Val-Chris Investments

Earlier this month, our VP Jeff LaMotte was interviewed by Real Estate Bees along with peers on the affect this pandemic has had on the private money market. This survey included information collected from over 2,000 active hard money lenders and Jeff was asked some specific questions as an industry expert. During the COVID-19 crisis, many non-QM and hard money lenders closed up shop due to the future’s uncertainties with this virus, but businesses like Val-Chris Investments remained open, continuing to serve the needs of our private money clients!

Why?

A large part of the Private Money Trust Deed investment market had been gobbled up by the Institutional Non-QM (Qualified Mortgages) Mortgage Companies backed by Wall Street Investment Companies seeking higher yielding investment strategies in the last few years.  Trust Deed Investors were being squeezed out of the market and replaced by large aggregators. This provided fewer opportunities and competition was fierce for these loans.

Conventional mortgage rates are generally determined by a number of factors such as the federal reserve’s rate policy and the secondary market. In the current environment of rising interest rates, while interest rates are generally low, conventional lender’s rates change daily in small amounts. The final rate is dependent on when the rate is “locked in” by the lender putting the loan together.