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Alt-A Hard Money Is Hot – No Bull!

September 26, 2019

Alt A Hard Money Is Hot No Bull 

Have a strong borrower who just misses qualifying for traditional “A-paper” financing? This is where our Alt-A Hard Money program can help with a loan turned down at the last moment!  

This new Alt-A Hard Money program is one-of-a-kind and is hot with other real estate agents, mortgage brokers, lenders and their borrowers & home buyers!  Offering lower rates between 6%-8%*. 

Main qualifications are: 

– 65% Max Loan To Value.
– Property in good location and condition.
– Good credit 640 or up. 

Hot Alt-A Hard Money Loans Recently Funded: 

Location:  Mill Valley, Marin County
Why Came To Us: Turned down by conventional lender at last minute.  
Scenario: Investor didn’t want to lose out on a good purchase so needed a fast cash offer to close the deal. 
Loan Size: $599,000 with 59% LTV
Days To Finish:  8

Location:  Santa Rosa, Sonoma County
Why Came To Us: Had IRS lien with difficult-to-prove income.
Scenario: Needed additional funds to complete remodel so she could then resell.
Loan Size: $882,500 with 61% LTV
Days To Finish: 17

Location:  San Juan Capistrano, Orange County
Why Came To Us: Self-employed with difficult to prove income.  
Scenario: Home Buyer had a sizeable down payment with good income, but unable to get loan approval elsewhere due to being self-employed just in the past year. 
Loan Size: $1,350,000 with 48% LTV
Days To Finish: 20

Location:  Sonoma, Sonoma County
Why Came To Us: Turned down by underwriting due to an issue with proof of income. 
Scenario: Escrow was due to close shortly but buyer now had no loan approval, so home buyer’s Agent reached out to us to rescue her buyer’s transaction.  
Loan Size: $800,000 with 57% LTV
Days To Finish:  11 

If you have any questions or scenarios for us to review, call 707-523-2099 or reply to this email.  We will let you know quickly what we can do for you!

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

*APR for this rate based on a $200,000 first mortgage is 6.31%. 

How Is The Recession Going To Affect Real Estate & Mortgage Markets?

September 24, 2019

How Is The Recession Going To Affect Real Estate Mortgage Market

Lately, we have been bombarded with the doom-and-gloom messages about the “inevitable” Recession at our doorstep.  As professionals, we have the obligation to inform and educate our clients about the financial climate, and this means giving them the “real scoop” as it affects their investments.  

Steve Harney, a spokesman for Keeping Current Matters, delivered a podcast recently on this very subject, and offered some valuable insights into the approach recommended for realtors and brokers.  Safe click link to recent “Will A Recession Affect The Housing Market” webinar and graphs & statistics about real estate markets in past recessions: 

https://www.keepingcurrentmatters.com/article/how-will-the-next-recession-affect-the-housing-market/?utm_campaign=Agent_Articles&utm_medium=email&utm_source=email-broadcast&utm_content=SeptSales3&utm_term=Watch

Steve pointed out that we have enjoyed the longest run of economic recovery in our history, but as it has been with history trend, all good things must come to an end.  The definition of “recession” is two consecutive quarters where the GPA decreases. Given this definition 42% of consumers think a recession will happen in 18 months. Experts postulate that it will occur in the second half of 2019 or the first half of 2020. The most important fact to keep in mind is that a Recession does not mean a housing crisis.  

Unlike the last Great Recession, mortgages have been strictly regulated and most homeowners are in a great place financially relative to their home ownership.  In fact, it has been pointed out that smart people are buying up real estate now because it is much more stable than other markets. Wise investors see this period as a great opportunity to add to their real estate investments. 

As professionals it is our obligation to clear up any confusion floating out there.  It is well known that confusion equals paralysis, and that could spell disaster for the real estate economy.  Aspiring home buyers hoping that home prices will crash are in for a rude awakening. The lack of housing and the demand for single-family homes by the giant millennium generation points to no drop-off in demand any time soon.

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On the other hand, real estate professionals will likely meet up with worried potential sellers that may decide to postpone listing until they can get top dollar for their properties.  Some experts believe the number of home sales will remain flat or possibly even dip. The priciest parts of the country, like California, could see price corrections, but sales might only decline 10%-20%.  On the upside, if interest rates continue to fall, it could give the housing market a boost, since lower rates mean some buyers can afford a bigger house with a bigger mortgage.

