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Is Hard Money For You?

IS HARD MONEY FOR YOU?

Hard money loans aren’t for everyone, but, those with less than stellar credit, needing a quick loan, wanting to fix up a property, all fall within the parameters of why hard money is beneficial.

If a Borrower qualifies for conventional or traditional financing, I tell them. Not only is it legal but it is the right thing to do.

However, what about those who want to buy a dump property and fix it up? What about the home buyer who was just turned down by their bank for a home loan yet they are already in Escrow and need a loan quickly so they don’t lose out on that house? What about someone with a bankruptcy within the past couple of years?

A Hard Money loan is the answer.

There was a good blog posted by Trust Deed Capital in August called “Quick Hard Money Loan Structure Explained”, that explains in pretty good detail what hard money is and how it is beneficial Money-Guy-Walking-With-Bag-Of-Money(link to article below).

After 28 years in Sonoma County, our family company has helped thousands of home buyers and home owners, investors and other real estate agents and lenders to get a hard money loan and accomplish the deal they were working on!

Anyone who lives in or wants to live in California – Northern CA and Southern CA ( yes, this includes Sonoma County, Monterey, Santa Barbara, Napa, San Mateo, Marin, etc.) who is having problems getting a loan, give us a call and see how we can help.

Best, Broker – The Guy in the White Hat
707-523-2099

Hard Money Broker and Owner at family owned & operated Sun Pacific Mortgage and Real Estate, Serving all of California Since 1988!
CA Bur RE ID #01000559. NMLS ID #289456

Quick Hard Money Loan Structure Explained:
http://www.trustdeedcapital.com/blog/quick-hard-money-loan-structure-explained?utm_source=hs_email&utm_medium=email&utm_content=21218492&_hsenc=p2ANqtz–DeNuMOJJRwxQxB7lBRu1wPaOfUeiIaA0RnKHG9ydpF5sExHcEsZivjx6BLuIfZha8htH7rsV9QHtc-82jJFpX_ZAuGA&_hsmi=21218492

Don’t Give Up. You COULD Qualify To Buy A Home NOW.

Don’t Give Up. You COULD Qualify To Buy A Home NOW.

Home buying CAN become a reality. There are many loan programs available and families might just qualify to buy now – but they have to look for experienced lenders and agents to help get them all the information out there. DON’T GIVE UP.

Persistence. Experience. Sincerity. Caring. These are traits any Realtor and Lender or Broker should have when you decide to work with them. You need to know all your options for BUYING NOW.

Cost-Of-Waiting-KcmThe KCM Crew just wrote another great blog called “The Cost of Waiting To Buy a Home”. It lays it out pretty clearly how waiting to save up for more of a down payment or waiting until your credit is the highest you can get it, just costs you more money down the road when you actually buy your home.

Stop waiting, wondering and hoping. It’s time to take action and find your local licensed, experienced, honest and persistent Agent who can provide you with what you need to get into a home – sooner than later.

If you want any information about alternative financing due to poor credit, difficult to prove income, property a fixer, etc. then don’t hesitate to call my office at 707-523-2099 and we can provide this. We are located in Santa Rosa and have been offering hard money loans (also known as private money) for over 28 years. We offer $100,000 on up to jumbo size loans in the North bay areas, South bay areas and actually throughout all of California.

Best, Broker – The Guy in the White Hat

Hard Money Broker of family owned and operated Sun Pacific Mortgage & Real Estate company, serving all of California since 1988! www.sunpacmortgage.com
CA BRE License #01000559. NMLS #289456

Original KCM blog link: http://www.keepingcurrentmatters.com/2015/09/16/the-cost-of-waiting-to-buy-a-home/?utm_source=feedburner&utm_medium=email&utm_campaign=Blog_Promo

Recently Funded Deals – The Buck Stops Here

Recently Funded Deals – The Buck Stops Here

Being the last hope for an individual or family to buy a home or an investment property is not just a job for us but something we are proud we can be.

We hope the following recently funded deals shows you how we can help you, your client, a family member or friend, anywhere in Sonoma County and all throughout California for that matter.

