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The Fall of 2025 and Rise of New Opportunities

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By Rick Tobin

“All the trees are losing their leaves, and not one of them is worried.”
– Donald Miller

Our lives have often been compared to the four seasons of spring, summer, fall, and winter. Regardless of whether you perceive your current situation in life as bright and sunny or dark and doomy, each season of life is a new opportunity for positive growth that you should embrace.

It’s generally much easier to be grateful when life seems easiest, most fun, and when you have plenty of cash in your pockets. However, some of our best learning experiences tend to happen during our most challenging seasons of life if we’re willing to focus on the potential solutions and opportunities more so that the temporary obstacles standing in our way.

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When many of us think of the fall season, it can be described as a time when natural beauty nearby is filled with colorful trees and more vivid sunsets and weather temperatures are seemingly ideal in most regions.

However, the word “fall” also has negative connotations such as the “Fall of Rome” era, or the end of the Western Roman Empire, that happened near 476 AD when the most powerful region in the world collapsed due to massive health challenges and death from the bubonic plague or Black Death which, in turn, led to hyperinflation, numerous unusual firestorms, a devalued currency system, and war.

“All roads lead to Rome,” as the old saying goes, because history tends to repeat itself, for better or worse.

The Fall of 2025’s Economic Data

Let’s take a closer look below at some concerning economic data that’s been recently shared:

* Foreclosures increased 20% in October 2025.
* Job layoffs in October were the most in 22 years. Published year-to-date job layoffs in 2025 have surpassed year-to-date job losses in 2008.
* New job hires are the slowest since 2009.
* The savings rate is the lowest on record.
* 12.1% of FHA loans are delinquent and make up almost 50% of all Q3 foreclosures.
* Consumer Credit Applications are now being rejected at nearly 25%, the highest rejection rate ever recorded, according to Charles Schwab and the New York Fed as of 10/31/25.
* Mortgage refinance application rejection rates hit 45.7%, an all-time high.
* Average past-due utility bills hit an all-time high at $789, as per The Century Foundation & the University of California Consumer Credit Panel.
* Car repossessions are the highest since 2009.
* The 60-day delinquency rate for subprime automobile loans just reached an all-time record high of 6.65% in October 2025.
* Automobile loan rates are approaching record highs, especially for subprime borrowers (13% to 30%+ rates).
* Student loan delinquencies are the highest ever with nearly 20% of borrowers at 90 days or longer for missed payments.
* Unpaid credit card debt balances reached a record $1.233 trillion in Q3 2025.
* Credit card APRs (rates and fees) are near the highest ever (24%-40%+).
* Early paycheck advance loan rates are as high as 400% to 520% APRs.
* More than 50% of Americans use Buy Now, Pay Later (BNPL).

Worsening Debt Trends

In addition to all-time record highs for unpaid credit card debt reaching 1.233 trillion dollars in the third quarter of 2025, the US credit card capacity, or maximum credit card limits, reached a new record high of $5.3 trillion, according to the New York Fed.

However, there’s still nearly $4 trillion dollars in available unused credit for US borrowers to access from their credit cards.

Credit rejection rates for most types of new credit applications continue to soar to new highs, as per New York Fed data and The Kobeissi Letter.

For example, let’s review the percentage rates for credit application rejection rates in recent times:
● Automobile loan rejection rates: 15.2% (second highest on record)
● Credit card rejection rates: 21.2%
● Overall credit application rejection rates: 24.8% (new record)
● Mortgage application rejection rate: 45.7% (new record)

These rejection rates have accelerated at a faster pace since 2020 for many lenders. For example, the overall rejection rate for credit applications has risen by +10.4% between February 2020 and Q3 2025.

Snowballing Federal Debt

In 1790, US national debt was just $70 million. By 1980, it reached $1 trillion for the very first time, which took 220 years to reach. Now, we’ve surpassed a staggering $38 trillion in debt.

It took more than 200 years for the federal debt to surpass the first $1 trillion dollar debt balance number in October 1981. Now, the US federal debt compounds and increases by another $1 trillion every 75 days or so.

The US Treasury posted a $284.4 billion deficit in October, which was the worst opening month to any fiscal year in history.

October’s Interest payment on US debt was a record $104.4 billion, as per Stock Sharks. To put this into better daily perspective, US federal debt is growing at a pace of $22.5 billion every single day.

How is all of this federal debt good for real estate investors?

Answer: It’s more likely than not that inflation will keep rising and the dollar’s purchasing power will keep falling. Because real estate is an exceptional hedge against inflation and an imploding dollar, home prices may either stabilize or keep increasing even if the overall economy keeps on weakening.

