Insights & Notes from the Desk
PMF Partners Blog
Seven-plus years of writing on hard money lending, private mortgage financing, commercial mortgage-broker strategy, and the day-to-day reality of direct lending on commercial real estate.
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Great Month for Hard Money Loans
Skating Rink / Day Care Center, Houston, Texas $ 950,000
Exhausted All Traditional Lending Options
• Low Credit Scores • Bankruptcy • Tenant Vacancies • Property Stabilization Issues • High Debt Ratios • Foreign National • Unique Ownership Structure We Are…
Another Option to Consider For An Almost Impossible Deal
If you’re about to give up on trying to obtain new financing for your borrower because of any or all of the following: 1\.
It’s Possible to Double or Triple Your Income!
It’s Possible to Double or Triple Your Income If you’re not maximizing the following five strategies, you’re not maximizing your earning capabilities, time…
Stop Spinning Your Wheels. Take a New Path
Like most people, I thought exceptional success in a sales field was due to a unique ability of an individual to somehow “connect”, “convince”, or “persuade”…
Close Non-Financeable Loans Creatively
CREATIVE FINANCING SPECIALISTS use the following methods to make deals happen where others are unable to succeed. - Seller provides secondary mortgage…
Better Loan Closings for 2024
5 –UNDERSTAND YOUR BORROWER’S NEEDS AND DESIRES COMPLETELY. This has to do with the Borrower’s Motivation .
Our Rates Remain Low
Hard Money Lenders | Private Mortgage LendersWe lend in all 50 states This year has been a roller coaster for conventional interests rates.
Looking for Financing 2nd Quarter 2023?
The following are properties we financed First Quarter 2023 Commercial Bldg/ Dance Studio
Properties We Financed First Quarter 2023
The following are properties we financed First Quarter 2023 Commercial Bldg/ Dance Studio
What Borrowers Say…….. And What They Really Mean?
Hard Money Lenders | Private Mortgage Lenders We lend in all 50 states 1\. I’m not going to pay any upfront fees……I won’t pay for an appraisal, title report…
MAKE DEALS HAPPEN! (Part 2)
BE A CREATIVE FINANCIALING SPECIALIST CREATIVE FINANCING SPECIALISTS create or modify the DEAL STRUCTURE so that a loan within existing LTV parameters will…
Are you a Mortgage Broker or Creative Financing Specialist?
About 90% of the new loans we finance, and all of the existing loans we buy, are brought to us by “financial intermediaries”.
What Are They Thinking?
10\. “If you make me a loan can I sell it? 9. “Do you care what kind of dog I adopt?”
New Lower Rate Good for 45 Days
While interest rates have gone through the roof, WE DECREASED OUR RATE to 9.75% on Hard Money commercial property loans! This rate is good for 45 days.
Get Rich Quick! Right!
You know a borrower just attended a get rich quick real estate seminar when they say: What do you mean you don’t lend on residential real estate?
We Have Lowered Our Interest Rate!
New Interest Rate Based on Hard Money Lending Criteria We now offer our best borrowers 10% interest on true hard money lending criteria. - Loans are one to…
The Abandoned Mall Epidemic – Solution
Drive through any decent-sized city or town, and you’re bound to come across those large shopping centers built about 30 – 50 years ago that once were…
Traditional Lenders Find Better Alternative
Do you have one or more commercial mortgage notes you would like to remove from your portfolio for liquidity and profitability reasons?
Our Current Loan Environment
The current loan environment makes it difficult for small businesses trying to bounce back from the pandemic.
Need a Loan, Fast?
Small businesses are still feeling pains from the pandemic. They now have to face high inflation — while still finding it challenging to get approved for a…
COMMISSIONS PAID ON OUR FUNDED LOANS TO COMMERCIAL MORTGAGE BROKERS THE LAST 6 MONTHS
$100,000.00 Commission Note Purchase $2.8 Million Principal Balance bought for $1.775 Million on Arizona Auto Collision Shop
WE LEND WHEN EVERYONE ELSE SAYS NO!
Private Mortgage Financing Partners, LLC provides short-term private mortgage financing (hard money loans) secured by investment and commercial real estate.
The Characteristics of the MOST SUCCESSFUL Mortgage Brokers I Deal With…
1\. They contact me with a COMPLETE loan package 2\. They have an executed representation agreement with the borrower 3\.
LOANS WE FUNDED 2021
LOAN AMT PROPERTY TYPE PURPOSE 2,050,000 WAREHOUSE REFINANCE MATURING NOTE
What are hard money lenders looking for?
There are general requirements for hard money loans, but they are not set in stone like traditional bank loans are.
