Articles and News

At Geraci, our legal experts are committed to keeping you informed on the latest rules, regulations, and strategies that impact your lending business. Explore our topics below or use the search bar for specific insights.
The End of Chevron Deference – And Business Purpose Loans?

In a landmark decision, (Loper v. Raimondo and Relentless v. DoC), the US Supreme Court restricted the power of federal agencies to interpret laws they oversee, emphasizing that courts should now rely on their own ...

Houses of different size with different value on stacks of coins. Concept of property, mortgage and real estate investment. 3d illustration

By Staford François, Partner, CohnReznick The recent macro-economic environment has led to significant changes in the private credit space. Most loan operators have seen their share of non-performing loans, which at times has led to ...

The popularity of funds in private lending has surged significantly in recent years. Geraci LLP, known for its expertise in this realm, has been instrumental in crafting and tailoring debt funds for private lenders nationwide, ...

Distressed Debt Funds – Why they’re different (1)

In the past year, many private lenders have inquired about pursuing a non-performing debt fund strategy. However, they have many misconceptions that these funds can look and perform exactly like a performing open-ended debt fund. ...

Compliance, Office Binder on Wooden Desk. On the table colored pencils, pen, notebook paper

Private lenders, real estate developers, and other private investors often raise capital through private offerings using SEC registration exemptions such as Regulation D of the Securities Act of 1933 (“Funds”). Given that exempt securities offerings ...

Business Purpose Loans to Individuals Secured by Residential Property

Introduction Business purpose loans to individuals secured by residential property represent a niche, yet significant, segment of the private lending market. These loans differ from traditional owner-occupied dwelling mortgages as they are intended for business, ...

Lending, Brokering, or Servicing Licensing Requirements and their Exceptions

Thankfully, only a handful of states require a license to lend or to broker or service a loan, but when a license is required, strict compliance is absolutely essential.  Failure to comply can result in ...

Staying Under the Limit An exploration of Usury

Usury is a term that refers to the law that sets a maximum interest rate on certain loans in a given state.  These laws vary tremendously from state to state, including some which have no ...

Understanding Prepayment Penalties

Prepayment penalties, or “prepayment premiums” as we prefer to call them, are the charging of a fee in lieu of interest that would have otherwise been collected if the loan had not been paid of ...

Navigating the Highs and Lows of Financing in the Cannabis Industry in California

Considering a foray into the (entirely legal) cannabis industry, not as a grower but as a financier? The question arises: if your investment goes up in smoke due to a borrower’s default, are you inevitably ...

Cannabis 2024 Outlook – Still Growing Like a Weed

LEGAL UPDATE May 2024: As anticipated in our Cannabis 2024 Outlook article “Still Growing Like a Weed”, the Department of Justice formally sought to reclassify marijuana from Schedule 1 drug under the Controlled Substances Act ...

Click here to jump to the April 2024 update. Many lenders in our industry are not licensed to lend in California, but instead rely upon a licensed real estate broker to arrange the loan which ...

Loading...
The End of Chevron Deference – And Business Purpose Loans?

In a landmark decision, (Loper v. Raimondo and Relentless v. DoC), the US Supreme Court restricted the power of federal agencies to interpret laws they oversee, emphasizing that courts should now rely on their own ...

Houses of different size with different value on stacks of coins. Concept of property, mortgage and real estate investment. 3d illustration

By Staford François, Partner, CohnReznick The recent macro-economic environment has led to significant changes in the private credit space. Most loan operators have seen their share of non-performing loans, which at times has led to ...

Lending, Brokering, or Servicing Licensing Requirements and their Exceptions

Thankfully, only a handful of states require a license to lend or to broker or service a loan, but when a license is required, strict compliance is absolutely essential.  Failure to comply can result in ...

Staying Under the Limit An exploration of Usury

Usury is a term that refers to the law that sets a maximum interest rate on certain loans in a given state.  These laws vary tremendously from state to state, including some which have no ...

Understanding Prepayment Penalties

Prepayment penalties, or “prepayment premiums” as we prefer to call them, are the charging of a fee in lieu of interest that would have otherwise been collected if the loan had not been paid of ...

Cannabis 2024 Outlook – Still Growing Like a Weed

LEGAL UPDATE May 2024: As anticipated in our Cannabis 2024 Outlook article “Still Growing Like a Weed”, the Department of Justice formally sought to reclassify marijuana from Schedule 1 drug under the Controlled Substances Act ...

