Home >

All Roads Lead to Rome


All Roads Lead to Rome

This ancient adage simply means that the facts of a matter point to one conclusion. Since I write articles about lending and real estate, I’ll give you the facts and let’s see if “all roads lead to Rome”, that is we conclude the same thing.

  • Interest rates on 30 year and 15 year fixed rate mortgages are at historic lows.
  • Mortgage interest deduction is still intact.
  • Property values are at or near the bottom of the market in many areas.
  • Owning a home is as cheap as renting in many areas of the country.
  • There are lots of homes being sold everywhere in the country.
  • Loans are being made in all areas of the country.
  • FHA ( Federal Housing Administration) still makes loans to Buyers with 3.5% down and there are still zero down programs!

Private money loans now account for 1% of all loans done in the USA. With a good down payment you can buy a home even if you just did a short sale, had a property foreclosed upon and/or did a bankruptcy or are in bankruptcy.

In the county I live in, the median price for a home has risen for the last 3 months.

America isn’t going to dry up and disappear. It will recover from the current mess.

What do you conclude from the above?

If you are considering buying a home – go and do it right now!

All roads lead to “Home”.

INVESTORS AND “HARD MONEY” LOANS

 

LENDER’S VIEWPOINT

By Forest Tardibuono

There was a really good article in the Wall Street Journal last week about Hard Money loans. It was informational to borrowers and investors alike. It spoke of the fact that Hard Money loans will account for 1% of the 5.5 million home loans originated this year, up sharply from prior years.

The Article features a Dallas attorney who has doing Hard Money loans as a “side business”.

He believes that originating home loans in the current environment, when many economists believe housing is at or near the bottom, is less risky than putting money in the “volatile stock market or opaque bond market.”

He states further “I can’t drive by and look at those stocks and bonds.” Plus, he says, investing in residential real estate earns “passive income that doesn’t require much work from me.”

The interest rate paid on these investments can be anywhere from 9% to 14% with 12% being fairly typical. They can be a first or second mortgage ranging in size from $30,000 to $1,000,000 or larger with a term of from 6 months to 7 years or more. These loans are secured by land, 1 to 4 unit residential, 5+ unit residential (deemed commercial), office buildings, strip centers, large commercial, etc.

The main qualification for a borrower is: 1. Equity or a good down payment and 2. Ability to repay the loan. If they do not make payments, they could forfeit the property that was the security for the loan to the investor.

Check out our website for further details.

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

Investors Are Buying An Ever Increasing Number Of Homes

LENDER’S VIEWPOINT

By Forest Tardibuono, Guy In The White Hat

Investors Are Buying An Ever Increasing Number Of Homes

[youtube=http://www.youtube.com/watch?v=WGFisHIVFJE&w=448&h=252&hd=1]

 

See why it IS the time to buy a home!

I feel like it is my calling to promote home ownership in America. You might think I have an inherent conflict of interest as I currently own a mortgage and real estate company and have been in the business for more than 23 years doing just that. And that is absolutely true. Unless someone in my vicinity is buying, selling or financing a home, I don’t make a living.

So when faced with the above conflict, don’t buy into my enthusiasm for the American Dream but look at the facts and decide for yourself. I mean really look at the facts and what they mean. That really is what I do as a professional in this field is give people facts, the good the bad and the ugly and let them make an informed decision.

By the way, a gloomy headline in your local newspaper or on the radio or internet is not a fact. Someone, usually not an expert in the field they are reporting in, gathers information about a topic of interest and writes an article. They then look it over, and create a headline for it that is anywhere from alarming to horribly bad. They do that in the hopes that you will read it.

If you are stopped at all from buying a home even though you know you should, stop reading the darn press! Stop listening to the news. Bad news sells newspapers – a fact. I read a recent article that the worse the world events, the more people read the newspaper. They are trying to keep abreast of what is going on and the most widespread mediums they are looking to for information deal in bad news! It stifles you!

Onto the really good news: The above headline is an absolutely key indicator of why you should buy a home right now. In any area you may live, the rough gauge of investor buying is all cash deals. Not all cash deals are by investors but like I say, it is a rough gauge.