Positive Housing Trends in 2nd Half of 2025

Now, let’s review some more positive housing data for Q3 2025:

Single-family home prices had positive gains in 77% of 2350 metro areas in Q3 2025, according to NAR.

Rising Home Prices in Most Metros – Q3 2025

“Home prices rose in Q3 2025, with national median prices up 1.7% to $426,800. Monthly mortgage payments increased to $2,187. The median family income needed for a 20% down payment is $104,996.”
– NAR Research

The Top 5 single-family areas with the highest home appreciation rates in Q3 2025 were are as follows:

1. Owensboro, KY
2. Rockford, IL
3. Springfield, IL
4. Cape Girardeau, MO-IL
5. Fond du Lac, WI

The Top 5 Most Affordable Housing Regions

Here are the Top 5 most affordable cities in America as of October 2025, which have much lower percentage of income to monthly household payment numbers:

Out of the 100 major cities analyzed by RealtyHop, an estimated 68 of the cities had homebuyers paying more than 30% of their monthly income towards household expenses.

Unaffordable Housing Challenges

The dollar’s purchasing power continues to fall at a rapid pace. As a result, it’s still quite challenging to purchase groceries, clothing, cars, or homes at seemingly affordable prices.

The Top 5 Most Unaffordable Housing Regions

Two of the top 5 most unaffordable housing regions in America are located in Southern California – #1 Los Angeles and #2 Irvine, as per the RealtyHop Housing Affordability Index for October 2025.

Average families who earned the median income in Los Angeles must now spend a shockingly high percentage of 84.16% of their income on home ownership costs, as discovered in this RealtyHop survey. If true, the average Los Angeles resident would have just over 15% of household income left over to purchase groceries and pay for utilities, automobiles, clothing, home maintenance, and other basic necessities if they were actually able to qualify for a home mortgage with those very high debt-to-income ratios.

2025’s Most Unaffordable Highest Home Price-to-Household Income Ratio

In 2025, the Top 10 most unaffordable cities with the highest home selling price-to-income ratio are as follows:

1. Los Angeles, CA (12.2x),
2. San Jose, CA (11.0x),
3. Long Beach, CA (10.4x),
4. San Francisco (10.0x),
5. New York, NY (10.0x),
6. San Diego, CA (9.6x),
7. Miami, FL (8.5x),
8. Boston, MA (7.7x),
9. Oakland, CA (7.7x)
10. Seattle, WA (7.2x).
Source: Constructive Coverage

Income & Home Price Disconnection

Sadly, household income has not been rising as quickly as home prices over the past several decades, especially in California. This is partly why more family members are co-signing for mortgages to help buyers qualify.

● Median U.S. household income in 1968: $7,700/year

● Median U.S. household income in 2025: $66,000/year

● Median U.S. household income percentage increase between 1968 and 2025: +764%

● Median U.S. home price percentage increase between 1968 and 2025: +1,967%

Sources: Realtor.com, US Census, and SoFi

Increasing Mortgage Purchase Applications

In spite of mortgage application rejection rates hitting new all-time highs at 45.7%, US consumers are filling out mortgage applications at a faster pace. This may be partly due to so many lenders rejecting mortgage applications and borrower prospects may be completing multiple mortgage applications to qualify.

“US mortgage applications surged to the highest level since 2023 last week.

The Mortgage Bankers Association’s index of home-purchase applications jumped 7.6% to 181.6 in the week ended Nov. 21, 2025.”
– Yahoo Finance

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Buyer and Borrower Opportunities

The combination of falling rates and falling prices usually inspires more buyers to start looking at properties to purchase. For those buyer prospects who’ve been struggling to qualify for homes priced near all-time record highs in their region may now be pleasantly surprised to learn that they now can actually buy a home.

It’s never been more important than this season of your life to work with experienced mortgage and real estate licensee professionals who have been through the numerous booms and busts of the real estate seasons over the years or decades.

If you have credit or income issues, then please focus on ways to better improve them sooner rather than later so that you’re more likely to later qualify to buy your dream home or the next investment property for your portfolio.

Since the average buyer and seller age these days are within the 59 to 64 age range, many of these same buyers and sellers also made it through both the dark and doomy real estate investing eras up until they started to see more daylight in the perceived sunnier-like seasons.

Tenacity is what’s needed through each season. Instead of worrying about the coldest and darkest days, just remember that it’s always darkest before dawn because the sun does rise every single day just like you do when you rise up out of bed.

