Hard Money Lending Class Summary

Hard Money Lending Boot Camp 

By: Dennis H. Doss, Esq.

Welcome to Hard Money Boot Camp.  The training your will get will not make you a Navy Seal, but you will be a very competent foot soldier.  Seal training can come later.  The course covers the soup to nuts of private money lending in a very practical way.  It is not a theory class.  It is a practical how-to class.  How to do it right the first time.

The course is broken down into separately digestible video chunks, so you are not overloaded with information.  We recommend that you take no more than 3 classes per week and listen to each more than once.  That way, between sessions you can study your notes, come up with follow-up questions and frankly, give your brain a rest.  The upload of information into your brain is going to be intense.  Here is how Dennis will break it down for you in these 10 video classes:

I.    Industry Background and Regulatory Landscape

  1. State and federal regulators
  2. Applicable state and federal laws
  3. State license types, their uses and limitations
  4. SAFE Act and the NMLS system
  5. California usury law
  6. Role of the private money mortgage broker
  7. Agreement to Procure with Agency Disclosure

II. Starting Your Private Money Mortgage Business

  1. LLC vs corporation, summary of tax treatment
  2. Defining a protectible brand, URL registration
  3. Applying for DRE Broker’s License
  4. DBAs and their registration with regulators
  5. Office address and branch office registrations
  6. Loan Officers, licensing, employment, tax issues
  7. IC v. W-2
  8. Insurance
  9. Advertising rules/Trust Funds/DRE Filings

III. Vendors

  1. Attorneys and when you need them
  2. Accountants
  3. Document preparation alternatives
  4. Property Insurance
  5. Servicers and Subservicers
  6. Your role as servicer
  7. Anatomy of a Loan Sale and Servicing Agreement

IV. Beginning of the Loan Process

  1. How to get deals
  2. Handling the borrower Call
  3. Questions you will be asked
  4. Next steps
  5. Steps after Signed Letter of Intent or Agreement to Procure
  6. Appraisals/BPOs
  7. Review the Preliminary Report from the Title Company
  8. Finders Fees/Referral Fees

V.  Business Purpose Lending

  1. Why loan purpose is so important
  2. Definition of “consumer loan”
  3. Numerosity test of consumer vs. business purpose
  4. Exempt transactions
  5. Rental property loans
  6. Owner-occupied loans
  7. Entity loans
  8. Special Situations (ADUs, bailout, business loan gone bad, fix and flip)

VI.  Business Purpose Loan Early Disclosures

  1. Mortgage Loan Disclosure Statement (MLDS)
  2. Credit Authorization
  3. Fair Lending Notice
  4. Appraisal Notice
  5. Privacy Policies
  6. Credit Score Disclosure
  7. Broker Disclosure by CFL Lenders

VII.  Consumer Lending

  1. NMLS Endorsement
  2. Consumer loan process (Application, Loan Estimate, MLDS)
  3. Ability to repay–QM and non-QM
  4. High Cost and higher-priced loans
  5. Exceptions to high cost status
  6. Closing Disclosure
  7. Notice of Right to Cancel
  8. Consumer loans attractive to private money lender

VIII. Borrower Loan Docs–Business Purpose

  1. Review of doc service providers from Class III (Vendors)
  2. Document input forms
  3. Doss Law document generation process
  4. Walking through a completed set of borrower loan docs

IX. Investor Docs and Disclosures

  1. Marketing to Private Investors
  2. Securities Alternatives
  3. Loan Sale and Servicing Agreement
  4. Investor package list

X.  Closing and Post Closing

  1. “Herding Cats”
  2. Boarding the loan with a servicer
  3. Investor Letter
  4. Payment Letter to Borrower
  5. Follow up phone call fefore first payment is due
  6. DRE Compliance Checklists
  7. Loan Specific Critical Document Checklist (Business Purpose Loans)
  8. Loan Specific Critical Document Checklist (Consumer Loans)

The Rules: No recording of any kind; extra charge for more than one trainee; legal advice on specific deals you are working on is not included; we will check for any conflicts and decline the work if there is one.  Course materials and videos may not be shared with persons who have not paid for them.  The course is education, not legal advise.

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© Doss Law, LLP.  Attorney advertising materials.  These materials have been prepared for educational purposes only and are not legal advice.  This information is not intended to create an attorney-client relationship.  Consult a knowledgeable lawyer before implementing any of the ideas in this publication.

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