Understanding the Top Mortgage Risks: 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.
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.
The 1998 Long-Term Capital Management Collapse was a Significant Event in Financial History that Warrants a Detailed study. The shortcomings of financial leverage, computerized annualization, market hype, and moral hazards. A great read is the book “Conspiracy of Fools,” about the collapse of LTCM.
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.
Entitlement Arbitrage: Property Owners Unlocking Hidden Value in California Real Estate California’s evolving land use laws have created a rare window of opportunity for real estate property owners and investors. 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.
Seven Illusions That Shape Our Business and Finance Decisions In the world of business and finance, certainty is a rare commodity. Yet, to make decisions, leaders often rely on assumptions that feel like facts—but are, in truth, illusions. These illusions provide comfort and simplify complexity, but when reality intrudes, they can lead to catastrophic missteps.
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.
The Remote-Work Reset: How Hybrid Work Is Rewriting the Commercial Real Estate Playbook Remote and hybrid work have shifted from emergency measures to a durable operating model. The result is a structural re-rating of U.S. office demand, vacancy, valuations, and city finance.
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.
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.
Legal vs. Equitable Ownership in Real Property: Why Is This Critical? As It Relates to a “Due on Sale,” and “Due on Encumbrance” Provision in a Deed of Trust
AB 2243: Streamlined Housing Approvals for Residential Developments on Commercially Zoned Property. Assembly Bill (“AB”) 2243 expands the existing streamlining process for residential developments on commercially zoned properties. The law took effect January 1, 2025.
California Senate Bill 35 (SB-35) Tiny Home Subdivisions SB-35 was enacted in 2017 and is a key piece of legislation aimed at addressing the state’s housing crisis by streamlining the approval process for certain residential developments.
UCC-1 Financing Statement? What is it and how does it work? A UCC-1 (Uniform Commercial Code-1) financing statement is a legal form that a lender files to publicly declare their interest in a borrower’s personal property as collateral for a loan. It’s part of the Uniform Commercial Code, which governs commercial transactions in the United States. This filing process is a crucial step in the loan process, ensuring that all parties are informed and knowledgeable about the legal aspects of the transaction.
Mechanics’ Lien Laws: California California’s Mechanics Lien Law provides a legal remedy for contractors, subcontractors, suppliers, laborers, and certain design professionals to secure payment for work or materials provided on construction projects. Here’s a comprehensive overview based on the latest 2025 guidance:
Trust-Owned Property: A Strategic Lending Opportunity for Real Estate Professionals Please note that, as a matter of law, the trustee of the family trust owns the property on behalf of the trust. The trust is not a standalone entity and cannot act without a trustee.
Owner-Occupied Commercial Buildings- Ownership of Two Different Entities of the Same Principal- The Business and The Real Estate Financing owner-occupied commercial buildings presents unique challenges and opportunities, especially when the ownership and operating structures involve entities like S-Corporations and a trustee of a revocable family trust
California’s Centralized Development Approval Process: A Shift in Power A state-level bureaucracy has taken over the development approval process, leaving local municipalities with only ministerial approval rights, subject to the state standards.
McMansion Blues: In Many Cases, The Transition Is Not Worth the Hassle Inflationary Pressures Have “Come Home to Roost,” Where the Rising Cost of Property Taxes, Property Insurance, Association Dues, Capital Improvements, and Maintenance, added together, in Many Cases, Is More Than the Property Loan Payment, if there is one.
Make Profits Purchasing Promissory Notes Secured by Real Estate Note purchases are a large, sophisticated industry designed for sophisticated investors, typically those who are accredited.
Investors Find Good Yields with Private Money Trust Deed and Mortgage Investments Investing in trust deeds and mortgage investments is popular because the yields are high compared to similar investments, considering the associated risks, management, and time consumption.
AB -130: How it Damages Subordinate Financing in California, for Residential Property AB 130 was signed into law by Gavin Newsom on June 30, 2025