In March 2011 in Sonoma County California where I live, all cash transactions accounted for 28% of the homes sold. All cash purchases have accounted for about 10% of the sales over the last decade, but became more common as home prices declined. What do investors know that keep them buying in spite of the bad news? They are probably cheering all the bad news because it keeps competition for these rock bottom home prices to a minimum. They know to buy because the homes bought today can cash-flow. They are buying today because the homes, in my County for instance, are at 50 cents on the dollar from 5 years ago and there will likely not be an opportunity like this again!

So follow their lead. Investors are investors for a reason. Very key indicator.

Forest Tardibuono- the Guy in the White Hat – is a CA DRE Broker with more than 23 years of experience in real estate and lending.  His phone number is (707) 523-2099.  Email is Forest@sunpacmortgage.com.  See website @ www.sunpacmortgage.com. DRE#01464899/NMLS #360993

The Guy In The White Hat Comes To Homebuyers’ Rescue!

The Guy In The White Hat Comes To Homebuyers’ Rescue!

[youtube=http://www.youtube.com/watch?v=k3eFWtb6pz0&w=448&h=252&hd=1]

 

Ever since we opened our doors in Sonoma County in 1988, we’ve given extra care to round up people who have been “Turned Down Elsewhere?” – because of credit, income, the property or a combinations of these.

We are the local Hard Money Lender who can help rescue your deal…and get your Buyer into that Home!

Here are some Hard Money Buyers recently rescued…

Home Purchase Purchase price $237,000. Buyers had a friend who loaned them the down payment of 20% as a 2nd mortgage. Purchase money first of $189,600. 100% combined loan to value!

Flipper 80% Loan to Value (LTV) in Santa Rosa. Loan amount $315,000 on a fixer upper. 12% interest only for 12 months. This loan was done in 4 days!!

Owner Occupied Principal Residence Purchase – A conventional lender denied this loan due to a foreclosure. 50% Down. Loan amount $90,000 at 12% interest only. 10 days from application to recording!

Loan approval is based on just 2 criteria:

1. Good Down Payment

2. Ability to Repay

  • FAST Private Money for purchasing in Sonoma County and contiguous Counties
  • FICO is not a factor
  • Up to 75% loan-to-value – Case by case basis
  • Loan amounts from $75,000 to $400,000
  • Owner Occupied and Investor Loans

SPECIAL NOTE: WE CAN DO A LOAN FOR SOMEONE FRESH OUT OF FORECLOSURE, BANKRUPTCY OR SHORT SALE!

CALL FOREST at 523-2099

Or email him at forest@sunpacmortgage.com

Visit us @ www.sunpacmortgage.com

“LIKE” us @ www.facebook.com/sunpacmortgage

“HARD MONEY” OR “PRIVATE MONEY” LOAN REVISITED

LENDER’S VIEWPOINT

By Forest Tardibuono

There are several types of loans you can use to purchase or refinance. This applies whether you are buying a home to live in, a home to rent out, or a commercial building. They include the standard 30 year fixed rate mortgage, the government FHA/VA loans, a commercial property SBA loan, or a Private Money loan.

Private Money is borrowed from private individuals. I bet you’ve borrowed money from a relative. That was a Private Money loan, likely unsecured. It wasn’t from the bank or some other institution. Most private money lenders/investors lend money through a mortgage company (there are laws that require this). The rates and fees are higher than those you’d get from a bank or credit union that does 30 fixed rate mortgages.

Why then would anyone borrow Private Money? There are lots of reasons.

You can get a Private Money loan in spite of a foreclosure, bankruptcy or short sale!

I thought to make the above sentence read like a headline, because it should. No bank or credit union or anyone doing home loans other than Private Money will lend to someone who had a recent bankruptcy, foreclosure or short sale. Further, the property you want to borrow against may not be something a bank will lend on. Banks require a property be in good shape. What if you are looking for speed? Private Money loans are generally much faster than a bank loan. What if your credit isn’t bank worthy?

That’s because Private Money loans are based largely on equity. The most you will get is 70% of the value of the property. If it’s worth $300,000.00 you will be able to get $210,000.00. If you want a 100% loan, Private Money will not work.

