Private lenders have been a huge pillar of support to many real estate investors since the housing crisis of 2008. The reckless real estate speculation was a key part of the economic crash that led to banks' loss of interest in real estate investment [...]
In a bid to diversify their portfolio, most hard money lenders whose primary focus is on business-purpose loans consider consumer bridge loans at some point. However, most still find it difficult to understand what qualifies as a bridge loan and apply consumer protection regulations. [...]
A buyer may occasionally request that a seller take back a promissory note ("Note Payable") on a real estate purchase. "Seller financing" or a "seller carry-back" refers to this strategy where the seller effectively acts as the lender. When negotiating a real estate transaction, [...]
As an individual looking to operate successfully in the private lending business in the state of California, it is crucial to be well informed about the necessary licenses required by the state before one can commence operation. The two primary licenses needed to commence [...]
Building your company as a private lender is a herculean task, one that can not be done just through one's client base. Therefore, it is very important to grow your professional network to build your lending portfolio. Furthermore, networking with like-minded individuals helps to [...]
Private lending is as old as religion, especially with shreds of evidence in the holy books. Even though the concept remains that there is a lender, a borrower, a loan amount known as the principal, and an interest to be repaid alongside the loan, [...]
The majority of private lending businesses are small in size, owned and managed by entrepreneurs. As a result, the industry has not effectively witnessed its fair share of consolidation in the past. Furthermore, there is an almost existential contradiction between financial prospects and self-employment. [...]
Putting in place a strong service agreement can help eliminate challenges encountered when servicing a loan. Brokers are beginning to broker loans to private investors and retain service rights to such loans, which provides a recurring source of revenue. Below are a few of [...]
The real estate sector in the United States has always proved to be a very lucrative investment for investors home and abroad. The high Return on Investment, stable profit and economy have been massive strengths for the real estate sector. Private lending is when [...]
There are several myths surrounding loan participation agreements. Unfortunately, this has created a mental siege and has prevented people from seeing lenders' bountiful benefits and risks. This article discusses below some of the loan participation myths and the truth about them. You can only [...]
