A California Private Money Lender You Want To Do Business With

April 5, 2013 Owner

The below article (reprinted with permission) is an exact description of the relevance and importance of Private Money Lenders here in Sonoma County, in the USA and probably planet wide.

If we left it to the bailed out banks, zero money would have been lent during the years of the most recent real estate debacle.

The dust is finally settling on who remains standing in the real estate lending arena. It really boils down to the “A” lenders who do the 30 year fixed loans and the Private Money Lenders. There are no more “B” and “C” lenders. There is no subprime lending.

There is no World Savings with their Quick Qualifiers and stated income programs.

After you take your shot with the “A” lender(s) and they say “NO”, you go straight to Private Money. These Lenders stand ready and willing to fuel the future of real estate in America today.

Article: TheNicheReport “PRIVATE MONEY LENDERS HAVE FUELED THE REAL ESTATE RECOVERY“ by Corey Curwick Dutton, a private money consultant for Private Money Utah. www.PrivateMoneyUtah.com

Best,

Owner

Owner/Broker – The Guy in the White Hat

Get California Hard Money Loans From This Posse

March 15, 2013 Owner

Below are recently funded loans through my office. I have been extremely busy with the many loans coming into our office, but don’t think this will put your loan on a back burner. Oh no, we give fast and friendly service to every single person!

Please take a look at these loans, to see if you have similar scenarios that I could possibly be of service to you. If you or someone you know has been turned down elsewhere for a real estate loan, don’t hesitate to contact me if there is any equity involved or some cash for the down payment.

No matter where you are in Northern California, when you think of Hard Money – big or small loans – think of The Guy in The White Hat at Sun Pacific Mortgage and Real Estate to fund that loan!

Best,
Broker

Funny and Informative Video: http://youtu.be/k5wcwytcWes

FUNDED RECENT HARD MONEY LOANS

Owner Occupied Purchase Loan: Lincoln, CA – $130,000 for 85 months @ 8.0% interest only. Purchase Price is $280,000. Loan to value is 46.4%. Home is a 2 bed/2 bath at 3,086 sq. ft. built in 1938 on almost 1/3 acre lot. This home sold for $630,000 on 8/2/2006!

Investment Property Loan: Earle Street, Santa Rosa –$140,250 for 85 months @ 11.5% interest only. Purchase Price is $187,000. Loan to value is 75%. The home is a 3 bed/1 bath at 1,037 sq. ft. on a 4,356 sq. ft. lot. Buyer has 15 years in the same line of work and she can easily afford the home.

Commercial Loan: Foothill Blvd, Calistoga –$400,000 at 12% interest only for 60 months. Appraised value as of 12/10/2012 is $930,000. Loan to value is 43%. Borrower has owned the property since 1991 and her parents owned it before that. 2 of the 3 units on the property are rented for a total of $8,000 monthly. She is currently under negotiations for a tenant for the 3^rd unit. The longest term tenant is an auto repair shop.

Owner Occupied Purchase Loan: Crockett, CA – $128,175 for 85 months @ 12.0% interest only. Purchase Price is $170,900. Property is 2 bed/1 bath at 1,309 sq. ft. The lot is 5,670 sq. ft. The Buyers have FICO scores in the 680+ range, very little debt, the husband has been on the same job for over 7 years and has great verifiable income.

Our loan approval is based on just 2 criteria:

1. Good Down Payment

2. Ability to Repay

Owner Occupied and Investor financing
FAST private money purchase financing Sonoma County and contiguous Counties
FICO is not a factor
Up to 75% loan-to-value – Case by case basis
Lower rates with Good Compensating Factors– Case by case basis
Loan amounts from $40,000 – $2 million
Fast refinancing.

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

CALL FOREST – The Guy in the White Hat – at (707) 523-2099;

Or email him through the website at: www.sunpacmortgage.com

New Year – New Regulations Loan Structure in My Office

February 11, 2013 Owner

LENDER’S VIEWPOINT
by Broker, Owner

New Year – New Regulations Loan Structure in My Office

I want this article to be nothing but positive, because that is my attitude going in to this new year in the face of new regulations. A lot of new regulations. Tons of new regulations. More friggin’ regulations than you can shake a stick at. But I digress.

I just read that the new laws regarding loan originator compensation are 541 pages! Sorry, digressing again.

