Category Archives for Private Mortgage Lender
Private Mortgage Returns
“As A Private Mortgage Lender, What Types of Returns Can I Expect?”
A private mortgage lender’s return on investment is based on the interest rate charged as well as any lump sum lender fees due on closing.
For the purposes of today’s discussion, I’m going to focus on the interest rate range that is charged for both private first mortgages and private second mortgages.
So let’s start with the interest rate you can expect to earn from placing private 1st mortgages.
For investors that are most comfortable with first mortgage positions only, the interest rates charged will most likely range from 7% to 12%.
These rates will be relevant to both residential and commercial property financing scenarios with the actual interest rate offered and charged directly relevant to the risk assessed by the lender.
The majority of mortgages that we place are in the 8% to 8.25% range.
For someone to provide a 7% private rate, there would have to be excellent equity in the property, providing a low loan to value to the lender or investor.
The higher rates are associated with higher risk scenarios including financing for construction projects.
Private Second Mortgages Demand Higher Rates
If you’re looking to invest in private 2nd mortgages, the rates are going to be higher and will most likely fall in a range of 8% to 15%.
The majority of seconds that our office place are in the 9% to 11% range, but we also place deals all through out the range mention above for 2nd mortgages.
Once again, where the equity is very high and the loan to value low, a private second can be secured in 8% to 9% range.
The higher end of the 2nd mortgage interest rate range is going occur in situations where the loan to value is getting into the 80% to 85% range.
The higher ratio private seconds are not common among lenders and investors and our own office does not place many deals where the loan to value is at or above 80%.
Lower risk loan requests also attract more lenders and the resulting competitive pressures can push interest rates to the lower end of the range.
For each lender that we work with, we spend time discussing their expected rate of return as well as the types of properties they’re comfortable with so that return and risk can be properly matched up.
Unrealistic expectations on pricing can result in weak deal flow as some of the available financing opportunities will fall to lower priced competitors.
If you’d like to get more information on private lender rates of return for either first mortgages and/or second mortgages, then I suggest that you give me a call to discuss rates and returns further as well as your lending and investing objectives.
Click Here To Speak Directly To Toronto Mortgage Broker Joe Walsh
Mortgage Broker Support
“Importance Of Mortgage Broker Support For Private Mortgage Lending”
Today I want to talk about why you need to use a good mortgage broker when investing in private mortgages.
In my opinion, having an experienced broker is crucial to getting the return on capital you’re looking for and here are the main reasons why.
First of all, you want a broker who originates a fair bit of business and can provide you with the deal flow necessary to place your money in deals that are going to fit your criteria.
Not all deals that come along are going to be of interest to you for whatever reason, so you want to have a source of deals to choose from so that 1) you only place funds in deals you’re comfortable with, and 2) you aren’t waiting long periods of time in a cash position waiting to find a mortgage to invest in.
Deal And Risk Assessment
The second reason for using a good private mortgage broker is take advantage of their ability to do proper deal and risk assessment.
For almost any private mortgage that ends up losing money or even losing part of the original capital, the loss event could likely had been avoided when the deal was first assessed and risk of loss was analyzed.
Proper representation will uncover all the relevant facts about a particular deal most of the time, which allows you as a private mortgage lender to make better assessments of the deal so that any related offer you make to the borrower is not going to put you in a loss position down the road.
Private lenders want to clearly understand the reason why a mortgage request is seeking private funds. This doesn’t mean they won’t lend money if a few blemishes exist. But it does mean that the advance rate, cost, and terms are going to fit the deal according to the risk of loss it presents.
A experienced mortgage broker will be focused on providing you all the relevant information for the deal so that you know exactly what you’re getting into. And through experience, he or she is also going to know what to look for versus some one with less experience with private lending and investing.
Excellent Closing Process Skill Set
Once you have reviewed an application for funding and put out an offer to finance, then the next step is closing the deal.
This is another key area where a mortgage broker can add significant value to the process.
While some may think that once the deal gets to the point of closing, there isn’t much work left to do. But in many cases, the work is just getting started.
The mortgage broker is a facilitator of the closing process, making sure that all involved parties are completing their part to get the mortgage in place. This can mean working with appraisers, environmental consultants, accountants, property managers, and of course lawyers to make sure not only that all the lender requirements are being met, but also that any problems or issues are dealt with swiftly so that the deal doesn’t fall apart unnecessarily.
