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1. |
All Investments are NEW LOAN ORIGINATIONS. We broker hard money loans to individual investors interested in making private real estate loans to our borrower clients on different property types in California, and occasionally elsewhere. A Note and 1st, 2nd, or 3rd Deed of Trust secure these loans. |
2. |
We are not a financial source or resource for real estate investors looking for advance private funding for foreclosure sale property purchases or discounted real estate for sale, nor for venture capital funding for speculative real estate investing. A valid purchase contract signed by both buyer and seller is required for consideration of a hard money purchase loan. |
3. |
We are not a "Note Broker" – we do not buy or sell Notes on CA real estate. |
| 4. |
Hanover Mortgage Company is NOT an investment company or Real Estate Investment Trust - we are a CA licensed real estate mortgage broker that originates privately funded real estate loans in addition to a wide variety of other conventional and non-conventional residential and commercial real estate loans - primarily in CA. |
5. |
We do not guarantee a minimum of trust deed investment opportunities to you, nor do we guarantee the performance of any borrower in meeting his or her obligations under your Note and Deed of Trust. |
| 6. |
We do not "pool" investors or investments. We do not produce any literature or a prospectus on our services or trust deed investments, nor do we act as a property information service, your investment advisor, your legal counsel, or as instructors with regards to real estate trust deed investments. If you entirely unfamiliar with investing in real estate trust deeds, you may wish to instead consider investing in a publicly traded Real Estate Investment Trust ("REIT), available from any number of investment brokers, or otherwise wait to invest until you have the necessary education and legal advice you'll need in order to successfully delve into investing in trust deeds, as these are not a "no-risk" investment. |
| 7. |
Title to the properties we arrange loans for may be vested in individuals, LLCs, corporations, or trusts. |
| 8. |
ALL loans must comply with state and federal regulations for Section 32, AB489, and any/all other federal and state-level anti-predatory lending regulations as they relate to owner-occupied property and covered loan limits. Also, and in accordance with real estate law as it relates to owner-occupied property loans, we do not arrange loans for clients who do not have the ability to repay the obligation, nor will we broker loans that are not in the best interest of the client, regardless of the investor's willingness to lend, as we have primary fiduciary responsibility under the law to the client. Properties within the cities of Los Angeles and Oakland also have additional regulations and compliance that supersede state laws. As a broker, we are NOT your legal counsel or advisor as to the specifics of any applicable regulations applying to private mortgage lending in CA - it is strongly recommended that you retain legal counsel and familiarize yourself with all laws and regulations PRIOR to investing in CA trust deeds., and industrial properties. Our loans include purchase money loans, refinance loans, construction loans, and rehab ("fix-and-flip") loans on CA real estate. We do not broker unsecured business loans or personal loans. |
| 9. |
Anti-predatory lending laws also severely limit the interest rate and overall fees allowed on privately funded property loans in which the original principle balance of the loan does not exceed the current conforming loan amount ($417,000) for an owner-occupied, single-family dwelling as established by Fannie Mae in the case of a mortgage or deed of trust. As such, you can secure more real estate investment opportunities with a lower required interest rate return and points charged. Likewise, the higher loan-to-value percentage you are willing to loan against the properties you wish to lend on may also earn you more transaction opportunities, though there is an increased risk to you in the event of the borrower's default or declining market conditions. Finally, your willingness to consider less desirable property types, such as manufactured or modular homes (permanently attached to a foundation), raw and remote land parcels, unfinished construction, etc., will also open more investment opportunities, though; again, there is a higher risk in lending on these properties versus more conventional types. |
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The majority of our borrower clients are individual property owners with 30% or more equity or stake in real estate and are seeking private money as a more expedient route to their available equity and require faster turnaround than conventional lenders can provide. In other cases, our private money loans are used for commercial bridge money for different purposes. In some cases, our clients have credit issues or non-documented income and cannot qualify for conventional financing, but have an LTV of 50% or less and other compensating factors. |
| 11. |
The properties we broker trust deed loans on are non-owner and owner-occupied homes, 2nd homes, vacation properties, raw and improved land, and investment, owner-user commercial real estate, including retail, mixed-use, offices, apartments, and industrial properties. Our loans include purchase money loans, refinance loans, construction loans, and rehab ("fix-and-flip") loans on CA real estate. We do not broker unsecured business loans or personal loans. |
| 12. |
The investors we primarily use to fund our loans are typically high net-worth individuals with broad experience in real estate lending and investment, and are capable of making a commitment to lend (or not) within a matter of hours or a day or two. We will, in some cases, use newer or first-time investors with smaller amounts to invest, but we are highly reluctant to use investors who need many days or weeks to scrutinize a potential investment before making a decision to lend, as our borrowers are usually in need of immediate funds and will go elsewhere if there are long delays in pre-approving a hard money loan application. The exception to this is when an appraised value is questionable and/or a more thorough review of the property is warranted, as is the case with some rural, unique, very expensive, or mixed-use real estate. |
| 13. |
Our general minimum brokered loan for "owner-occupied" residential property is $250,000, though loan amounts less than $250,000 for owner-occupied property will be considered on a case-by-case basis, with an appropriate and lawful commission fee paid to us. The exception to this minimum investment standard is for investment property, commercial, and land transactions, which allow for substantially higher points and interest. Our minimum brokered loan for these property types is $50,000. |
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Our broker fee may vary depending on the transaction type and amount. We quote deal specific transactions. Again, all applicable loans must still comply with maximum APR lending laws.
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Good Deeds You Can Trust™ |
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