Low Credit Score?
If you are an investor with poor credit, many traditional funding sources are not valid options as most banks and mortgage companies do not offer loans to…
Expand Your Portfolio with PMF Partners
If you are looking to build wealth or expand your portfolio, investing in real estate is an attractive option to accomplish both of these goals.
MAKING OF A COMMERCIAL HARD MONEY LOAN
1\. Borrower with 520 FICA score and vacant restaurant building in a town of 5,000 people in South Dakota contacts a mortgage broker with the idea that he…
Brokers Commission
$1,050,000 Funded on Texas Residential Housing – Mortgage Broker Received $26,250.00 Commission *
HOW MANY MORTGAGE BROKERS DOES IT TAKE TO FINANCE A LOAN?
First, let me state two important disclosures. We are private, hard money commercial mortgage direct lenders, and 90% of our loans originate through mortgage…
Mortgage Brokers Double Your Income Without Adding People or Overhead
In other words, add revenue that’s almost all PROFIT. How? By bringing a transaction with a VERY LARGE profit potential to your private lender/investor.
How Hard Money Helps
Private Mortgage Financing Partners, a “Hard Money” lender differs from traditional financial institutions.
Hard Money for Real Estate Investments
Hard money loans can be a great tool for real estate investors. Hard money provides investors who are looking to supplement investment deals with a stable…
When Should You Consider A Hard Money Loan?
When Hard Money Makes Sense You may be surprised to learn why many investors select the private lending path for their commercial financing needs and how…
Wave of Foreclosures
Millions of Americans took advantage of the payment suspension and mortgage forbearance programs both lenders and the federal government rolled out due to…
Can a Mortgage Broker Help a Borrower Who’s Upside Down in His Property, AND Still Earn a Success Fee?
Loan request situations where the borrower owes more than the maximum available LTV for his situation and type of property can actually be the MOST…
WE HAVE PAID BROKERS THE FOLLOWING COMMISSIONS ON OUR FUNDED LOANS THE LAST 6 MONTHS
Note Purchase $2.8 Million Principal Balance bought for $1.775 Million on Arizona Auto Collision Shop – Mortgage Broker Received $100,000.00 Commission…
Difference between APY and APR
As hard money lenders, we are often asked, “What is the difference between APY and APR.” Both are used to calculate interest for investment and credit…
Trending: Rise in Default Loans
With the U.S. trying to get back to a more normal economic basis, and COVID-related SBA loans, loan forgiveness, and foreclosure moratoriums likely to end…
Getting Back to “Normal”
With the U.S. trying to get back to a more normal economic basis, and COVID-related SBA loans, loan forgiveness, and foreclosure moratoriums are likely to…
Commercial Mortgage Brokers: 5 ways a refi can be successfully concluded
Commercial Mortgage Brokers: Can a refinance be successfully concluded when the borrower owes more than 80% of the property’s value? Yes…….Five Ways
Are You Dealing with a Broker Disguised as a Direct Lender?
In the hard/private lending business, as in the mortgage business as a whole, there are brokers, there are lenders, and there are brokers who attempt to…
Soft and Hard Money Loans
Hard money loans are very similar to bridge loans, with the primary differences being that most hard money loans are made by private companies and there are…
Commercial Bridge Loans
Like their name implies, bridge loans are used to “bridge the gap” until long-term financing can be secured for the commercial property.
Conduit/CMBS Loans
Conduit loans are commercial mortgages that are pooled together and sold to investors on a secondary market.
The Top Five Documents Provided To Me By Borrowers That Automatically Killed Their Loan Request
5\. Five year projection with all revenue and expenses at 0. 4\. Last two years tax returns showing loses of over $1 million each year
SBA 504 Loan
Beyond the 7(a) program, the SBA offers loans specifically for owner- occupied real estate or long-term equipment purchases.
SBA 7(a) Loan
The Small Business Administration’s flagship loan, the 7(a) loan, can be used to purchase land or buildings, construct new property, or renovate existing…
Traditional Commercial Mortgage
Most banks and other lenders provide commercial real estate loans for a variety of properties, including office buildings, industrial buildings, multi…
Loans, Loans and more Loans
A variety of commercial real estate loans exist from bank loans to SBA loans to bridge loans. We take a look at some of these options in a series of posts.
The least productive type of commercial mortgage loan type for brokers…..
Loan requests that in actuality need equity capital, not debt capital. Hands down. These come in three varieties 1\.
Economic Recovery and Hard Money
PMF Partners believes that during COVID-19 and the subsequent time it will take for our economy to recover, hard money loans for commercial real estate will…
An Influx of Applicants for Hard Money
PMF Partners have noticed an influx of new applications from borrowers who normally wouldn’t use hard money.
