Taxes

• Income Tax
  No agents for our the Bay Area house. We had to borrow almost 700k from a 401(k) plus other funds to get it done. 401(k)s must be replenished within 60 days, otherwise you pay regular income tax on the whole thing. This would have amounted to 200k-plus. We thought it would be a breeze. But we didn't realize how slowly the escrow/title companies wheels turn. Take it from us, if someone says x days for something to happen, add 3 days to it. It was so close, that we had to get a bridge loan from Don and Jeff in a very short amount of time. It worked. From the very beginning talking to Jeff, then closing with Don, the process was very smooth. The money was there sooner than we expected. We never did it before, but I can't imagine a stressful experience like that being easier. Don really cared about our situation. Granted it's an expensive loan, but is was 10% of what the income tax hit would have been. I think the best part was that they really cared about our situation. Ten out of ten would be our rating for these guys.

Planning

• Financial Planning
• Living Trusts
  Can an irrevocable trust get a loan? Yes, as long as the successor trustee(s) approves of the loan being placed against the real estate and is able to complete the loan process. The successor trustee will be required to review and sign various loan documents and disclosures related to the irrevocable trust loan. Lending to a living trust (revocable trust) would be handled by the current trustee.
• Mortgage Refinancing
  North Coast Financial is also also to provide reverse mortgage refinancing to heirs who wish to maintain ownership of a inherited property that has an existing reverse mortgage. Conventional lenders will not refinance reverse mortgages for heirs but direct hard money lenders can provide this type of funding. A loan can be made to the estate which can then be assumed by the heirs. This allows for the heirs to maintain ownership of the property, have the title of the property transfer into the heir’s name and prevent a reassessment of the property value which can save thousands of dollars in property taxes each year (consult a tax professional or attorney).
• Asset Protection
  Banks do not like lending to entities. They want an individual who will be personally responsible for paying off the loan. Because of this it can be very difficult to obtain financing from a conventional lender if the investor plans to take title in an entity. For many investors this drawback prevents them from taking advantage of certain tax and asset protection strategies. With private money lenders, taking title in an entity is not a problem.
• Reverse Mortgages
  North Coast Financial is a direct hard money lender able to provide funding to refinance reverse mortgages for heirs in California. A reverse mortgage refinance is a financing tool often used by heirs who wish to maintain ownership of a reverse-mortgaged home they have inherited. The title of the property may be in the name of an estate and going through probate or be owned by a trust. Refinancing a reverse mortgage through a conventional lender such as a bank or credit union is generally not possible as conventional lenders will not provide a loan to an individual whose name is not on title of the property.