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

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America’s #1 Top Tiny Home Named – ADU Exemplifies Real Estate Ingenuity

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America’s #1 Best ADU of 2025 Showcases Big Impacts in Small Spaces

Tiny Home Authority MaxableSpace.com Names #1 Best Tiny Home of 2025 + Top 10 ADU All-Stars of the Year

Across the country, small is solving big problems. Maxable‘s annual “Best ADU of the Year” just named its Top 10 tiny-home standouts for 2025. These are projects that nail beauty, code, budget, and livability while unlocking multigenerational housing, rental income, and backyard flexibility.

“ADUs aren’t a fad; they’re accelerating,” says Maxable CEO Paul Dashevsky. “New rules, smarter design, and homeowner creativity are redefining what’s possible in a few hundred square feet.”

From a 567-sf Massachusetts cottage built for aging-in-place to a Spanish-style San Diego retreat that mirrors its main home, this year’s finalists prove great design scales down elegantly and pays off. Multiple photos for each are showcased online demonstrating the extreme ingenuity of each build

Here are the 10 best ADUs that have earned their keys in 2025.

#1 Best ADU of 2025:

Ashby ADU, Piedmont, CA

Designer: Tuan Le Design
Builder: Atelier19AD6
Size: 800 sq ft, 2 bed, 1 bath

Built on a steep slope, the project faced challenges with utility coordination, subcontractors, supply chain delays, and neighbor considerations, yet the team navigated every obstacle to deliver a standout result. The unit is fully electric, with a heat pump, water heater, and solar panels, making it efficient and environmentally conscious. Skylights and floor-to-ceiling four-panel sliding glass doors fill the interior with natural light, creating a bright, airy atmosphere. The modern design continues on the exterior with sleek wood paneling that complements the contemporary interior. The result is a stylish, functional ADU that maximizes both the views and the livable space

Other Top 10 Best ADUs of 2025

Chamomile Cottage, Arlington, MA

Modular Design and Build: Backyard ADUs
Size: 567 sq ft, 1 bed, 1 bath

If a cozy cup of tea was an ADU, we think it’d look like this! Designed to bring an aging father closer to his family and young grandchildren, this modular build balances warmth, accessibility, and beautiful design. As one of the first detached ADUs completed under Massachusetts’ new ADU law, it also marks a milestone for backyard living in the state. Built with collaboration between Backyard ADUs and a homeowner with impeccable design taste, the result is both functional and heartfelt. Chevron wood flooring, warm olive walls, and a charming fireplace make the space feel like home from the moment you step inside. Skylights fill the rooms with natural light, while the ADA-compliant bathroom ensures comfort and safety for years to come.

Alora ADU, San Diego, CA

Designer: Ruland Design Group
Builder: Glann Fick, Coastline Construction
Size: 1,000 sq ft, 2 bed, 2 bath duplex

This project is a beautiful example of how ADUs can bring generations together while adding long-term value to a property. The homeowners created not one, but two attached backyard homes. One was designed for an aging mother, and the other for rental income to support the family. Together, the units make space for four generations to stay close while still maintaining privacy and independence. Both ADUs were designed with light, openness, and connection to the outdoors in mind. High ceilings and clerestory windows fill the interiors with natural light, while large sliding glass doors open to private patios for easy indoor-outdoor living. Each space feels modern and welcoming, complete with well-appointed kitchens and roomy islands perfect for family meals or morning coffee. It’s a true example of multigenerational living done right.

Copperline ADU, San Diego, CA

Designer and Builder: SnapADU
Size: 980 sq ft, 2 bed, 2 bath

This Spanish-style ADU in Rancho Santa Fe was designed to blend seamlessly with the community’s strict architectural standards. The homeowner, a roofing contractor, personally installed the boosted tile roof to match the main home, turning HOA requirements into an opportunity to create a timeless retreat. Today, the ADU serves as a private space for family and guests. Every element, from hand-textured stucco to arched porch openings and copper gutters, was carefully chosen to mirror the primary residence. Inside, faux wood ceiling beams add warmth to the great room, while custom shelving and professional-grade appliances enhance the kitchen. Each bedroom features an ensuite bath and walk-in closet, with a back entrance leading to a mudroom and laundry area.

Brick House ADU, Denver, CO

Designer and Builder: ADU4U
Size: 938 sq ft, 1 bed, 1.5 bath

This ADU project breathes new life into an old, historic building, while preserving its authentic character and respecting its roots. Building a modern structure within an 138 year old structure was an innovative solution to achieve this. In historic Curtis Park, Denver’s oldest neighborhood, an 1886 brick carriage house stands as a testament to the passage of time. The building sits inside the boundaries of Denver’s historic Curtis Park, so all exterior design and material selections had to be approved through the city’s Landmark Commission.