There is art and science to the closing process and having someone representing you that has done a lot of private mortgage closings is certainly a benefit to your private mortgage investing activities.
Broker Risk Assessment
“The Mortgage Broker Risk Assessment Is A Key Element Of Successful
Private Mortgage Lending”
Today I want to talk about how an experienced mortgage broker can help private lenders and investors manage risk and preserve their capital in the process.
As private mortgage brokers, we are continually completing risk assessments on deals for financing and placing the deals through one or more of our private mortgage lenders.
And in a perfect world, all the payments are made on time once the mortgage is funded and there never is any issue with the borrower right through to and including the repayment of the mortgage in full.
But unfortunately we do not live and work in a perfect world and sometimes, despite our best efforts, there can be issues and challenges with a private real estate loan or mortgage that’s been put into place.
In a perfect world, we try to avoid foreclosures and collection actions as much as possible, and for the most part we are highly successful in this regard.
But when problems with repayment do occur, the conservation of capital comes right back to the risk assessment.
What that means is that we are always looking to fund deals in liquid markets.
So for instance, larger urban cities of one million people or larger will always provide a market for liquidation.
Where liquidity is lower due to factors such as smaller market size, we compensate for that through the loan to value that can be provided.
An example of an unexpected default scenario is in the case of a divorce where there is lots of equity in the property, but both sides are at odds with each other and no one is making the mortgage payments.
When a default does occur, in many cases the mortgage broker will do all the coordination related to repayment, relying on the strength of his or her risk assessment to either facilitate getting the borrower to get the mortgage back on track, or facilitate the foreclosure process.
In either event, the worst case scenario for the lender is that they may not get their capital back in the initial time period outlined in the terms of mortgage, but they will get all their money back in time due to the equity in the property and the liquidity in the market.
A proper risk assessment will allow broker and lender to preserve capital regardless of circumstance due to the legal rights afforded by mortgage security laws.
As I mentioned earlier, there may be some time inconvenience in getting capital and the required return back, but within a matter of months capital will be returned to the borrower.
As a mortgage broker, I work closely with each of my private mortgage lenders to understand their lending criteria and risk tolerance so that any mortgage they enter into has a risk assessment that properly matches with their lending goals and risk preferences.
If you would like to learn more about how we conserve lender capital through mortgage risk assessment, then I suggest that you give me a call so we can have a discussion and get all your questions answered in the process.
Click Here To Speak With Toronto Mortgage Broker Joe Walsh
Private Mortgage Bridge Loans
“Private Mortgage Financing Is The Ultimate Form Of Bridge Loan”
A private mortgage almost by definition is a bridge loan in that 90% plus of all private mortgages issued each year are for a term of one year.
So the short term nature of the instrument falls into the realm of bridge financing.
But as a source of bridge loans, private mortgages arguably hold the top rung in the ladder for a number of different reasons.
First, bridge loans that are not secured by real estate will typically have a more exhaustive lender assessment process as well as a loan administration process to protect the lender from risk of loss.
Remember that a bridge loan has a defined beginning and end and the source of funds or event that will provide the source of funds to pay out the bridge financing has been validated.
So when the lender has to depend on certain things happening in order to be assured that the bridge loan will be repaid in full and on time, more work has to go into the risk assessment and management process.
Bottom line, other forms of bridge financing are going to take longer to get into place. And when you’re really under the gun for time, its not uncommon to be able to get a private mortgage in place in less than a week provided you have everything in order to getting the deal closed quickly.
Second, as far as bridge financing goes, a private mortgage is likely going to be one of the cheapest, if not the cheapest, sources of bridge financing available to you.
Bridge loans for transactions like purchase order financing can command interest rates of 3% a month or higher along with lender and broker fees. In comparison, private mortgage interest rates are considerably less.
Third, private mortgages require you to pay interest only mortgage payments each month for the most part. You stay in control of you cash flow and as long as you are servicing the debt, the lender is not likely to be interfering in your business.
With other forms of commercial bridge loans, the lender can require considerable controls over cash flow and spending during the time the bridge loan is outstanding. These restrictions can make it difficult to manage other financial requirements you may have at times.
