Dan J. Harkey

Master Educator | Business & Finance Consultant | Mentor

Real Estate-Technical

Technical Real Estate Insight on the Issues that Move Value—Legally, Operationally, and Financially

Legal issues, valuation realities, operational pitfalls, and market shifts—explained in plain English.

Real estate isn’t just “location, location, location.” It’s contracts, compliance, conditions, valuation, and the little details that turn good deals into expensive lessons. My articles cover technical and legal issues, ownership and operations across residential and commercial property, and the market trends reshaping what works (and what doesn’t). If it affects risk, value, or performance, it belongs here.

Most deals don’t fail on the headline numbers—they fail in the details: condition, documentation, liability, tenant/legal exposure, and assumptions that don’t survive due diligence. I write about real estate the way it behaves, benefits, detriments, valuation methods, and the shifting landscape that changes your risk overnight.

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.

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.

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.

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.

California Property Inflation and Insurance Stress: Multiple-Torpedoed-Whammies Against the People and Private Property Rights.

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.

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.

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:

Financial Elder Abuse in Real Estate Lending: A Cautionary Tale

According to the National Adult Protective Services Association (NAPSA), only 1 in 44 cases of financial elder abuse is reported. Victims are three times more likely to die and four times more likely to enter a nursing home without funds. With an estimated $14.6 trillion at risk, vigilance is critical.

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

The Seemingly Smart Borrower Refuses to Pay for Adequate Property Insurance

Fools Rush in Where Wise Men Never Tread

Non-Profits and Churches: A Real Estate Lender’s Guide

In California, the Attorney General’s office plays a critical oversight role for nonprofit and religious organizations, particularly those classified as charitable entities.