Click here to jump to the April 2024 update. Many lenders in our industry are not licensed to lend in California, but instead rely upon a licensed real estate broker to arrange the loan which ...

What Constitutes a Good Set of Loan Documents

Sometimes, people are afraid to ask the basic questions, for fear that the questions are too obvious or that they should know better. But a question that invariably comes up and which is a great ...

California Compliance Toolkits For Private Lenders

Simplify Your Compliance Strategy Conducting business as a licensed mortgage lender or broker in California can be daunting.  It’s no small thing to manage and govern all of your lender and broker compliance requirements. Not ...

Where are we headed Geraci leadership is looking forward to 2024

Every year about this time, our Geraci Leadership team takes a moment to reflect on the past year and discuss their thoughts about the next one. While the overall sentiment is generally a continuation of ...

These days, almost all commercial loans include an Assignment of Rents as part of the Deed of Trust or Mortgage. But what is an Assignment of Rents, why is this such an important tool, and ...

Your borrower has an income generating property (generally tenants who are paying monthly rent) and is (presumably) collecting it. He isn’t paying you, though. Where is the money going? You ask, and he tells you ...

Loading...

The popularity of funds in private lending has surged significantly in recent years. Geraci LLP, known for its expertise in this realm, has been instrumental in crafting and tailoring debt funds for private lenders nationwide, ...

Distressed Debt Funds – Why they’re different (1)

In the past year, many private lenders have inquired about pursuing a non-performing debt fund strategy. However, they have many misconceptions that these funds can look and perform exactly like a performing open-ended debt fund. ...

Compliance, Office Binder on Wooden Desk. On the table colored pencils, pen, notebook paper

Private lenders, real estate developers, and other private investors often raise capital through private offerings using SEC registration exemptions such as Regulation D of the Securities Act of 1933 (“Funds”). Given that exempt securities offerings ...

Business Purpose Loans to Individuals Secured by Residential Property

Introduction Business purpose loans to individuals secured by residential property represent a niche, yet significant, segment of the private lending market. These loans differ from traditional owner-occupied dwelling mortgages as they are intended for business, ...

Navigating the Maze of Licensing Rules for Private Lenders: Simplifying Business Purpose Lending Secured by Residential Real Estate

Private lenders provide vital financing options for real estate investors. However, there are numerous myths and misconceptions surrounding the licensing rules for private lenders, specifically in Business Purpose Lending (BPL) secured by residential real estate. ...

Private Lending 101 Foundational Considerations in Forming a Debt Fund

In the dynamic landscape of private lending, the strategic establishment of a debt fund becomes a pivotal move for those who seek to be a true direct lender or balance sheet lender. In this introductory ...

Corporate Transparency Act: A Comprehensive Guide for Fund Managers in the Era of Enhanced Financial Accountability

The Corporate Transparency Act (CTA), enacted earlier this year by the US Congress, is set to usher in a new era of financial transparency and anti-money laundering efforts. In this article, I would like to ...

Where are we headed Geraci leadership is looking forward to 2024

Every year about this time, our Geraci Leadership team takes a moment to reflect on the past year and discuss their thoughts about the next one. While the overall sentiment is generally a continuation of ...

In the world of private lending, creating a Real Estate Investment Trust (REIT) can offer numerous advantages. However, one of the key requirements to maintain REIT status is to have at least 100 equity holders ...

Navigating Offshore Investment Overcoming Top Challenges in U.S. Real Estate

United States real estate has always been a very attractive investment for offshore investors. High rates of return, stable values, and a stable economy have always driven massive interest from overseas. Private lending is no ...

The Complexities and Nuances of Commercial Lending

Private lending continues to be very profitable in the world of real estate investing, but with the continued growth of real estate investing comes the need for more and better funding. To keep up with ...

Private Lending at a Crossroads: Navigating Uncertainty and De-Risking Strategies

The private lending industry is facing its first extended inflection point since the 2008 Global Financial Crisis. Rising default rates, decreasing home values, lack of new housing inventory, low unemployment, volatility on Wall Street, and ...

Loading...
The End of Chevron Deference – And Business Purpose Loans?

In a landmark decision, (Loper v. Raimondo and Relentless v. DoC), the US Supreme Court restricted the power of federal agencies to interpret laws they oversee, emphasizing that courts should now rely on their own ...

