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Hard Money Myths BUSTED

Myth 1:   Hard Money loans are often predatory and come from dishonest lenders.

Nothing could be further from the truth.  

We have been doing hard money loans in California since 1988.  We have done thousands of loans and rescued hundreds of real estate agents and Brokers who had Buyers with difficulty getting a loan elsewhere.  We wouldn’t have lasted 29 years if we were doing anything dishonest or predatory. Myth Busted!

Myth 2: Don’t only the desperate seek out Hard Money, like a last resort type of loan?

Not at all.  Hard money is commonly used by people who have perfect credit or lots of income or equity, because it is very easy to qualify for and quick to close.  Further, banks will not lend on problem properties.  Hard money is available for that as well.  Myth Busted!

Myth 3: Hard money costs are too expensive and have high rates.

Borrowers use hard money as it fulfills a tremendous purpose in real estate buying these days.   People wouldn’t be using hard money if it was too expensive or the rates were too high.  

When you look at a hard money loan and #1. Discover it is the only loan you can get and #2. It accomplishes the purpose of why you needed a loan in the first place, then it is a good loan!  So…Myth Busted!

Myth 4:  There are no hard money loans for owner occupied properties.

This is false. We are always going to be do owner occupied loans as they are an important part in lending in today’s market. Myth Busted!

Call us at 707-523-2099 with any questions or mortgage scenarios you might have.  We are happy to help!

What’s New in Home Design for 2019?

What’s New In Home Design For 2019

A recent article based on the remodeling and design platform, Houzz, forecast some trends to look for in the coming year.  With HGTV shows continuing to capture our imaginations and wallets, we might want to know that we are in step with the design world.

Here are some examples of the forecasted changes:

  • Full-height backsplashes extending all the way to the ceiling behind open shelving and range hoods is one of the newer concepts being adopted in kitchen design.
  • Although Living Coral was chosen to be Pantone’s color of the year, the experts see moodier colors, like navy and forest green, as the shade of choice for homeowners.  People are becoming more comfortable experimenting with rich or darker colors.
  • Open spa-like bathrooms are making up 80% of the remodels according to Houzz.  Soaking tubs was the most popular option even if it meant stealing space from the closet or bedroom.
  • Moving from white to black kitchens is another popular choice for 2019.  White kitchens have made it difficult to keep clean if you have children and/or dogs, so remodelers are opting for the “tuxedo” kitchen with contrasting black cabinets and white walls.
  • Free-standing padded dining benches have replaced the built-in, more expensive benches of the past.  These new benches can provide flexible seating and hidden storage.
  • A four-wall accent color is replacing the bold-colored feature wall.  It even includes the trim and molding. This trend seems to be happening in smaller rooms, like a bedroom, study or media room.

These six examples of home remodeling choices are some of the possible options you may want to experiment with in the new year.  If you need funds to finance your DIY efforts, and if you do not qualify for a conventional loan, Sun Pacific Mortgage is here with a Hard Money loan to support your artistic endeavors.


Selling Your Home in Today’s Market

Selling Home In Todays Market

It is never a fun adventure to sell your home, especially while you’re still living in it.  And in today’s market, where multiple offers are not the norm they once were, it is even more important to observe some basic rules.

Keep your home pristine!  Not just “picked up”, but sparkly clean.  It should look like a model home where no one lives.  I know this is well-nigh impossible, especially with kids in the house, but it’s worth some effort.

Pay attention to your yard.  There should be no leaves, no weeds, and no spider webs in the corner of the porch or patio.  Spruce it up with some colorful plantings, even in the winter.

Leave when you have showings.  That means pack up the kids and pets and just drive around, if that is what it takes to clear out of the house.  There are legitimately people who are allergic to or fearful of dogs or cats and may not even enter the property if they are present, so it is important to take them with you.  Otherwise, you may lose a potential buyer!

You may get a ridiculous offer.  Don’t be tempted to give away the farm to clinch the deal.  Remember you’re just selling your house. Be open to negotiating, but don’t allow desperation to cloud your judgement.

These ideas are meant to make selling your home an easier process, one as painless and as fast as possible while still getting the most money for your house.

If you are not working with a licensed Realtor, contact one from a local real estate company.  And if you are considering buying another home in California, then contact a licensed and experienced Lender who can help you take advantage of any existing home equity to purchase another home prior to selling your current house.  This could be beneficial to you and your family.

Good luck to you!

Refinancing and the Holiday Season

Refinancing And The Holiday Season2

With so much going on during the holidays, why would any sane person consider refinancing?  Well, it might make more sense than it appears at first glance.

One of the main reasons might be to pull out cash for end-of-year expenses, or to free up your cash-flow and get yourself on a better financial footing for the next year.  In 2017 the average American household carried $15,675 in credit card debt.

With a fast Hard Money Refinance, you could pay off debt and use the remainder of the proceeds to pay cash for holiday expenditures rather than incur more debt.  The interest rate on your refinance would surely be less than the interest rate on your credit cards!

Other benefits to consider when refinancing at the end of year:

  • Some of your closing costs would be deductible on this year’s taxes
  • Your next payment on the new mortgage won’t be until February, 2019.  This lag time will give you even more of a cushion to help recover from holiday expenses.