“The Sun Pacific Team is extremely knowledgeable with decades of experience. They also really care about their clients, are efficient and provide the lowest stress possible. I would hire Sun Pacific again, without hesitation, for my next home buying experience.” Regards, Karen

Call Us Today at 707-523-2099 with your real estate finance scenarios and see how we can help.

Best,
Broker & Broker, The Guys in the White Hats

P.S. We love referrals!

Guys

RECENTLY FUNDED TRANSACTIONS:

NOTE: Get our financing despite credit circumstances, self employed difficult-to- prove income, need of fast financing, property a fixer, etc! We finance investment properties, owner occupied properties, multi-units, some commercial and land throughout California.

SANTA ROSA, CA
Type: Rental Properties Refinancing
Amount: 531K
Days to fund: 8 days
Reason needed: Bankruptcy in the past years

BERKLEY, CA
Type: Investment Property Purchase
Amount: 593K
Days to fund: 22 days
Reason needed: Short Sale still on record

RIVERSIDE, CA
Type: Owner Occupied Bridge
Amount: 355K
Days to fund: 14 days
Reason needed: Property condition poor

ROHNERT PARK, CA
Type: Principal Residence Purchase
Amount: 232K
Days to fund: 8 days
Reason needed: Difficult to prove income

SANGER, CA
Type: Owner Occupied Short Term
Amount: 199,000
Days to fund: 8 days
Reason needed: Credit Poor

OAKLAND, CA
Type: Commercial Property Purchase
Amount: 221K
Days to fund: 24 days
Reason needed: Owned multiple properties

FALLBROOK, CA
Type: Owner Occupied Purchase
Amount: 703K
Days to fund: 22 days
Reason needed: Self Employed

Click this link for our rate sheet, showing the programs we offer.

CALL TODAY, The Guys In The White Hats at
(707) 523-2099

 

Stop Wondering If You Qualify For A Home Loan

You owe it to yourself/your family to truly FIND OUT from numerous experienced Lenders, what the available [and new] multiple loan programs are!
100 Dollar Bill And Sign

Wondering If You Qualify For A Home Mortgage?  Find Out For Sure!

Are you someone who does not think they should bother contacting an experienced and licensed Mortgage Broker or Lender as you “already know you aren’t qualified”?

Well, change that thought!

Pick up your phone, get onto your computer for an internet search or just walk in to a good local Lender.  There are numerous loan programs available. Find out which loan program best suits you.  And don’t just go to a bank.  Also go to local Brokers and portfolio type lenders (such as a Credit Union).  Even consider Hard Money or Private Money financing as these have less credit hassle financing.

Whether you need an investment property refinance or a jumbo loan to buy that big family house in Santa Rosa, San Francisco or Marin, or, how about in Monterey Bay or another beautiful California city? ALL Programs should be considered as you could be missing out on that specific home mortgage which you do qualify for!

It can’t hurt to find out for sure, from experienced and licensed mortgage professionals.  You may just be happy you asked.  You could soon become a new homeowner!

This Keeping Current Matters Blog should help further dispel any such idea:

“What Do You Really Need to Qualify for a Mortgage?”  http://www.keepingcurrentmatters.com/2015/09/03/what-do-you-really-need-to-qualify-for-a-mortgage/?utm_campaign=Blog_Promo&utm_medium=Social&utm_source=Facebook&utm_content=dailyblogpost

Best, Broker

Lead Loan Originator at Family owned & operated Sun Pacific Mortgage & Real Estate, Hard Money Broker Serving all of CA Since 1988!   707-523-2099 www.Sunpacmortgage.com

CA Bur Real Estate License #01858042 and NMLS #1221130

5 Biggest Myths About Hard Money Loans

5 Biggest Myths About Hard Money Loans

 

Myth-V-TruthBeing a Hard Money Broker for over 25 years here in Sonoma County but licensed for the entire state of California, time and time again I hear such myths or questions similar to these.

 

This should hopefully dispel any last vestige of concern or uncertainty about the value and use of hard money in real estate.  Be it to buy your own home or a 2nd home, a flip, an investment property, land to build on, etc. – hard money can be the best choice for you.

