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California Housing Market Headed in Right Direction

June 9, 2016

In April, California Association of Realtors released their 1st quarter California Housing Market Update citing a number of interesting updates.

C.A.R. President Pat “Ziggy” Zicarelli was quoted as saying:

“California’s housing market is moving in the right direction as we enter the spring home-buying season, but sales growth will likely be isolated in areas where inventory is more abundant and housing affordability is less of an issue.”

Taking a look at the the data C.A.R released, it’s interesting to note certain counties with sharp upticks in sales:

CountyApril Median Sold PriceMarch Median Sold PriceMTM% Change
Tehama$193,330$175,00081.8%
Amador$307,890$267,86077.4%
Plumas$231,250$266,67075.0%
Tuolumne$239,710$272,50071.8%
Napa$666,670$664,47070.9%
Merced$189,500$197,78070.8%
Santa Barbara$596,770$729,17063.8%
Alameda$762,570$712,99061.5%
Ventura$620,020$610,82061.3%
Yolo$374,000$387,93059.6%

 

Of the top 10 counties in California with MTM% changes, we can see a nice spread of housing sold in potential up and coming areas. With Tehama, Amador, Plumas, and Tuolumne Counties all located in Northern California, it would seem affordable housing under $300k is becoming more abundant and selling well. We can  also see  affluent areas like Napa, Santa Barbara, Ventura, and Alameda all maintaining solid home sales in areas with much larger home prices and a steadier inventory.

Housemarket

As a Hard Money Broker in Northern California for over 28 years, Sun Pacific Mortgage & Real Estate will always be there if you are looking for creative or alternative financing for real estate, anywhere in California.

We specialize in financing investment home purchases and refinances – single and multiple units. We are very much able to fund or refinance Bridge Loans, many owner occupied or principal residence purchases and some commercial purchases.

Give us a call at (707) 523-2099 if you are considering private financing with your next home purchase!

Owner Occupied Principal Residence – Part 1 of 2

June 8, 2016

Oo 1  This Will Be The First In A Series Of Articles That Will Explore The Varied Types Of Loans We Offer Investors. This will be the first in a series of articles that will explore the varied types of loans we offer Investors.

Let me start off by saying that I will always do loans to homeowners that are owner occupants. It is an important segment of lending and a heck of a niche for my office. It also has the most regulation by the state and feds who, in their infinite wisdom, have decided that this category of homeowner needs protection. Lots and lots of protection.

I will also tell you that there has not been a foreclosure of an owner occupied loan (that I am aware of) for the last 6 years. This is key.

These are generally very good loans. Most are just shy of getting 30 year fixed rate loans at or under 4% from what we call “A” paper lenders like Wells Fargo, Chase or B of A. Most are turned down due to something in their credit. Second most are turned down due to income. Problem property is the third reason. All the turned down loans that we write have down payments of between 20% and 60%.

Many mortgage brokers have backed off of this type of loan. My guess is they have been run off by the profusion and confusion of regulations. The tragedy is, they have run a lot of investors off of this type of loan. And really, it’s not that tough to know the regulations and comply. Yeah, there has been a lot of regulation, but my viewpoint is that you get your wits around all of it and simply comply with the fed and state mandates and you do these loans. So that’s what I do and that’s why I promote this type of loan.

Almost all of the owner occupied loans that we write have an “exit strategy”. We never used that term before the proliferation of fed and state regulations in response to the recession, but here it is. We write these loans as 15 years loans but I would wager none will go to that term. I looked at the statistics of the owner occupied loans we have written that are serviced and the ones that had paid off lasted an average of 11 months. So we make 15 year loans but they most likely will not last that long. And if they do, hallelujah!

Champagne-Cork

One thing I must mention that I think increases the security of those loans, is the fact that the feds require they be impounded for the payment of property taxes and insurance. The feds did get that one right. You know every month that those items are paid and not accumulating.

The feds also require that the Borrower on an owner occupied loan demonstrates an “ability to repay” the loan. We don’t even write the loans if they cannot prove they can repay the loan. We turn down quite a few requests, even with a ton of equity, because they cannot prove their income.

Last item to mention is that the feds mandate these Borrowers do a consumer credit counseling class before the loan records. The counselor takes the disclosures for the loan and does a budget talk with the borrower. It’s done over the phone and takes about 45 minutes to an hour. This theoretically makes for a more informed Borrower. Makes sense to me.

Informed-Borrower

So, statistically, owner occupied loans don’t get foreclosed upon, the loan to values are good, they have an ability to repay the loan, they have an exit strategy, they pay the property taxes and insurance monthly, they do a consumer credit counseling class and the properties will likely appreciate in the coming months and years.