ADU4U turned this once-unlivable structure into a cozy, modern home while preserving its historic charm. To bring it up to today’s safety standards, the team strengthened the old brick with a new steel frame and carefully reused original materials throughout the interior. The hayloft door became the powder room door, and the old floor joists were turned into a beautiful kitchen peninsula. Now, this light-filled ADU perfectly balances historic character with modern comfort. It’s truly a shining example of how old buildings can be reimagined for today’s living.

Longview ADU, Washington D.C.

Designer: Ileana Schinder
Builder: J Cabido Designs

This project is a creative transformation of an abandoned garage and storage space into a bright and efficient one-bedroom ADU. By keeping the original structure’s footprint, the design team minimized both construction costs and the visual impact on the surrounding property. Every detail was planned with sustainability in mind. From upgraded insulation to energy-efficient mini splits and an energy recovery ventilator, the ADU meets Washington DC’s strict environmental standards while maintaining year-round comfort. Restoring the building’s existing openings allowed natural light to flood the interior, creating a warm and inviting space that feels much larger than its footprint. The result is a thoughtful blend of preservation, sustainability, and smart design, breathing new life into what was once an overlooked structure.

Sagebrush ADU, Menlo Park, CA

Designer: Inspired ADUs
Builder: Integrum Construction

This ADU is a masterclass in craftsmanship and timeless design. Every detail, from the cedar shake siding to the copper flashings, was carefully chosen to mirror the main home and create a seamless, cohesive look. Instead of competing with the original architecture, it enhances it, feeling like it has always been part of the property. Natural materials play a starring role here. The cedar and copper will continue to age beautifully, adding warmth and character over time. Inside, handmade tile, custom cabinetry, and a cozy loft make the space feel elevated yet inviting. Every inch was designed with intention, balancing function, beauty, and authenticity. This ADU proves that small-scale construction can be both refined and enduring.

Brushstroke ADU, Newcastle, CA

Designer and Builder: A+ Construction ADU Builders
Size: 1,198 sq ft + 800 sq ft deck, 3 bed, 2 baths

The client didn’t want to separate three generations of their family, so they built a second home in their backyard. This ADU allows their parents to live independently with their own routines and art studio, while staying just steps from family dinners, grandkid hugs, and everyday life together. At 1,200 sq. ft., the ADU includes three bedrooms, two bathrooms, and a large open living area. The layout prioritizes comfort, easy movement, and aging-in-place, with wide circulation paths, direct deck access from the primary bedroom, and plenty of natural light. A dedicated art studio with custom cabinetry and large windows supports the grandmother’s creative routine. The best feature? An 800 sq. ft. covered deck and carefully chosen exterior finishes. All of these details make the ADU feel integrated with the main home, creating a thoughtful, functional, and long-term living space for the whole family.

Alcove ADU, Los Angeles, CA

Designer: Homeowner
Builder: Doobek Brothers
Size: 593 sq ft, 1 bed, 1 bath

What started as a retrofit for a carport turned into a fully functional ADU, making smart use of limited space while navigating strict city codes. Because the property sits on a hillside, any addition beyond the existing roofline would have required expensive drainage to the street, so the design works entirely within the original footprint. The interior feels calm and spacious thanks to thoughtful layout, finishes, and furniture. A double wall between the kitchen and bathroom cleverly hides appliances while providing storage for cleaning supplies, making the space feel open and uncluttered. Temperature and sound insulation reduce energy costs for both units, making it highly efficient. Windows were sized to align with the upstairs unit, creating visual harmony. With parking right outside and a potential deck planned for the upper unit, this ADU demonstrates how careful design can turn code restrictions into a livable home.

Elevare ADU, San Diego, CA

Designer: Sergio Perlata
Builder: HM Construction
Size: 479 sq ft, 1 bed, 1 bath

This daring ADU was built on top of the homeowner’s existing house to preserve the garage while creating a luxurious, functional space. What started as a bold idea and labor of love resulted in a retreat that balances comfort, style, and modern California living. The design maximizes natural light, features high-end finishes, and offers seamless indoor-outdoor flow. Privacy for the main house was carefully considered, and practical choices like spa-like micro-cement in the bathroom create a durable, low-maintenance, and rental-friendly space. More than just a guest house, this ADU is a thoughtfully crafted space that inspires relaxation and connection.

