private lenders, SOPs are the mechanism that converts institutional knowledge into a [...]
Whether you manage private mortgage note compliance in-house or through an outsourced servicer depends on your portfolio size, internal capacity, and risk tolerance. Smaller portfolios can justify the control of in-house management, while growing lenders consistently find that outsourcing delivers stronger compliance outcomes at [...]
Private lenders working with mortgage brokers run into the same compliance questions: how does broker compensation work under RESPA Section 8, what does SAFE Act licensing require, who eats fraud loss, how long do records need to be kept, and what does the broker [...]
In private lending, enforcement begins long before default. It starts with the record. Learn how disciplined servicing documentation strengthens enforcement of business purpose loans.
