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Are you familiar with the Battle of Thermopylae?

You might be familiar with the movie titled 300 that fictionalized a retelling of the Battle of Thermopylae in 480 B.C. The plot revolves around King Leonidas, who leads 300 Spartans into battle against Persian "g_d-King" Xerxes and his army of more than one million soldiers.

Although all 300 Spartans died, their deaths inspired the different city-states (Greece) to unite against the Persians, beginning the Battle of Plataea, the final land battle during the second Persian invasion of Greece, ultimately defeating the Persians and marking the beginning of Persia’s decline.

I can’t help but equate the process of securing financing in the current lending environment tantamount to the Battle of Thermopylae!

Here’s why:

According to the SBA’s own statistics, only 13% of all applicants for an SBA loan get approved. That is right, 87% of all clients you could potentially talk to have already been denied.
The nation’s 10 largest mortgage lenders denied 26.8% of loan applications in 2010, an increase from 23.5% in 2009, according to an analysis by The Wall Street Journal of mortgage data filed with banking regulators.
Moreover, the “big 4” banks (Bank of America, Citigroup, JPMorgan Chase & Wells Fargo) only close 1 out of every 10 Letter’s of Interest (LOI’s) that they issue. Read that again, 90% of ALL APPROVALS issued by the big 4 ultimately get denied within the next 4 months.
Additionally 2/3rds of the local banks are trying to get debt OFF their books, not looking to loan new debt.

Translated - 87% of all clients are denied and 90% of all applicants that are initially approved don’t close.

Underwriting a hard money loan is like a four-legged stool. You say, “What could possibly be the correlation between a stool and underwriting a hard money loan?”

The four legs of a stool represent the core factors in underwriting a hard money loan:

Collateral (Security – The property securing the note.)
Skin (Borrowers own Cash into the transaction.)
Story (The story that gave rise to the need for the loan.)
Exit Strategy (A realistic detail of how the loan will be paid off at maturity.)

When all four legs are the same length and sturdy, the stool works fine. But imagine a four-legged stool with one short leg or with one leg missing. Whether a short or missing fourth leg, the structural integrity of the stool has become compromise and may eventually fail.

Likewise, when all four core factors of underwriting are present and satisfactory, the success of the loan is maximized. However, if one of the four core factors of underwriting is weak or non-existent, the loan may be doomed.

Understanding the four legs to a hard money underwriting stool are key to improving and increasing the odds of securing loan approval - but not guarantee it.

The Conservative Pre-Retiree’s Guide to Trust Deed Investments

As a pre-retiree, your life is filled with confusing choices to make. You know that as you age you should begin moving your money from riskier investments into the more conservative because the older you get, the less time you have to recover from the potential losses and failures of risky investments. But you also know that conservative investments carry their own set of risks, including the risk that you won’t accumulate enough growth from a low-interest, conservative investment to actually sustain your lifestyle needs through retirement.

Introducing Trust Deed Investments

One way around the accumulation risk posed by conservative investments is to consider Trust Deed Investments (also known as hard money loans) as part of a well diversified retirement plan. Trust deed investments are a decades’ old investment option that allow investors a low volatility, fixed investment vehicle with the flexibility that a conservative pre-retiree craves.

In a trust deed investment, you lend a real estate investor who wants to buy either commercial or residential real estate, up to 50 percent of the proceeds they need to invest in a property. But you don’t just do that sight unseen. You loan the money only after a Trust Deed Investment Company has vetted the borrower and the borrower has presented an exit strategy for paying off the loan.

Ideal for a Conservative Investor

Trust deed investments are ideal for conservative investors for several reasons. The first is the intensive vetting process that each loan must go through. The second is the transparency of the deal, because unlike a REIT, equity, or mutual fund, a trust deed investment gives the lender access to all the details of the transaction—from the property assessments to the borrower’s credit profile to his or her exit strategy. The investment is simple and all the paperwork and transactional duties are handled by a Trust Deed Investment Company.

Trust deed investments are also short term investments with relatively high interest rates. Loans are generally paid off within five years and the fixed interest rate is usually between 7 and 12 percent. Also, because you are only lending up to 50 percent of the property value, there is a cushion of equity there to protect your investment*. The loans can also be sold to another investor, making them as liquid as bond.

