Ask Cornerstone: Do any private / hard money lenders deal with owner occupied mortgages?

Owner Occupied Residence financing

I’m looking for a home equity loan for my primary residence.  I want to do repairs to rent it out.  I don’t understand why private money lenders don’t do owner occupied loans even if it’s a small loan backed by plenty of equity.  I need the loan soon and have plenty of documented income, but my credit score is too low (570) to refinance to a larger 1st loan. The reason most private/hard money lenders do not loan on owner occupied residences is because they are considered “consumer loans”.  A consumer loan falls under the new Dodd-Frank regulations that makes them cumbersome and doesn’t allow for the higher interest rate that […]

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August 2015 Real Estate Investment Club, Networking, Groups, and Association meetings in Southern California

REI Club Meetings Southern California

Here are the upcoming Los Angeles, Orange County, Inland Empire, and San Diego REI Meetings for August 2015. Links are provided to the club pages so you can verify before attending. Check for any membership, RSVP, or pre-pay requirements with each group. Los Angeles County LA South Real Estate Investors Association (REIA) – Note Buyers Subgroup Monday, August 03, 2015 6:45 PM Torrance Note Buyers Subgroup Best Los Angeles Real Estate Club Wednesday, August 05, 2015 6:30 PM Glendale Monthly Meeting Long Beach Commercial Real Estate Council Friday, August 07, 2015 7:30 AM Long Beach Breakfast Meeting – Speaker Bryant Francis, on events affecting the LB Airport LA South Real […]

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Real Estate Investor Newsletter: Wednesay August 5, 2015

Southern California Real Estate Investor Newsletter

♦ REI News ♦ Q &A ♦ Investor Tools ♦ Special Events ♦ REI Club Meetings ♦ About Us ♦ This Week in News Real Estate Goes Boom! Home Sales, Prices Are Up Around Southland [Read Now] Home sales and home prices are both up around the Southland. In Los Angeles County, prices have climbed 8.7 percent to $500,000 […] Top Ten Issues Affecting Real Estate Pros Read Now From demographic shifts to global instability and rising interest rates, here are the 10 most pressing issues facing the real estate industry […] Smart Home Tech Adds Value in Real Estate Market Read Now Home buyers are becoming more interested in homes that are controlled by […]

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Ask Cornerstone: If I sell my home “subject to”, do I become eligible for another mortgage right away?

Mortgage Eligibility after Subject To Sale

When you sell your home subject-to, you are still responsible for that loan and the loan shows on your credit report. So, when you fill out a loan application for a new loan with a second bank, the bank will know that you have a loan on your first house. The bank will qualify you based on your ability to carry both loans.    

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Ask Cornerstone: Can I find 100% financing / no money down loan if I can find a deal at a certain percentage discount of the After Repair Value (ARV)?

No money down financing for flips

In most cases, you cannot find 100% financing regardless of how good the deal is. Usually lenders will provide 70% to 80% purchase money loans.  Additionally, many lenders do provide 100% of controlled refurbishment funds.  The assumption is that if you don’t have any skin in the game, you don’t have anything to lose. That puts the lender Landscape at great risk if anything goes wrong. There are a small number of lenders that will provide 100% purchase money loans and fix-up funds, but in those instances, they will keep control of the property (i.e. hold the title).  In that instance, you will do all the work and the lender […]

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Ask Cornerstone: Do hard money lenders ever steal investors’ deals?

Do hard money lenders steal deals?

Question: Is it common for a lender to say “bring me your deals”, you show it to them, they say NO and then they secretly go and buy them and cut everyone out? Answer: It is not common, but yes, it could be a & problem, so deal with people you know. With good documentation, you may have a By strong case for a lawsuit against the lender.  If you are using a lender to help evaluate your deals so that you are more confident that your project has potential, don’t do that! You should be 110% convinced that deal is excellent, have it under contract and then go to […]

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Top 10 Things You Can Learn from a Title Company

Top 10 Things You can Learn from a Title Company

Top 10 Things You Can Learn from a Title Company Fix and flip investing is like a sandwich; there are three layers. The rehabbing part is the middle of the sandwich.  The two ends are buying at a deep discount and selling at a profit after costs.  Any successful investor will tell you that every profitable investment starts with a smart buy.  When you’re buying for fix and flip, you’re trying to buy a distressed property at a price that locks in some equity from the first day, no matter Money what the condition of the property. Buying at the right price is part negotiation, but you don’t know if […]

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How to Hire & Manage a Fix & Flip General Contractor

How to Hire a General Contractor for a Flip

Why fix & flip when we can just buy and sell, wholesaling real estate for quick profits?  The big reason is that there’s a lot more profit when we fix & flip.  There’s no reason why a handy person can’t take the do-it-yourself approach, but this probably means you’ll only be able to work on one deal at a time. Even if you’re hiring out most of the work to sub-contractors, you have to watch the job and supervise their work.  Doing all of the material buying and checking the work of the subs takes a lot of time, so you have to put off finding more great deals.  The […]


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How to Choose the Right Lender to Flip a House?

How to Choose the Right Lender to Flip a House?

Finding the right lender is as important as finding the right property because both will effect your profit on the deal.Think considering the cost and terms of a short-term loan is enough to make a financial decision? Well, Excited think again. There are a number of factors you should consider before working with a particular lender. A Look at Lenders All financial institutions offering money lending VW services are required to work according to a set of regulations Hard enforced by different governing bodies. These regulations ensure that lenders offer adequate protection to borrowers and investors and cheap mlb jerseys follow legal lending practices. According to these regulations, lenders are […]

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What is a Hard Money Lender?

Share this article:   A hard money lender provides loans to real estate investors where investor or the property would not qualify for conventional financing or there is not enough time to obtain conventional financing. In many cases it is distressed Hello situation that requires a fast escrow closing. These kind of loans are made based more on a property’s value rather than the borrower’s qualifications and can be completed in much wholesale nba jerseys less time than in traditional loans. Hard money lenders are often wholesale mlb jerseys referred to as bridge Year loan lenders. The primary difference between bridge loans and hard money loans is that the former denotes […]

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