Global Cash Flow – Real Estate Financing’s Newest Buzz Words There is nothing worse than finding just the right investment property that you know will make you great income, only to have the opportunity fall through because you got turned down for financing. It’s even worse when you see someone else pick up the property and make a fortune. It’s a devastating feeling, but one that real estate investors face every day with all of the changing lending guidelines.You located the … [Read more...]
How to Structure a DPA Transaction with No Cash or Credit
July 10, 2012 By Leave a Comment
How to Structure a DPA Transaction with No Cash or CreditLooking for a way to get traditional lending for a deal without cash or credit? It’s called DPA. Before your eyes glaze over in acronym avoidance, hear this one out. It’s a bit complicated, but if you can keep it all straight, you can structure a no cash, no credit deal in no time. This term – DPA – Down Payment Assistance doesn’t really exist anymore, but it’s out there if you know where to look. The Elements of Structuring … [Read more...]
Eight Ways to Find Your Next Hard Money Lender
July 8, 2012 By Leave a Comment
Eight Ways to Find Your Next Hard Money LenderIn an ideal world money would grow on trees, banks would be eager to lend thousands of dollars with just a signature, and my hair would stay in the faux-hawk all day long. Reality, however, is a different pill to swallow. If you are looking to get into house flipping but have little money of your own, chances are you will need to rely on the help of what investors call “Hard Money.”What is Hard Money & How Does it Work?Hard money is a popular … [Read more...]
Non-Conforming Real Estate: Why You Should Conform
June 17, 2012 By Leave a Comment
Non-Conforming Real Estate: Why You Should ConformReal estate investors know the dangers of investing in a property that does not conform to the area; exiting the deal becomes very difficult .What is Non-Conforming Real Estate? In real estate there are several reasons a property would be considered non-conforming:1) Non-conforming use – most local governments enact zoning laws/ordinances that regulate the use of property. As zoning requirements change, pre-existing structures are often … [Read more...]
Opportunities and Risks of a Real Estate Joint Venture
June 3, 2012 By Leave a Comment
Opportunities and Risks of a Real Estate Joint VentureIn the real estate investment business, there are both big opportunities and big risks. And the same goes for joint venture agreements. Here are three opportunities and three risks to consider when deciding to form a real estate joint venture. OPPORTUNITIES 1. Leveraging Your Weaknesses Maybe you are very knowledgeable in one aspect of real estate investment, but don’t know much about other parts. For example, maybe you have a great network … [Read more...]
How to Address Closing Cost Credits in Short Sale Transactions
May 15, 2012 By Leave a Comment
How to Address Closing Cost Credits in Short Sale TransactionsAgents, buyers and sellers are abuzz because it’s a seller’s market again. Just a few weeks ago an agent friend of mine received 24 offers on his short sale listing, and another property in my area got 10 offers the very same weekend.When reviewing short sale offers with clients, it is important to look at the type of loan that the buyer will obtain: VA, FHA, or conventional financing. And, will the buyer require a closing cost … [Read more...]
Raising Private Money – Debt or Equity Partners
May 6, 2012 By Leave a Comment
Raising Private Money – Debt or Equity PartnersWhen you are ready to start raising private money for your real estate deals, there are two different types of private money partners you can look for: debt partners and equity partners. Both can help you raise all the money you need to fund your real estate deals, but they work very differently. In this article we’re going to take a look at both debt and equity partners. We’ll explore how they are different and why you would use each to … [Read more...]
What Is a Commercial Loan Modification?
April 28, 2012 By Leave a Comment
What Is a Commercial Loan Modification?A commercial loan modification, also called a Workout Loan, may be considered if a business is in financial distress and unable to pay back a loan.In order to understand what Commercial Loan Modification means, let’s break down each word and define it:Commercial: Related to business. We are only concerned with loans taken out for business purposes. This does not include an individual loan for something like your car, home mortgage or an educational … [Read more...]
Pulling Credit Reports for Seller Financing
April 15, 2012 By Leave a Comment
Pulling Credit Reports for Seller Financing You should always pull credit on potential applicants but you need to be aware of the Fair Credit Reporting Act as a decision maker in the approval or denial of a prospective borrower. Here are a few considerations from the federal level that you need to be aware of to stay in compliance:Disclosed to the consumer that an investigative consumer report will be made by your inquiry. This disclosure should be in writing and mailed or delivered within 3 … [Read more...]
A Home Run with Hard Money?
April 13, 2012 By Leave a Comment
A Home Run with Hard Money?I had made up my mind. No more debt.No more credit cards. No more car payments. No more hard money loans. Sure, paying 18% was steep. But that wasn’t the real reason I decided to give up leveraging my fix and flip deals. Borrowing money had bankrupted me in 2007. The funny thing about creditors is they don’t give a damn if your real estate investment portfolio drops in value by 65% – they still want their monthly payment.Then the summer of 2009 rolled … [Read more...]
Distressed Borrower Programs The Current Scoup
April 3, 2012 By Leave a Comment
Distressed Borrower Programs The Current Scoup Bank of America Offers Principal Reductions Up to $100,000 According to the Los Angeles Times, these principal reductions will be made on loans that were originated by Countrywide Financial and packaged into securities. Bank of America acquired Countrywide in 2008, along with their good and bad assets. According to Reuters, qualified borrowers are expected to receive principal reductions averaging over $100,000. Those receiving the reductions … [Read more...]
Cancellation Rates And Contract Failures
March 27, 2012 By Leave a Comment
Cancellation Rates And Contract FailuresContracts are failing at a high rate. Here’s why: Appraisals: Appraisals often come in lower than the previously negotiated price. Sellers do not want to renegotiate, or short sale agents have trouble challenging the bank’s short sale approval with their home appraisal. Homeowner’s Association Troubles: In these tough times, the Homeowner’s Associations are facing challenges. Delinquency rates impact their financial stability, and this (in … [Read more...]
Mortgate Notes
January 7, 2012 By Leave a Comment
Any time that a mortgage note holder calls me about selling their note, one of my initial questions to them is regarding the credit score and current employment of the payer (the new owner of the property who is making payments on the note). More often than not, the caller will have little or no idea about either one. This use to frustrate me, as I could not imagine taking that large of a financial gamble without doing some basic homework first. Sometimes, the holder of the mortgage note … [Read more...]
The Use of Private Money
December 23, 2011 By Leave a Comment
The use of private money is nothing new. Many investors have used it in the past and have called it very different things. Hard Money, Private Loans, Family Loans, Partner Money, Investor Pools, Money Partners, Private Equity, heck even Loan Sharks (jokingly)- are all names and sources of private money that can be used for [...]Private Money – Use It To Fund Deals is a post from: Real Estate Investing Blog For Real Estate Investors.Read the full post here... … [Read more...]
Looking For a Lender? 3 Things To Know
November 30, 2011 By Leave a Comment
Looking For a Lender? 3 Things To KnowThere are Many Lenders for investors around the country who have the ability to underwrite loans . However, I have found that most lenders who attempt investment loans get tripped up along the way and are unable to close these loans. Having coordinated hundreds of loans over the last several years, I have learned how to screen potential lenders for investment loans. Here are 3 Criteria I look for when screening a potential lender for an investment … [Read more...]
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