Often securing financing for your clients for business purposes or on an investment property is a challenge in the best-case scenario and nearly impossible with lots of pain points only to get a denial in with worst cases.  Nothing is more frustrating for borrowers and brokers than getting turned down by a bank! A private mortgage also known as hard money loans may be the best option (especially for business purpose loans.)

The Process Of Getting A Mortgage

Usually the process goes something like this over three months trying to get your client a mortgage:

• Gathering all the personal, business and real estate financial information, for not only the property you’re trying to finance but for all his business and property interests.
• Creating projections, forecasts and read through mountains of paperwork.
• Putting together a loan package, sent it to numerous commercial mortgage lenders, only to find out each one needed the same information on their forms.
• Spending countless hours transferring information to each application.
• Chasing all the “additional information” requests from each potential interested lender and submit them for review.

The Result: You exhaust all possible institutional mortgage sources and still no loan.

Sound familiar? Perhaps you’re new to the commercial mortgage field and are not aware of other sources for private mortgages. Or, you are successful originating residential loans and decided to expand your practice to include commercial and investment property mortgages. Or maybe you already originate commercial mortgages and are successful in obtaining financing for some clients, but feel you just spin your wheels trying to obtain financing for others.

Basics Of Private Mortgages & Hard Money Lending

Key to maximizing success (and commissions) is spending your time productively and understanding when institutional commercial mortgage money is NOT available for your client; there are other financing options available for this same client.

Business purpose loans & private mortgage loans are secured by real estate made by a private lender instead of a bank. Mortgage loans are short-term (ranging from 12 months to three years) asset-based loans for the purchase, rehabilitation or equity cash out of real estate. Often these are referred to as “hard money loans”. This means that the decision to lend is based on the equity and value of the property being put up as collateral, not on the borrower’s credit. The security for the loan is enhanced because the loan represents a maximum of 65% of the appraised value of the property. Borrowers can expect to pay interest rates of 9% to 12% in today’s interest rate environment.

Why Do Borrowers Choose Hard Money Loans?

Private Mortgage Loans offers unique advantages for borrowers:

• Speed of Closing the Transactions
• Borrowers are Unable to Provide Detailed Personal Financial Information
• Borrowers Do Not Qualify for a Conventional Mortgage Loan
• Property Does Not Qualify for a Conventional Mortgage Loan

Coastal Capital continues to build its stellar reputation since 2007 with both borrowers and brokers by following through and closing transactions in both good times and bad times.  You can count on us to put a smile on your borrower’s face and make sure you get paid! To learn about how we support brokers please visit https://www.coastalcapital.com/broker/ Don’t forget to check out all our great reviews https://bit.ly/3i7W2Ch.

#privatemortgage #privatelender #directlender #hardmoneyloan #hardmoneyloans #californiamortgage #badcreditmortgage #badcreditloans #californialoan #californiabadcreditloan #californiabadcreditmortgage #hardmoneyloancalifornia #californiahardmoneyloan #hardmoneyloanscalifornia #californiahardmoneyloans

Get a loan to flip a house, with the right lender.

Want top dollar when selling mortgage notes?
Increase the value with payment histories!

Owner Financing doesn’t have to mean waiting years or decades to receive money.
Sellers have the choice to sell all or just part of their future payments for cash today.

It’s a tough time to sell a house.
Hoping to stand out from the crowd, sellers are advertising “Owner Will Finance!”
Accepting payments over time provides buyers an alternative to bank financing. Of course sellers don’t want to trade a house that won’t sell for a buyer that won’t pay.

When an investor has performed their research and is ready to purchase a private mortgage note they will ask the seller to deliver original documents (note, recorded mortgage, etc.) and sign the transfer package.

The interest rate a seller agrees to accept when providing owner financing to the buyer has a large impact on the note’s value. Unfortunately, many sellers overlook this important decision.

Many sellers accept owner financing without any idea of how much the buyer can actually afford to pay.

The last thing a seller wants is to stress over receiving monthly payments or worse, getting the property back through foreclosure.

Would you rather have $97,000 to sell your $100,000 note or only $80,000? The difference in usually comes down to the big three. Here’s the three biggest mistakes note sellers make and how to avoid flushing money down the drain.