Dylan Gallagher, google hangout, podcasts

He figured out how to calculate your credit score (thanks Richard!)

book_averagejoe

Yesterday Richard Moxley and I chatted in a Google Hangout about his book, personal credit and things people should know about the “credit game”.  Some of the points that Richard covered included: joint credit, death and divorce, how to check your credit free as well as some simple things to know that could really improve your credit score.  And by the way, he reverse engineered the credit scoring system to figure out how credit scores are calculated (he loves credit).

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residential mortgages

What if credit scores did not exist?

man_question

As a pick-up from yesterday (click here) regarding why credit scores are so important I thought I would offer another side of credit scores:  What if credit scores did not exist?  Having worked with borrowers for more than a decade I can tell you that a credit score is a real data point that banks and lenders have to know to determine what type of risk a borrower might be.

A credit score is the result of many different factors including the following: Continue reading

residential mortgages

How much does my credit score really matter?

creditscore

It’s amazing to me that many of the clients that come to us seeking a mortgage or loan do not know their credit score.  In fact, not only do they not know their credit score most of them have never even seen their personal credit report.  I find it amazing because your personal credit score is one of the core criteria that a bank or lender will use when deciding to approve your request for a mortgage or loan.

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commercial mortgages

Understanding construction mortgages (cost vs value)

construction

Given the numerous construction deals that our office has seen over the past half year, I thought I would provide some details on how construction mortgages work with particular focus on the concept of “cost to complete”.  Banks and lenders use two primary ways to determine their exposure on a construction deal.  One method is referred to as Loan to Value and the other method is referred to as Loan to Cost.  They may sound the same but they are significantly different and can change the entire risk profile of a deal in the eyes of a bank or lender.

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residential mortgages

Should I get a second mortgage?

house_piece

This is a great question that we often get asked and often consider when someone really needs cash but may not qualify to refinance their existing mortgage OR they do not want to pay the penalties associated with paying out an existing mortgage.  There is no perfect answer or a “one size fits all” solution, however here are some things to consider if you are evaluating a second mortgage.

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business stuff, Dylan Gallagher

This is proof that we all follow the herd (well most of us)

herd_cows

It’s not often that an LOL means I actually laugh out loud but today was one of those rare moments when I experienced an genuine LOL.  In reading an article in the Financial Post (‘The little guy can’t win’: U.S. families stuck renting as big investors pay cash to snap up homes) I found myself laughing out loud because it seems like only yesterday that the US real estate market (and other markets) were in a free fall.  Read it for yourself and see if you agree and experience an LOL.  Keep in mind I work with private investors who place their capital in real estate and work with borrowers who need mortgages for real estate (which means I also work with banks and lenders).  In 2008 and 2009 when the credit markets froze it was no laughing matter.  Investors couldn’t wait to get rid of properties and borrowers had a very difficult time refinancing their properties because banks and lenders made it hard to get approved.  Not even five years later this article points to a complete turnaround of market sentiment (and facts) which should remind us all that as a herd of people we will always magnify the highs and lows and continue to move together as one. Continue reading

business stuff, Dylan Gallagher

What’s the one thing you believe that no one else does?

bank_vault

Sarah Lacy of PandoDaily holds fireside chats with various people involved in the tech sector and at the end of each interview asks the question “What is one thing you believe that no one else does?”  This question provides insight into the person being interviewed and also makes for great conversation (see here for the fireside chats).  Given what I do each day and the conversations I have about banks, lenders, debt, cash flow, businesses and people needing money, etc. I thought my answer might make for an interesting blog post. Continue reading