Blog

Maintaining Personal Connections During Quarantine

A lot has been said about how technology separates people by creating artificial barriers to human interaction.

But in the current fight against COVID-19, technology is often the only tool people have to connect with others over the real distances imposed by the quarantine.

The Lost Art of Conversation

In business, especially in our business, complete and open communication is crucial to managing the funding process. From the borrower, to the broker, to the lender, each needs to clearly express the reality of the scenario.

The art of conversation, however, seems to be dissipating at an alarming rate.

The Amazing Anthony Predicts

Population growth, robust employment, relatively limited new supply of office space and healthy fundamentals combined with a 10-year record low average vacancy rate of 11.9% and high average lease rate of $25.73/SF all seems to indicate a good future ahead for the Phoenix Office Market.

The Advantage of Lower LTV Loans

One of the most overlooked ways to reduce the costs associated with private money loans is to voluntarily limit the amount of equity business owners borrow against their properties.

Because lower loan-to-value (LTV) loans present less of a risk to the lender, they will usually be more competitively priced.

Lending and the Civil Rights Movement

When lenders base their lending decisions on other factors, such as a borrower’s color, race, sex, or national origin, they are not only acting unethically, they are breaking the law.

Unfortunately, this has not always been the case.

The Importance of an Experienced Underwriter

The more experienced the Account Executives, Loan Originators or Mortgage Brokers, the more accurately they can match the borrower and collateral to the lender and loan program.

By the same token, the more experienced the Mortgage Underwriters the more ways they can find to get your loan approved.

Hard Money is Not As Hard As It Used to Be

Once upon a time, “hard money” or private capital lending evoked imagery of potentially unsavory lenders congregating in back alleys, making loans to borrowers that simply had to be paid back – or else!

Fortunately, times have changed and markets have become far more efficient, with private capital or “hard money” lending evolving into being simply another arrow in the capable commercial mortgage broker’s quiver of potentially suitable financing sources, each presenting their own pros and cons.

Hard Money Warning Signs

Hard money is an important part of the funding world, and often a key player in many business plans. However, some lenders are less than honest and try to scam unsuspecting borrowers.

Carefully review a loan agreement before signing. Dishonest lenders love to sneak little traps in the contract, so if you feel at all like you don’t fully understand it, have a real estate attorney review the documents with you.

Foreclosure And How To Avoid It

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Ask for reasonable loan amounts and then consistently set aside money to make your payments every month.

Hard Money Loans And Overall Business Strategies

This is a common plan for property rehabbers or flippers. Investors choose a property with high potential and are able to acquire quick funding through a hard money loan.

This strategy is for properties which are not intended for fast sale, such as rental or commercial properties.