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.
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.
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.
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:
Stated income loans are still available in Lake Tahoe. As of October 1, the rules have been changed regarding stated income loans. However, Lake Tahoe has many homes that are either second homes or rental properties. Second homes and rental properties are exempt from the new laws regarding stated income loans.
If you own or want to buy a second home or rental property in the Lake Tahoe area, there are stated income loans available for:
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I am a mortgage broker who has been originating since 1985. I specialize in jumbo mortgage loans, commercial, and construction loans in California. Cash out and stated income loans are available.
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