Can Fixing & Flipping Be More Beneficial Or Harmful For You?

May 27, 2016 Broker

We all want to make money… it pays our bills, allows us to buy things we want and helps us more comfortably survive. So of course, when someone sees how “easy” it is to buy and flip a home for profit on TV, they want to try a slice of that cake to say they have tasted it’s sweet victory.

Pablo (2) Most people don’t like trying and then failing. But what happens when you try “doing what everyone else is doing” and don’t get the results expected? You could throw up your white flag and be done with it, or, you can isolate what the problem was in the first place and try again.

Here are some aspects to have in place before you get started on any rehab type project, covered in more detail by this INVESTOPEDIA article, Top 5 Must-Haves For Flipping Houses: http://www.investopedia.com/articles/pf/07/flippers.asp

A Group of Experts
A Handyman or Knack for Home Improvement
A Good Lay of the Land
A Good Estimator
A Dose of Patience

With the correct value give to these points above, you success and profits could be greatly affected.

In the end, is it more beneficial or harmful for you to fix & flip a home? That depends on if you like taking risks to accomplish your goals. As I’ve heard before, “Successful people take big risks knowing they might fall hard. But they might succeed more than they ever dreamed.”

Are you looking to invest in a rehab project but still need financing? If your favorite bank has turned you down, give Broker of Sun Pacific Mortgage & Real Estate a call! (707) 523-2099

Private Lending Filling the Mortgage Gap

May 20, 2016 Owner

With Real Estate prices rebounding in California, it’s surprising to see banks still being cautious and lean only toward wealthier, lower-risk borrowers. This has left a widening gap in the mortgage industry between Lenders and potential Borrowers with less than perfect qualifications. Mortgages in the U.S. last year totaled about 1.6 trillion, according to the Mortgage Bankers Association. On a scale like that, Private Lending trails closely behind, with demand growing every year.

Middleman (1) These days, Borrowers typically only need one or more flaws in their qualifications to be denied traditional lending. This can be a huge disappointment to Borrowers who otherwise have fantastic qualifications and are in great need of help.

A perfect example can be found in a recent Wall Street Journal article posted here: http://www.wsj.com/articles/private-lenders-remodel-the-mortgage-market-1462984898

“Ms. Lewis is an executive director of Los Angeles County’s Mental Health Commission. She has over 22 years of equity in her home with an estimate worth of $600,000. A recent divorce and subsequent bankruptcy has ruined her credit and caused loan rejections from every bank she approached.”

As an experienced, longtime Private Money Broker operating in Sonoma County California, Sun Pacific Mortgage & Real Estate could approve her loan based strictly on her job status, steady income, and available equity. Her recent bankruptcy would not affect her qualification in this scenario.

Have you been turned down for a loan due to less than perfect qualifications? Call Sun Pacific Mortgage & Real Estate today! (707) 523-2099

What Is An Owner Occupied Hard Money Loan?

May 3, 2016 Broker

Most Hard Money Lenders these days do not offer Owner Occupied financing programs, also known as a Principal Residence Loans, due to the amount of federal and state regulations that apply to them.

Here at Sun Pacific Mortgage, we will always have this loan program available because of the important niche it fills for so many Borrowers. We continuously work to stay on top of the regulations that apply so that people have somewhere to go when they have have tarnished credit, difficult to prove income or are dealing with a problem property.

This type of program does have a higher interest rate but it allows a quick close, makes an impossible deal possible, offers various options and is generally a shorter term loan.

Typically, this type of loan will get paid off with a refinance into a 30 year fixed rate loan once the Home Owner is more able to qualify.

Some instances of when one might use an Owner Occupied/Principal Residence Loan are:

Buying a first or a 2^nd
Refinancing a loan that has come due.
Pulling some cash out from the equity in one’s home, to do needed repairs or remodeling.
Getting some cash out for debt consolidation.
Getting some cash out for a business purpose.

You can find out about our rates and fees by checking out the Rate Sheet: https://www.sunpacificmortgage.com/SPM_Programs_Rate_Sheet.pdf

Also feel free to call in to our office and within just a few minutes, we can let you know exactly what we can do for you: 707-523-2099.