 

The myths so aptly covered in Trust Deed Capital BLOG, by Broker Meyer on July 21, get cleared up by providing the facts:

 

 

 

Myth #5: Only the Desperate Seek Out Hard Money Loans

One of the most difficult myths to dispel is that anyone who goes outside the traditional lending structure (banks, for the most part) must be desperate for a loan. This is the furthest thing from the truth, since most of the people who seek out hard money loans are smart business people who would rather work with an individual investor on a project than deal with a huge lending institution.

Myth #4: Hard Money Lenders Are All Loan Sharks

Hard money lenders are business people, just like their clients. A hard money lender provides money based on the investment, rather than based on the person’s credit score, which means that the lender’s eye is on making the investment succeed. Fairness and good business sense means you get return business. Setting impossible, harsh terms on the other hand means that people won’t come to you unless they’re desperate, which is something hard money lenders want to avoid at all costs.

Myth #3: Hard Money Loans Are More Expensive Than Traditional Ones

You get what you pay for when it comes to financing. If you need to get money in the next two days so you can acquire and flip a property for a huge profit, then time is of the essence. If a traditional lender can’t get you the money in the time frame you need, then it simply isn’t a valid option.

Hard money loans provide flexibility, but their costs are also affected by the loan in question, the profit to be made, and the laws of supply and demand. All of that said, the interest rate on a hard money loan can sometimes be higher than a traditional loan, but they are also usually shorter term and can close quickly. Time is money in investment real estate, so when you look at the big picture, a hard money loan is usually more cost effective than a traditional loan.

Myth #2: Hard Money Loans Have Draconian Rules

Hard money loans are given by an individual, which means that the rules will change from one lender to another. Generally speaking, hard money loans have different restrictions put on them than consumer loans. This is for a specific reason; the lender is looking out for the investment. Lenders and borrowers are encouraged to negotiate until they reach terms they feel they can work under, which is often not the case for banks and other traditional lenders.

Myth #1: It’s One or the Other

Perhaps the biggest myth when it comes to hard money loans is that you can’t also have soft money loans (the more typical sort you get from the bank). There are no rules that say this, and often those who need as much financing as they can get will draw from multiple sources to make sure they have enough capital to get the project done.

oOo

 

Original Trust Deed Capital Blog link: http://www.trustdeedcapital.com/blog/5-biggest-myths-about-hard-money-loans?success=true

This same blog comments on how scary hard money can seem to be, but this only comes about because of the lack of understanding and knowledge required to properly invest with or borrower hard money.

I hope that if you or someone you know that is having trouble getting a loan elsewhere, has a time sensitive purchase requiring financing, etc. that you honestly check out hard money as an option.  You may well be very glad that you did!

 

 

Best, Broker – The Guy in the White Hat

Hard Money Broker Serving all of CA Since 1988!

 

Sun Pacific Mortgage & Real Estate, Family owned & operated (707)523-2099.

www.Sunpacmortgage.com; CA Bur of Real Estate license #01009559 and NMLS #299456

What is a Bridge Loan?

Real estate agents, investors, home buyers and home sellers alike should know about this short term real estate loan, or should I say smart home buying strategy. A Bridge or temporary loan is a type of Creative Financing that some Lenders offer.

 

It is a short term loan, 12 to 18 months only.  It gets paid off with longer-term financing down the line or from the sale of a property.  It essentially Bridges a Borrower from one point to the next.

 

The Benefits:

  1. A Bridge loan is deemed cash by Listing Agents.
  2. Your Buyer does not have to have a contingency of their home selling to use a bridge loan.
  3. A home owner can buy another house now and sell their home later.
  4. There is no fear of the buyer finding their dream home because they still have to sell their current home at the same time.  This is not required with a bridge loan.
  5. Your buyer can buy a fixer, fix it up and have their dream home that way.

The Requirements:

  • This will be a 12 month loan.
  • A minimum of 3 months payments are due.
  • You have to have at least 20-25% for the down payment on a purchase.
  • You have to have decent equity in your existing property on a refinance or pulling cash out.

The Uses:

While there is really no limit on when a bridge loan can be used, as long as the borrower is comfortable with the terms, most bridge loans are typically sought when another sale is pending and the funds are needed to consummate the final deal, permit approvals hold up a project or, most typically, in a “fire sale” situation when a seller must close a deal within a specified period of time.