When you are looking for an appropriate fixed investment for your retirement account that doesn’t require a lot of maintenance for the investor, does not sacrifice return for risk (or vice versa) and has a comfortable fixed interest rate, think about a trust deed investment.

*Protective equity is based on a formula and may not equal 50% of the property’s value.

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Equal Housing Opportunity Lender
Copyright © 2011 Hanover Mortgage Company.

We bring together Capital and Opportunity.
Are you in need of reliable assistance with California Trust Deeds, Real Estate Loans, or other related products relevant to the private real estate lending & investment industry? You’ve come to the right place!
At HanoverMC, you’ll find access to the resources that will help satisfy your financing or investment needs. Our goal is to bring together capital and opportunity for highly effective results for all parties.

When you choose HanoverMC, you’ll have dependable assistance with your borrowing and lending needs. With more than two decades of trusted service in the industry, you are sure to find the solution you need right here. Read more about our array of services and opportunities.

HanoverMC Features Services For:

Borrowers—Bridge loans, lot & land, fix & flip, unfinished construction, and many other solutions for your real estate needs.
Investors—Trust deed investors in California in search of the stability and security of trust deed investments.
Brokers—With quick underwriting, candid communication, and friendly service to expedite the process.

Our goal is to facilitate real estate lending and trust deed investing by - meeting the special financing needs of qualifying borrowers and the investment objectives of trust deed investors.
At Hanover, we connect trust deed investors California, borrowers, and brokers based on individual needs.

California trust deed investing with Hanover includes advantages like:

Profitability
Security
Closing Service
Investment Management
Proactive Management

As a referring broker, you’ll enjoy benefits including:

Accessibility
Communication
Pre-Approvals
Broker Protection

If you’re visiting Hanover as a borrower, you’ll find advantages like:

Flexible Terms
Faster Funding
Quick Approval
Easier Closings
Fewer Hassles

Borrowers, investors, and brokers alike prefer HanoverMC. Our professionalism, service, and personalized approach allow you to find the solution that is made for you. With our help, you’ll be on your way to the California hard money loans, private money loans California, and trust deed investing you’re after.

California Hard Money Loans - Capital When You Need it Most©
HanoverMC meets the needs of time sensitive transactions by seeking small balance loan opportunities ($100,000 - $1,000,000) throughout Southern California. We focus on loan scenarios that cannot be adequately handled by traditional lending sources either due to time constraints, deal complexity or the transitional nature of the asset. We step in where banks leave off, funding commercial, multi-family (apartments) and residential "hard money" (equity loans) on purchase or refinance transactions. We provide financing for both cash-flowing, income-producing properties and for select transitional properties. While we will consider providing completion dollars for unfinished construction projects that are at least 80%+ complete, we do not finance ground-up construction.
Capitalize on our Common Sense©
Our loan programs are both innovative and unconventional, allowing real estate owners, operators, builders, investors, and entrepreneurs to complete challenging transactions where timely execution provides a substantial financial advantage over financing with a traditional lender.
Our loan programs offer a simple and streamlined process managed by experienced professionals who have the resources to respond quickly to any opportunity with the highest levels of service, specialized knowledge, and creativity. Our loans are customized to meet your specific and unique requirements and circumstances, and offer a streamlined process, and certainty of closing.
Our objective is to leverage our extensive depth of real estate and finance experience to create flexible, custom-tailored investment solutions to your unique situation.
We offer:

Accelerated process and quick commitments
Near-term closings possible
Up to 80% LTV (ARV)
Commercial property, land acquisitions and refinancings
Renovation and Rehab Loans
Loan terms from 3 months - 3 years

From the opportunistic acquisition of under-performing or non-stabilized real estate, to value-creation plays via repositioning or one-off “out-of-the-box” projects, HanoverMC’s team of experts are ready to respond quickly to individual financing demands.