Today’s Accessory Dwelling Units aren’t just tiny homes; they’re often big on innovation with many across America offering a masterclass in architectural and interior design ingenuity, space optimization and aesthetics. Some designs are so progressive, they are redefining what’s possible in small-space living, blending creativity with functionality in ways that are as practical as they are stunning.

In the years ahead, the popularity and relevance of ADUs is only set to grow among real estate investment and revenue-oriented homeowners: those who want a convenient and elevated experience for their guests, and others focused on smaller, energy-efficient homes with reduced environmental impact.

These modern ADUs are not just about adding square footage; they’re about enhancing lifestyles, fostering intergenerational living, and creating sustainable housing options for the future.

No Income? You Can Still Claim a Home-Office Deduction

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By Robert P. Russo, CPA PC

Question: My CPA said that if I didn’t have any business income this year, I couldn’t take a home-office deduction. Is that true?

Answer: Absolutely not. Even in a year with no income, claiming your home office deduction can provide valuable tax benefits.

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Why Your Business Loss Still Matters

If your business had no income, it might seem like deductions don’t matter—but that’s incorrect. Whether you:

  • Started a business late in the year, or
  • Had expenses exceeding income

You may have a tax loss that carries forward to future years. Under the 2025 tax law, these losses are called net operating losses (NOLs). Think of NOLs as a tax deduction savings account you can apply to future profitable years.

Bad Advice #1: Don’t File a Return

Skipping your tax return because you had no income is costly:

  • Filing documents to your NOL carryforward, reducing future tax liability.
  • Claiming all deductions, including home-office expenses, maximizes future savings.

Planning Tips for this year:

  1. Always claim your business deductions—even in a loss year.
  2. File your tax return to secure NOLs and carryover deductions.

Bad Advice #2: Skip the Home-Office Deduction

Your home-office deduction has two major benefits, even if you had it this year:

1. Convert Personal Miles to Business Miles

Without a home office, trips from home to clients or offices count as personal commuting—nondeductible.

Example:

  • 22-mile round-trip to a client = personal miles
  • 18-mile round-trip to a co-working office = personal miles

With a home office as your principal place of business, these trips become deductible business miles.

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2. Preserve Your Home-Office Deduction Carryover

Even if you don’t benefit this year, your home-office expenses carry forward under the 2025 law. Failing to claim the deduction now = no future-year benefit.

Tip: To qualify, report your home office as your principal place of business on your Schedule C.

Additional 2025 Tax Benefits

  • NOL Carryforward: Your business loss, including home-office expenses, may create a net operating loss that reduces taxes in future years.
  • Mileage Deduction: Trips from home to clients or second offices are now business miles, increasing deductible expenses.
  • Future Tax Savings: Deductions claimed during a loss year offset future business income.

Key Takeaways

Even without current-year business income, claiming your home-office deduction in 2025 ensures:

  1. Deduction carryover to offset future profits
  2. Business mileage instead of nondeductible commuting
  3. NOL generation to reduce future tax liability

Bottom line: Never skip your home-office deduction or fail to file your return just because your business had no income. Doing so may cost you thousands in future tax savings.

Need guidance? Contact us to maximize your home-office deduction, NOL carryforwards, and other business tax strategies.

MEET ROBERT P. RUSSO, CPA PC

As the founder and principal of Russo CPA, P.C, Bob pleasantly surprises clients (plus the IRS and lawyers) with his proactive, caring, and interested approach. Bob’s authentic passion for both numbers and people is why his accounting firm is sought after by everyone from solopreneurs to CFOs. And it’s what energizes his fast-growing team of top CPAs who follow his lead by providing impeccable service to clients – without the CPA geek speak.

The only thing geeky about Bob is his favorite reading material: the latest tax regulations, codes, and rulings (so he can secure every possible tax advantage for his clients). You might mistake Bob for the charismatic entrepreneur and CFO behind an internet travel startup or a visionary real estate developer. That’s because he held those roles during his 30-year career as an accountant, which began at a high-profile accounting firm. While CPAs aren’t required to have “field” experience, the best ones do. But Bob doesn’t define success by his own achievements, it’s what he achieves for his clients. Because of his entrepreneurial past, Bob relates so well to his clients. In addition to serious tax savings most firms would miss, he empowers his clients with real-world accounting and financial insights to increase business.

Bob is even results-driven outside of work, whether it’s finishing the 2012 NYC Iron Man or volunteering for 12 years as President of a kids’ soccer league. While his bottom-line results are always impressive, what matters to Bob are the people who benefit from them.