That’s why these loans are a great investment.

To continue reading on to Part 2, click here!

Our Changes For Your Benefit

June 1, 2016

Hope you had a relaxing Memorial Day weekend.

To benefit you and your clients, we have just updated our rate sheet to easily show the alternative finance programs we offer taking into account the numerous changes, due to recent regulations handed down by the Feds.

1

Please let us know if you have any questions. And for sure let us know if you need our assistance for yourself, friend or any of your clients!

Best,
Broker & Broker – The Guys In The White Hats

Fk

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

May 27, 2016

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

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

Recently Funded – Providing More Options

May 10, 2016

Hard Money Provides …

  • A Quick Close

  • Multiple Options

  • Shorter term loan

  • Makes an impossible deal possible

“The entire family and staff at Sun Pacific Mortgage are the best hands down.  They are honest, direct, professional, quick, efficient and realistic.  It was like when everyone else seemed to be against us, Sun Pacific found a way to make things happen.  We cannot thank them enough! “ LW

See below for some of our recently funded loans, to get a better idea of our various real estate finance programs.

Let us help you, your clients, your family and friends! Call Us today at (707) 523-2099.

Best,

Broker and Broker, The Guys in the White Hats
Jpeg “The Entire Family And Staff At Sun Pacific Mortgage Are The Best Hands Down.  They Are Honest, Direct, Professional, Quick, Efficient And Realistic.  It Was Like When Everyone Else Seemed To Be Against Us, Sun Pacific Found A Way To Make Things Happen.  We Cannot Thank Them Enough! “ Lw
P.S. We love referrals!

Recently Funded:

Get our financing despite credit score, self employed-difficult to prove income, need fast financing, property a fixer, etc!

We finance Jumbo loans, Bridge and short term loans, Primary Residence or Owner Occupied purchases and refinances, non-owner purchases for single and multiple units, some commercial and land.

 

Windsor, CA (Sonoma County)
Loan Type: Owner Occupied 2nd
Amount:$440,000
Days to fund: 15 days
Reason for Hard Money: Credit was poor

Modesto, CA (Stanislaus County)
Loan Type: Investment Property Cash-out Refinance
Amount:$220,000
Days to fund: 29 days
Reason for Hard Money: Property needed fixing

Sebastopol, CA (Sonoma County)
Loan Type: Owner Occupied Purchase Bridge Loan
Amount:$562,000
Days to fund: 10 days
Reason for Hard Money: Needed fast cash to buy new home while selling old house.

Lakewood, CA (Los Angeles County)
Loan Type: Owner Occupied Purchase Temporary Loan
Amount:$420,000
Days to fund: 16 days
Reason for Hard Money: Property a fixer

Mill Valley, CA (Marin County)
Loan Type: Non-Owner Refinance
Amount:$240,000
Days to fund: 8 days
Reason for Hard Money: Recent Bankruptcy

San Diego, CA (San Diego County)
Loan Type: Owner Occupied Business Purpose
Amount:$200,000
Days to fund: 18 days
Reason for Hard Money: Self Employed, difficult to prove income

Sonoma, CA (Sonoma County)
Loan Type: Owner Occupied Business Purpose
Amount:$200,000
Days to fund: 9 days
Reason for Hard Money: Divorce circumstances adversely affected credit score

What Is An Owner Occupied Hard Money Loan?

May 3, 2016

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 2nd
  • 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.

What Makes a Hard Money Loan a Good Loan?

April 21, 2016

Hard Money loans are fantastic for short-term usage while investing in real estate. Depending on how it’s structured, a Hard Money loan can be available for as short as 3 months to as long as 5 years or longer. Traditional mortgage lending is often available for 10 years to up to 30 years. The real catch is when attempting to obtain a traditional mortgage on a distressed or vacant property.  It is extremely difficult to qualify and you will have a hard time finding a bank who will loan in this situation. Enter Hard Money.

Sold House PicHere’s a good example:

  • An investor finds a home they’d like to purchase for rental purposes
  • The home is distressed and in need of major repairs
  • A bank won’t lend on a property with significant problems affecting it’s value
  • This investor has two options:

  1. Get the loan from a family member or friend.
  2. Use a Hard Money loan to buy the property. The Hard Money loan can also be structured to cover the cost of the repair needed.
    • After the property has been fixed up and prepared for rental, the  investor can obtain a traditional mortgage at conventional rates to repay the Hard Money loan.

This is a great example of a short-term Hard Money loan used to purchase a rental property that otherwise would require an all cash offer.

If you have any other questions or are interested in getting a Hard Money loan in Santa Rosa, Sonoma County, North Bay or really anywhere in California, call our office 707-523-2099!

