Dan J. Harkey

Master Educator | Business & Finance Consultant | Mentor

Private & Hard Money Lending

Valuable Insight and Information About Private & Hard Money Lending

Dan has given 350 seminars, written books, sponsored legislation, and penned technical articles on real estate and lending. Dan’s website provides reliable information and guidance.

Brokers and agents play a crucial role in this subset of the lending industry, making and arranging loans funded by private investors and secured by real property. They operate as intermediaries with fiduciary responsibilities, facilitating the lending process. The lending criteria in this subset are more property/equity-driven and less credit/income-driven.

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Setting Up an Operational Manual for a Company’s Marketing and Promotion Efforts:

The objective is to provide a clear roadmap of the company’s marketing objectives, enabling associates, employees, and vendors to participate and contribute to the company’s success proactively.

AB-130: The New California Law that States That a Homeowner Association Fee Violation cannot be more than $100?

Abusive HOA practices: Some homeowner associations harass their property owners with continuous fee assessments for every little thing. The propensity is irritating and makes property owners feel like another big brother is watching and harassing them. The practice is abusive and creates a bureaucratic infrastructure that supports itself on the backs of homeowners.

Moral Hazards in The GDP Calculation of Economic Growth

A moral hazard occurs when one party takes on excessive risk because they do not bear the full consequences of that risk—often because someone else will absorb the cost.

Debt Monsters-Credit Cards-Locked into A Spiral of Dread

The current state of credit card defaults is not just a concern; it’s alarming. We’re witnessing the highest rates in 14 years, a stark reminder of the 2007-08 meltdown.

Credit Card use can be beneficial. It can also become a curse to deal with. Consumer habits will dictate whether it is advantageous or a curse.

Credit cards can be powerful financial tools, but they come with both advantages and disadvantages.

Insurance Companies: Admitted vs. Non-Admitted

Here’s the difference between admitted and non-admitted insurance carriers in California:

How Are FICO Scores Calculated, and Why Are They Important?

✅ How FICO Scores Are Calculated

Sell the Sizzle, Not the Steak: How to Market Real Estate and Close More Loans Like a Pro

In the realm of real estate, facts are undeniably crucial—square footage, bedroom count, and location are all vital details. However, it’s not these facts that ultimately sell homes. It’s the emotions they evoke. This is where the timeless marketing principle of “Sell the sizzle, not the steak” comes into play. Instead of fixating solely on features, successful agents accentuate the experience, lifestyle, and emotional benefits that a property offers, tapping into the buyer’s emotional side.

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.

The 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 when the lender has a first trust deed?

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