Here is an example of a Private Money Loan. The Buyer 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 $231,000.00. She only wanted to borrower 32% of the value. That loan got done within 4 days for a quick close. She beat out other’s that put in offers for the house. She could and did quickly close and her house payment is the payment on $75,000.00.

Another example. A contractor wanted to buy a dumpy house. No bank would lend on it because it was so dilapidated. The contractor had enough for a decent down payment and proved he had enough to money fix it up and then resell. He got a Private Money loan and was able to fix up the house and pay off the loan within 4 months.

Maybe you need a Private Money Loan!

Forest Tardibuono is a CA DRE Broker with over 20 years experience in real estate and lending. His number is (707) 523-2099. See website @ sunpacmortgage.com.

Sun Pacific Investor Quarterly

So much change has been wrought in the lending industry since what has been deemed the “mortgage debacle”.  With the dust somewhat settling on the new lending landscape it’s time to inform Investors, Brokers  & Borrowers of some of the regulatory changes impacting Hard Money.  These changes impact each & every one of you. I’ll see YOU on May 10th.

Investors Newsletter volume 7 issue 4

Increase your income doing hard money loans & learn more about investing safely by attending our Hard Money Seminar with local attorney as guest speaker!  5:30pm on TUESDAY, MAY 10th at the offices of Sun Pacific Mortgage – 800 Mendocino Avenue #2, Santa Rosa.  RSVP please

Unique Identifier # 289456

forest@sunpacmortgage.com

Sun Pacific Mortgage & Real Estate (707) 523-2099

800 Mendocino Avenue #2, Santa Rosa, CA 95401

www.sunpacmortgage.com

“Like” us at www.facebook.com/sunpacmortgage

IS THE MARKET TOO SCARY TO BUY? (By the way – NO!)

Wow, we are being hit by all sides these days.  The money market is in disarray, lay-offs are high, California hasn’t passed a budget.  Can it get any worse than this?  Why would anyone buy?

 It is being blared across the air waves that it’s as bad as the 1920s.  So, can/should you buy? 

Did you know that A LOT of people made money during that depression.  How?  They did not follow the pack.  This is very hard to do.  The best managers of money (Boone Pickens, Warren Buffet, and Bill Gates – for example) are a different breed of cat.  They seem to operate opposite of the crowd.  They buy when no one else is and they will freely tell you to do the same.  It takes a brave soul to not follow the crowd.

There are statistics that show things are not as bad as they seem.  In Sonoma County home sales are up – way up.  First time buyers can finally afford to buy and they are.  There are multiple offers on many homes.  Homebuyer loans are getting approved and people are moving into these homes.  There are not as many homes on the market as there were at the peak in November 2008, which will serve to drive the prices up.

 The moral of the story is – Buy Now!  If you have the required down payment (as low as 3.5%) and can afford the monthly payment (average $1,420 monthly) – do not wait.

 Look to the statistics of what is occurring in THIS market (Sonoma County, Marin County, etc…).  The statistics show a brisk market that is competitive and will only go up from here.

Forest Tardibuono is a CA DRE Broker with over 20 years experience in real estate and lending.  His number is (707) 523-2099.  See website @ sunpacmortgage.com.

4 Ways to Buy a Home

 Newly Built Home – There are still newly built homes on the market.  In the Sunday section of the paper these are highlighted with a map.  Sometimes there is special financing available through the builder.

  1. Resale Home – These are homes for resale by the owner.  Sometimes the owner still lives in them and sometimes they are empty.  Financing is available through the Federal Housing Administration (FHA), Fannie Mae and Freddie Mac.  All three agencies require proof of income, a down payment and will examine your credit.  30 year fixed mortgages are available.
  2. Short Sale – These are homes for sale that require homeowner/seller approval and lender approval.  The seller owes more than the property is now worth.  As an example, the mortgage owed is for $400,000, but the house is only worth $250,000 right now.  The seller and their mortgage holder have to approve the contract for sale.  The loan you get will be a typical FHA, Fannie Mae or Freddie Mac 30 year fixed.  But you might have to wait – even up to 6 months – for the mortgage holder to approve a lesser pay-off.
  3. Foreclosure – For some reason a lot of people think buying a foreclosure requires a strange and different loan.  It does not.  BUT FHA, Fannie Mae and Freddie Mac do require an appraisal.  The appraisal cannot say the house is an extreme “fixer” and needs lots of lots of work, or you won’t get a typical 30 year fixed rate loan. If the foreclosure you are looking to buy is tired and dirty – which a lot of them are – you generally can get a typical loan.  If the property is an extreme “fixer” and it is obvious, the appraiser will note this and the lender will not approve your loan.  Other than that, buying a foreclosure is like buying a regular resale.