Navigating the Highs and Lows of Financing in the Cannabis Industry in California

Considering a foray into the (entirely legal) cannabis industry, not as a grower but as a financier? The question arises: if your investment goes up in smoke due to a borrower’s default, are you inevitably ...

Navigating the Maze: Understanding Service of Lawsuits in California

When it comes to the legal landscape of California, the process of serving a lawsuit is akin to navigating a complex maze. For anyone embarking on this journey, whether you’re a seasoned attorney or a ...

The Economy Is Risky, But the Rewards Are Waiting for You

Most are predicting a tough economic climate for 2024 (the “risk”).  I have no reason to disagree with them. However, that climate can be organized for huge gains to you (the “reward”).  This will be ...

Where are we headed Geraci leadership is looking forward to 2024

Every year about this time, our Geraci Leadership team takes a moment to reflect on the past year and discuss their thoughts about the next one. While the overall sentiment is generally a continuation of ...

Careful There, Love Protecting Private Lenders from Rampant Mortgage Fraud

Private lenders play a pivotal role in the financial ecosystem, bridging the gap for borrowers who might not qualify for traditional investment property loans. Yet, this flexibility can inadvertently expose them to higher risks—particularly, mortgage ...

In the tapestry of financial transactions, private lenders weave a path distinctly separate from traditional banking institutions. Their agility and flexibility have allowed countless individuals and businesses to secure funding, often during pressing times. However, ...

Your borrower has an income generating property (generally tenants who are paying monthly rent) and is (presumably) collecting it. He isn’t paying you, though. Where is the money going? You ask, and he tells you ...

How to Keep Yourself Out of Court (and Away From Me)

My boss has told me a few times at conferences, “no one has figured out how to make money in litigation.”  I’m assuming he meant no one other than me. Point taken. So, how can ...

Understanding Lender Liability: Avoid California’s 10-Year Liability for Construction Defects in Fix-and-Flip Properties

Should you be a lender with a borrower in default on a fix & flip property, it is likely you will be taking the property back after foreclosure. There are potential pitfalls for a lender ...

5 Tips to Limit Lender Liability

Lender liability law exists to ensure (often unsophisticated) borrowers are protected. For lenders, this sounds simple enough — act in good faith, don’t commit fraud, and you won’t get sued. However, due to the complexity ...

April Update in Private Lending Where Are We Going

It has been a busy March for banking as well as private lending.  There have been millions of words written about this, so I’ll mention again briefly in case you’ve been stuck on a ship ...

Loading...

Click here to jump to the April 2024 update. Many lenders in our industry are not licensed to lend in California, but instead rely upon a licensed real estate broker to arrange the loan which ...

Geraci LLP Elevates Steven E. Ernest, Esq., to Partner, Reinforcing Commitment to Excellence in Legal Representation

IRVINE, February 9, 2024 – Geraci LLP, the nation’s foremost private lending law firm, proudly announces the promotion of Steven E. Ernest, Esq., to the esteemed position of Partner. In his elevated role, Mr. Ernest ...

Corporate Transparency Act: A Comprehensive Guide for Fund Managers in the Era of Enhanced Financial Accountability

The Corporate Transparency Act (CTA), enacted earlier this year by the US Congress, is set to usher in a new era of financial transparency and anti-money laundering efforts. In this article, I would like to ...

Where are we headed Geraci leadership is looking forward to 2024

Every year about this time, our Geraci Leadership team takes a moment to reflect on the past year and discuss their thoughts about the next one. While the overall sentiment is generally a continuation of ...

Geraci LLP Elevates Steven E. Ernest, Esq., to Partner, Reinforcing Commitment to Excellence in Legal Representation

Jennifer Young, Esq., Promoted to Partner at Geraci Law Firm Corporate and Securities Team Positioned for Growth in 2024 December 6, 2023, IRVINE – Geraci LLP is pleased to announce the promotion of Jennifer Young, ...

As we navigate the intricate tapestry of the 2023 economic market, lenders worldwide are grappling with the looming specter of a potential recession. With global economic indicators showing signs of volatility and uncertainty, it’s more ...

Geraci LLP Elevates Steven E. Ernest, Esq., to Partner, Reinforcing Commitment to Excellence in Legal Representation

Many of you are familiar with the UCC forms used to make financing statement filings with various state government offices and upon the land records as fixture filings.  The forms we are used to were ...

