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Real Estate Investors Benefit as Competition Eases Hard Money Lending Terms

NNPA NEWSWIRE — For about the last 10 years, more and more institutional investors have begun to recognize that there are many financially savvy borrowers with sound investment plans. This has led to increased lending competition which allows investors to find loans requiring 8-12 percent interest and one to three points, as opposed to tougher terms in the immediate wake of the crash.

Published

5 years ago

October 17, 2019

Oakland Post

In the current lending environment, people are looking to utilize a loan for the purpose of navigating a business plan on a piece of real estate. (Photo: iStockphoto / NNPA)

Evolution of Hard Money Lending

By Christopher G. Cox, managing editor and publisher of www.realesavvy.com

In the wake of the housing crash that shook the U.S. economy in the mid- to late 2000s, real estate investors had few borrowing options as financial institutions severely tightened lending practices. According to Nathan Trunfio, president of Lending for Pennsylvania-based Direct Lending Partners (DLP), this led to the rise of so-called hard money lending, where those willing to make real estate loans could demand returns of 15-20 percent and four to five points.

As a result of the bursting of the housing bubble, there were a lot of properties that needed to be foreclosed on, Trunfio said. “They were foreclosed on, but people were still in them or banks were holding them on their books and they needed to find a way to dispose of them,” he continued.

This created opportunities for investors to buy low, Trunfio explained. Many of these properties needed to be renovated and banks did not have the infrastructure to handle the renovations themselves. “Real estate investors needed a source of capital,” he said, “so they would turn to hard money loans, which were largely based on the value of the asset.”

Although the term “hard money lending” is still in common use, this lending practice has evolved to show a softer side. Trunfio notes that for many years a hard money loan was viewed as a “bad news loan,” one associated with some sort of “distressed situation where someone needs to pull equity out of a property.” These loans, he continued, typically reflected “some type of turmoil or big need that isn’t necessarily going to result in a good situation.”

In the current lending environment, Trunfio said, people are looking to utilize a loan for the purpose of “navigating a business plan on a piece of real estate.”

“I call it soft money,” Trunfio notes, “because the approach that is taken is a combination of the analysis of the strength of a real estate investor and the asset. We are in the business of providing short-term bridge loans to experienced real estate investors.”

Asked why a borrower would seek one of DLP’s bridge loans as opposed to a more traditional loan from a bank, credit union or other lending institution, Trunfio says there are a number of reasons. “The main reason,” he notes, “is that nowadays banks have credit policies that are too tight. They can’t move quickly enough, and they won’t lend on an asset that needs renovation, or that needs a tenant, or something along those lines.”

Trunfio notes that DLP works with a wide array of investors from singular individuals and small teams to organizations of 20-50 people. “Our loans are to real estate investors – I call them serial investors – who invest in real estate as a way to make their money, whether it’s a primary or secondary focus.”

For about the last 10 years, Trunfio said, more and more institutional investors have begun to recognize that there are many financially savvy borrowers with sound investment plans. This has led to increased lending competition which allows investors to find loans requiring 8-12 percent interest and one to three points, as opposed to tougher terms in the immediate wake of the crash.

“Hard money has evolved into opportunistic money for real estate investors,” said Trunfio, “which helps the economy in a number of ways by providing more housing where there is currently a housing shortage.”

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OP-ED: The Illusion of Allyship. White Women, Your Yard Signs Mean Nothing to Me

NNPA NEWSWIRE – “The blue bracelets are something White women are wearing so others can see that they didn’t vote for Trump,” says Liberal Lisa from Oklahoma on X. Chile, bye. These bracelets are hollow symbols, empty gestures that mean nothing to me. An accessory to claim distance from Trump’s legacy is superficial comfort, while the choice to not stand with us in the voting booth is far more profound.

Published

2 weeks ago

November 9, 2024

Oakland Post

Political yard signs can symbolize intentions and allegiance. But this year, they’ve also symbolized betrayal. During this general election, Black women were led to believe that more White women would stand with us. Exit polls, however, told a different story. Despite overwhelming displays of support, more White women still chose to vote for the convicted felon, reality TV star, and rapist. White women answered the call but left us hanging at the polls.