Because of the security being provided through the equity you hold in a real estate property, the private mortgage lender can act quickly, provide a reasonable rate, and stay out of your business when offering short term financing.
Secondary Mortgage Lenders More In Vogue
“Recent Changes To Canadian Mortgage Regulations Have Started To Moved Borrowers Down Market”
With all the changes coming into effect for mortgage lending from institutional lenders, more and more borrowers are considering alternative lending options from “B” lenders and private lenders.
More specifically, the changes to mortgage regulations cutting back insured mortgages to 85% of the property value for insured mortgages and the discontinuance of mortgage insurance on home equity lines of credit, have started moving lenders from “A” lending products to alternatives down market.
For instance, most private mortgage lending for second mortgages to provide incremental capital, primarily for debt consolidation of some sort.
Traditionally, an “A” profile lender would go to the bank and get an insured mortgage product to provide the additional capital required either in the form of a new first mortgage, a standard term second mortgage, or a home equity line of credit.
With the rule changes, individuals are not going to be able to secure the same level of financing and may turn to private mortgages instead to get funds in place faster, even at a slightly higher cost.
The same can be true to some of the lending products now being offered by secondary institutional lenders who are still governed by the recent rule changes, but are providing different lending products to generate greater overall leverage, which is the key issue for people looking for additional mortgage financing.
While most private lenders are reluctant to go beyond 75% to 80% loan to value on a first, there are those that will go as high as 90% on a smaller second, especially when the borrower has “A” credit and good cash flow.
Add to this the speed in which a private mortgage can be completed, and a case can easily be made to now consider these forms of “alternative mortgage financing” if you can’t otherwise qualify for enough financing from your bank or primary institutional lender.
Once again, this is not going to generate any type of mass shift in the market, but for those individuals who 1) what maximum leverage against their home equity, and/or 2) don’t have the time to go through the bank process which may see they qualify at a lower amount anyway, alternative financing options or the down market has now become more attractive to lower risk lenders.
If you would like to explore alternative financing options to maximize your home equity mortgage financing, I suggest that you give me a call so I can quickly assess your requirement and provide relevant mortgage options for your consideration.
Private Mortgage Interest Rate Variation
“How Much Rate Variation Is There Among Private Mortgage Lenders For Similar Properties?”
There can be a considerable private mortgage interest rate variation among lenders from one lending situation to the next.
How much variation?
Well, some situations, different lenders can be as far apart as 6% on the annual stated interest rate.
There are a number of different reasons why this can occur. Here are some of the more common ones.
First, a private mortgage lender will potentially look at a very broad cross section of properties within a certain financial geography. Banks and institutional lenders in comparison only look at a slice of the market where there is considerable competition that leads to competitive pricing. As a result, a private lender may be able to price their mortgage rates at their own desired cost of financing versus what the is perceived to be the market price. Even if their may be other private lenders in the same area that would offer lower on the same property, the borrower may not be able to locate them at all or in time to complete their transaction.
Each private lender or private mortgage financing group will have their own financial return target assigned to their portfolio. This doesn’t really have to have anything to do with the market at large. Some individuals, using their own funds can provide private mortgages at excellent rates, many times close to bank rates. When we’re talking about a mortgage investment corporation, they have an internal cost of funds they need to achieve for their investors, so its going to be hard for them to do below their target rate, unless they are substantially ahead on their portfolio return for the year to date period.
What’s also hard is dealing with available rates at a given point in time. At one moment in time, there may be a private lender prepared to provide a 6% interest rate on a property when everyone else is closer to 10%. But if that particular lender does not have any available funds a month later, that rate is also not going to be available from them.
Further, because all private lenders do not exist on a some form of lending network, its impossible to access all relevant sources for a particular deal at a given point in time. But it is possible, based on what I have been saying, to get quotes back that are significantly different one to the other.
That being said, there is competitive factors in the private lending market like any other market. But because of the way privates individually operate, significant differences can exist in interest rates from one private lender to the next at certain times and on certain deals.
Bottom line is that the private mortgage lending market is very fluid and what is the best rate today can be an inferior rate tomorrow.
The key to getting the best available rates is to work with a mortgage broker that has excellent access to private lenders for the area and property type you are trying to finance.
