When I first left banking to run a fund, I had not yet fully embraced the entrepreneur mentality. I was still stuck in the corporate brainwashing that had been part of my “professional upbringing” since I graduated from college and went into the management training program for one of the largest institutions in the country. My eyes were fully opened when I stepped out.
Transactional Funding: The A to B, B to C Transaction Read More »
Banks are mysterious places. The layperson’s initial reaction is to see the manager of their local branch and ask if they have any bank assets, REO properties or non-performing loans, to sell. When you do this, however, the banker will probably look at you like you have two heads.
Who at the Bank Should You Speak To? Read More »
During a session of surfing the internet, one person asked if an on-line payment calculator was accurate. I thought, “you know, I bet many of our readers that are not members have the same question!” I have one of my own on an Excel Spreadsheet that I have used for years as a banker and later as a Fund Manager for Castle Rock.
Build Your Own Payment Calculator! Read More »
So you’ve made a bank an amazing offer to purchase a non-performing loan…an offer that they can’t refuse. For reasons passing understanding, they refuse it anyway and respond by countering you with a ridiculous amount in return. Why on God’s green earth to banks make the decisions they do.
Banks Don’t Make Decisions Read More »
We are often asked questions about setting up banking relationships for real estate investors. I was a banking executive with an expertise in lending and real estate for more than 25 years before managing real estate-related portfolios for Castle Rock, so I know something about this topic. Let’s talk about your options.
Banks, Credit Unions, and Other Lenders: Who is Right for You? Read More »
We just received a question from a newer real estate investor surrounding “Guidance Lines of Credit”. Their branch banker recommended that they explore getting a Guidance Line for their real estate investment business.
As the Institute prepares a new video for its members on building a decisioning model to take the guess work out of it, we thought it would be a good idea to share with you the first step in building a model.
Understanding the Cost of an Investment Read More »
It’s pretty boring stuff, but if you are going to buy rental property, you really need to understand the concept.
THE BORING, BUT NECESSARY CHAT ABOUT DEPRECIATION RECAPTURE Read More »
In the early days of Castle Rock, we had the grandiose idea that we would develop our own decisioning system based on models that we had created and developed over time. We bartered services with one of our investors, a data base designer for a large international consulting firm, to design a system that would help us with our pricing. We really thought this would speed up the process. There was one real fly in the ointment. That fly’s was me.
HOW DO YOU SCULPT YOUR MODEL? Read More »
Jim Collins is one of my favorite business authors. In one of his books, he talks about the concept of firing bullets then cannon balls. In his books such as “Good to Great,” he and his team use objective data to find out what makes some companies great and others simply average.
Fire Bullets, Then Cannonballs Read More »
I’ve seen this saying pop up on Linked In all the time and it’s true. I see so many private lenders and note buyers try to prepare their own paperwork, avoid pulling title reports, and generally trying to cut costs that I see them get themselves into trouble when things go awry in a transaction.
IF YOU THINK ITS EXPENSIVE TO HIRE A PROFESSIONAL, TRY HIRING AN AMATEUR Read More »
Contrary to popular belief, real estate does not always appreciate. It acts similarly to how other assets classes work, therefore, looking at how asset classes function is critical to building a strong, healthy portfolio
REAL ESTATE AS AN ASSET CLASS Read More »
There is a saying in lending “Every loan is a good loan when you make it.” During that visit, I learned that this saying is false.
WHY DO BANKS SELL ASSETS? Read More »
I’m often asked “how did you go from being a bank real estate executive to running a successful real estate-based fund that does business in so many states?” One of the chapters in my upcoming book gives you the scoop. Here is that story…
How I Got Started… Read More »
So you’ve found a borrower for your IRA funds. He’s a great guy and the purpose for him borrowing from you sounds great. He needs the money right now, but it will take time to get the proper agreements drawn up
GOOD FENCES BUILD GOOD NEIGHBORS Read More »
Every time I turn on HGTV there is another fix-n-flip show gracing the airwaves where regular people seemingly make huge profits by putting granite in a bathroom. Do these people ever lose? Yes…yes they do, but it’s a TV show.
IF YOU DON’T KNOW, FIND SOMEONE THAT DOES. Read More »
Whether you purchase notes or you are a hard equity lender, understanding the value of your collateral is critical to creating a good loan for your portfolio. Banks and GSE lenders use the good, old-fashioned appraisal to determine value.
TRUSTING THIRD-PARTY VALUATIONS Read More »
Most lenders and investors rely on on-line data and title reports to determine the real estate tax delinquency status of a collateral property. Simply looking at the title report or pulling up the local tax assessor’s web site isn’t as reliable as one might think.
Don’t Miss Back Taxes Read More »
MIAMI – In the future, potential renters may visit available units, apply for leases and execute paperwork without ever seeing a human being.
Real Estate Investors Bank on Technology to Deliver Profits Read More »
During the first part of my career, I bragged about the fact that I had never had a real estate loan go into default. It was a sense of pride to me until one of my mentors retorted “that just means you aren’t making enough loans!” He was right.
A seasoned negotiator will recognize that there is a difference between the problem at hand and the person on the other side of the table.
Separate People from the Problem Read More »
In order to fund large amounts of fixed-rate, longer-term loans, conservative investors would purchase a portion of a large pool of loans. The investment works a lot like a bond where an amount is invested…
MBS, CMBS, and Bank Loans Read More »
Disaster investors save money, wait for a disaster and attempt to buy real estate at bargain prices. In Mexico Beach, some owners have posted “Not for Sale” signs.
After the Storms Pass, the Disaster Investors Arrive Read More »
We have a tenant in our homeowners association (HOA) that consistently breaks the rules. The landlord is indifferent because he is receiving rent, but the neighbors are very frustrated. What can we do?
What to Do With Tenant Who Consistently Breaks HOA Rules? Read More »
As a possible economic slowdown looms, the people who invest money for ultra-rich families are buying more real estate as a hedge against any possible downturn.
Family Office Investors Focusing More on Real Estate Read More »