Borrowers are now looking into Hard Money more than ever!
The expectation among many is that lenders are actively looking to make new loans or refinance existing ones, but that is not the case.
A Reliable Source of Capital
Amidst the uncertainty about what the future holds, in many markets around the country commercial property investments are as strong as ever, and hard money…
Should Commercial Borrowers Utilize the Services of a Mortgage/Loan Broker?
Once you have determined the loan characteristics most important to you, you will have to choose whether to use the services of a mortgage broker or go…
Hard Money Loans during COVID
Getting a loan during COVID-19 will definitely be different than borrowers have been used to over the past few years.
A Lingering Pandemic
The coronavirus pandemic has caused a serious disturbance in the commercial real estate market. This problem may remain for some time to come.
Hard Money is not Dead!
Hard Money Lending is not dead! Although there have been significant changes due to the recent pandemic, you can still obtain a hard money loan!
The more you know….
September 18, 2020 Featured, News, recent post Loan requests from borrowers or brokers?
Did You Know?
Did you know? A TRUE Hard Money Lender eliminates Credit History from the equation, and emphasizes Collateral.
What is a “Hard Money” Loan?
What is a “hard money” loan? Conventional lenders utilize what has become known as the “5 C’s” in determining whether to make a loan.
Difference between Borrowers & Brokers for a Loan Request
Loan requests from borrowers or brokers? Borrowers that go through mortgage brokers are educated as to the type of loan, terms, and loan amount they can…
“Soft” Hard Money?
What is “Soft” Hard Money? It’s a hybrid type of commercial mortgage financing. It attempts to fill a gap between conventional ‘five c’s’ financing, and…
Crowdfunding…
With the advent of crowdfunding platforms in the past, there are many real estate and real estate-related investments available to the passive investor with…
Beware!
Beware! There are many mortgage brokers who disguise themselves as lenders. Read the fine print, some terms advertised are “not available” for the loan you…
Five Actions Commercial Mortgage Brokers Can Take Now to Increase Income
With many lenders cutting back or temporarily suspending lending activity, commercial borrowers who need credit are flocking to mortgage brokers.
Borrowers Still asking Crazy Questions During Pandemic
5\. “It says you lend nationwide. Does that include all 50 states or just the 13 colonies?” 4\. “Can I get a loan if I don’t have a name?”
What Were They Thinking?
What Are They Thinking? Recent Questions from People Wanting Commercial Mortgage Loans
In Real Estate, Is Cash Still King?
Or is so much cash readily available that having cash to make real property purchases no longer hold the cache it used to?
Using a Broker…
The Reasons I Always Use A Broker when Purchasing Real Property 1\. Specific area knowledge
A Sudden Increase for Hard Money
PMF Partners have noticed an influx of new applications from borrowers who normally wouldn’t use hard money.
We closed and funded loan in 44 hours!
On Wednesday,, October 2, at 3:09 PM we received an email from a mortgage broker asking if we could close and fund a loan in two days.
How Our Business has Changed in 20 years
How most loan applications are submitted 1999\. – Fax
Hard Money Loans On Raw Loan?
All experienced mortgage brokers know that the second hardest loans to place are loans secured by raw land. ( Church loans are the hardest!).
The Top 5 Things Commercial Mortgage Brokers Can Do to Increase Their Income
5\. Work only on doable loans …. stop working on loans with little or no chance of being financed and spend the time saved on more productive pursuits, like…
$ Missing Opportunity $
Most Commercial Mortgage Brokers I come in contact with are missing an opportunity to make a LARGE commission check.
Why Most Borrowers Should Use Mortgage Brokers – Part 2
As a direct lender, I am constantly told by “consultants” that I need to change my business from utilizing mortgage brokers for deal flow to operating…
Why Most Borrowers Should Use Mortgage Brokers – Part 1
As a direct lender, I am constantly told by “consultants” that I need to change my business from utilizing mortgage brokers for deal flow to operating…
What Are They Thinking? Crazy Questions from Borrowers
1\. “How much does my property have to be worth to borrow how much”? 2\. “Can I borrower under an assumed name”?
What They Say and What They Really Mean
1\. “I’m looking to utilize the greatest leverage possible”………. “I have no money to put into the deal” 2\. “The seller and I have come to contract terms”……..…
The 5 Biggest Lies About Financing Told By Real Estate Gurus
1\. That you can buy real property with no income, bad credit and no money. 2\. That you can “over leverage” a property and obtain financing for more than…
The Five Greatest Borrower Delusions
1\. That they can borrow 100% of the purchase price because “the property’s worth double that” 2\.