I only do Hard Money loans. They break out into 2 rough categories – Owner Occupied Principal Residence and Investor loans. Investor loans is the broader category because an investor is someone who is buying or refinancing something other than an owner occupied principal residence, be it land, commercial or mixed use property.

My strength is in loan amounts around $400,000 or less. I do larger loans on what I deem a case by case basis. I have gotten many, many loans over $400,000 done, but the real sweet spot with my investors is $400,000 and under.

Rates in my office for both owner occupied and investor loans vary according to the loan to value. The higher the loan to value the higher the rate. I will lend as high as 75% loan to value but more normally I lend to 70% loan to value. So the higher rates in my office will be at those LTVs or loan to values.

Credit can affect the rate a Buyer or Borrower gets. If it’s really bad and fresh stuff – like a recent short Sale, foreclosure or bankruptcy, it can affect the rate. Not always, but sometimes.

Income is now something the Feds have compelled us to look at for hard money, especially the owner occupied loans. Debt ratios need to be under about 50% or there needs to be enough disposable income after paying all monthly debts.

That’s pretty much the structure in my office. The complete line-up of available loan programs across the USA is a much shorter list than in years past. There are A paper loans for borrowers who have good credit scores and good verifiable income. And then there is Hard Money. There used to be a lot of in-between programs like subprime loans, B and C paper, etc. The in-betweens have virtually all gone away.

I can Pre-Approve someone in about 5 minutes and can write a Pre-Approved Letter right after doing the loan application. You can always call me and run your loan scenario by me. I pick up the phone and I am really great with emails.

Owner- the Guy in the White Hat – is a CA DRE Broker with 25 years of experience in real estate and lending throughout Northern California. His phone number is (707) 523-2099. See regularly updated website @ www.sunpacmortgage.com.

Real Estate and Buying A Home – On A High Horse But A Good One!

January 9, 2013 Owner

http://www.youtube.com/embed/W4ZL74Mbj-s

LENDER’S VIEWPOINT
by Broker, Owner

“High Horse” – In a Good Way

“Get off your high horse” is a request to someone to stop behaving in a haughty and self-righteous manner.

But notice that a high horse is a common depiction in statues of leaders. These conjure images of a leader on his horse, commanding masses of his men.

The latter is what The Guy in the White Hat has as a purpose in these Viewpoint Articles. I am not a leader of men and I don’t even own a high horse, but I am trying to lead people to home ownership in spite of negative press, oppressive regulation and the naysayers.

These serve to have a “chilling effect” on those who would be buying a home but aren’t because of the negative effects promoted by whatever sources.

On my high horse, The Guy in the White Hat is here to tell you that home ownership is not only desirable, it is the correct financial decision to make, especially right now. I was at the local Realtor® breakfast this week and the CEO of the California Association of Realtors was a special speaker. He said that the current market – nationally – is an “opportunity of a generation.” Real estate prices are at rock bottom and interest rates are at 50 year lows! How often do you see an “opportunity of a generation”?

In my business as a Hard Money Lender, I am the busiest in years, with people buying homes in spite of having to put 25% to 30% down and getting the highest rates in the industry. These people are not chilled whatsoever. They have simply decided to overlook all the negative out there and buy while the buying is especially good.

So don’t be “chilled” to do what you know to do and want to do. Take advantage right now, of the opportunity of a generation.

High horse in a good way! Right?

Make the Winning Offer

November 29, 2012 Owner No Comments

Make the Winning Offer

Who doesn’t want to know how to beat out the other purchase contracts in today’s multiple offers and lower inventory markets, and buy that house!

There was a really good article in the Wall Street Journal recently 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.

It mentioned “Hard Money” filling an important void. Look at just a few instances:

You are 1 of 12 different offers with a highest-and-best counter, on a house you really want to live buy. You have the ability to put down 30% of the purchase price and get pre-approved for a hard money loan with a quick call to a good local Hard Money Lender. You remove loan contingencies, increase your earnest deposit and make a 15 day closing date and your offer gets accepted! Now this is a scenario where you win and Hard Money can fund that loan!
You just did a short sale on your home and want to buy another one. Your favorite bank won’t even talk to you. You know that prices are at rock bottom and you can buy the same home that you bought 5 years ago for $400,000 now priced at $250,000! Hard Money can fund that loan!
You lost your job and your credit is shot. You now are back to work making the same money and you want to buy a house. You’ve got 30% down. No bank will touch you as your FICO score is 525. Hard Money can fund that loan!