 

Some instances of when you might use a Bridge Loan are:

  • Pulling some cash out from the equity in your current home and using that money as a down payment to purchase another home.  This allows you more time to sell the home you are currently in.
  • Buying a house to fix and resell, also known as Flipping.
  • Using the Bridge loan to acquire a home that is in disrepair, fixing it up to live in it and then converting the loan to a 30 year fixed rate loan within the 12 to 18 month period.

 

The Costs:

Rates and costs for Bridge Loans can vary by Lender, of course.  Generally speaking however, rates range between 9-12%, interest only.

 

How We Can Help You:

We are licensed for the entire state of California and have been in business for over 27 years now.  Call our office at 707-523-2099 and within just a few minutes, we can let you know what we can do for you!

 

You can also find out all the we offer on our website at www.sunpacmortgage.com and you can email us through our website or at the email below.

 

I hope this has helped you understand more about what a Bridge loan is.

Hard Money Rescues Turned Down Loans

Check out our most recent Hard Money video here:

 

Hard Money Rescues Turned Down Loans

 

Jpeg Check Out Our Most Recent Hard Money Video Here:

If you feel like your loan application is drowning, soon to “die” by getting
turned down, then you need to watch this video of how I can rescue such a loan.

Real Estate loans can be hard to get for some with poorer credit, who are self
employed, had a recent foreclosure or bankruptcy. Or, you may just need a fast
loan and can’t find an “A” paper Lender who can fund fast.

This sounds like your loan request needs to be rescued, so call me, Broker – The
Guy in the White Hat! (707) 523-2099.

I can help with those drowning loans! For well over 25 years I have been
specializing in loans to Borrowers who have been “Turned Down Elsewhere” as well
as offering all other types of loans. For the last 4 or 5 years I have only
done Hard Money Loans. Recently, about 70% of the loans I have funded I had to
rescue from “A” paper lenders as they were declined for whatever reason.

There are really just 2 requirements for a Hard Money Loan: #1 You have to have
a pretty good down payment for a purchase or equity if a refinance and #2 The
ability to repay the loan.

Call me! Hope to be able to help you soon!

 

Best,

Broker

P.S. – We love referrals!

 

Loan approval is based on just 2 criteria:

1. Good Down Payment or Decent Equity

2. Ability to Repay

 

• Owner Occupied, Investor financing, Commercial and some Land Financing

• FAST private money purchase financing Sonoma County & Northern California.
• FICO is not a factor.
• Up to 80% loan to value, Case by case basis.
• Loan amounts from $75k – $1mil+
• Lower rates with Good Compensating Factors, Case by case basis.
• Fast refinancing.

CALL FOREST, The Guy In The White Hat at (707) 523-2099;

Or email him at forest@sunpacmortgage.com

See our website at: www.sunpacmortgage.com

 

CA BRE Broker – California Bureau of Real Estate Broker.   Corporate License # 01464899.

NMLS – Nationwide Mortgage Licensing (Registry) System.  Office NMLS # 360993

*APR based on loan amount of $130,000 is 9.469%.

Hard Money Loan Saver

Check out our most recent Hard Money video here:

 

Hard Money More Attractive than Ever

 

Jpeg Check Out Our Most Recent Hard Money Video Here:

Hello,

My last blog was the Federal and California report and forecast.

I live and operate in Sonoma County so that is the first region I’ll explore.  I would guess that about 33% of the loans I write are in Sonoma County.  That’s a disproportionate amount considering I lend in the top half of the state, from Salinas to the Oregon border and east to Nevada.

Lots of good news to report for Sonoma County. There was an Economic Development Board report in April 2014 that demonstrated Sonoma County business activity beats the U.S. average as a whole in expenditures for growth and customer demand. The trend is upward for commercial-sector confidence.

Another report from March 18, 2014 stated that Sonoma County’s economy is poised to further recover through 2015, bolstered by national growth that will spur gains in tourism and the wine industry, while additional support comes from, among other things, a stronger housing market.

