Phil Caulfield Jumbo Loan California DRE #01030082

Here are ten reasons why you may need a private money loan in San Mateo County:

• Speed - private money lenders can move fast because they can give more attention to the files submitted. They are not processing hundreds or thousands of files per day, like banks do.

• stated income - private money lenders may not require income documentation as long as the file falls within regulation Z guidelines regarding stated income.
• low credit score - private money lenders are more willing to work with clients who have credit scores that fall below what the banks require. Their primary concern is equity in the property. Secondarily, they are concerned with the client's exit strategy, meaning the plan to get the private money loan paid off when it becomes due.
• High loan amount - many banks have reduced their maximum loan amount. Private money lenders can fill the void by funding large loan amounts.
• Unlimited Cash-out - The restrictions on cash-out have been tightened by institutional lenders. Private money lenders have the ability to fund loans that do not have restrictions on the amount of cash-out.
• Vesting - Many lenders do not allow title to be held by a corporation or LLC. Private money lenders are often able to fund loans with the property vested in a corporation or LLC.
• Bridge Loan - If you want to buy a home before you sell your current home, you may need a bridge loan. Private money lenders are often the source for this type of loan.

• Rental property cash-out - This type of transaction is another type that has had its guidelines tightened by most financial institutions. Although the rates are usually higher, private money lenders can fund this type of transaction.
• Incomplete construction - Construction projects sometimes stall because the financing source runs out of money. To complete construction, a private money lender can be a source of funds to fill the gap to finish construction.

• Pay off another private money loan - Private money loans are usually written for a short term (1 to 5 years). The private money borrower may not be able to qualify for an institutional loan when their current loan becomes due. Their only choice may be another private money loan.

If you are a borrower or a mortgage broker in San Mateo County, or anywhere in California, I can help you obtain private money financing.

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What Is A Private Money Loan?

Here is a list of open houses in Burlingame and Hillsborough that are listed for more than $2,000,000 that will occur on Sunday November 8th. The information for this list of open houses in Burlingame and Hillsborough was found on the MLSlistings.com website.

• 2980 Privet Drive - $4,800,000 - 2 to 4
• 38 Lemon Court - $4,680,000 - 1:30 to 2:45
• 555 Craig Road - $4,295,000 - 1:30 to 4
• 70 Joyce Road - $4,280,000 - 1:30 to 3
• 15 Jewell Place - $4,250,00 - 2 to 4
• 735 Brewer Drive $4,225,000 - 2 to 4
• 105 Baywood Avenue - $3,880,000 - 3 to 4:30
• 280 Sierra Drive - $3,650,000 - 1:30 to 4
• 50 Woodridge Road - $3,350,000 - 2 to 4
• 112 Alturas Drive - $3,149,000 - 1 to 4
• 356 Darrell Road - $3,095,000 - 1:30 to 4
• 150 Newton Drive - $2,995,000 - 1:30 to 4
• 10 Kammerer Court - $2,985,000 - 2 to 5
• 725 Hayne Road - $2,895,000 - 2 to 4
• 740 El Cerrito Avenue - $2,860,000 - 2 to 4
• 2135 Carmelita Avenue - $2,825,00 - 2 to 4
• 35 Willard Lane - $2,550,000 - 1:30 to 4:30
• 1417 Cabrillo Avenue - $2,348,000 - 2 to 4
• 1524 Newlands Avenue - $2,298,000 - 2 to 4
• 2223 Easton Drive - $2,250,000 - 2 to 4
• 1325 Cabrillo Avenue - $2,248,000 - 1 to 4
• 10 Tiptoe Lane - $2,199,00 - 1:30 to 4
• 50 Glenbrook Drive - $2,150,000 - 2 to 4
• 1435 Lakeview Drive - $2,149,000 - 2 to 5

I have had real estate owners in San Mateo County ask me - what is a private money loan? A private money loan is a real estate loan funded by non-institutional sources.

Non-institutional sources of private money loans vary. The source could be an individual. Often it is a group of people who have pooled some funds together.

There are companies that specialize in the placing and funding of private money loans. These companies serve at least two important functions.

The first function they serve is the marketing of the availability of private money loans. They often post ads on Craigslist, trade publications, and other marketing vehicles to let both the public and mortgage brokers know that they have funds to lend.

The second function they serve for the private money source is similar to a funnel. They receive loan scenarios and toss out the ones they know that the private money source will not be interested in. They package the files that fits the source's interests, present the file, and receive approval.

Why would someone become a private money lender? Generally speaking, a private money lender gets a generous percentage return that is secured by real estate. To the lending source, it is an investment of their money. It is an investment alternative, just like investing in the stock market is an investment alternative.

Why would someone borrow private money funds? Well, that will be the subject of my next post that will tell the top ten reasons why someone would want or need a private money loan.

