Residential Hard Money Loan

A residential hard money loan is a variety of loan the place where a customer will get funds in line with the price of a unique commercial or residential real estate investment. The term hard money refers to the difficulties in obtaining any loan. Hard money loans provide high rates of interest minimizing loan-to-value ratios, while there is no federal government institution which backside the loan...

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Recommended Reading

In the comments to my last post, Jason asked me what books I would recommend. I'm assuming he was referring to real estate investing books. That's actually a fairly tough question. I've been investing in real estate for 8 years now. I started out by reading a bunch of books, but looking back, I realize I've gained the majority of my knowledge from experience and from reading other people's experiences via blogs and forums on the internet.But if I...

Rents On The Rise Nationwide

This article from Reuters says apartment rents are now the highest they have been since 2007 and vacancies are at a 10 year low. This seems to be consistent with what we are seeing at the Houston apartment compl...

New California Foreclosure Law

Because all my hard money lending is done in California and to people who buy, rehab, and sell foreclosures, this news story caught my eye. The California legislature recently passed a law making it harder to banks to foreclose on property owners. According to Reuters, the bill prohibits banks from "dual-tracking" loans - proceeding with the foreclosure process while also in loan modification negotiations with the owners. The bill also lawsuits against...

May Apartment Update

I received the May financials for the Houston apartment complex and I'm pleased to see the numbers continue their improvement. Last month's record income was exceeded by almost $3,000, setting another new record for the highest income since 2010. Also, as mentioned last month, we received a reimbursement from our insurance company for some electrical work that was done last month. Just as the expense depressed our monthly income last month, the refund...

Security At Houston Apartment Complex

Last month, I noticed that the financials for the Houston apartment complex showed the security expense had dropped from between $1,500 and $3,000 a month to zero. My concern was that management eliminated some security measures as a cost cutting move. I was worried that this might result in an increase in vandalism and crime-related expenses. I emailed management about this and, it took a while, but I finally got a response.It turns out, management...

April Apartment Update

As hinted at last month, the April numbers for the Houston apartment complex were good. Revenue hit $184,000, which is the highest since 2010. The water conservation program management implemented last year is working well - costs this year are running about 25% below last year's numbers. That's an annual savings of over $24,000.The property still showed a loss this month, but that was due to an emergency repair that was needed. A high voltage line...

Prosper.Com Class Action Lawsuit

I received notification today of a class action lawsuit against Prosper.com. It's been several years since I loaned money through them and, in the end, I decided it wasn't for me. I know a couple of my readers also loaned money through them. I just wanted to make people aware that, if you loaned money through Prosper between January 1,2006 and October 14, 2008, you may be a member of the class action suit. Full details can be found at http://www...

Loan #24 Started

Last week, I took my money from the close of HML #21 and put it to work in a new loan. The new property is a single family home in San Pablo, California. the property was purchased at a foreclosure auction by one of our best clients, who is also personally guaranteeing the loan. The purchase price was $111,600. My partner estimates the current as-is value to be $120,000 and the after repairs value...

Houston Apartment Turnaround?

I finally got the March numbers for the Houston apartment complex. Numbers were generally comparable to February - rent income in both months were up $10,000 over January numbers. Admin expenses were up $2,000 over February due to some legal bills incurred in working out late payments with vendors. Net income continues to improve, going from -$30,000 in January to -$10,500 in February to -$8,000 in March.But a closer look reveals things may not be...

Loan #21 Paid Off

HML #21 was paid off last week so those funds are now looking for a new home. My other three loans are paying on time.Still haven't received the March financials for the Houston apartment complex. They seem to be coming later and later these days. I know the management company reduced staff to help with the cashflow and I'm wondering if this is a result of th...

February Update

Things are looking better at the Houston apartment complex. Of course, the previous times I’ve said this it’s usually turned out to be a short-lived turn-around, but still, a good month is a good month. Rental income increased in February by almost $10,000, mainly due to decreased rent concessions. This month saw the highest rent revenue since April 2011. We had t pay out $3,800 for some repairs to the roof and access gate, but other expenses are...

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Hard Money Loan #23 Started

I started a new hard money loan this week, bringing my current outstanding loan count to 4.This one is on a single family home in San Pablo. It is currently occupied. It's a 2 bedroom, 1 bath, 856 square foot home built in 1950. The roof and foundation look to be in good shape and, other than the garage, the paint is in good shape. We were unable to see the inside of the home, but pictures of the...

A Handy Tool For Landlords

I came across a handy little website the other day that I though might be useful for landlords or anyone else who needs to send certified or return-receipt letters. Send-certified-mail.com provides an easy way to send out a certified letter. You can also get an electronic proof of delivery or electronic copy of the recipients signature.If you want to use the service, you simply upload your letter as a PDF or Word file and enter the mailing address...

Apartment Update And 3 Year Outlook

As Another Investor predicted about 2 hours before it actually happened, investors in the Houston apartment complex got a request to contribute more cash. The management company is asking for a total of $250,000 more from investors to make it through the year. Management sent out budget projections for 2012 through 2014. The projections assume the complex will be sold at then end of 2014. (The original plan at purchase was to look at selling the...

First Update Of 2012

Wow.. I can’t believe I haven’t updated this blog since December! Truth be told, there isn’t much happening. My three outstanding hard money loans continue to pay on time. I haven’t received an update on the Houston apartment since last time, so there isn’t a whole lot to tell there. I’m assuming performance of that still sucks or we would have heard something. I did make a decision to go a bit further into hard money lending. I’ve got some money...