A Familiar Disappointment

I live in DeKalb County, Georgia, and the abundance of Harris-Walz yard signs could’ve fooled me. But I’ve seen this before, back when Stacey Abrams ran for governor. White women showed up, put up signs, attended rallies, knocked on doors, and phone-banked. Yet, when it came time to vote, they let us down—not once but twice. I’ve been here for over 15 years, and if there’s one thing I know, it’s that political signs are symbols without weight.

In every election, I’ve talked with White women. Most aren’t the primary earners in their families and vote along party lines, aligning with the preferences of their fathers and husbands. These conversations reveal a reluctance to break from tradition, even when their votes affect women and certainly when their votes impact the lives of people who look like me.

The Illusion of Solidarity—Symbols Are Not Enough

On social media, I’m seeing White women posting pictures of blue bracelets to “prove” they didn’t vote for Trump. “The blue bracelets are something White women are wearing so others can see that they didn’t vote for Trump,” says Liberal Lisa from Oklahoma on X. Chile, bye. These bracelets are hollow symbols, empty gestures that mean nothing to me. An accessory to claim distance from Trump’s legacy is superficial comfort, while the choice to not stand with us in the voting booth is far more profound.

I’ve seen Black Lives Matter signs and black squares posted on Instagram to “prove” support for Black people, but we now know that was a lie, too. Will those same people who claimed Black lives mattered now take down their Harris-Walz signs and show their true selves?

Navigating these truths is a daily struggle for me—professionally and socially. White women often misuse their privilege, supporting us only when it’s convenient. Seeing overqualified Black women sabotaged or abandoned by White women at critical moments is a constant emotional challenge. It’s exhausting to live with this reality, especially when solidarity seems like something they pick up and discard at will.

One clever campaign ad from Harris-Walz that spoke directly to White women. “Your Vote, Your Choice” emphasized that their vote was private—independent of their household situation. Another was from Olivia Howell Dreizen, the “Vote Without Fear” campaign, which empowered women to consider the greater impact of their choices. But it seems many still couldn’t choose the roadmap to freedom—even when it was handed to them.

A Call for Action Beyond Words

White women, I want to believe you care, but actions speak louder than yard signs, bracelets, or Instagram posts. Show up in our communities, advocate in your workplaces, and stand up to dismantle the structures that uphold white supremacy. Only through real action will we know where you stand.

If you choose not to act, we see you—and we know exactly where you stand. Good luck these next four years.

Disclaimer: The views and opinions expressed in this article do not necessarily reflect the official policy or position of BlackPressUSA.com or the National Newspaper Publishers Association.

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Supernova Parenting Conference Empowers Over 100 Parents with Resources for Neurodivergence and Mental Health

The inaugural Supernova Parenting Conference was co-hosted by Natasha Nelson, known as Supernova Momma, and Yolanda Walker, founder of Parenting Decolonized. It brought together over 100 parents, caregivers, and educators dedicated to fostering understanding and support for neurodivergent children and mental health challenges. The conference provided invaluable resources, expert insights, and a collaborative space for […]

Published

2 weeks ago

November 7, 2024

BlackPressUSA.com

The event featured a variety of workshops, panel discussions, and keynote speeches from leading experts in neurodiversity and mental health. Attendees left with practical tools and strategies to enhance their parenting journeys, emphasizing the importance of understanding and supporting the unique needs of neurodivergent children.

“While the conference was a tremendous success, we believe that our work doesn’t end here,” said Natasha Nelson. “It’s crucial to continue providing ongoing support and resources for parents as they navigate this important journey. We want to ensure families can access the tools they need long after the conference.”

To extend the momentum generated at the conference, Natasha and Yolanda are excited to announce the launch of the Supernova Parenting Community. This membership-based initiative aims to offer a safe and supportive environment for parents and caregivers to continue their growth as conscious parents.

Membership is available for as little as $5 a month via Patreon, making it accessible for all families seeking support.

“We know that parenting can be a challenging journey, especially when navigating neurodivergence and mental health issues,” Yolanda Walker added. “Our goal is to build a community where parents feel seen, heard, and supported. We hope you’ll join us in this vital work.”

For more information about the Supernova Parenting Community and to sign up for membership, please visit supernovaparenting.org