In the Sonoma County real estate market, as in a lot of the counties in the Bay area,  prices are being driven up sharply by the lack of inventory.  This is good news if you are already into a home, but could make it difficult if you are looking to buy, either as your first purchase or trading up.  You should keep in mind that using Hard Money in this market may make your offer more attractive to a Seller – and their agent, as in many instances it is deemed the same as cash.

So that’s the report on Sonoma County.   And if you are trying to buy, persist.  Home ownership is still the best financial investment you can make at any time in your life.

 

Best,

Broker

P.S. – We love referrals!

 

Loan approval is based on just 2 criteria:

1. Good Down Payment or Decent Equity

2. Ability to Repay

 

• Owner Occupied, Investor financing, Commercial and some Land Financing

• FAST private money purchase financing Sonoma County & Northern California.
• FICO is not a factor.
• Up to 80% loan to value, Case by case basis.
• Loan amounts from $75k – $1mil+
• Lower rates with Good Compensating Factors, Case by case basis.
• Fast refinancing.

CALL FOREST, The Guy In The White Hat at (707) 523-2099;

Or email him at forest@sunpacmortgage.com

See our website at: www.sunpacmortgage.com

 

CA BRE Broker – California Bureau of Real Estate Broker.   Corporate License # 01464899.

NMLS – Nationwide Mortgage Licensing (Registry) System.  Office NMLS # 360993

*APR based on loan amount of $130,000 is 9.469%.

Job Growth, Home Sales Will Continue Expanding in 2014 and Beyond

As Hard Money Broker and business owner this good article to share, mostly highlighting the last bullet points:

 

Looking ahead, the latest Burns report predicts:

§U.S. home prices will rise another 15 percent  from 2014 through 2017.

§Home prices will reach “normal affordability levels” in 2015 and then become unaffordable.

§Interest rates on 30-year, fixed-rate home loans will reach 4.5 percent in 2014, 5 percent in 2015, 5.5 percent in 2016, and 6 percent in 2017.

 

Read the rest here: http://blog.pacunion.com/job-growth-home-sales-expand-2014-beyond/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+pacunionblog+%28Pacific+Union+Blog%29

PRIVATE MONEY Is that a good loan?

             As a Private Money lender for the last 20 years I have been asked many, many times – “Is that a good loan?”   Initially I would do the analysis of the house payment compared to 30 year fixed rates and the costs divided by the number of years they’d have the loan, blah, blah, blah.  Finally I just told them the simple truth, if it’s the only loan you can get.  That’s a good loan. 

            I’m not being flip here, but when your home loan application has been turned down by the 30 year fixed rate lenders, the credit union, the bank you’ve been at for umpteen years and your family won’t loan you money, the truth is the only program left is private money.  And that requires you have equity and an ability to repay the loan (if it’s your principal residence) or a down payment if the loan is to buy a principal residence.

            As of this date 2011, the lending standards nationwide have become so overly restrictive that to get a loan almost requires an act of Congress.  In actuality that is not far from the truth as the federal government now owns most of Fannie Mae and Freddie Mac.  They are trying to tighten up the standards to help the housing industry but they are actually messing up the works.  They sure will not go to bat for a homeowner who desperately needs a loan but if you can prove you don’t need it they will give you one.  Don’t get me started here!

         Private money loans are based largely on equity but you do need to be able to prove you can make the payment.  The most you will get is 70% of the value of the property.  If it’s worth $300,000 you will be able to get $210,000.  If you want a 100% loan, hard money will not work.

          Here’s a real example of a private money loan:  The borrower had almost all of the money to purchase a house.  She needed only $75,000.00 more – but didn’t qualify for a bank loan.  The purchase price was $231,000 and she only wanted to borrower 32% of the value.  This loan got done within 4 days for a quick close and she beat out other’s who put in offers for the house because she could quickly close.  Her house payment is now the payment on $75,000.

            Another example is a Contractor wanted to buy a dump house.  No bank would lend on it because it was so dilapidated.  The Contractor had enough money for a decent down payment and proved he had enough money to fix it up and resell.  He got a private money loan, was able to fix up the house and sell it within 4 months. 

            Is that a good loan?

Owner is a CA DRE Broker with over 23 years experience in real estate and lending.  His number is (707) 523-2099.  See website @ www.sunpacmortgage.com.

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