The terms of a private money loan are usually much different than the terms that banks offer. One major difference is the length of the term. Generally, private money loans are no longer than five years.

Another difference is the interest rate. Private money rates tend to be higher than the rates banks offer. Higher rates make sense because these loans are usually riskier.

The fees associated with a private money loan are usually higher than bank loans. It's not unusual to pay anywhere from three points to eight points to obtain a private money loan.

With the tightening of underwriting guidelines by banks, private money loans, I predict, will gain market share in the near future.

If you need help with a private money loan in San Mateo county, or anywhere in California, you can contact me and I will try to help you.

Jumbo Loan Blog

Get Your Mortgage Phil

Are you looking for an estate planning attorney in San Mateo? Harry Pedigo is an estate planning attorney that I have met through our mutual membership in the Burlingame chapter of BNI.

Harry Pedigo is a Bay Area native with a global interest. He received a BA degree from San Jose State and a JD from Santa Clara University. In the upper quarter of his law class, he passed the California Bar in 1980 and was admitted to practice law. Twenty one years later, he sat for the Hawaii bar and passed that.

Mr. Pedigo’s personal theory has always been to help the client and have the client come out of the representation in better shape that when he or she came in with a problem. Mr. Pedigo has worked for law firms and in his own business, and has many years of experience in personal injury, probate, trusts and estate planning, bankruptcy, family law, corporate formation, real estate and business law. He has the knowledge and expertise to take a matter to trial, tempered by the wisdom to keep his client’s interests first in mind. This always includes leaving the door open to settlement when to the client’s advantage.

In Mr. Pedigo’s life outside the law, Mr. Pedigo has traveled widely and lived both in India and Japan. As a result of these experiences, Mr. Pedigo is sensitive to cultural differences and bridging this gap when a client with a different background is caught up in a legal problem. Mr. Pedigo was a teacher and counselor before becoming a lawyer, and he believes it very important to keep a client informed not only about the status of a case but what options are possible and the likely risks and benefits of those options.

In addition to being a member and past president of the Burlingame Lions Club, he is active in church and community affairs and, in addition to attending Indian and Japanese cultural events, is active in the Bay Area Hawaiian community. He has two grown daughters, a granddaughter and a grandson.

Probate, Trusts and Estate Planning, Bankruptcy, Real Estate and Business Law

Mr. Pedigo continues to practice in probate, trusts and estate planning, bankruptcy, family law, corporate formation, real estate and business law. Since regular hourly fees can be expensive, he usually charges a special minimal rate for the first consultation and, depending upon the type of case and length of consultation, he may not charge at all for the first consultation. If the legal problem is something which Mr. Pedigo cannot handle for some reason, he can usually refer the client to someone who does practice in that area or explain how to go about finding the proper attorney.

If you would like to contact an estate planning attorney in San Mateo who puts your interest first, you can e-mail him, or call him at (650) 344-7641.

A Reverse Mortgage Alternative

Many homeowners and home buyers in California have probably heard of a bridge loan but do not know what it is or who should obtain one.

A bridge loan is usually a short-term loan (usually written for three months to three years) that provides funds to buy real estate from a piece of real property that an owner has an intention of selling, but will not close before escrow closes on the new property.

This transaction is called a bridge loan because these funds "bridge the gap" between the closing of two transactions.

Let's look at an example of a bridge loan. Bill and Betty Buyer would like to purchase their California dream home for $800,000. The down payment required is 20%. They have enough money saved for the closing costs and cash reserves, but little else saved.

Their current home is worth $500,000. The existing balance on their mortgage is $50,000. They have $450,000 in equity.

Bill and Betty would like to make an offer on the new home non-contingent on the sale of their current home. How, they wonder, can they make this offer?

Enter Bob the Bridge Loan Guy. He tells Bob and Betty that he can help them obtain a $210,000 loan on their current home ($160,000 for the down payment plus $50,000 to pay off their current mortgage). Bob the Bridge Loan Guy has figured out that the Buyers can qualify for both the bridge loan and the purchase loan because their debts on both the current home with the bridge loan and the new purchase loan are less than the maximum amount of debts to qualify.

The Buyers successfully make their offer and close escrow 30 days later. Another 30 days later they close escrow on the home they listed for $500,000. They use $210,000 from the proceeds of the sale to pay off the bridge loan, and use the other $290,000 in proceeds to pay down the new mortgage.

A few important tips you should know if you are considering a bridge loan:

• You must be able to qualify for the bridge loan and the loan to purchase the new home.
• There is no guarantee that your current home will sell quickly. How long can you afford to pay mortgages on two homes?
• A bridge loan is usually more expensive than other types of loans. Consider other types of financing (do you have an equity line of credit available, for example?)
• A bridge loan may be available with stated income under the new Reg Z guidelines as of October 1, 2009.