Why Crowdfunding has NOT Been Effective for Commercial Mortgage Loans
Why Has Crowdfunding NOT Been Effective For Commercial Mortgage Loans? 1\. Disconnect between ability to raise capital and ability to generate deal flow…
How To Sell a Commercial Property that Can’t be Financed
Some commercial real estate just can’t be financed. The property is vacant, needs extensive repair, or there may be environmental, location, or structural…
The Five Biggest Frustrations for Mortgage Brokers
5\. Borrowers who decide to “go a different route” after you spend 20 hours sourcing their hard to finance loan 4\.
The Most Ridiculous Loan Packages I Ever Received
5\. A list of loan requests copied and pasted from Scotsman Guide with the broker adding a note to include 3 points for his “referrals”. 4\.
Five Top Signs that You Should Not Waste Time With a Borrower
5\. The first thing he tells you is that the last four brokers he worked with were crooks 4\.
The Side of the Equation Investors Shouldn’t Ignore
Most investors, unless very experienced, concentrate almost exclusively on some method of measuring return on investment, i.e., cap rate, Internal rate of…
Rents can “Easily be Raised”?
Almost every seller out there says that he’s renting his property below market and “rents can easily be raised”.
When is a “Hard Money Loan” NOT a Hard Money Loan
Different private and hard money lenders have different criteria for approving and funding a commercial mortgage loan.
HOW COMMERCIAL MORTGAGE BROKERS CAN EARN $250,000 (or more) ANNUALLY
After 20 years as a private mortgage/hard money direct lender, I have dealt with over one thousand commercial mortgage brokers.
PART 2 – MORTGAGE BROKERS: Most UNPRODUCTIVE Use of Time
Part 2: Mortgage Brokers Most UNPRODUCTIVE use of time 1\. Participating in a broker “Daisy Chain”
MORTGAGE BROKERS: Most Productive Use of Your Time
Mortgage Brokers: MOST Productive use of your time: 1\. Speaking with QUALIFIED borrowers
WHEN CAN I OFFER SELLER FINANCING?
Q: Do I Have to Own a Property Free and Clear to Offer Seller Financing? A: 1. Buyer assumes existing note ‘subject to’ and seller carries second lien
EDUCATING POTENTIAL BORROWERS
I feel like commercial mortgage brokers and commercial mortgage lenders need to do a better job of educating potential borrowers about what is required to…
MORTGAGE BROKERS: SHOULD YOU BE A GENERALIST OR A SPECIALIST?
The brokers that bring us loans can be classified as either specialist, i.e., the specialize in a specific industry type, like gas stations, mobile home…
THE TOP 5 CRAZY BORROWER QUESTIONS ASKED IN 2018
5\. If I use your capital and pay the interest, will you fill out my tax return? 4\.
UPFRONT FEE?
Should Commercial Mortgage Brokers Charge Borrower’s an Upfront Fee? This is a hotly debated topic, with many investors, borrower’s, and real estate ‘gurus’…
How Mortgage Brokers Can Salvage a Deal When the Borrower Owes More than the Property will Support
1\. Negotiate a reduced payoff with the current lien holder(s) 2\. Ask the borrower if he has other property he owns free and clear to add as additional…
Evaluating Passive Real Estate Investments
TICS (Tenants in Common), 1031 exchanges, REITS, Real Estate Mutual Funds, LLCs, Limited Partnerships.
Breaking through the Loan Approval Nonsense
Many lenders seem to be afraid to approve a commercial mortgage loan. Their requests for ever more exotic and marginally relevant information, documents…
Get Rich Quick! Sure!
You know a borrower just attended a get rich quick real estate seminar when they say: 5\. What do you mean you don’t lend on residential real estate?
Beware Hidden Fees
TICS (Tenants in Common), 1031 exchanges, REITS, Real Estate Mutual Funds, LLCs, Limited Partnerships.
How Commercial Mortgage Brokers can Earn $250,000 (or more) annually ?
After 20 years as a private mortgage/hard money direct lender, I have dealt with over one thousand commercial mortgage brokers.
Private Mortgage Loans Provide a Short-Term Financing Alternative
Private mortgage loans are made by private lenders instead of traditional financing sources such as banks,lending institutions, or government agencies.
How a direct private lender can support a changing retail landscape
Retail is one of the industries hardest hit by the digital revolution. Traditional storefronts have taken a big hit in recent years, creating a pool of eager…
What’s the Difference Hard Money or Private Loan?
The Difference Between a Hard Money Mortgage Loan and a Private Mortgage Loan Sometimes used interchangeably, these two terms are not synonymous.