Dan J. Harkey

Master Educator | Business & Finance Consultant | Mentor

Private & Hard Money Lending

Valuable Insight and Information About Private & Hard Money Lending

Private Lending Runs on Trust. Brokers Make It Work

In private and hard money lending, brokers and agents don’t just “find money”—they engineer the transaction. They act as intermediaries with fiduciary responsibilities, aligning Borrower needs with investor requirements while keeping the deal anchored to collateral value, risk, and an executable exit strategy. This site provides reliable insight—from structuring to underwriting to documentation—so your deals are defensible and your outcomes predictable.

Search Results

Should Commercial Lenders Enforce the Due-on-Encumbrance Clause if a Borrower Records a PACE Loan?

Yes, a commercial lender can generally enforce a due-on-encumbrance clause if the borrower records a PACE (Property Assessed Clean Energy) loan, because:

Top Mortgage Risks: Understanding What is Crucial Knowledge for Every Lender and Borrower

The mortgage industry, a vital pillar of the housing market, is not immune to significant risks. Both lenders and borrowers face challenges that, if not managed effectively, can lead to severe financial strain. Below, we present the top mortgage risks, ranked by their potential impact, along with real-world examples.

PACE Regulatory Reset-2025. Shortened Version.

What changed—and why it matters.

2025 PACE Regulatory Reset: What Lenders, Program Administrators, and Property Stakeholders Need to Know

Residential Property Assessed Clean Energy (R PACE) financing will operate under a materially new federal regime beginning March 1, 2026, following the CFPB’s December 2024 final rule applying TILA/Regulation Z to PACE and adding Ability to Repay (ATR), TRID, and other mortgage-like obligations to PACE transactions.

Private Money Lending: A Strategic Alternative to Bank Financing in Real Estate

With case studies and a field-tested playbook for finding and vetting lenders: Private (hard) money lending is a strategic tool in real estate investment, offering speed, flexibility, and asset-based underwriting. It’s the solution when opportunities in the market Demand immediate action, bypassing the wait times of traditional bank loans. While it may be costlier, private capital empowers investors to pursue fix and flip, bridge, construction, and creative strategies that many banks won’t finance.

Church and Non-Profit Owners Can Now Unlock Hidden Value in California Real Estate Through Entitlement Arbitrage:

California’s evolving land use laws have created a rare window of opportunity for church and non-profit corporations. With the state now overriding local municipalities in the approval process, properties once constrained by zoning limitations can now be repositioned for high-density residential development—dramatically increasing their value.

What is the Impact of Financial Leverage On Investment Yields? Understanding the potential benefits of financial leverage can be a game-changer for your investment strategy.

The impact of financial leverage differs significantly between stocks and real estate, primarily due to differences in asset characteristics, financing structures, volatility, and income generation.

Will Lenders Allow PACE/HERO Loans to Encumber the Property with a Junior Loan?: The Loan Documents Have A Due-On-Encumbrance Provision.

Commercial lenders do not automatically allow PACE (Property Assessed Clean Energy) or HERO loans to be placed on properties when they hold a first trust deed.

Why Do Borrowers Choose Privately Funded Loans Over Bank Loans?

When banks say no, private lenders, in most cases, will say yes.

California’s Entitlement Feed Back Loop: When Good Intentions, Bureaucracy, and Market Reality Collide

California prides itself on protecting consumers, tenants, and communities. However, as “I’m entitled to some of yours” expectations harden into mandates, the machinery required to deliver on those expectations grows—rules multiply, compliance becomes a business line of its own, and costs cascade through housing, insurance, and everyday enterprise.

The Alarming Scope of Elder Abuse in the United States: A Hidden Epidemic

By any measure, elder abuse in the United States is a public health and public safety crisis hiding in plain sight. As America ages—older adults will comprise roughly 23% of the population by 2050—the frequency, severity, and cost of abuse are rising, while reporting remains stubbornly low. That combination makes elder abuse both widespread and chronically undercounted.

When Money Gets in the Way, Familiarity Breeds Contempt

Successor Co-Trustees of a Family Trust: They Despise Each Other

Subordination and Inter-Creditor Agreements: Agreements that Modify the Collateral Lien Position, by Mutual Written Agreement Between Principal Parties

A contractual document that provides a mutual understanding of modifying lien priority in real property transactions.

Profitability: What’s Killing It?

10 Hidden Counter Forces (with Practical Examples, Metrics, and Fixes)

Does the Bureau of Labor Statistics Lie for Political Gain or Desired Propaganda to Further Their Agenda and Ideology?

The history of the Bureau of Labor Statistics provides false statistics, then revising them later as a propaganda ploy or political ploy. The BLS routinely overestimates or underestimates when it is politically expedient, and revises when it gets caught.

California Property Inflation and Insurance Stress:

California is experiencing a multitude of counter-economic forces that undermine the dream of homeownership and significantly add to the stresses of current property owners and renters alike. There are multiple whammies against the people and private property rights.

SB-9: California: The objective is two dwellings on one single-family lot, or one single-family lot subdivided into two parcels.

SB 9 and the Fight for Housing in California: The State Takes Over the approval authority, Municipalities left with Ministerial Approvals Only, Court Rulings, and What It Means for You.

The Great Transformation: Transforming Ourselves, Our Country, and Our Way Of Life.

The primary transformation is about ourselves, as we learn and adapt to the rapid changes around us.

How Bad Is the Office Property Glut Today?

The U.S. office market is still facing a significant glut, though there are signs of gradual improvement.

The Alarming Scope of Financial Elder Abuse

Elder financial crimes account for an estimated 20% of $73 trillion in assets held by older Americans—approximately $14.6 trillion misappropriated or stolen. To put this in perspective: