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Avoiding Marshalling

Cross-Collateralized Lenders May Face Litigation from Junior Lienholders Private lenders with cross-collateralized assets typically have extra security but face a unique challenge: junior lienholders who have no other source of assets from the same creditor can sue to force the lender into focusing on a different collateral or even get...

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A title insurance binder lying open beneath a property survey map

Private lenders often require title insurance policies insuring amounts exceeding the loan balance—typically 125% of the loan amount. This additional coverage protects against potential indebtedness ...

An international wire confirmation beside a withholding tax schedule and a FBAR filing three

The United States remains one of the most attractive destinations for foreign capital seeking real estate investment exposure. Stable property markets, established legal frameworks, and ...

A lender's marketing materials spread on a compliance review desk a mortgage advertisement

Private lenders engage in advertising every day, often without fully appreciating the scope of regulatory obligations that attach to their marketing activities. From websites and ...

A debt service coverage ratio worksheet mid-calculation a pencil resting on a row where the

Understanding Market Cycles and Lending Strategy Every successful private lender understands that market conditions fundamentally shape which loan products generate the best returns. Among the ...

Five distinct legal documents fanned out on a conference table each representing a different

Lender liability law exists to protect borrowers from lenders who act in bad faith, commit fraud, or otherwise violate their legal duties. For lenders who ...

A vast commercial real estate landscape

The COVID-19 pandemic fundamentally reshaped commercial real estate (CRE) lending in ways that continue to influence market dynamics today. While the acute crisis phase has ...

An SEC filing binder open to a compliance calendar quarterly deadlines circled in blue

Private lenders, real estate developers, and investors who raise capital through private offerings rely heavily on registration exemptions under the Securities Act of 1933—most commonly ...

A vacant California apartment unit the morning after lockout keys on the counter

Completing the eviction of a tenant through California’s unlawful detainer process is only half the battle. What happens in the hours and days immediately following ...

A cross-collateralization clause in a loan agreement language circled in pencil

Private lenders who extend multiple loans to the same borrower or related entities face a fundamental challenge: how do you prevent a borrower from selectively ...

Multiple title commitments spread across a large table

When a lender finances multiple properties under a single loan or under a cross-collateralized loan structure, the transaction introduces title insurance challenges that simply do ...

Five distinct parcels different types, different geographies

Private and hard money lenders exploring scalable capital structures should give serious consideration to the mortgage pool model. A mortgage pool aggregates multiple loans into ...

A California courthouse exterior at early morning stone steps empty

California’s SB 1079 reshaped the residential foreclosure landscape when it took effect on January 1, 2021. By inserting a post-sale bidding window into the non-judicial ...