Private Mortgage Options
“Unlike Regular Bank Commitments, Toronto Private Mortgage Options Can Have Very Short Shelf Lives”
Toronto Private mortgage options tend to only be available for short periods of time for a number of different reasons.
Unlike a bank or institutional residential home mortgage lender that are prepared to re-issue term sheets or commitments once an offer lapses, a private mortgage lender may or may not choose to reconsider a financing scenario once a financing offer of some sort has gone stale.
As I mentioned above, there can be several different reasons for this.
First, the private lender as an individual only may have a certain amount of funds available to place via private mortgage at any given point in time. If you don’t accept an offer for financing within the time period provided by the lender, they may be out of funds when you’ve chosen to reconsider.
Second, private lending has a lot to do with the personal feel and judgment of the private lender. If a deal does not close, they may sour on it all together and then not be prepared to revisit it at all in the future.
Third, if any of the application dynamics change or if there is a negative change in the local market for the type of property in question, then its less likely that a lender will be prepared to provide the exact same borrowing amount and conditions in the future for a private home equity mortgage.
And while there are lots of private lenders around, locating money when you need it for terms you are prepared to accept can sometimes be a hit and miss situation.
Especially when you’re trying to arrange a bad credit mortgage, the number of private lenders even interested in your request may be few and far between.
So if you’re going through the process to assess private mortgage financing options and you come across an offering that you feel you can live with, don’t expect the offer to last forever for one or more of the reasons given above.
And if you’re pressed for time but still want to try and hold out for a better deal, make sure you can afford the gamble in the time you have to work with other wise you could end up with no options and lose out on an investment opportunity or worse.
Click Here To Speak Direct To Joe Walsh, Your Toronto Mortgage Broker
The Private Mortgage Lending Tool
“Private Mortgage Financing Is One Of The Most Versatile Mortgage Lending Vehicles Available”
One of the key benefits of a private mortgage that we don’t speak about a lot is the fact that the mortgage is provided by an individual or small group, and that, for the right price, a commitment to fund can be developed or customized to fit a whole host of situations and circumstances.
Cheaper residential mortgage money provided through bank and institutional lenders is based on mass production lending criteria for the most part, where the requirements are pretty cut and dry, especially for the “A”mortgage business. The goal is to process quickly, close quickly, and build the lending portfolio, which is profitable as a commodity in volume and relatively small margins where the risk of loss is very low.
When a borrower’s circumstances are not straightforward, it can be challenging at times to fit into the world of institutional lending due to the cookie cutter approach they take.
This is where private mortgage financing can be an incredibly valuable tool to acquire residential or commercial financing for a short period of time.
A private mortgage lender has the ability to look at the information on a whole and make their own lending decision, which at times is based on lender experience and market knowledge as much as it is specific lending criteria.
And when a deal morphs in form from the time a mortgage commitment is secured to the time it has to fund, it can be difficult to get a bank or an institutional lender to adapt their commitment or even continue on with the application. While there is no guarantee that a private mortgage lender will always be able to adapt to twists and turns a particular deal may encounter, there is a much better chance that something can be worked out, especially when the decision making is held by one individual versus a larger organization with lots of rules and requirements.
Part of the reason a private mortgage lender can be flexible is that its worth their while to do so. In most cases, any form of customized private mortgage lending solution is going to come at some type of premium. But if the added cost saves a deal or equity from being lost, then the borrower is still better off with a higher cost mortgage, especially if its the only option available in the time the applicant has to work with.
If you have a residential mortgage or commercial mortgage financing scenario that is not fitting into a conventional mortgage program, I suggest that you give me a call and lets see if we can come up with a private mortgage solution for you to consider.
Click Here To Speak With Joe Walsh, Your Toronto Mortgage Broker
Evolution Of Private Money
“Private Money Sources Are Growing And Changing All The Time”
I’ve written previously that private mortgage lending has become a very popular and growing target for investors to place their money these days. There are too many people with the same sad story about how they gave a stock broker a big pile of money and he turned it into a smaller pile over the last ten years. While the stock market will always be a highly lucrative investment vehicle, it comes with considerable risk of loss.
Many investors, especially those that have lost a few or more dollars, see mortgage financing, where hard security in the form of real estate is involved, a welcome opportunity to invest money.
