Government Backed Loans Lower Rates & Expand Guidelines!
2 Dec 2008 | No Comments | posted by Corey Curwick Dutton | in News
The government is coming in to the rescue in more ways than one. Mortgage rates have gone down to around 5.5% and government backed loan guidelines have softened. This is not only good news for new home buyers but also for those who want to get cash out or refi their property.
How long will it last? Who knows but some mortgage experts are predicting that rates will go up after the first of the year. Any thoughts on this?
Posted by Blake Reese on December 2, 2008
Requirement of Private Money Lenders
2 Dec 2008 | No Comments | posted by Corey Curwick Dutton | in Private Money
A private money lender won’t even look at your loan request unless you first have an Executive Summary. What is an executive summary? What is the definition of an executive summary? Well you can start with Wikipedia and that will give you a variety of formats for an executive summary. However for the specific purpose of requesting a hard money loan, your executive summary must container certain elements.
An executive summary doesn’t need to be a novel; in fact, it can be a paragraph as long as it contains all of the necessary elements. First, you must start with the loan amount requested and the reason for the request. Then you want to give the timeline of the project or property which includes how much cash you’ve put into the property, when it was acquired and for how much, etc, etc, up to the present date.
An example of a timeline goes something like this:
“In 2003 I purchased this ten acre property in Summit County, Utah for $10,000 cash. The property is zoned as residential. In 2004, after obtaining a building permit, I built a 1,500 square foot home for$23,000 cash. In 2009, I plan on expanding the home by another 1,000 square feet and will require a loan of $19,000.00″
This timeline example would provide your hard money lender a snapshot of your loan scenario which will enable them to make a quick decision.
Beside the timeline, your executive summary must also include your exit strategy, which is a topic all its own. Our exit strategy, if well thought out, can be 1 or 2 sentences.
Posted by Blake Reese on November 27, 2008
Demand For Private Money On the Rise
25 Nov 2008 | No Comments | posted by Corey Curwick Dutton | in Private Money
I found this article online back in January and bookmarked it. I found a few interesting tidbits in the article that I wanted to share in this post.
One of the largest, private money industry players reported a 30 percent increase in applications from the year before and a smaller lender reported a 50 percent increase!
Because this Wall Street Journal report I bookmarked is now almost ancient, I’d be curious to see how much these percentages have increased since then. Does anyone have any statistics on this that they would like to share from their own companies or brokerages?
Article Source: http://archives.chicagotribune.com/2008/jan/13/business/chi-hardmoney_re_01-13jan13
Posted by Corey Curwick on November 25, 2008
Borrowing Private Money – What Is Your Exit Strategy?
25 Nov 2008 | No Comments | posted by Corey Curwick Dutton | in Hard Money
Once you’ve made the decision to borrow private money, you must know what your exit strategy is and you should even have multiple exit strategies. Without a clear exit, you will never get a private money lender to give you the time of day!
In the process of devising a clear exit strategy it is crucial that you mastermind your various options with your partners or members of your advisory team. Many times, you and your partners haven’t thought of everything that could happen.
The exit strategy you have devised could have some holes in it that you hadn’t considered. This is another reason why you should seek the advice of a trusted private money broker when pinpointing your exit strategies. An experienced broker has seen many deals pass over his or her desk and, on the negative side, has also seen many deals go bad usually because of poor exit strategy. A good broker can help you and your partners trouble-shoot your proposed exit strategies and get clear on what you will do if….
Would anyone care to share examples where a poorly designed exit strategy may have meant the demise of a good project? On the flipside, would anyone like to share an example where the good exit strategy saved a bad project?
Posted by Blake Reese on November 25, 2008
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