When he’s not immersed in accounting, Bob is with his family, cooking up elaborate 18-course meals or globetrotting.

Robert P Russo CPA PC
Certified Public Accountants
231 W. 29th Street (bet 7th & 8th Ave)
Suite 500
New York, NY 10001
O: 212-279-9800
C: 917-207-9278
F:866-396-2310
www.robertprussocpa.com 

Locating Private Money Loans: Building a Network for Referrals and Identifying Opportunities

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By Dan Harkey

Master Educator | Business & Finance Consultant

The private money lending industry offers significant growth and potential to succeed. Real property borrowers often seek financing alternatives outside of banks and institutional lenders. One such alternative is private money lending, a niche designed for non-bankable or non-traditional loan transactions —loans that do not meet the strict criteria of traditional banks, such as those with lower credit scores or unique property types.

To review the article on my website, click here: https://danharkey.com/post/locating-private-money-loans

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Who Are Private Money Lenders?

Private money lenders are typically individuals or private entities, including companies or investment funds, that invest directly in loans. These lenders are not subject to the same regulatory constraints as banks, allowing for more flexible underwriting —such as considering the property’s value rather than the Borrower’s credit score —and faster funding—ideal for borrowers who don’t meet conventional lending criteria and need quick access to capital.

How Do Loan Agents and Lenders Find Private Money Opportunities?

Identifying potential borrowers who may need private money loans requires a combination of research, observation, and networking. Traditional methods include:

  • Reviewing public records from title companies to identify properties with low loan balances.
  • Monitoring building permits for additions or renovations, which may indicate a need for financing.
  • Tracking delinquent property taxes, which can signal financial distress.
  • Targeting first-time homebuyers, who may not qualify for conventional loans.

In the past, title companies provided databases listing loans with private beneficiaries—an indicator that a Borrower had previously used private money. However, due to privacy regulations, access to these lists has become limited.

Property and Borrower Profiles Likely to Need Private Money

Certain property types and Borrower situations are more likely to require private money financing:

  • Properties on loan default lists
  • Properties with delinquent property taxes
  • Properties that show visible signs of deferred maintenance
  • Properties owned by heirs or beneficiaries of deceased owners
  • Properties already encumbered by existing private money loans

While these indicators are useful, building a statistical model to predict private money loan needs remains challenging due to the variability of borrowers’ motivations and circumstances. It’s important to remember that this is a common challenge in the industry, and not a reflection of your abilities.

My Motto: “You Locate a Buyer; You Do Not Create a Buyer.”

The most effective way to find private money lenders is to cultivate a broad, diverse professional network. Focus on professionals who regularly interact with potential borrowers or investors:

  • Mortgage brokers (both private money specialists and conventional)
  • Residential and commercial real estate agents
  • Accountants, enrolled agents, and CPA firms
  • Estate planning, divorce, and probate attorneys
  • Financial planners and wealth advisors
  • Real estate and business litigation attorneys
  • Contractors, builders, and developers
  • Income property owners and speculative investors

Building and Leveraging Your Network

There are many ways to build a list of these professionals. Consider this: if you have 500 contacts in your network, and each of them has 500 contacts, your potential reach is 250,000 people.

To stay top of mind, consistently provide value to your network. Avoid generic newsletters or mass marketing. Instead, send personalized, authentic communications that demonstrate your expertise and help your contacts grow their own businesses.

The Power of Referrals

Referrals and repeat clients are the lifeblood of successful loan agents and business professionals. Those who master the art of networking and relationship-building often find themselves in the top 20% of producers, earning 80% of the income. The rest? They struggle to gain traction. By recognizing the value of referrals, you can appreciate the role your network plays in your success.

Approaching professionals for referrals is both an art and a strategy. Here’s a practical, relationship-driven approach tailored to your work in private money lending:

1. Start with Value, not a pitch

Before asking for anything, offer something of value. This could be:

  • A market insight or trend relevant to their industry
  • A helpful article or white paper you’ve written
  • An introduction to someone on your network who could help them

Example:

“Hi , I came across a recent update on property tax delinquencies in [County] and thought it might be useful for your clients. Let me know if you’d like a copy.”

2. Identify the Right Professionals

Focus on those who are already in touch with your target borrowers:

  • Mortgage brokers
  • Real estate agents
  • CPAs and enrolled agents
  • Estate planning and probate attorneys
  • Contractors and developers
  • Financial advisors

3. Use a Warm Introduction

If possible, get introduced through mutual contact. If not, reference a shared connection, event, or interest.

