Hard Money Lender

About 70 investors were recently swindled out of about $6.4 million for construction loans on Malibu, California land that is considered undevelopable.  Additionally, on a similar deal brokered by the same lender, the investors claim they lost about $3.5 million.  The Malibu property foreclosed and is only worth a fraction of its appraised value.

The loss of these investors is an unfortunate example of hard money lending.  This type of loan usually goes to people who cannot qualify for traditional loans and mortgages.  Although typically riskier than mortgages, hard money investors buy fractional interests in the transactions, hoping for sizable returns that are backed by the underlying property value.

For more information on hard money lending, please consult Pit Bull Mortgage School at 858-736-7788.

Marc Sessions Jenson settled on a plea deal after pleading no contest to three counts of selling unregistered securities in a plea bargain. Johnson as dictated by the deal will pay two of the victims a combined $4.1 million. The third victim had already been given restitution and therefore was not included.

Jenson will still be permitted to remain principal of a group converting Oak Meadows ski resort into Mount Holly Club. However, he is prohibited from involvement hard money lending. By accepting the deal, Jenson avoided the possible 15 year prison sentence he was facing.

For more information on hard money lending, please consult Pit Bull Mortgage School at 858-736-7788.

Even as the rest of the economy reels from the aftereffects of the credit crunch, many private lenders are cashing in by providing loans to customers rejected by their banks. Though many major financial institutions and lenders are tightening their belts and their standards, smaller firms are finding a new market among those who were considered good borrowers under previous criteria but are locked out by the wave of stricter standards sweeping through the industry.

These small, privately owned, hard money lenders are stepping in the fill the gap left by the absence of commercial loans. Because they operate on a smaller scale, private lenders are able to evaluate each loan on a specific, personal basis, which allows them - at least potentially - to assess risk differently from large commercial lenders.

If you would like to learn how to succeed in the hard money lending business, contact the Pitbull Mortgage School today at 858-736-7788.