November 2009 Newsletter
Know Who You are Dealing With
A local hard money company is all over the NH news these days…..  I’m glad it’s not mine.

Donald Trump said that there is no such thing as bad publicity, but I’m not so sure.

You see, a mortgage company located in NH has been shut down by the NH banking department, and forced into bankruptcy by it’s creditors, according to the Manchester Union Leader. A large portion of their business was hard money loans, although they dealt with conventional residential and commercial loans as well.

While you definitely CANNOT believe everything you read in the paper, there are allegations of missing funds in the millions. Apparently there are previous court cases as well.

The point of this is not to trash a competitor, because we didn’t really share the same customers.

The point is: Know who you are dealing with. If you are a lender/investor, the people bringing you investments should make everything as transparent as possible. If you are a borrower, you should be able to count on what your broker or lender says.

Much of this goes back to relationship lending. Hard money has shifted significantly in past months. Although the definition of hard money is a loan based on the collateral, lenders are more and more reluctant to lend to people who have past foreclosures or have walked away from deals. Or even have simply taken way too long with a project.

So, if you are investing your money to loan to a borrower, ask all the questions, meet the borrower, and stand on the dirt (the property being collateralized)whenever possible. Ask around for references.

If you are a borrower, ask your fellow investors about their experiences. Ask at the local REIA.  Be careful of initial statements made before an offer is made. A loan can turn out to be structured differently from what you expected. This is especially true if you’re new to hard money.  Try this page for help with your first deal.

Know who you are dealing with.


Your partner in profitable investing,

Ann Bellamy

Buy Now, LLC

Quick Tip


For all you landlords out there…..It’s harder every day to find good tenants

Here are two tips for tenant screening:

1. Take a look inside their car – it probably mirrors the inside of their apartment, and will soon mirror the inside of your unit.

2. Ask them what brand of vacuum cleaner they use. It will soon become evident if they even own one!