Private Mortgage Investing and Collateral

Private mortgage collateral is typically the real estate loaned on. However it can and does sometimes include other assets of the individual or business borrowing the hard money. In many cases a private money lender will offer a smaller loan size based upon a lower "Loan To Value Ratio". This means they may opt to loan no more than 65% of the property value. Therefore it is common for real estate investors to offer additional real estate as collateral in order to obtain a larger loan amount. This is known as cross-collateralization.

Learn more by buying Private Mortgage Investing, an award winner in Foreword Magazine's Book of the Year Award.

Foreword Magazine's Book of the Year Awards

My book, Private Mortgage Investing, won runner-up in the finance category of Foreword Magazines Book of the Year Awards. This is quite prestigious and I'm really excited. If you want to invest in real estate or help those that do, private mortgage investing is worth checking out. my book can help you learn how.

Understanding Your Private Mortgage Client

Why would anybody use hard money for a mortgage?

Hard Money is not a solution for everyone. For example on a Commercial Project- stopped because of no funds- the builder has 3 options

1. Stop the project
2. Take on a partner or
3. Hard Money.

Hard Money is less expensive then bringing on a partner.

For residential borrowers it can

1. Stop foreclosure
2. Give time
3. Give options

To learn more, buy Private Mortgage Investing by Teri B. Clark.

Shariah-approved Mortgage

A growing number of North Americans Muslims are willing to pay more for their mortgages, so long as the deal complies with their religious beliefs. It is estimated that at least one third of Muslims will refuse conventional mortgages because they violate shariah law, Islam's guiding body of rules, by charging interest. As a private mortgage investor, you may be able to find a way for this to work for you.

A shariah-approved mortgage could be structured as a co-ownership between the buyer and the lender in which the buyer leases to own.

In Canada, shariah-compliant mortgages are between 100 and 300 basis points more expensive than conventional mortgages. In the United States, however, the spread narrows to between 40 and 100 basis points.

About 40% of the 7.5 million Muslims in the United States do not own a house. The market could be immediately worth about US$1.7-billion.

To learn, buy Private Mortgage Investing.

If you lend on flipping, read this

The already slow real estate market situation was compounded when the Federal Reserve announced that interest rates will not be going down, which has negatively impacted the stock market, and may continue to impact home sales for some time.

If you lend to those that flip, they will be finding it to sell these homes quickly. Since staged homes sell for 6.9% more than a non-staged home and sell 50% faster, you should consider requiring that such homes be staged.

To learn more, buy Private Mortgage Investing.

Private Mortgage Investing Book Receives Highest Rank Possible!!

When it comes to readers' views, Private Mortgage Investors has earned a top ranking - 5 out of 5. This is according to May 13th's Very Well Said Poll. Haven't read it yet? Order it here!

Best Selling Top Ten

The Very Well Said Best Selling Books By Subject associated with Amazon.com has Private Mortgage Investing by me, Teri B. Clark, listed as #8 in the category of Mortgage Books as of Sunday April 29th.

According to Nasiri Suzan, Director of Funding of Fidelity Investments LLC
,Private Mortgage Investing is incredibly useful in explaining the dos and don'ts of private mortgage investing as well as a wealth of information on all related topics.

Get a copy of Private Mortgage Investing for yourself!