And just because someone is investing in mortgages doesn’t mean they can’t make very good money. High returns are going to be connected to higher risk, but when you compare risk levels between the stock market and mortgage market there appears to be quite a disparity going on these days. Obviously there will be opinions on both sides of this one, but for many, hard security, even at higher risk is a better approach than buying stocks.
Regardless of the point of view or motivation, more private lenders are coming into the market.
Types of Private Lenders
There are basically three types of private lenders in the market place. The first type or category is the traditional private lender who is an individual investor, placing their money through their lawyer or a combination of mortgage broker and lawyer.
The second category are small groups of individual private lenders that either operate as small self managed investor group or syndicate deals whereby each private lender will take on part of a larger mortgage.
The third category is mortgage investment corporations or MIC’s. These are larger organizations that attract investor funds strictly for the purposes of investing in real estate mortgages. The investors are paid a return on their investment once the MIC’s management fee has been paid out.
How Has Private Lender Growth Impacted The Market?
There are a number of positive benefits to borrowers from the rise in private lending.
First, more private funds are available at a time when bank financing can be hard to secure, providing higher quality deals for privates to consider. For the more conservative private lenders, the rates offered can be very close to bank or institutional rates, providing some interesting short term options for those that may qualify or just fall short of conventional bank financing.
Second, in the past private lenders tended to be very regionally focused around areas where they were situated and had a good working knowledge of the market. Now some of the mortgage investment corps provide regional, provincial, and even national coverage in some cases. And even though individual private lenders are still pretty localized in terms of the opportunities they will consider, there’s a lot more of them out there in total, so more local areas now have access to private funds.
Which Is The Best Type Of Private Lender To Work With?
There is no real answer to this. Its all about choice and the more choice you have the better. At the same time, there can be large disparities from one private lender to another, so its also easy to secure a less than optimal deal for you situation without knowing any better.
The best way to approach securing a private mortgage is to work through an experienced Toronto mortgage broker who can quickly assess your situation and provide you with options for your immediate consideration.
I work with a large number of private lenders and would welcome the opportunity to discuss a private mortgage financing need you may have.
Click Here To Speak Directly To Private Mortgage Broker Joe Walsh
Using Private Mortgages To Acquire Commercial Property
“A Private Mortgage May Be The Best Solution For Financing A Commercial Property Purchase”
As I’ve previously written, a private mortgage can actually be a primary lending option versus a loan of last resort for those with bad credit.
One of the situations where this can be the case is with the acquisition or purchase of commercial property. Depending on the property and related mortgage lender requirements, a commercial property loan from a bank or institutional lender can take 60 to 90 days to close. And while the seller may be more than accommodating with allowing a subject to financing clause in your purchase and sale offer, it can’t be assumed that the seller will also be prepared to have to wait two or three months for the condition to be waved and the sale finalized.
One alternative is to complete the purchase with a private mortgage. While the cost of financing is going to likely be higher and there will be more closing costs to get this type of commercial mortgage in place, the benefit is that the time it takes to get a commitment and get the deal funded is more likely to work with the time the seller is prepared to give you to arrange financing in the first place.
Then, once the property has been acquired, you should immediately start the process for looking for a long term institutional financing solution to pay out the private mortgage lender. Most private mortgages are for a one year term, so that should give you plenty of time to seek out the best available bank or institutional deal. It also affords you time to make property improvements that can add or strengthen the fair market value of the property, further strengthening your case for a bank commercial mortgage. If there is a business associated with the real estate, the added time can allow you to come and improve the operating results if these results are expected to cover all or part of the mortgage debt servicing.
And while 12 months can seem like a long way away, don’t put off looking for your long term commercial mortgage solution too long as you can end up running out of time a second time. With some private lenders, you may even be able to have the private mortgage open for prepayment after a certain period of time, say at least 6 months, giving you the opportunity to switch over to cheaper financing as soon as possible.
Hard Money Loans In Charlotte Town
“Here Are The Charlotte Town Hard Money Loan and Lending Basics”
First of all, a Charlotte Town hard money loan and Charlotte town private mortgage financing are basically the same thing.
