Private Lending – Interest Rates Rising


Federal Reserve last week increased interest rates for the fourth time in 2022.  The previous three rate increases already have affected real estate lending rates for Private (Hard Money) Lenders.

Borrowers – Should consider locking in private borrowing interest rates prior to another Federal Reserve increase expected in September. Any future Federal Reserve increase inevitability will result in increased Private Money Lender rates.  Borrowers locking in at a lower rate now makes for a higher project profitability end game.

Investors – Are now recognizing benefits of increased Federal Reserve rate increases. Private Money Lenders are seeing an uptick in real estate loan interest rates, which in-turn makes CGF’s Group Loan Program an excellent investment alternative.  Participating Investors receive monthly interest only payments for term of each loan. 

CGF website has new “Projects” tab enabling viewing of most recently funded projects with photos and descriptions. Check out “Projects” at www.cgf-inc.com.Income Tax Corner
Income tax early history – America’s tax laws have been in flux for generations. The first U.S. income tax came about with Revenue Act of 1861. A flat 3% tax on income above $800 was used to fund the Civil War. In 1894 a new flat federal income tax was ruled unconstitutional by the U.S. Supreme Court. In 1913 the 16th Amendment was ratified, and federal income tax finally stuck for good. 
Business denture expense did not work– 1930s silent film star Ned Sparks learned this the hard way when he tried to write off a pair of $3,000 dentures as a business expense. He claimed he needed them for work because they let him enunciate words properly. IRS disallowed deduction as Sparks couldn’t prove the dentures would only be used for business purposes.

Contact Information
www. cgf-inc.com – phone – Ken – 458-209-1484 or email ken@cgf-inc.com
Corporate NMLS – 1913112 MLO – NMLS -1913394
CGF, Inc. Private money lender – Inquire to compare
(August 2022)