Example:

“I noticed we’re both connected to [Mutual Contact] and work with similar clients. I’d love to learn more about your business and explore ways we might help each other.”

4. Be Clear About What You Do

Professionals are more likely to refer clients if they understand your niche and how you can help.

Example:

“I specialize in private money loans for clients who don’t qualify for traditional financing—often due to credit issues, property condition, or timing constraints. I work quickly and transparently, and I’m always happy to be a resource for your clients.”

5. Ask for the Referral—Tactfully

Once rapport is established, make a straightforward but low-pressure ask.

Example:

“If you ever come across a client who needs fast, flexible financing and doesn’t fit the bank’s box, I’d appreciate the opportunity to help. I’m happy to jump on a call or meet in person to discuss how I work.”

6. Follow Up and Stay Top of Mind

  • Send occasional updates or success stories.
  • Celebrate their wins (e.g., “Congrats on the recent closing!”).
  • Always thank them for any referral, even if it doesn’t convert.

7. Be a Credible Expert

  • Demonstrate knowledge: Share insights on market trends, regulatory changes, or case studies that show your expertise.
  • Be transparent: Clearly explain your process, fees, and expectations. Professionals need to trust that you’ll treat their clients with integrity.
  • Show results: Share success stories or testimonials (with permission) that highlight how you’ve helped clients in challenging situations.

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8. Be Reliable and Responsive

  • Follow through: Do what you say you’ll do—on time, every time.
  • Communicate proactively: Keep your referral partners in the loop. Let them know when you’ve contacted their referral and how things are progressing.
  • Be available: Prompt responses build confidence. Even a quick “Got your message—will follow up shortly” goes a long way.

9. Make Them Look Good

  • Treat their referrals with respect and professionalism.
  • Avoid hard selling. Focus on solving problems, not pushing products.
  • If a referral isn’t a fit, refer them back or to someone else who can help. This shows integrity.

10. Educate and Empower

  • Offer to host a short lunch-and-learn or webinar for their team on private money lending.
  • Provide referral guides or FAQs they can share with clients.
  • Help them understand when a private money loan is appropriate—so they refer the right clients at the right time.

11. Give Before You Ask

  • Refer clients to them when appropriate.
  • Promote their services in your newsletter or social media.
  • Invite them to network events or industry mixers.

12. Stay in Touch—Genuinely

  • Send personalized updates, not mass emails.
  • Celebrate their wins (e.g., “Congrats on your new office!”).
  • Check in periodically without an agenda—to say hello or share something useful.

13. Be Patient and Consistent

Trust takes time. Some professionals may not refer right away, but if you stay visible and valuable, they’ll think of you when the right opportunity arises.

Thank you,

Dan Harkey

Master Educator | Business & Finance Consultant

949 533 8315 [email protected]

Website www.danharkey.com

Realty411 to Host Free Expo in Pasadena on December 6th

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Friends, don’t forget to register for our last event of the year. This is a great opportunity to learn the latest news, strategies and information. Join us to learn from new educators sharing new strategies. Plus, network with new companies joining us from throughout California and the nation.

Looking for advanced learning? Purchase a VIP ticket and receive our next magazine mailed to you, plus access to our VIP virtual events.

Realty411 in the NEWS: Read our editorial in Pasadena Now, one of the oldest online community news websites in the nation.

Some of the Educators Joining Us Include*:

Merrill Chandler
Get Fundable

Michael Ryan
Michael Ryan & Associates

Rusty Tweed
TFS Properties

Zach Henderson
Elux Homes

DaShunda Morris
Realtor and Pro Rehabber

Barry Duron
AltLender Mortgage

Devon Aguirre – PadSplit

Chinedu Ofoegbu
NY Life Insurance

Michael Morrongiello
BAWB.info

Rick Tobin
Real Loans

Dan Ringwald
SB REIA

Paul Wilkins
AIC
Approved Inheritance Cash

Dana Ehrlich
ENRG.realty

Arbel Design

Michael Angeles
Greenlight Mortgages, Inc.

Scott Mednick
Twin Creeks Capital

Anthony Patrick
New Harvest Ventures

PLUS, MORE TO BE ANNOUNCED

DOWNLOAD NOW

NEW EDITION

Since 2007, Realty411.com has assisted top companies expand their visibility and grow their business.
Contact us for a complimentary marketing session with one of our team members.
Book a meeting with a Realty411 team member: CLICK HERE.

Black Friday Property Showcase Webinar: Unlock Exclusive Investment Land Opportunities

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Please review this webinar invitation from our sponsor, thank you.


