March 28, 2022

Newsletter from the Fund Manager Boris Dorfman: Inflation, War, Interest rates and Future of the Real Estate Market

We are living in turbulent times. It is very difficult to find inspiration to do YouTube videos and write during these times when the war came to my birth country of Ukraine, but I MUST and I WILL. I will talk about global and local finance, financial markets, Real Estate, the economy, and of course MONEY. Many of you, are like me and have a hard time concentrating on multiple things at the same time, especially my fellow males out there (didn’t mean to sound sexist, but my lifelong observation shows that women can think in different directions, while most men can’t). So let’s get away from our daily world watch and talk about the state of the economy and what steps we can take in today’s environment to preserve and multiply our 1. INVESTMENTS 2. ECONOMY. 3. RESERVES. 4. MONEY 5. REAL ESTATE. Many in our society still feel […]
March 16, 2022

How to get a hard money loan easily?

Unlike banks, private lenders can give you a hard money loan easier, faster, and securely. It may become an excellent solution for situations like fix and flips, land loans, construction loans, or the case when an investor has to act quickly and has no time to wait. However, there are some requirements you need to know before getting a hard money loan: Down payment/equity One of the main requirements is having a down payment or equity of a particular property used as collateral. The minimum range for residential property is 25%-30% of the loan amount, and for commercial property, the range varies from 30% to 40%. So, obviously, the higher the down payment is, the bigger the chance to get a loan. Overall financial strength The second key point is the borrower has to have cash reserves to make monthly loan payments and holding costs. The minimum cash reserves depend […]
March 10, 2022

Can I get a hard money loan for a primary residence?

Hard money loans exist not only for real estate investors but also for people who cannot apply for a conventional loan. Moreover, a hard money loan is a perfect bridge between a bank’s requirements and customers’ demands. There are two types of owner-occupied hard money loans – a consumer bridge loan and a long-term private loan. Before applying for one of them, let’s consider the pros and cons of both of them. Consumer bridge loan Usually, these type of loans is short-term and rarely lasts longer than 12 months. However, here you should expect a greater interest rate (about 10% and higher) because a lender risks such a deal. Additionally, the lender may ask you to pay 2-3% of the interest upfront to offset the risk. This loan is used the most when a borrower has temporary issues, but his financial situation will stabilize in a few months and up […]
February 28, 2022

Real estate vs stocks

The eternal question is… real estate or stocks? If cryptocurrency is just another trend, investing in stocks is as ancient as investing in real estate. However, there still is the question: what brings better profit? Investing in Real Estate Many famous people such as John Astor, Donald Trump, Donald Bren became billionaires through owning real estate. How to become one of them and what issues сan you face? Let’s start with the benefits. Investing in real estate is an excellent tool for generating passive income. Suppose home buying is a challenging adventure. In that case, the basics are simple: Purchase a property, manage maintenance (and tenants, if you own additional properties beyond your residence), and attempt to resell for a higher value or get monthly rent pays. Also, owning a tangible asset (you can touch it) can make you feel more in control of your investment than buying fractions of […]
February 16, 2022

Where to invest: real estate vs cryptocurrency?

What is the best place to invest your money in? It’s challenging to choose between stocks, crypto, real estate, and forex. The buzz lately is between real estate and cryptocurrency. Choose one or Choose both? Where can you get more income, what is less time-consuming, and which is easier to handle? And most importantly…Are they both investments? Let’s consider the advantages and disadvantages of both. Real estate investing Real estate investing is an old sure way to get rich. Just check the list of billionaires and you find out that most of them are real estate investors. But what should you know before you start investing and what are the benefits? Unlike invisible cryptocurrency, real estate is a tangible asset. You can touch it, drive by it, brag by sending photos of it, collect rent, live there, demolish it and even bring your mistress there :). Also, It cannot be […]
February 9, 2022

How to get dividends on my investment?

So what do we do at LBC Capital Income Fund and how can you make money with us? We invite you to earn a steady ~8.00% annual return with monthly distributions, which are secured by high-grade residential and commercial real estate. The Fund originates, underwrites, and finances loan transactions on highly-quality real estate properties. These transactions provide an attractive return balance to investors in the Fund. What are the benefits? 1. Monthly dividend payments The Fund receives income in the form of loans interest paid by the borrowers. Thus, real estate investors get monthly dividends from this cash. 2. Potential for considerable long-term accumulation As an investor, you will have an opportunity to receive dividends or automatically reinvest them. 3. Your investment is protected by real estate collateral. If a borrower defaults on a hard money loan, the Fund Manager forecloses on the property securing the loan. Subsequently, the property […]
February 2, 2022

Hard money loan vs. mortgage loan

Hard money loan and mortgage loan: what is the difference? Nevertheless, it’s kind of two similar loans (as they are both used in the real estate industry) the difference is considerable. First of all, hard money loans are used to buy commercial property or to invest in a new one to sell it profitably in some time. On the contrary, mortgage loans are used by individuals or families to buy their own homes. The primary purpose of hard money is to help real estate investors make more money. Thus, a hard money lender will pay attention to the property, not a borrower’s credit score. Also, the terms of hard money loans are shorter than mortgage terms. Usually, the investor flips a house, sells it for profit for a year or two, and then pays off the loan. However, the terms are higher. If you are a real estate investor, LBC […]
January 26, 2022

Hard money loan FAQ

With the growth of our audience, we frequently get common questions like “how to get a hard money loan,” “how fast is it,” etc. Thus, we decided to do a “Frequently Asked Questions” article where gathered all the common questions. FAQ 1. How to get a hard money loan? To apply for a hard money loan, please, submit a form on our website or call our loan advisor at (818) 761-7234 2. How fast can I get a hard money loan? LBC Capital has an instant approval process. We underwrite loans within 24 hours and close deals within 7 days. 3. Can I get a loan if I have a bad credit score? It is possible to get a hard money loan if you have a bad credit score. Usually, lenders take income, collateral, and debt into consideration. Moreover, a relationship with a lender plays an important role as well. […]
January 19, 2022

Does a hard money loan appears on a credit report?

A credit report is crucial for real estate investors and those who care about their finances. Usually, such things as loans show up on a credit report but does it relate to hard money loans? The answer is no. Most hard money loans will not appear on the customer’s credit report. But it is essential to understand that this isn’t always the case, and you should discuss it with your lender if it’s an important factor for you. In addition, many borrowers new to private money loans or hard money loans may be concerned about their credit score and credit report. However, thankfully, for most hard money deals such as fix and flip loans and church loans. These loans will typically show on a background check and asset search, which most hard money lenders will use during the application process. It is possible that your loan deal structure may appear […]