So, the message at the end of it all: the news isn’t always factual. The Real Estate Market has held up throughout past recessions and its high time to let any and all current and potential home buyers and home sellers know that now is the time to buy and sell!

Home Improvement Ideas That Won’t Break the Bank

September 17, 2019

Home Improvement Ideas That Won’t Break The Bank

Keeping costs down while improving your property is a definite “must”, especially for a rental.  Some of the more cost-effective ways to achieve the best return on your investment may be the following:

Paint:  You can change the entire perception of a property with the right paint color choice.  For example, paint can make a small room look larger or a dark space look brighter.

Hardware:  Replacing hardware like doorknobs and hinges or cabinetry handles can make a considerable difference to a space.

Fans:  These go a long way in giving a room an inexpensive facelift, especially if the existing fans are outdated.

Flooring:  Ripping out carpet and replacing it with vinyl plank, laminate or a less expensive prefab wood, can be done for quite an affordable price today.  Most renters would prefer an easy-to-clean floor covering.

Blinds:  Replacing older “apartment like” blinds with newer, modern versions is cost effective and can make a room pop.

Appliances:  Purchasing used appliances in nearly new condition can make any rental unit more appealing and possibly get you more rental income or increase home value. 

Countertops/cabinetry:  While this may be a more expensive upgrade, there are sources of countertop choices that are both economical and durable.  Cabinetry can be updated with paint or door replacement.  

Backsplash:  Believe it or not, this is a game changer for many renters and can transform a kitchen for well under $500.

Bottom line is even when on a tight budget, homes and rental units can be upgraded and updated to realize a higher value.

Our New Loan Program Is Wrangling Up Fast Approvals!

September 12, 2019

Our New Loan Program Is Wrangling Up Fast Approvals!

Real estate loan turned down at the last minute?  Strong borrower but just don’t quite qualify for traditional “A-paper” financing? 

This is where our new Alt-A Hard Money program can help, with lower rates between 6 – 8%!   The main qualifications are: 

– 65% Loan To Value or less
– Property in good condition and in nice location     
– Good credit (640 and above)                                

Lower Rate Alt-A Hard Money Loans Recently Funded: 

Location:  Petaluma, Sonoma County
Why Came To Us: Has IRS lien and difficult-to-prove income
Scenario: Homeowner looking to pull cash out of free and clear house.
Loan Size: $350,000 with LTV at 29%.  
Days To Finish:  7 days!

Location:  Brokertfield, Marin County
Why Came To Us: Turned down by their bank at last minute.  
Scenario: Needed additional funds to complete remodel and planned to then sell.  
Loan Size: $680,000 with LTV under 50%.  
Days To Finish:  7 days!

Location:  Mill Valley, Marin County
Why Came To Us: Buyer was an LLC; Other Lender unable to perform. 
Scenario: Borrower was perfect, with great income and credit. Lost time due to unnecessary confusions with underwriting. Didn’t want to miss out on his business investment so required fast financing. 
Loan Size: $599,000 and LTV 59%
Days To Finish: 4 days!

Location:  Santa Rosa, Sonoma County
Why Came To Us: Was turned down at the last minute by underwriting, due to an issue with proof of income. 
Scenario: Escrow was closing in 3 days so Real Estate Agent reached out for fast financing for home buyer. 
Loan Size: $946,870 and a low 35% LTV.  
Days To Finish:  3 days!

If you have any questions or scenarios for us to review, call 707-523-2099.  We will let you know quickly what we can do for you!

No Surprise! Pet-Friendly Homes Are in High Demand

August 27, 2019

No Surprise Pet Friendly Homes Are In High Demand

In a recent study, it was reported that $72 billion (with a “b”) was spent on pets in the U.S. in 2018.  This statistic makes it easier to understand that when someone buys a home, they are considering the needs of their whole family, and that includes the family pet(s).  89% of pet owners say they would not give up their pet due to a housing restriction.

Most of us consider the comfort and ease-of-living with our pets when we are considering buying a new home.  It makes sense then, that when we list our home, we emphasize the pluses of living in the house with our furry friends.  

So, if you are a homeowner looking to sell in today’s pet-friendly environment, it could be a good idea to point out the features of your home that will attract pet owners.  Some of these features would include: a fully fenced backyard; nearby dog parks, walking paths or pet-friendly beaches; proximity to veterinarians, groomers and pet supply stores.

As a seller, considering the pet-friendliness of your home can be a key criterion in marketing your real estate today.  Take advantage of this love for pets to promote your home accordingly, getting an edge over the competition!

