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The Winning House Bid – You Get the Deal

October 15, 2012 No Comments

The Winning Bid

 

It looks like the various predictions that 2012 will be the best year in Real Estate since 2006, are coming true.

The statistics bear this out for sure, but a more telling phenomena is the dreaded bidding war.  That is a listing that receives multiple offers.  These happen with frequency in a market with not emough homes and too many eager Buyers.  It also happens on really desirable properties.  Of course this is great for the Seller of that property and the values for that area, but only 1 Buyer will take home the prize.  The losing bidders will have to go find another one.  I have personally seen a Buyer from my office recently compete with 34 other offers on a property.

He had the Winning Bid.

What set his offer apart, as far as we can tell, is the fact that he was purchasing with Hard Money.

The listing agent knew that the Hard Money Pre-Approval for that Buyer meant that the lender was ready to go with this loan.  He knew that the property would not likely be a problem to the lender, as Hard Money will do really ugly properties, and this one was not that bad.  He also knew that it would be fast as the contract offered a close of escrow in 21 days or less.

So the Buyer made the offer using Hard Money with a 21 days or less close of escrow and all contingencies removed in 10 days instead of the default of 17 days. This was an offer the listing agent could really get behind and it was the Winning Bid – out of 34 others!

So if you are feeling beat up after making offer after offer to no avail, get to your local Hard Money Lender, get Pre-Approved and go write a Winning Bid!

Owner- the Guy in the White Hat – is a CA DRE Broker with more than 24 years of experience in real estate and lending.  His phone number is (707) 523-2099.  Email is Broker@sunpacmortgage.com.  See newly designed website @ www.sunpacmortgage.com.  DRE license #01464899. NMLS #360993. 

Sure Advice for Real Estate Success

August 1, 2012 No Comments

LENDER’S VIEWPOINT
By; Broker Owner

Sure Advice for Real Estate Success

As Rick Laws mentions in his 2nd quarter real estate report, the Bay Area experienced over 30% increase in homes sold compared with last year.  A 30% increase!

The big question is: “How does a Buying Agent get their Buyers to write the offer that gets accepted?”.  The answer is: “ They make the strongest offer.”  But what does this mean?

Below are some very successful points of advice that, when followed as much as possible, will definitely contribute to a successful accepted offer:

  1. Higher initial deposit.
  2. Shorten close date.
  3. Remove as many contingencies where possible. (For example, an investor or flipper who will remodel the home and resell or rent it, might go for removing inspection contingencies.)
  4. Stronger loan; Shorter loan contingency removal date; No loan contingency at all.  (This can be accomplished by getting a hard money loan for example.)

Why should a Realtor or Buyer for that matter consider following the above points of advice to increase the likelihood of getting an accepted offer?  How about for these 4 main reasons to own a home:

  1.  Tax Savings.
  2. Pride of Ownership.
  3. Appreciation.
  4. Accumulation of Wealth.  (For renters, if rents go up in the next 30 years at the same rate they did over the prior 30 years then someone renting today for $1,600 will be paying $4,496 in 30 years.   30 Year Fixed rate mortgages stay the same and one can pay down their home and increase their equity, ie. accumulation of wealth.)

In today’s real estate market, houses are just increasing in value so Buyers are making smart decisions for their future financially.

Hard Money can definitely help make an offer “strong”.  I work with Buyers who have damaged credit including a bankruptcy, foreclosure or short sale in the immediate past.  With a good down payment and an ability to show you can pay for the loan, you can get a loan and be a homeowner today.  So call me!

Owner- the Guy in the White Hat – is a CA DRE Broker with more than 24 years of experience in real estate and lending.  His phone number is (707) 523-2099.  Email is Broker@sunpacmortgage.com.  See newly designed website @ www.sunpacmortgage.com.  DRE license #01464899. NMLS #360993. 

INVESTORS AND “HARD MONEY” LOANS

August 1, 2011 No Comments

 

LENDER’S VIEWPOINT

By Owner

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.

Owner 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.

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

May 18, 2011 No Comments

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

4 Ways to Buy a Home

December 29, 2010 No Comments

 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.

Owner 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.

WHAT IS A “HARD” MONEY OR “PRIVATE” MONEY LOAN

December 15, 2010 No Comments

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 money borrowed from private individuals. I bet you’ve borrowed money from a relative. That was a private money loan. 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).

Why would anyone borrow private money? There are some great advantages. 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? Hard money loans are generally much faster than a bank loan. What if your credit isn’t bank worthy? A private money lender will lend you money even with bad credit!

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, hard money will not work.

An example of a hard money loan just happened. 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 $231,000.00. 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 dump 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 fix it up for resell. He got a hard money loan was able to fix up the house and pay off the loan within 4 months.

Maybe you need a hard money loan!

[youtube=http://www.youtube.com/watch?v=V2ebzlL4360]

Owner is a CA DRE Broker with over 22 years experience in real estate and lending. His number is (707) 523-2099. See website @ sunpacmortgage.com.

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