Choosing a Hard Money Lender like Sun Pacific Mortgage, you could conceivable close your refinance within 15 days, and be on your way to a more relaxing end of the year.  Santa’s helpers are awaiting your call at 707-523-2099. Happy Holidays!


Where Is The Real Estate Market Headed?

Where Is The Real Estate Market Headed

What’s one to believe about the real estate market today?  There are so many conflicting headlines that even the savviest investor is confused.  Let’s look at some hard statistics which may enable us to come to our own rational conclusions:

We know home prices have appreciated year-over-year for the past 76 straight months.  Does this mean we are on the edge of another housing bubble? Not if the lack of homes for sale persists.  Demand is strong as many renters have experienced when they start to look for their dream home. There hasn’t been the stabilizing 6-month backlog of housing inventory in over 5 years, which has kept prices up while inventory has been down.

What about pricing and appreciation?  Certainly, home prices have appreciated over the last 76 months, driven mainly by supply and demand.  This has affected the starter-home market more than any other because of the increased competition for these homes. Senior Economist, Aaron Terrazas wrote on Zillow that “home values are still expected to appreciate at double their historic rate over the next 12 months”.  This wouldn’t appear to herald a real estate crash any time soon.  

Those who have been in real estate for as long as we have can all agree on the fact that real estate ebbs & flows.  Keeping abreast of the market in your area is what is important, so you can decide if the price is right to buy now or if you make an offer slightly under asking to still get an accepted offer.  What about listing your home and for what price? These are questions to be posed to licensed and experienced Realtors who know the market and have your best interests in mind.

Here’s to making the real estate market work for you!

To read full article:  https://www.keepingcurrentmatters.com/2018/08/29/top-3-myths-about-todays-real-estate-market/

To Buy or Not To Buy?: That is the Question

To Buy Or Not To Buy?: That Is The Question

Although not as existential as Hamlet’s query, this is a life changing decision facing many Californians today. Ultimately, the answer depends on several real-life factors: your finances, your long-term plans and the real estate market in your area.  Some of the questions you might want to ask include:

  • What can you afford?
  • How much do you have for a down payment?
  • How long do you plan to stay in the house?
  • Are you looking for stability or flexibility?
  • Do you want to be responsible for maintenance and repairs?
  • What are your financial, career and family goals?

Of course, the other choice you have is to continue renting.  A wise next step in your decision-making will include a Pros & Cons List of renting vs. buying.  It can look something like this:

Pro Buying:

  • Builds equity and credit
  • More stability (especially with schools)
  • Some tax benefits
  • Can “nest”, improving or upgrading to your tastes
  • Social benefits of a stable neighborhood

Con Buying:

  • Requires substantial money, paperwork upfront
  • Additional expenses beyond mortgage payment
  • Responsible for repairs and maintenance
  • Moving costs

Pro Renting:

  • Fewer upfront costs
  • Mobility
  • Not responsible for maintenance/repairs
  • No property tax bills

Con Renting:

  • Landlord can raise rent or sell the property
  • Choices may be limited
  • Might mean moving several times
  • Don’t build equity
  • No tax benefits

To summarize:  Homes typically increase in value (approximately 7.2% in California in 2017) thereby increasing your retirement fund, whereas, every penny spent on rent is gone forever.  Your homeowner costs are more predictable and stable than renters’ expenses, since a landlord can raise your rent in accordance with the rent control laws in your city every year.  If you own a portion of your mortgage, interest and property tax is deductible. There may be a small renters’ deduction if you rent.

To help evaluate your choices regarding buying/renting there is a helpful calculator available on Zillow: https://www.zillow.com/rent-vs-buy-calculator/  

When you reach the decision to buy, but find you do not qualify for a conventional loan, you need a fast loan or stronger offer over others, Sun Pacific Mortgage will be here to help you achieve your dream!  We have unique alternative financing options through our Hard Money lending programs.

Call us at 707-523-2099!

How To Significantly Increase The Value of Your Rental Property

Increase Rental Property Value

One of the best ways to insure the value of your rental property and increase your cash flow is to maintain and manage it well.  As a landlord you should be vigilant that your property does not depreciate because of your inattentiveness. Markets may fluctuate, and while this is something you don’t have particular control over, you can ensure that your property does not lose any value because of neglect.  

Here are some time-proven and relatively low-cost improvements that should increase the rental value and rentability.:

Landscaping Refresh:  

If the prospective renter sees a tidy, colorful front yard, it helps sets the stage for a more positive reaction to the interior.  A new mailbox or a freshly painted one can be a big plus.

Thorough Cleaning:

If painting the entire house is financially prohibitive, a good scrubbing inside and out will go a long way to say “this landlord cares”.  In particular, making sure the front door is welcoming and fresh. A newly painted door gives the impression that you have renovated the house for the next tenant.

Clean the Floors:

Cleaning the rugs, either by yourself or professionally, makes the house smell clean and will have an impact on the overall appearance of the home.  Any repairs required of other types of floors, regardless of cost, shouldn’t be ignored.