It Is That Time of Year in Real Estate To Have Alternative Financing Readily Available

April 10, 2016

“Gave us an excellent rate on our hard money loan and we got our money 5 days after we applied! I highly recommend Sun Pacific Mortgage!” LW

“I can’t say enough good things about this company! The best experience I have ever had! Helpful & fast from the start! I highly recommend Sun Pacific Mortgage!! Thanks so much to the whole Sun Pacific Family!” PD

Spring has sprung and Buyer demand is increasing. Agents, Lenders and Buyers need their best foot forward when submitting offers.

Our Hard Money programs can help sweeten a deal as well as quickly fund if needed, despite poor credit, bankruptcy, short sale, difficult to prove income, etc.

See below for some of our recently funded loans so you can get a better idea how we are here to help you!

Call Us today (707) 523-2099.

Best,
Broker and Broker, The Guys in the White Hats

P.S. We love referrals!

Fk

 

Recently Funded:

We finance Jumbo loans, Bridge and short term loans, Primary Residence or Owner Occupied purchases and refinances, non-owner purchases for single and multiple units, some commercial and land. Get our financing despite credit score, self employed-difficult to prove income, need fast financing, property a fixer, etc!

San Rosa, CA (Sonoma County)
Loan Type: Owner Occupied Bridge Loan
Amount: $330,000
Days to fund: 15 days
Not Qualified Elsewhere: Wanted to buy new home before selling current house.

Calistoga, CA (Napa County)
Loan Type: Investment Property Refinance
Amount: $333,000
Days to fund: 13 days
Not Qualified Elsewhere: Owns multiple properties and credit issues

San Francisco, CA (San Mateo County)
Loan Type: Owner Occupied Refinance, Business Purpose
Amount: $700,000
Days to fund: 35 days
Not Qualified Elsewhere: Bankruptcy in recent years

Willits, CA (Mendocino County)
Loan Type: Non-Owner Occupied Purchase
Amount: $2880,000
Days to fund: 17 days
Not Qualified Elsewhere: Property a fixer

Petaluma, CA (Sonoma County)
Loan Type: Primary Residence with Business Purpose
Amount: $275,000
Days to fund: 121days
Not Qualified Elsewhere: Self Employed, and credit issues

San Marcos, CA (San Diego County)
Loan Type: Owner Occupied Refinance
Amount: $316,000
Days to fund: 21 days
Not Qualified Elsewhere: Self Employed, difficult to prove income

Santa Rosa, CA (Sonoma County)
Loan Type: Refinance of Commercial Property
Amount: $350,000
Days to fund: 26 days
Not Qualified Elsewhere: Divorce circumstances adversely affected credit score

Hard Money Investing Is Ripe In California – Especially With Us!

March 21, 2016

What a great time to be a Private Investor in real estate. Hard money loan borrowers have only been increasing since 2012, as it is the only game in town after their favorite Bank or Conventional Lender tell the Borrower “no”.

Money-Guy-Walking-With-Bag-Of-MoneyProperty values are just continuing to rise. Becoming a Private Investor can earn you upwards of 13% in return by investing in mortgages. And by investing in real estate mortgages your investment is secured.

A Private Investor is also known as:
Private Mortgage Lender
Hard Money Investor
Hard Money Lender

These are all private individuals lending their money directly to the borrower with a promissory note with interest rates, points and prepayment penalties the investor sets, and securing that promissory note with a real estate mortgage.

Our family owned and operated Sonoma county company, Sun Pacific Mortgage & Real Estate, has been working with Private Investors since 1988 and we have become known for our integrity and honesty, throughout all of California.

We promote purchase loans as well as refinance loans and these can be at any Loan To Value up to 75%. With this down payment and equity in the property, the homeowner or real estate investor, is not likely to walk away from the property.  Many individuals have started or are continuing as a Private Mortgager Investor as they can secure a consistent monthly income from it.  It can be an excellent cash flow for someone retired or looking to set up their retirement funds.

A loan done through our office for a Sonoma County Home Buyer came to $196,000 with a rate of 12% and the Investor now gets a monthly return of $1,960.  This Homeowner is very happy and intends to refinance down the line for lower rate but gets the home they’ve been searching for!

Realtors, Brokers and Borrowers, for those who have a bankruptcy, short sale or foreclosure, have poor credit or difficult-to-prove income due to being self employed but have a decent down payment or existing equity, have come to know that they can most likely get a loan from us, despite being turned down elsewhere. We regularly have new and available trust deed offerings requiring funding.

Hard Money Investing in California is ripe. Time to jump on the bandwagon with Sun Pacific Mortgage & Real Estate and get a good taste!

If you are interested in investing with us then Call Our Office at (707) 523-2099.

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