Forest Tardibuono is a CA DRE Broker with over 20 years experience in real estate and lending.  His number is (707) 523-2099.  See website at: sunpacmortgage.com.

The Wave Is Coming

We keep hearing reports that the foreclosure wave is coming. It’s on the news and in the paper. Maybe it is, maybe it isn’t. We have not seen much evidence of it in Sonoma County. Here’s what we know so far… Fannie Mae has been holding back flooding the market with foreclosures so prices stabilize. That is working well. The Medium Price has gone up from $305,000.00 to $320,000.00 since January 2009. Foreclosures for sale have gone down from 350+/- in December 2008 to 116 as of today.

IF the wave is coming you need to prepare now. All offers made on foreclosures require loan approval be attached to the offer. Sometimes 2 loan approvals are required. If you do not have loan approval they will not look at the offer. Get loan approval now!

There are 3 types of loan you can get right now. Fannie Mae and Freddie Mac (usually 30 year fixed, low interest rate loans) for as little as 5% down. FHA an easier standard for loan approval and only 3-1/2% down. And lastly, private money from private individuals. These private money loans are needed if the house (a wreak/dump) does not qualify for the government loans. Private money requires 20% to 25% down, but the private party lending the money does not care what shape the property is in.

The Federal Government is keeping rates low. Normally rates are dictated by the yield on Treasury Bonds. Yields are up and rates should be up, but they are not. The guys on Wall Street are befuddled because the normal measure of interest rates isn’t happening. The “wave is coming” is the “perfect storm” for buying. House prices are low and interest rates are low.

This perfect storm lasts for a brief time, so get approved now and be prepared. Forest Tardibuono is a CA DRE Broker with over 20 years experience in real estate and lending. His number is (707) 523-2099. See website @ sunpacmortgage.com.

Oh, there’s no place like home for the Holidays

‘Cause no matter how far away you roam,

If you want to be Happy in a million ways,

For the Holidays you can’t beat Home Sweet Home.

Ain’t it the truth! As a mortgage and real estate guy, I’m probably a bit more biased towards that viewpoint than most but who will argue the point. Especially at the Holidays! But I must say that the song is especially poignant if you are a Home Owner. And what can possibly be sweeter than buying your first home. Or trading up to your dream home. Or graduating up further, to where you have your Home Sweet Home and can now buy an investment property!

For centuries owning your own home and the land upon which it was built has been deemed the noblest pursuit and a sign of prosperity and security. We all have this ingrained need for this home ownership. It does the heart good to accomplish this. All of us want to accomplish this because it’s in our DNA from eons past. It’s probably a caveman thing originally! I can see my wife picking out the furniture for it with a boulders and logs theme! Or going totally for the animal skins motif like wooly mammoth.

All seriousness aside, I have preached the big 3 reasons to buy in many past Articles – Tax write-offs, appreciation and pride of ownership. That last one is actually buying with your heart, knowing it satisfies way more than the financial side of things. Have you noticed that when you do things from the heart they always seem to work out? It’s funny how it works but accomplishing home ownership can make you “Happy in a milion ways” many of which will end up enhancing your financial situation.

A bit of current events also make for further compelling arguments to buy right now. Rates have recently ticked up. Don’t be left out in the cold on this one. It’s a huge big deal to get a really low rate. The state of California economic forecast brightens. Brighter future means more people have jobs and the competition for homes will stiffen. The median price for homes in Sonoma County recently dipped in October.

All these things can work for you if you just think with your heart right now. There is no place like Home for the Holidays! Your own Home.

Forest Tardibuono- the Guy in the White Hat – is a CA DRE Broker with more than 22 years of experience in real estate and lending. His phone number is (707) 523-2099. Email is Forest. See website @ www.sunpacmortgage.com.

Posts navigation