Appliance Upgrades:

One of the most important aspects considered by a prospective renter is  the kitchen, and more specifically, the appliances. If a good cleaning doesn’t bring them up to par, replace them!  It will get you a better renter and a better price. The other room where you don’t want to spare any elbow grease is the bathroom.  Tenants appreciate an up-dated, clean and bright bath.

Now that we have examined the extensive “To Do List” for attracting responsible renters, let’s take a look at how you will finance these improvements.  

The first avenue would be to look into a conventional loan or home equity loan, but if, for whatever reasons, you do not qualify for a conventional loan, consider a Hard Money loan from Sun Pacific Mortgage.  

We have been in the business of hard money refinancing and lending for investment property owners for over 30 years.    Please call us at 707-523-2099 with any of your questions or scenarios.

As We Rise From The Ashes

Fk As We All Begin To Emerge Out Of The Smoke And Ashes To A New Reality, We Are Faced With Numerous, Difficult Hurdles.  Rebuilding Or Finding A New Home Is One Of The Major Issues Faced By So Many Today.

As we all begin to emerge out of the smoke and ashes to a new reality, we are faced with numerous, difficult hurdles.  Rebuilding or finding a new home is one of the major issues faced by so many today.

At Sun Pacific Mortgage we are standing ready to help with any of your financing problems.  We have already been contacted by several of our past borrowers, as well as new clients, to start the loan process on replacement homes.  These clients need a fast response and faster cash to secure homes that they are fortunate enough to find.  We are known for our ability to provide financing as soon as one week depending on how quickly we are provided the necessary documents.  

If you need a trusted partner in this journey toward the “new normal”, give us a call and we will be pleased to provide you with the financial means to establish your “new beginning”.

What Is a Bridge Loan – And How Is It Beneficial?

Yes Real Estate Agents, Investors, Home Buyers And Home Sellers Are Always Interested In Utilizing Smart Home Buying Strategies.

Real estate agents, investors, home buyers and home sellers are always interested in utilizing smart home buying strategies.

A bridge loan is a type of creative financing that falls into the category of “smart home buying strategies”.  It is a short term loan, 12 to 18 months only.  It gets paid off with longer-term financing sometime in the near future,  or from the sale of the property.  As the name implies,  it  provides a bridge from one transaction to the next.

The Benefits:

#1. A Bridge loan is sometimes considered a cash purchase by Listing Agents.

#2. The Buyer does not need a contingency clause in the purchase offer of their new    home.

#3.  A home owner can buy a new house now and sell their present home later.

#4. There is no fear of losing their dream home because they have not sold their present home.

#5. Your buyer can buy a fixer, renovate it and have their dream home.  Hard money bridge loans are often the solution for less than perfect properties.

#6. Speed.  These loans can usually close in less than a week.

The Requirements:

  • It must be a 12 month loan.
  • There will be 3 months of guaranteed interest minimally.
  • 20% down payment required on a purchase.
  • On a refinance there must be lendable equity.


The Uses:

Typically, bridge loans are sought when another sale is pending and the funds are needed to close the final deal.   At other times,  a buyer may be in a “fire sale” situation,  where the seller on the other end of the transaction must close a deal within a specified period of time.

Some instances when you might use a Bridge Loan are:

  • Pulling some cash out of the equity in your current home to secure a down payment to purchase another home. This allows you more time to sell your present home.
  • Refinancing the property you are selling to pay cash for the new home.


The Costs:

Rates and costs for Bridge Loans can vary by Lender.   Rates range between *9-12% and are usually interest only.  Rates depend on the amount of the down payment so the bigger the down, the lower the interest rate.

How We Can Help You:

We are licensed for the state of California and have been in business for 29 years.

Call our office at 707-523-2099 and within just a few minutes, we can let you know what we can do for you!


We hope this has helped you understand more about what a Bridge loan is and how we can be of assistance.

Making Loan Wishes Come True for the Holidays!

1 1 Property Refinance In Berkeley, California

Hard Money Loan of the Month
By Broker, Lead Loan Originator

Property Refinance in Berkeley, California

I received a call from a borrower whose parents had recently passed away, he had their reverse mortgage and was given just a few months to pay this off or lose the house.  Needless to say, this was a stressful time for the borrower.

Due to credit issues after many medical expenses the borrower did not qualify for a conventional loan.  This is when they called me, referred by one of their friends who had gotten a loan from me earlier in the year.

By this time, there was only a couple of weeks before the house was going to be foreclosed on.   But no sweat, within 2 weeks we had all items needed for their loan, approved, funded and closed!

Loan amount needed was $600,000 which was about a 70% loan to value for an owner occupied Hard Money loan. They were able to pay off the reverse mortgage, all of their incurred medical debts and all recent debts that had negatively impacted their credit.  All financial stress was gone and the borrower was able to save their childhood home!

We specialize in loans that have been turned down elsewhere due to credit issues, difficult to prove income, property condition, etc., and one of our favorite mottos is “If we say it can be done, we’ll get it done!”

Call our office at 707-523-2099 if you need some creative financing help for your real estate purchase or refinance.  We would be happy to help!

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