How Effective Are Your Negotiating Skills?

August 20, 2019

How Effective Are Your Negotiating Skills

There is no better way to secure your effectiveness as a negotiator than by truly being the guy in the “white hat”.  To distinguish yourself from the “black hats”, you must communicate your honesty and integrity to potential clients. You prove your dependability by quickly returning phone calls, turning around paperwork in a timely manner, and generally, providing value and making your client’s experience a little less stressful.  

Initially, nothing wins over a client more than a salesperson who listens intently to what they have to say.  Understanding the client’s problems and wishes achieves a favorable communication breakthrough in the negotiation process.  Your first conversations should help you distinguish what the client’s needs really are in relation to your dealings with him.  It is essential that you make no commitments that you cannot keep. It is always better to “under commit” and “over perform” rather than the reverse.  

Don’t be afraid to acknowledge that you do not have an answer to a question but be prompt in finding the solution/answer and getting back to the client.

There is truth to the statement: “Either you control the deal, or the deal controls you”.  Clearly defining the clients’ needs and listening to their concerns are helpful in controlling the direction of the deal.  

Bottom line for any successful negotiation is that both parties go away feeling that they have been heard and the resolution has been a “win-win”.   Both parties must believe that the agreement is satisfactory.

If you are looking for an alternative financing real estate lending partner, look no further than Sun Pacific Mortgage.  We specialize in hard money loans and loans that just verge on being a conventional loan but need a fast funding. If you have a client that needs our expertise, please call us at 707-523-2099 to discuss your situations.  We have assisted and partnered with thousands of mortgage brokers over the last 31 years and we look forward to working with you.

Accessory Dwelling Units: Do Your Homework First!

August 6, 2019

Accessory Dwelling Units Do Your Homework First

The housing crisis, especially in California, has worsened over the past decade.  There is a report that states California is short three million housing units. This accounts for the additional pressure on home and rent prices.  To alleviate this disparity some cities are reducing the red tape required to build these attached or detached structures on an existing residence. This type of building (ADU) might be called a granny flat, backyard home, casitas, or in-law suite. 

If, as a homeowner, you are considering this type of addition, it is imperative that you do your homework before embarking on this investment.  Each city employs different ordinances and regulations. Don’t depend on the city’s website to inform you regarding the most up-to-date information because it is changing so quickly.   

With this warning in mind, it is best to run your design plans through your city’s planning department before you begin your project.  Although ADUs are small, generally 400-1000 square feet, the cost to build them can be astronomical. Why? Because they include the two most expensive rooms in the house: a kitchen and a bathroom.  Check out size restrictions, set-back requirements, and zoning issues that could sabotage or change the scope of your project.

There may be restrictions on who your renter can/will be.  There is pending California legislation that will affect whether there is an owner-occupancy requirement.  There may also be restrictions in certain municipalities regarding vacation and short-term rentals. Some cities are restricting them or prohibiting them entirely.  

As if all the above is not daunting enough, you must still deal with the utilities.  They have been known to grind more than one project to a halt. Don’t forget to ask about utility incentives or rebates for energy efficiency upgrades.

Bottom line:  Expect the unexpected.  Rules are changing and timelines are typically longer than planned.  Take the time to do the research required to mitigate your risk and put you in the best position to be successful.

And for those who need additional financing to build an ADU, you will want to contact a licensed and trusted Lender.  In fact, you may want to check out a few different types of lenders as some offer different programs with different terms & rates.  Find the best one that fits your needs, to execute your expansion!

Real Estate Vs. Your 401K

July 23, 2019

Real Estate Vs Your 401K

All of us would like to think we are going to retire someday, and hopefully, it will be comfortably. To that end we are encouraged to contribute to a 401K.  Unfortunately, the growth rate of most 401K accounts will not offer us the retirement we anticipate. As an example, even if you were to put $250 a month into a Roth and get a modest 3.5% return on your investment, the return most likely would not be enough for a comfortable retirement.  

So, what are the options?  If you have a self-directed Roth IRA, you could invest in hard money trust deeds that would minimally yield 10%, putting you in a much better position for retirement.  Yes, these investments come with a much higher risk, but the real estate market over the long haul has always proven a safer investment than most others. Additionally, it is tangible and will always carry value so ensuring you have decent equity at the get-go for each investment, this will serve for a safer investment overall. 

