Buying at Auction with Hard Money: What Must Be Ready Before You Bid
Auction deals are won on preparation, not confidence.Hard money can be a strong fit for auctions because it can move quickly when the file is clean.The biggest auction risks are title problems, unknown condition, and timelines that don’t allow rework.If you cannot verify basics before bidding, you must price that uncertainty aggressively or pass.The safest […]
Prepayment Penalties: What Investors Should Ask Before Closing
Prepayment penalties are costs triggered when you pay off a loan early.They can materially change your real cost of capital, especially on short hold periods.Investors get burned when they assume “I’ll refinance fast” without checking payoff terms.The correct way to evaluate a penalty is total dollars over your expected hold period, including stress-case timing.Exit flexibility […]
Interest Reserves Explained: Why Some Loans Collect Them Up Front
Interest reserves are funds set aside to cover interest payments during the loan term.They are common when a property is not producing income yet, or when the lender wants payment certainty during rehab or construction.Reserves reduce default risk and can stabilize cash flow during project execution.They also change your cash needs at closing, which many […]
New Construction Loans: How Draws, Inspections, and Budgets Work
New construction loans are built around controlled draw disbursements tied to verified progress.Your budget must be line-item, your timeline must be realistic, and your draw stages must match inspectable milestones.Most construction cash crunches come from poor sequencing, underestimated soft costs, or change orders without funding plans.The fastest builds are not the cheapest on paper; they’re […]
Multifamily Bridge Loans: How Value-Add Deals Get Financed
Multifamily bridge loans are built for transitional multifamily assets with a clear business plan.They typically fund acquisition or refinance while you execute upgrades, lease-up, or operational improvements.Underwriting focuses on the property, the plan, and the path to stabilization and refinance.The biggest risk is optimistic assumptions about NOI [Net Operating Income], lease-up speed, and cost.A bridge […]
Commercial Bridge Loans: The Investor Playbook for Transitional Assets
Commercial bridge loans are designed for transitional properties that need time and a business plan.They’re commonly used to acquire, reposition, lease up, or refinance an asset before permanent financing.The underwriting focus is the asset, the plan, and the path to stabilization, not a long bank timeline.Your success depends on realistic NOI [Net Operating Income] assumptions […]
Rental Property Underwriting: What Matters Beyond DSCR
DSCR [Debt Service Coverage Ratio] is a key metric, but it is not the entire underwriting story.Rental loans also depend on rent stability, property condition, documentation quality, and risk controls like reserves.Investors get delayed when rent documentation is unclear or expenses are underestimated.Your fastest path to approval is a clean, documented rental profile with conservative […]
Seasoning Explained: When You Can Refinance After Buying
Seasoning is a timing rule that can affect when a refinance is allowed after a purchase.Investors get stuck when they assume refinancing can happen immediately, then discover timing constraints late.Seasoning rules vary by program, but the solution is the same: plan the refinance before you buy.If your strategy depends on a fast refinance, your deal […]
Entity Setup for Real Estate Investors: LLC Basics for Financing
Most serious investors buy and hold property in an LLC [Limited Liability Company].Financing delays often happen because entity documentation is incomplete or inconsistent with the contract and title.A clean entity file reduces closing friction: escrow can verify authority and the lender can document correctly.If your LLC name differs from your contract, or signer authority is […]
Title and Escrow for Investor Loans: How to Avoid Closing Surprises
Title and escrow issues are one of the most common causes of last-minute closing delays.Most title problems are discoverable early if you open escrow immediately and review the title report carefully.Hard money can move fast, but title must be clean enough to insure the lender’s position.If you wait to deal with liens, ownership issues, or […]