What’s Going On? In the absence of a comprehensive federal law in the United States, states are taking matters into their own hands by passing sweeping privacy legislation.   As of the date of this Article, ...

Bank Uncertainty Opens the Door for Private Lenders

By now, nearly everyone has heard of Silicon Valley Bank, Signature Bank, and First Republic Bank. All three banks failed spectacularly sparking a run on other regional banks and a flight of deposits from smaller ...

CFPB CONTINUES TO REGULATE PRIVATE LENDERS – THE SMALL BUSINESS LENDING DATA COLLECTION RULE

BACKGROUND The CFPB continues to use data reporting as a means to expand its reach into private lending. This most recently occurred through the CFPB’s expansion of the reporting requirements under the Equal Credit Opportunity ...

Advanced Loan Modifications Now Available on Lightning Docs IRVINE, April 21, 2023 – Lightning Docs, a proprietary cloud-based business purpose loan document generation system, has just completed Beta testing their advanced loan modification module. Available ...

Private Lending at a Crossroads: Navigating Uncertainty and De-Risking Strategies

The private lending industry is facing its first extended inflection point since the 2008 Global Financial Crisis. Rising default rates, decreasing home values, lack of new housing inventory, low unemployment, volatility on Wall Street, and ...

Loading...
Geraci LLP Elevates Steven E. Ernest, Esq., to Partner, Reinforcing Commitment to Excellence in Legal Representation

IRVINE, February 9, 2024 – Geraci LLP, the nation’s foremost private lending law firm, proudly announces the promotion of Steven E. Ernest, Esq., to the esteemed position of Partner. In his elevated role, Mr. Ernest ...

Geraci LLP Elevates Steven E. Ernest, Esq., to Partner, Reinforcing Commitment to Excellence in Legal Representation

Jennifer Young, Esq., Promoted to Partner at Geraci Law Firm Corporate and Securities Team Positioned for Growth in 2024 December 6, 2023, IRVINE – Geraci LLP is pleased to announce the promotion of Jennifer Young, ...

Geraci LLP Elevates Steven E. Ernest, Esq., to Partner, Reinforcing Commitment to Excellence in Legal Representation

Many of you are familiar with the UCC forms used to make financing statement filings with various state government offices and upon the land records as fixture filings.  The forms we are used to were ...

Advanced Loan Modifications Now Available on Lightning Docs IRVINE, April 21, 2023 – Lightning Docs, a proprietary cloud-based business purpose loan document generation system, has just completed Beta testing their advanced loan modification module. Available ...

Preventing Unlawful Detainer After an SB-1079 Foreclosure

The residential eviction process is stressful enough, but California’s SB-1079 (CC § 2924m) can convolute the process in ways that require a skilled litigator with subject-matter expertise to navigate successfully. Whether you’re a foreclosing lender, ...

Gavel

IRVINE, CA – February 9, 2023. Geraci LLP, the nation’s largest private lending law firm, celebrated the one-year anniversary of Head of Litigation, Steven Ernest, Esq. taking the helm for his team. Under his leadership, ...

Geraci LLP and Wright, Finlay & Zak have prepared a Joint Statement, which you can read in full below, providing a detailed analysis of the current state of the law and other frequently asked questions ...

Honchariw v. FJM Private Mortgage Fund legal update
A decision by the CA Appeals Court may affect your ability to lawfully charge default interest. ...

Lightning Docs Named Official Loan Docs ofThe American Association of Private Lenders (AAPL) Lightning Docs Recognized as Private Lending Industry StandardBusiness Purpose Loan Documents Irvine, CA, October 11, 2022 — Lightning Docs, a proprietary cloud-based ...

AXY Wrap

This article was originally published in Originate Report Magazine Would you skydive without a parachute? Of course not. So, why should lending without a safety net be any different? Axylyum Charter, a company aimed at ...

lending business

This article was originally published in Originate Report Magazine Armanino LLP, one of the top 25 independent business and accounting firms in the U.S. by revenue, is carving out a name for itself as a ...

Corporate & Securities Team

This article was originally published in Originate Report Magazine Article by: Ruben Izgelov, We Lend LLC In New York State, news that the eviction and foreclosure moratoria would not be renewed this January was welcomed ...

Loading...