California Trust Deeds (Real Estate Secured Loans)

HanoverMC offers California Trust Deeds (fixed return instruments secured by real property) to Individual Investors, IRA’s and other pension plans.
Our investment strategy focuses on “Safety first” and performs discovery, due-diligence and analysis to assist in the investor's decision-making process and remains available for support during the full life cycle of the loan. As such, Investors connect with prescreened funding opportunities, resulting in higher quality trust deed investments.
Our underwriting philosophy is one of simple common sense. There is, however, a lot more to the decision making process that goes into whether or not to make each loan. We carefully scrutinize every aspect of each loan request including the underlying property, in terms of overall desirability, marketability, condition, and associated value. We conduct a complete examination of the title to the property and obtain title insurance on every property we lend on. We also keep a keen eye out for any environmental issues that may affect the property. We carefully scrutinize each borrower in terms of their credit, income, expenses, assets, liabilities and overall motivation for requesting a loan. Each loan request must also pass the basic “make sense standard”. Only after all of these things are considered do we decide to accept or deny a loan.
Investing in trust deeds is an exceptional way to achieve attractive returns on investment, build wealth and protect your capital.
Our trust deed investment opportunities are focused on new originations with short or mid-range investment horizons (3-36 months) secured by both residential and commercial properties, primarily in first position that typically possess in excess of 40% protective equity earning between 7%-9% APY (annual percentage yield) interest returns (plus pre-payment penalty, when applicable) depending on property type, use, associated risk, local laws and market boundaries. Higher returns are available on land, construction completion and REHAB/Fix & Flip financing earning between 9%-12% APY and on 2nd or 3rd Trust Deeds earning between 12%-21% APY.
Regardless of the state of the economy, small investors need sound, profitable investment options that offer stable, long-term growth.
Established in 1991, HanoverMC serves investors based in California, providing an alternative to the standard low rates offered by most large domestic banks and other investment companies.

NOT FDIC INSURED
NOT A BANK
MAY LOSE INVESTMENT
INVESTMENTS ARE NOT INSURED

As a trust deed investment company, HanoverMC identifies high-quality real estate lending opportunities, enables investors to fund these secured loans, and manages the entire process from application through repayment.
As your partner in investment planning, we'll help to ensure your fiscal health in both thriving and challenging economic times.

Private Money Loans and More—Resources to Assist

Hanover’s services go well beyond connecting trust deed investors California or borrowers; meaningful resources are at your fingertips. In the Lounge, you’ll find:

Articles—Read about California hard money loans, trust deed investors California, and much more.
Audio Library—Easily download audio about private money loans California and trust deed investing.
Video Library—Videos about trust deed investing and private money lending to help you understand your options.
Talk Radio—Our weekly radio show discusses the latest market news so you are sure to make the right investment and borrowing decisions.
Events—Find out about events in your area that highlight information investors, borrowers, and brokers can use.

In addition to the information provided on its lounge, HanoverMC provides commentary and information of interest to investors, borrowers and brokers on its blog at http://www.hanovermc.com/blog/welcome-to-our-blog.
Or just stay in touch at:

Follow HanoverMC on Twitter at http://twitter.com/OCHardMoney
Become a fan of HanoverMC on Facebook at: http://www.facebook.com/HanoverMC..

When in need of trust deed investments California, California hard money loans, and other assistance, contact HanoverMC at 1-800-Go-Hard-Money.

California Trust Deed Investing | Trust Deed Investors California | Hard Money Lenders California | Sitemap

Hanover Mortgage Company is licensed in California only.
Real Estate Broker – CA Dept. of Real Estate – License# 01410448
NMLS I.D. number: 337458.

INTEREST RATES CAN CHANGE WITHOUT NOTICE. ASK US FOR CURRENT RATE INFORMATION. BORROWERS AND PROPERTIES MUST QUALIFY. CONDITIONS AND RESTRICTIONS MAY APPLY. Loan programs, amounts, rates and terms are subject to change without notice. Loan approval is not guaranteed and all loan applications are subject to verification of acceptable credit, income, employment, lien position and value of collateral in the sole discretion of Hanover Mortgage Company. Flood and/or property hazard insurance may be required. Additional fees, conditions, restrictions and limitations may apply. Not all programs are available in all areas. The interest rate for adjustable rate mortgage loans is subject to increase. Please contact Hanover Mortgage Company to determine your eligibility for a specific loan product. Hanover Mortgage is a Mortgage Broker. Mortgage Broker fees will apply unless stated otherwise. California Department of Real Estate, real estate broker license number 01410448. NMLS I.D. number: 337458. Disclosure: Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured. State law dictates that we acknowledge that interest on trust deeds is not guaranteed. No investment is completely risk free and past performance is not a guarantee of future results. Before investing, investors must be provided applicable disclosure documents. "Hanover Mortgage does not offer financing for those transactions defined as ‘Covered Loans’ or ‘High Cost Loans’ in any state or federal law." All Rights Reserved.

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