Government as Racket: How Power, Policy, Access, and Paydays Converge When people say “the system is rigged,” they may be closer to a macro truth than a slogan. Here’s the evidence-driven anatomy of how public authority routinely converts into private gain—and what it would take to unwind the racket.
California’s Housing Revolution: How Federal Mandates and Progressive Policies Are Reshaping Property Rights and Suburban Life California housing policy, AFFH regulation, real estate lending crisis, suburban zoning changes, erosion of property rights, HUD mandates, progressive housing agenda, decline of commercial real estate, and threat to suburban lifestyle.
(The Borrower’s Playbook) How to Find, Vet, and Negotiate with Private Lenders: The Key to Secure and Confident Real Estate Financing
The Road Less Traveled. Lessons in Real Estate Finance. “Life is difficult.” — M. Scott Peck. Markets shift—insurance costs spike. Regulators rewrite the playbook. These are the challenges that real estate finance professionals face regularly.
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.
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.
Insurance Companies: Admitted vs. Non-Admitted Here’s the difference between admitted and non-admitted insurance carriers in California:
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.
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.
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.
Why Do Borrowers Choose Privately Funded Loans Over Bank Loans? When banks say no, private lenders, in most cases, will say yes.
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.
Does the Bureau of Labor Statistics Lie for Political Gain or Desired Propaganda to Further Their Agenda and Ideology? The history of the Bureau of Labor Statistics provides false statistics, then revising them later as a propaganda ploy or political ploy. The BLS routinely overestimates or underestimates when it is politically expedient, and revises when it gets caught.
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.
Fiat Currency and Inflation Cycles: Understanding the Definition and Connection Fiat currency—money that derives its value from government decree (force) rather than a physical commodity—has become the foundation of modern economies. While it offers flexibility and efficiency, it also introduces a critical vulnerability: the potential for manipulation, inflationary cycles, and deflationary cycles.
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
Earners (Workers Who Pay Taxes) vs The Non-Productive (So-Called Bureaucratic Worker) Class and The Parasitic Takers Who Produce Nothing But Expect Everything as an Entitlement. It’s a question of profound significance. It delves into economic productivity, social policy, and cultural values, making it a topic of great interest and relevance. Who earns, pays taxes, and contributes to the economic engine of the U.S., and who are merely takers who subsist while exploiting the productive people? I intend to exclude those who are genuinely in need of help because of age, mental, or physical handicaps.
The Smoot-Hawley Tariff Act of 1930: Part I The Smoot-Hawley Tariff Act, officially known as the Tariff Act of 1930, was a U.S. law that raised import duties on thousands of goods to protect American businesses and farmers during the Great Depression. Sponsored by Senator Reed Smoot and Representative Willis C. Hawley, it became infamous for its unintended economic consequences, serving as a cautionary tale against hasty policy decisions.
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.
Frequently, the Mortgage Broker Must Help Clean Up The Borrower’s Mess To Close The loan. A good mortgage broker is worth their professional designation as a real pro, and to earn a handsome fee when they handle technical problems to achieve an adequate solution to get the loan approved
AB-2243, California: Housing on Commercially Zoned Land Here’s a detailed summary of California Assembly Bill (AB) 2243, which significantly expands the scope and impact of AB 2011 and SB 6 to promote housing development on commercially zoned land:
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
Investing in value-added real estate with private money financing can be highly profitable, but it also comes with several risks that investors and lenders must carefully evaluate. A profit potential will be calculated on the front end, including developing a plan, obtaining bids, the outlay of capital for fix-up costs, re-rent, and stabilization.
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.
Can You Acquire Property Subject to a Seller’s 3% Loan Without Notifying the Lender? Most trust deeds and mortgage documents have an alienation clause, referred to as a due-on-sale clause, providing for an acceleration of the debt on the transfer of ownership
A Few Borrowers’ Withheld Material Facts Which Complicate the Loan Underwriting Process Lenders rely on receiving all material facts available to make their credit assessment of the collateral property and the borrower. When information arrives in sketchy or inconsistent forms, it complicates the process.
AB-3108-Makes it a felony for any mortgage broker or loan originator to knowingly misrepresent the purpose of a loan. This law, which focuses on making loans to single-family owners of occupied properties, tightens accusations of fraud by a mortgage broker while simultaneously inviting borrowers and hungry lawyers to sue the lender and mortgage broker for fraud. This recent law was signed by Governor Newsom in California, amends Section 4973 of the Financial Code.
Clear and Present Danger: When He Tried to “F” Over His Soon-To-Be Ex-Wife Honey, I Didn’t Think You’d Mind!
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.