There are varying degrees of private mortgage financing, but essentially they are all equity based to a large extent which is why they are also referred to as hard money. From a lender’s point of view, the strength of the lending decision is based on the current value of the property, the amount of an equity buffer that will exist after a mortgage is placed, and the degree of difficulty to sell the property into the market place if required.
The term hard money comes from the hard way the lender has to look at the deal in terms of rate, security value, and repayment ability. Should there be any default in payments, private lenders will on average take a very hard approach to either getting the payments caught up, or taking action within their legal rights to foreclose on the property and get their money back.
Regardless of what you want to call it, private mortgage financing or hard money loans provide a very important roll in the real estate financing market. And since 2008 and the related recessionary impacts on the financial market, more and more financing scenarios are being filled by private mortgage lenders due to bank and institutional lenders taking a far more cautious approach as we climb out of the recession.
Primarily placed for bad credit debt consolidation scenarios, Charlotte town hard money loans can be utilized for a number of different bridge financing applications including construction financing, real estate flips, and quick close property purchase scenarios where there isn’t enough time to secure a bank mortgage even though the applicant would likely qualify for one.
Because most private lenders choose to work through licensed Canadian mortgage brokers to gain access to potential deals, its going to be important to work with an experienced private mortgage broker who already has direct access to private lenders that can meet your needs as well as a track record for placing hard money loans and mortgages.
If you need a Charlotte town hard money loan from a private mortgage lender, I recommend that you give me a call so I can go over your requirements quickly and provide private mortgage financing options for your consideration.
Charlotte Town Private Mortgage Financing
“Quickly Determine Your Charlotte Town Private Mortgage Financing Options”
Charlotte Town private mortgage financing can be arranged on a wide variety of commercial and residential real estate property types in Charlotte Town and in the immediately surrounding area. Private mortgage lenders tend to be regionally focused with more of an emphasis in urban areas where there exists an active resellers market for similar or like properties. Once you get into more rural real estate holdings, the private lending options can be significantly fewer and farther between.
Private mortgages or hard money loans are they are also referred to, are predominantly used for short term financing, typically no greater than one year. An while many people would consider a private mortgage as financing of last resort, there are many situations where securing a Charlotte Town private mortgage makes more sense than trying to get a comparable amount of financing from a bank or institutional lender. That being said, the majority of situations where a private mortgage is provided has some element of poor or bad credit and a need to access capital quickly to keep the walls from closing in.
Private lenders finance against the equity amount that can be easily identified in a piece of real estate. The mortgage itself may be in either a first or second security position on the property and the total amount of financing that can be advanced will typically not exceed 65% of the fair market value of the property under consideration with the valuation based on short term liquidation.
Charlotte private mortgage lenders tend to work through mortgage brokers in order to access the market. While some private lenders will advertise their own funds for investment in mortgages, most will opt for utilizing the existing marketing channels of mortgage brokers instead. Therefore, going through a mortgage broker may be the only way to access specific private lenders that would be interested in financing your property.
Therefore, the best way to get access to a Charlotte Town private mortgage is to work with an experienced mortgage broker who has direct access to private mortgage lending sources as well as a track record of successfully placing private funds.
If you are in need of a Charlotte private mortgage or would like to better understand your options, please give me a call so we can quickly go through your requirements and provide private mortgage funding scenarios for your immediate consideration.
Private Mortgage Lending in Saint John
“Let Us Provide You With Saint Mortgage Lending Option On Your Real Estate Property”
Saint John private mortgage lending sources are typically individuals, small syndicates of private investors, or formalized mortgage investment corporations that place their investors money into private mortgages.
Each lending source will have their own criteria to a certain extent as well as appetite for different types of deals, but there are some general trends that you can expect regardless of the private mortgage funding source.
First, most Saint John private mortgage lenders will lend in a range of 50% of the fair market value of the property to 65% of the value of the property. To be clear, the average will fall in this range. That being said, there will be exceptions that fall out of both ends of the range based on the strength or weakness of any particular application and property type and profile.
With private mortgage lenders in the Saint John area, expect the interest rate to be no lower than 10%, again on average, on first mortgages with higher rates on second mortgages. Mortgage payments are typically going to be interest only and the mortgage term will likely not be more than one year, again in most cases. If a borrower is extended for more than one year, there will likely be a renewal fee required as the private mortgage lender will receive fees on closing for any new mortgage. So if the private lender can’t place a new mortgage at the end of the term, it only stands to reason that a renewal fee will be required, otherwise he or she will likely require a timely payout of the mortgage so the funds can be invested in other mortgage opportunities.
