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Jeff LaMotte is Vice President and Partner at Val-Chris Investments, Inc and Co-Founder of Portola Oak Capital, which manages APEX Note Fund, a private equity debt fund. Before becoming Vice President, Jeff started his career as an account executive at Val-Chris Investments. Val-Chris Investments is known in the industry for its long and ethical reputation as a California Private lender since 1975.
Many investors are eager to diversify their portfolios and reduce market risk with real assets. Even non-correlated investments like real estate include risk, although they are comparatively more stable than traditional stocks. For those considering alternative strategies that trade liquidity for passive income, trust deed investing can be a lucrative opportunity to make risk-adjusted returns.
One of a landlord’s or real estate investor’s top priorities is finding reliable and secure tenants who will pay their rent on time and take good care of their properties.
Investors and landlords put a lot of work, time, and resources into their property investments, and they want to avoid renting to unreliable tenants who cannot make payments on time or will damage their properties.
Private money lenders generally belong to a lesser-known sector of lending. Traditional banks and lenders are known for providing more common types of residential and commercial loans, whereas private money lenders play a crucial role for borrowers seeking alternate ways to obtain financing. Let’s explore what a private money lender is, how they operate, and why they’re essential in today's diverse financial landscape.
Mortgages and deeds of trust are two types of legal documents used when buying and selling real estate, especially when obtaining money from lenders to purchase a property.
Both a mortgage and a deed of trust are necessary, and they serve similar purposes. However, these two legal instruments differ in some key ways—especially in how they work and the legal procedures involved. It’s important for homeowners and lenders to understand how the two differ, so let’s take a closer look at some of the important differences between a mortgage and a deed of trust.
A collateral loan is a type of secured loan that reduces the amount of risk taken on by lenders. It’s a popular way for borrowers to secure funding at a potentially lower interest rate.
More lenders are using real estate as collateral when issuing loans or financing. When you collateralize a property, that property is pledged as an asset. If you don't repay the loan in time or fail to fulfill certain obligations of the agreement, the lender can reclaim the property. Because the collateral is considered stable and secure, the loan features and qualification requirements can be flexible.
If you're considering a hard money loan, you're probably wondering whether the risks outweigh the rewards. Hard money loans can be a good fit in the right scenario, but there are both pros and cons to consider before borrowing.
Let's discuss hard money loans and the risks and rewards that come with them:
Trust deed investing involves an investor lending money to a borrower through a private loan. The borrower—typically a homebuyer or developer—will then use the investor’s capital to add value to a property. To protect their investment, the investor’s name is on the deed of trust. The trust deed ensures that the property is used as collateral. When looking at this type of investment for your portfolio, you need to understand how the lending and borrowing processes work and consider the potential advantages and disadvantages. This will allow you to make better and more informed decisions.
