Author: LarryN

We have funded several loans for California apartment house owners so far this year. Loans range from $250,000 to $2,500,000, we just need a current rent roll, property address and borrower information in order to issue a Letter of Interest. We only charge 2 points fee or less if the loan is over $1,000,000.00. Smaller…

Certainly it is challenging to underwrite a loan these days. Apartment owners have some tenants not paying rent due to Covid and not able to evict until the end of January, other tenants asking for concessions, or rent reductions. While we realize this is a temporary situation, we have to take into account the cash…

Recently we funded a 4 year loan for a customer on 9 units in W. Hollywood. Rent control in W. Hollywood is very restrictive, the apartment units are not de-controlled upon a tenant moving out. Rents remain very low, affordable for tenants, not-so beneficial to owners who pay high prices. There is a provision if…

What can I say, our business has changed over the years many times.  Early on in the 80’s we bought private-party / seller-carryback loans nearly exclusively.  The vendor-carried loan was the predominate loan in our business.  In the 90’s there were many institutions that failed and the ‘paper’ they had was sold through the FDIC or…

On occasion we are asked to make a new loan on a small apartment building.  Usually 10 units or less, small buildings are ones many times overlooked by the big banks.  Banks these days like to make loans of over $500,000, when it comes to loans of a smaller range, they either charge too much…

With gyrations in the stock market, uncertain economic conditions in Europe, China and the rest of the world, although the USA economy is not doing too bad, we live in a global village.  Southern California real estate values seemed to have peaked out and although interest rates are very low, prices are out of reach…

Many forces, internal and external have affected our business in 2015.  This year has been full of hardships and challenges, heartbreak and sorrow.  Unfortunately Maxwell Newfield had left our firm to pursue other ventures out of state early in the year.  Maxwell was our candidate to assume control of the company in the coming years, however his…

It is always tragic to lose a close relative.  It has been 20 years since my grandmother who I grew up with passed away and I still think about her often.  The reason I mention this is because we are buying a Seller-Carryback loan that was created in 2014 whereby the seller was elderly, lost his wife just…

As we enter 2015 it is worthy to note that the economy has recovered (while somewhat slowly) from the 2008 disaster we were in.  Real Estate values have revisited or exceeded the 2005-2006 peak prices in many areas of the country.  Here in Southern California, real estate values are at all time highs in most…

Often rental property owners setup their ownership of their property in an LLC or a corporation.  That way if there is a tenant who sues or if there is a claim against the landlord that insurance doesn’t cover, or exceeds the insurance coverage amount, there are certain protections having ownership in an LLC (Limited Liability…