Do you remember a l950’s television series called “Dragnet”, reenacting the cases of a dedicated Los Angeles police detective, Sergeant Joe Friday? Sergeant Friday would demand from suspects and witnesses “Just the facts, ma’am, just the facts.” In today’s real estate lending environment, the Mortgage Broker and the loan underwriter need to identify “just the…
Author: Dan Harkey
Some Lenders Deviate From California Real Estate Laws
There is a growing real property lending industry problem whereby mortgage brokers licensed by the Bureau of Real Estate, and non-Bureau of Real Estate licensees, use private offering securities exemptions to circumvent regulatory requirements. Some brokers, and non-brokers, use a California exempt offering to create a pool-type limited liability company. They raise capital from private…
What is a note purchase secured by Real Estate?
Investors who purchase real estate are looking for multiple benefits. These benefits include cash flow, appreciation, tax incentives, and other financial rewards. Eventually, they may sell, exchange, or leave the real estate to their children or heirs. Real estate is considered “real property,” as opposed to “personal property.” Property ownership involves active management, including, financing,…
What is a Note Hypothecation?
Real property owners’ usually sell to buyers’ who finance with a bank or institutional lender. The bank/lender records these documents at a municipal records office, referred to as a deed of trust or mortgage create a security interest in the property. The recorded instruments become a matter of public record, the property owner has fee…
Property Insurance “Lender Loss Payee” Endorsements
Property Insurance “Lender Loss Payee” Endorsements Dan Harkey, Business & Finance Consultant https://www.insurance.wa.gov/sites/default/files/documents/438-bfu-ns.pdf Evidence of insurance coverage on behalf of a real property lender that is placed on a binder, which states “additional insured, loss payee, or lender loss payee” does not provide adequate coverage to the lender under most circumstances. A binder is a…
The Objective of the Federal Reserve is to Maintain a Steady Devaluation of the Dollar Based Currency
The quiet objective of the Federal Reserve, the US government, and Wall Street is a steady decrease of purchasing power of the dollar. By use of mechanisms such as financial repression, calculated financial leverage, artificially lowered interest rates, structured massive loads of public debt, making false future promises of social benefits to citizens and non-citizens,…
Financial Weapons of Mass Destruction – The Derivative Impact on Bank Deposits, and the Death of FDIC Insurance Protection
Should you be wondering what is really behind the Wall Street versus Main Street divide, it is necessary to understand the derivative market. Derivatives were the catalyst for the 2008 near collapse of the financial system. Without reform, I believe the potential exists for a repeat financial earthquake and this time with a much larger…
What Exactly is Investing in Trust Deeds
What Exactly is Investing in Trust Deeds Most investors are aware that they can invest in hard assets such as real estate, diamonds, gold, collectables, fancy automobiles, paintings, etc. All can be held physically or by operation of law; for example, an automobile pink slip, or a real estate ownership certificate called a deed. Deeds enable…
Should You Purchase All or a Fractional Portion of a Trust Deed Investment?
The purpose and motivation of investing in trust deeds include the desire to place one’s investable capital into a vehicle that yields greater than other traditional investments that have equal or lesser risk. Annualized yield, monthly payments, diversification, preservation of capital and return of capital at maturity serve as the comparison characteristics. Investor(s) may…
Daisy Chain Mortgage Brokerage Services
Hard money brokerages make and arrange loan transactions using private party investors/beneficiaries. The private parties are the source of the private money capital. The investors essentially become the bank and invest their capital as the lenders. They receive collateral in form of a promissory note and a recorded deed of trust, both signed by the…
Zombie Companies? What are they?
“Zombie” is referred to a fictional undead being created through the reanimation of a human corpse. The term comes from Haitian folklore, where a zombie is a dead body reanimated through various methods, most through magic. A zombie cocktail refers to the name of the “knock you on your ass,” drink made of light rum,…
What’s it all about, my biker friends?
What’s it all about, my biker friends Are we just waiting for the next ride What’s it all about, when we sort it out Is there an adrenaline rush around the next corner? Is it buddies, motorcycles, burgers and beer? Or, is there something, more metaphysical close by or near Are we meant to ride…
Debt Serfdom and the American Enterprise
In our quasi-capitalist culture, many of us, including me, have grown up to be materialistic and hyper-consumers. We learned and quickly adapted to the “Bigger, Better, Faster, Prettier, Skinnier, Richer, Smarter, and every other…er.” Personal self-satisfaction, and introspection remained elusive! Gaining attention, approval, envy, glory, jealousy and power motivated excessive consuming. I have been particularly…
Media Hype & Dis-Information Bombardment (aka: Fake News)
Each day we wake up all giddy and chipper, with well-intended plans of hopping out of bed excited for the day’s adventures. Not so fast! I need my coffee first. Do not attempt any form of communication with me, nor make any gestures, before I have had my coffee, and not one minute before. I…
Social Engineering By The Government, Using Taxpayer Funds
The government is choosing winners and losers while injecting taxpayer funds—or tax advantaged benefits—into preferred (supposedly capitalist) pet projects. The obvious question arises: is it appropriate for government to arrange economic experiments and take unproven risks with public funds? Or, as an alternative, would the free market do a better job at experimentation using private…
The Smartest Badger in Badgerville
I proclaim that I am the smartest citizen of Badgerville! I dwell in my comfortable den and spend my days in my extensive network of tunnels. I search out neighboring badgers from whom I can extract some benefits. I consider other badgers who may question my motives as predators. They do not understand that all…
Alt-Right, Right-Leaning, Alt-Left, Left-Leaning, Subversive, Criminal Who can keep up with all these groups and differing agendas?
There are more than 800 groups and sub-groups today which possess opposing value systems and agendas, and may find it convenient to coexist and perhaps cooperate in both legal marches, demonstrations and/or subversive or criminal activities, to further their own personal agendas. The Make American Great Again pink pussy demonstrators, wearing those snazzy pink outfits…
Dealing with Multiple Personality Types
Every day we wake up, go to work, and engage in social activities with others, we are confronted with the reality that people around us are different. They have diverse agendas, some kindred and some adverse. Each person is created differently, grows up differently, develops different ideas and value systems. These value systems may be…
Remembering The Rolodex Days
When I started in the real estate business around 1974, the common method for networking and growing data about your prospective customers was 2-fold. The first was a high-tech box of 3X5-inch blank cards. The second was called a Rolodex which was a rotating spindle that held specially shaped index cards that were referenced in alphabetical order and snapped in or out. Users…
Anatomy of a Snowflake
Our Snowflake, Atticus sits near the window in his room waiting for his cell phone to notify him he has a text message from one of his “closest” friends. He lives for the opportunity to keep in touch and have friends who reassure him he is special and unique. During his formative years, he was…