To “Skate by” Means Sliding by Without Doing Any Visible Work or Spending any Effort. Have you met people who accomplish little, make little, or no progress, but seem to meander through life and appear as normal?
SB-326 and SB-721: Condo and Multifamily Inspection Laws: California 2024 These two new inspection and repair laws have added significant expense to associations, which must be paid by raising association dues. Some owners cannot afford the increase in dues.
The Foreclosure Procedure: Judicial vs Non-judicial Laws differ in various states; some are judicial, some are non-judicial, and others are hybrids, allowing either form of foreclosure.
Subordination of Liens and Encumbrances: Fact or Fiction. “Yes, the lien holder will subordinate.” Is this statement true, or is it someone’s wishful illusion?
CEQA: A Major Hurdle for Real Property Development Projects in California Is Being Overhauled Behind the backdrop of California regulations are always the usual suspects: public employees, labor unions, and lawyers who want a piece of everyone's action. These entities often use their influence to shape policies and regulations in their favor. Growth in the size of government, as well as the expansion and consolidation of power at the top, are always at the forefront.
Private Money: Real Estate Loan Documents and Related Disclosures Real Estate Practitioners Should Gain a Comprehensive Understanding of the Loan Documentation To Carry Out Their Fiduciary Responsibilities to the Principals.
Private Money Trust Deed and Mortgage Investments The investor’s name is affixed to the borrower’s promissory note, deed of trust, and title insurance policy; the investor serves as both the lender and the beneficiary. The documents represent clear evidence of ownership (or a security interest) in collateral property.
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
A Borrower Operates With Very Little Skin in the Game, Trying To Maximize Profits Maximum Leverage May Be Beneficial To The Borrower or May Be Used to Transfer the Developer’s Risk to the Lender
Can We Purchase a Property and Subject to the Seller's 2.9% Fully Amortized Loan? Without Notifying the Lender Who Holds The Loan?
The Savvy Private Money Broker: Uncovered Significant Material Facts In A Potential Loan Transaction The Borrower Intentionally Hid Pertinent Information
Daisy-Chain Mortgage Brokers Make Their Proposed Transaction Uncompetitive In The Marketplace If Three Or Four Mortgage Brokers Demand To Get Paid, it will kill almost all transactions
Assessing Private/Hard Money Loan Transactions Private money, also referred to as hard money, plays a vital role in the real estate industry.
Lady Sues Ex-boyfriend Over His Attempt To Steal Her Property A Private Money Lender Came To The Rescue
When Real Property Borrowers Default On Their Loan Obligations: Part I of IV The Key To Preparedness Is Understanding The Legal Procedures
Loan Brokers and Agents Understand Fiduciary Relationships Most Brokers And Agents Adhere To The Concept Of Fiduciary Relationships, But A Few Fail to do so.
Lightning Speed Of Closing Private/Hard Money Loans: The Pivot When Urgency Is An Issue Sometimes Borrowers Have An Urgent Need To Get the Proceeds Of A Loan To Solve An Urgent Problem
Networking With Valuable Financial Services Providers Like CPAs, EAs, and Financial Planners Is A Valuable Referral Source For Private Money Lenders
Debt Consolidation Loans For Small Entrepreneurs Sometimes Borrowers Need a Fresh Start and Stabilization to Clean Up Past Problems
Due-On-Sale and Encumbrance Provisions In Loan Documents This Provision May be Contained In the Trust Deed for Residential, and the Trust Deed and Loan Agreement in Commercial
Making Loans On Real Property with Environmental Issues Anytime There Is A Commercial Property, Reviewing Environmental Issues Is Necessary
A Borrower and Their Insurance Broker Willfully Engaged In Fraud Against a Lender Even A Few Service Providers Have No integrity
Real Estate (Private Money) Loan Documents and Related Disclosures Real Estate Practitioners Should Obtain A Comprehensive Understanding Of The Loan Documentation To Carry Out Their Fiduciary Responsibilities To The Principals.
Deed of Trusts and Mortgage Investments In California Overview Of The Licensing and Regulatory Scheme
A Real Property Borrower Operates With No Skin in the Game Maximum Leverage Can Be Beneficial or Can Be Used to Can Be Used to Transfer the Risk to the Lender
The Trade War Is a War For Economic Dominance Eventual solutions will see a recalibration of trading partners suitable for all participants.
Private Money/Hard Money Real Property Loans A list of good reasons to switch to a private money lender
Legal vs Equitable Ownership in Real Property As It Relates to a “Due On Encumbrance” Provision In A Deed of Trust
Returning America To A Cultural Model For The World To Admire My Days and Nights are Illuminated With a Renewed Sense of Optimism and Delight
Land Parcels Containing Manufactured Homes A Great Life Style for much Less Money and Off the Social Grid