The Wall Street Journal article further states that the fees and rates are no doubt higher than a bank, but it is well worth it as “no bank is willing to listen.”

The real gist of this article is to not give up about buying a home; It just takes a strong and strategic offer to beat out all the others, despite not being the one with the most cash!

Even at Hard Money rates (some of which I’ve gotten funded as low as 9%) its worth it because you’d be getting in at the bottom of the market and down the road could refinance to a 30-year fixed rate loan once qualified again. Your gain from buying at the right time can offset the cost using Hard Money.

Take advantage of a Hard Money loan or help your potential Buyers succeed at getting into a new home by directing them to such versatile financing!

CREDIT – The Bane of Home Loan Approvals

November 29, 2012 Owner No Comments

CREDIT – The Bane of Home Loan Approvals

This aspect of qualifying for a home loan boils down to good credit versus bad credit.

The lenders left in the mortgage market arena, let’s call them institutional lenders, the ones that are offering the 30 year mortgages at historic low rates, require good credit (among other things).

Hard Money lenders allow bad credit. Institutional lenders will make you wait years after you have a bankruptcy, foreclosure or short sale before they will lend to you.

Hard money lenders will loan to you immediately after any of those events and even while you are going through them!

Same with recent credit problems including 30, 60, 90, 120 day lates, judgments and/or collection accounts. Institutional lenders hate these. Private money lenders can do a loan in spite of these.

Hard money lenders generally require just 2 things:

Equity or a good down payment and
Ability to repay the loan.

Look at the important role played by Hard Money: Guy has a free and clear property. He fell on some misfortune and his credit was damaged. He makes plenty of money and he has no house payment. He goes to his favorite bank where he’s been for 25 years. Loan denied due to bad credit. He calls a loan officer friend who works for a bigger bank who tells him he’s out of luck due to bad credit and to come see him in a couple of years.

This guy has a free and clear property and none of the institutional lenders will lend to him due to bad credit. A Hard Money broker will do this loan! There is equity and ability to repay.

Let’s say you have a happy couple who make good income and have saved up enough for a decent downn payment to buy a house. They filed bankruptcy a year earlier which included a short sale so no bank will help them out. Yet a Hard Money broker will do this loan as they have decent down payment and ability to repay!

This handles the credit aspect of a loan. Give me a call today and let me help you and your Buyer(s).

How Can I Get A Home Loan?

November 5, 2012 Owner No Comments

Out of the Ashes…

LENDER’S VIEWPOINT
by CA Broker, Owner

Out of the Ashes…
I have empirical evidence of the real estate market recovery. Statistics I monitor that have seen a dramatic turn recently. It has me more excited about the recovery than housing sales.
My Past Borrowers are buying houses, and they are using Hard Money to do it. And it’s logical that they would.

Picture this, my office did over 400 loans annually up to 2005 when the market tanked. The average Borrower up until 2005 borrowed 80% of the value of their home. A lot of them got a “free” home equity line of credit to boot as the lenders were giving those out like it was Halloween candy!

Then values were slashed in half in Sonoma County where I live. The median priced home in August 2005 was $619,000 and it dumped all the way down to a median of $305,000 last year. In outlying counties, the drop was as much as 66%.

So anyone who borrowed to 80% of the value of their home and then saw a 50% decline in value, has been foreclosed upon, did a short sale or is hanging in there hoping that values might recover to their former glory.
It was a deal killer for my business because in the pre-debacle days, the biggest quantity of loans in my company came from Past Borrowers, that is past clients. In second place were Referrals from Past Borrowers. That source of business virtually went away from 2005 until only very recently.

Over 50% of the loans written in my office this month are Past Borrowers. That’s way up from 0%. Now that’s a recovery!

And it’s because of Hard Money. Every one of those Past Borrowers has either a foreclosure or a short sale – or both in their recent credit history. Many have a recent bankruptcy. Not even their favorite bank will loan to them. Hard Money will. With a good down payment or equity in the property and an ability to make the monthly payments, I can do that loan.

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.

The Winning House Bid – You Get the Deal

October 15, 2012 Owner 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!