Hard money trust deed investments allow you to enjoy the advantages of real estate ownership without the inevitable landlord problems and hassle.    This type of passive investing comes with a professional lender responsible for vetting prospective borrowers. Additionally, using a loan servicing company to collect mortgage payments and ensure payments for taxes and insurance, eliminates virtually any intervention on your part.  In the end, you are left with a retirement account that is growing at a much faster pace than any 401K.

Sun Pacific Mortgage, a family owned and operated business since 1988, offers hard money trust deeds.  These opportunities are regularly emailed to our investors, with enough information to make an informed decision regarding risk and profit.  If you are interested in turning your slow-growing 401K into a turbo charged retirement fund, give us a call at 707-523-2099!

Downsizing Can Be Stressful

June 28, 2019

Downsizing Can Be Stressful

Last year a survey conducted by Trulia reported that 60% of Americans living in homes over 2000 square feet, reported that they would prefer a smaller home for their next move.  Such a move can prove to be financially and mentally a positive experience, while the actual process can be exhausting.  

The following tips were offered on the blog “Budget Dumpster” to help lessen the stress level and provide a rough roadmap for those in the throes of a downsize.

  • Take an Inventory:  Because this is one of the more daunting chores, take your time and set up a plan of attack that targets one room or zone at a time.  Decide what to keep, throw out, donate, or sell.

  • Minimize Duplicate Items:  The kitchen can be a hotbed for duplicates.  Check the multiples of spatulas, drinking glasses and silverware.  If you’re going smaller, you probably won’t be entertaining as much as you did in the past.

  • Make the Most of Storage Space:  Find “hidey-holes, such as under the bed, hanging shoe racks, or inside ottomans for that storage space you may be losing by downsizing.

  • Sell Your Belongings:  Yard sales can be a boost to your moving budget, but it is also an exhausting experience.  It does allow you to find a home for some of your things that you no longer need or that will not fit in a smaller space.  It is a good idea to measure your furniture and be certain that each piece will fit in your new home. Eyeballing does not always tell the correct story.  A decent tape measure should become one of your new best friends.

While the thought of downsizing may be nerve-wracking, think of all the good that will come from it.   You will be taking control of your possessions and learning to live with fewer encumbrances. You might even learn to enjoy life more with less!

Looking for alternative financing to purchase that next-step-home? Call Sun Pacific Mortgage today for all of your Hard Money financing needs (707) 523-2099!

Don’t Get Caught Up in the Drama du Jour – Real Estate Stability

June 26, 2019

Real Estate Stability

Lately, we have seen the financial media spouting fear, uncertainty, drama, and doubt.  Wall Street sends us on a roller coaster ride every day, while the Everyman continues to go to work, get the same paycheck, pay the bills and largely tries to ignore all the drama.  This explains why investing in Main Street has proven to be so attractive. 

While stock prices are on a dizzying ride, the real estate market offers some modicum of stability.  Real estate’s resilience isn’t invincible, just consider the pain of the 2008 market, but investors in real estate can usually react in time to avoid disaster.  These investors continue to collect their passive income and acquire equity, untouched by all the drama on Wall Street.

Watching macro-trends is still vitally important to any investor.  These provide clues about long-term patterns and warn of systemic breakdowns.  Staying abreast of market fluctuations makes for a successful investor.

The Wall Street roller-coaster ride may be exciting for the young and daring, but most folks want stability, ease, and the ability to keep ahead of real-world inflation.  This is the main reason income-producing real estate is so attractive right now. 

Renters, coming to the realization that they are paying someone else’s mortgage, not their own, are entering the home buying market in increasing numbers.  With prices stabilizing and inventory inching up, home buyers are beginning to look once again at becoming homeowners. In addition, some existing homeowners are taking the appreciation gained over the past several years and investing in a rental unit.  It behooves Realtors and Lenders to relay this to their potential clients. 

Don’t want to deal with the messy issues involved in being a landlord?  Perhaps, you might want to consider becoming a private investor in hard money loans.  In this scenario you achieve passive income on your investment but avoid the “landlord blues”.  Your money is much safer with real property and, if borrowers are vetted well, you can rest easy that your hard-earned money is safely preserved and producing more than the normal return interest for you.

Sun Pacific Mortgage is a family owned and operated hard money lending business.  We have been in business for 31 years and enjoy a sterling reputation with our investors and our borrowers.  

Brokers & Lenders, Realtors and potential Investors feel free to give us a call at 707-523-2099 to discus the various ways we can assist you in increasing your success rate or diversifying your portfolio. 

You can also find out more about what we offer and how you can work with us on our website at www.Sunpacificmortgage.com 

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