Cross-Defaults and Cross Collateralization are two concepts that are often misused and interchanged by lenders, and in some cases, they are used to describe something different completely. A cross-default provision transforms a lender's or its affiliate's default on one loan to a borrower, guarantor, [...]
Lenders should be aware that when it comes to real estate transactions involving a portfolio of properties, particular title insurance difficulties may develop that are unique to such transactions. As a result, lenders should ask for certain types of coverage and keep in mind [...]
Networking is crucial as you can't tell what opportunities it might bring to your doorstep. Networking and personal relationships are vital ingredients for success in the private lending industry. In establishing liquid logic as a clear market leader in the industry, networking and personal [...]
Guarantees can help a private lender reduce the risk of taking on debt by providing an extra layer of protection if a borrower fails or the value of the collateral drops. Full-recourse guarantees that lenders will be paid in full are the most popular [...]
Cross-collateral loans are useful lending techniques that can benefit a lender. Cross collateralization is a form of lending technique in which the collateral from one loan is used to secure a loan from the same lender. For example, consider the borrower's situation with a [...]
For many private lenders, raising capital is a never-ending task. The most difficult component of the process, whether they target mortgage investors for individual trust deeds or a mortgage fund, is generating investor leads. Unfortunately, most lenders do a terrible job of communicating their [...]
Although there are few defined standards in the private lending market, capital development and strategies have generally been consistent. The three major capital strategies include Balance sheet capital, credit facilities, and loan sale and correspondence. Private lenders required their captive fund sources. Many private [...]
Gap closings have been a significant aspect of commercial real estate transactions and loans. As a lender lending a large sum to a borrower to purchase a property, you need to be well informed on how to use gap closings to enable the remote [...]
Making a real-estate-secured loan is a high-risk endeavor. That is why lenders want to put every possible measure in place to reduce the risk of any unforeseen legal concerns that could affect their ownership rights if they have to take possession of the property. [...]
Over the last several years, we've witnessed an increased demand for smart home technologies as customers continue to embrace a digital lifestyle. Smart home technology, whether it be keyless entry locks, smart thermostats, or leak sensors, these are all things that, five or six [...]