Black Friday Property Showcase Webinar:
Unlock Exclusive Investment Land Opportunities

This Black Friday, my friend and Expert Land Banker, Marcella Silva is pulling back the curtain on exclusive land investment opportunities that could transform your portfolio: and your financial future.

While everyone else is fighting over discounted electronics and crowded shopping malls, savvy investors will be getting in on the real deals that are happening in the land market. This Black Friday at 11 AM Pacific, you’ll discover why top investors are quietly shifting their focus from traditional real estate nightmares to the golden opportunity of strategic land investment

The clock is ticking, and these exclusive properties won’t wait for you to make up your mind.

Register Now:
🗓 Date: Friday, November 28, 2025
⏰ Time: 11AM PM Pacific (Approximately 1 hour)
🔗 https://register.gotowebinar.com/register/3906959989375926616

What makes this Black Friday Showcase unmissable?

This isn’t your typical investment presentation. Marcella will be showcasing strategic and undervalued properties that are currently available for investment: exclusive opportunities that won’t be available anywhere else. These carefully curated land parcels represent the cream of the crop, positioned in areas where significant growth is not just possible, but already underway and it’s speeding up!

Exclusive Property Reveals

During the live session, you’ll get first access to:

  • Incredible land parcels located amongst the largest land rush in history
  • Strategic positions near existing and planned projects and infrastructure
  • Undervalued opportunities in green energy markets
  • Portfolio-ready investments perfect for diversification

These properties have been handpicked based on over 46 years of experience, rigorous analysis of both macro and micro economics, and a strict due diligence process.They’re not just investments: they’re your entry point into tomorrow’s most valuable real estate and energy markets.

Land Banking is your path to stress-free wealth building.

Land banking isn’t just another investment strategy: it’s your ticket to financial freedom without the traditional real estate hassles. When you invest in strategically positioned land, you invest in the essential and limited asset that everyone and everything needs. This is an opportunity for phenomenal portfolio growth and returns.

Don’t Let This Opportunity Pass You By: Timing Matters More Than Ever

Their targeted land market is experiencing unprecedented momentum. With government mandates, rapidly growing emerging technologies, massive infrastructure investments, limited supply of land, and much more, it is a perfect storm of conditions for explosive land value appreciation. But here’s the reality: the window for getting in at ground-floor prices is closing fast. Don’t be caught saying, “I shoulda, woulda, coulda!”

The most successful investors share one common trait: they act decisively when presented with exceptional opportunities. They understand that hesitation is the enemy of wealth creation, and they refuse to let fear or analysis paralysis cost them life-changing returns.

Consider this your wake-up call.

SECURE YOUR SPOT NOW: Register for the Black Friday Exclusive Webinar

Beyond the Numbers: Building Your Legacy

This isn’t just about making money: it’s about creating lasting wealth that can transform your family’s future. Land has been the foundation of wealth creation for centuries, and strategic land banking allows you to participate in this time-tested wealth-building method with modern sophistication. It is the best gift you can give your family this holiday season!

Secure Your Spot Before It’s Too Late

Properties for this exclusive Black Friday webinar are limited, and registration is filling up fast. Once these exclusive opportunities are gone, they are gone for good.

Here’s what happens next:

  1. Register immediately using the link below to secure your spot
  2. Mark your calendar for Black Friday November 28, 2025 at 11 AM Pacific
  3. Prepare to be present to hear about game-changing investment opportunities
  4. Be ready to act on exclusive property access during the live session

The registration process takes less than one minute, but the knowledge and opportunities you’ll gain could impact your financial future for decades to come.

SECURE YOUR SPOT NOW: Register for the Black Friday Exclusive Webinar

Your Financial Future Starts This Black Friday

While others are focused on temporary discounts and consumer goods, you’ll be positioning yourself for lasting wealth creation. This webinar represents more than just an educational opportunity: it’s your invitation to join a select group of investors who understand that true wealth comes from strategic positioning, not lucky breaks.

Don’t spend another year wondering “what if.” Don’t let another opportunity slip away while you’re still considering your options. The time for hesitation is over: your moment to act is now.

Your future self will thank you for taking action today.

Register Now:
🗓 Date: Friday, November 28, 2025
⏰ Time: 11AM PM Pacific (Approximately 1 hour)
🔗 https://register.gotowebinar.com/register/3906959989375926616

Since 2007, Realty411.com has assisted top companies expand their visibility and grow their business. Contact us for a complimentary marketing session. Investors, need a solid REI referral?
Book a meeting with a Realty411 team member: CLICK HERE.