Hard Money Loan of the Month – March

March 15, 2016 Owner

Rush Santa Rosa home loan rescued after being stalled by another Lender

This past month’s “Loan of the Month” is highlighted for a few reasons, the primary reason being the speed in which it arrived to my hard money office in Santa Rosa, and got approved to fund: 1 day!

Home This principal residence home loan was a referral from a busy Sonoma County Realtor. The Home Buyer had been pre-approved by another Lender but after 6 weeks, and still no loan approval, they had to do something else!

The principal Home Buyer was a recently widowed father of 2 children. He had really good income as proven by his 2015 Fed taxes and a 5% down payment. His Dad brought in additional collateral from his own house in Oregon for around another $100,000. This collateralized property had average comps valued at $250,000 so brought in a loan to value of about 40%. That made it about 75% loan to value on a completely remodeled property in Santa Rosa, CA – which our Private Investors definitely can finance!

The Buyers Agent jumped through about a million hoops to make sure all items needed to process the loan came through in timely fashion. She also made the Buyers perfectly comfortable with the Hard Money financing for their Santa Rosa purchase.

We sent out this First Deed of Trust for $470,000 for 12 months. The purchase price was $495,000 for this home loan. Combined loan to value was 95%. We received this hard money loan request on January 26, 2016 and had full loan approval on the 27^th! The loan recorded on February 3^rd.

End result was a very happy father, a happy family and relieved & happy Agents.

Selling a House? Don’t Overprice It

July 22, 2013 Owner

Hello fellow Realtors, Lenders and other friends;

There was a really good article released by The KCM Blog on July 15^th that goes right along with our message in today’s video: how to increase a Buyer’s capability to purchase your particular listing, in today’s market.
We have included the full article along with an original link to it, below. Do make sure to read all the way through. Smart facts and strategies to keeping more Buyers and Sellers in the game, right now!

Best, Broker & Lynn

Owners/Broker–The Guy in the White Hat & Realtor–Flipper Chick

Sun Pacific Mortgage & Real Estate

Family owned and operated in Sonoma County since 1988. Your Hard Money Lender!

The KCM Blog – Selling a House? Don’t Overprice It

http://www.kcmblog.com/2013/07/15/selling-a-house-dont-overprice-it/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+KeepingCurrentMatters+%28The+KCM+Blog%29

Hires 6 Hello Fellow Realtors, Lenders And Other Friends; There is no doubt that the housing market is coming back nicely. What, if anything, could slow down the current momentum? We believe it may be sellers’ over exuberance when it comes to pricing. There is little doubt that house prices have appreciated over the last twelve months in most regions of the country. However, with both the inventory of homes for sale and interest rates increasing, we have to be careful to not over judge what the market can bare.

Trulia just reported that asking prices have jumped dramatically and the increase is accelerating:

Year-Over-Year prices jumped 10.7%
Quarter-Over-Quarter prices jumped 4.1% (16.4% annualized)
Month-Over-Month prices jumped 1.5% (18% annualized)

No expert is expecting home prices to shoot up 18% in the next twelve months. If anything, price appreciation may slow as rates and inventories increase. Investors will begin to slow their purchases and the first-time buyers expected to take their place will be working within a pre-set budget in many cases.

Buyers’ Purchasing Power

Let’s look at an example: A young couple is looking for a home and have predetermined that their budget will only allow them to spend $1,000 a month on a mortgage. At today’s mortgage rate of 4.5%, they could afford a $200,000 mortgage ($1,013 principal & interest). However, if rates jump to 5%, they would have to lower their mortgage amount to $190,000 in order to keep their monthly payment where they need it ($1,020). At 5.5%, the mortgage would need to be no more than $180,000 ($1,022).

The Impact on Prices

This decrease in buyers’ purchasing power will have an impact on home values going forward. We do not believe it will cause a decrease in prices. However, we do believe it will likely cause current rates of appreciation to slow.

If you are thinking about selling your home, don’t get carried away with current headlines about home price increases that have taken place over the last twelve months. Instead, call a local real estate professional. They will be best prepared to explain where prices are headed over the next six months.

Selling a House? Don’t Overprice It – Posted: 15 Jul 2013 04:00 AM PDT

Original link: http://www.kcmblog.com/2013/07/15/selling-a-house-dont-overprice-it/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+KeepingCurrentMatters+%28The+KCM+Blog%29