Private money, or hard money loans as some choose to call them, are not cheap by any stretch. But compared with the alternative of not being able to come up with the money required, the cost can end up being a bargain in many cases. Saint John private mortgage lending is going to be required by individuals with short term needs where it may not even make sense or there isn’t sufficient time to go to a a bank. This is really a form of bridge financing that is available to anyone with equity in a residential or commercial real estate property.
If you require Saint John private mortgage lending, please give me a call so I can quickly assess your requirements and provide private mortgage options for your immediate consideration.
Moncton Private Mortgages
“We Place Moncton Private Mortgages For Home Owners And Commercial Property Owners”
Moncton private mortgages are most commonly provided in situations where 1) the borrower’s credit will not allow them to qualify for a bank or institutional property mortgage; 2) the borrower has too much of an overall debt load to meet the requirements for a bank mortgage; 3) the applicant cannot show sufficient monthly cash flow to adequate service the debt per the requirements of an institutional lender; 4) the property type is not of interest to a conventional lender, and 5) the time available for completing private mortgage financing will only allow for working with a private lender.
While each situation is unique, most will have one or more of the above elements are work that leads the applicant to apply for a Moncton private mortgage.
Because of the higher level of lender risk associated with these types of loans, the rates and fees associated with a private mortgage will be higher than what you would expect from a conventional mortgage lender. In some cases, the rates and fees combined can be substantially higher than conventional financing, which again relates to the risk involved in the transaction.
For any type of private mortgage financing scenario, the more lenders that have interest in a particular property for security, the better the deal you’re likely to be able to require with respect to rates and terms of repayment. On the flip side, the less lender interest there is in a given property and borrower credit profile, the more likely the related rates and terms are going to be higher than the average pricing for private mortgages in Moncton.
The best way to locate and determine what the best available deal is for a given situation is to work with a Toronto mortgage broker who has experience working with private mortgage applications, placing Moncton private mortgage requests, and maintains direct relationships with private lenders that service the Halifax and surrounding area. Most private lenders will only work through mortgage brokers, so to even get access to the market, a mortgage broker is likely going to be required in many cases.
If you need a Moncton private mortgage for a home equity loan, commercial property refinancing, or some other application, I suggest that you give me a call so I can quickly assess your situation and provide relevant private mortgage financing options for your immediate consideration.
Halifax Hard Money Loans
“We Arrange Hard Money Loans in Halifax Through Private Mortgage Lenders”
Hard money loans in Halifax are essentially private mortgages for the most part where lending decisions are based on 1) the equity in an asset that be pledged as security and 2) the lender’s view of how hard it would be to liquidate the asset to get the financing advance repaid in the event of default.
Hard money can be extended against both residential and commercial real estate and the private mortgage placement can be in first or second security position. The amount of financing that can be advanced would range from 50% to 65% of the fair market value of the property in most instances. This would include all charges against the subject property.
Hard money loans on real estate are typically for a period of one year with a lender fee due on closing plus the requirement of monthly interest only payment. There are some private lenders that will ask for an amortized payment to further reduce their risk, but for the most part, the monthly mortgage payments are interest only.
In the event of missed payments, a hard money lender will act quickly to get the situation corrected with the borrower. If payments are not brought up to date right away, then the lender will take action against the borrower to gain control of the asset according to the lenders rights as a mortgage holder. The foreclosure process will vary from jurisdiction to jurisdiction which will impact the time it takes to realize against the security.
Most hard money lenders or Halifax private mortgage lenders do not promote their services directly to the public and instead choose to work through the licensed mortgage broker network. Mortgage brokers in turn will qualify potential deals that require hard money and send them on to the lender for review and potential approval. Working with an experienced mortgage broker with a successful track record for placing this type of financing can be key to getting the funding you’re looking for in the time you have to work with.
If you need to access a Halifax hard money loan or want to know more about your options, I recommend that you give me a call so I can quickly review your situation and provide hard money loan options for your immediate consideration.