Cunningham
Sure Advice for Real Estate Success
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:
- Higher initial deposit.
- Shorten close date.
- 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.)
- 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:
- Tax Savings.
- Pride of Ownership.
- Appreciation.
- 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.
Home Prices, Sales Jump – Good News!
LENDER’S VIEWPOINT
By: The Guy In The White Hat, Broker Owner
“Home prices, sales jump”
This is today’s front-page headline from my local newspaper. It must really be good news as they usually are such gloom and doom about real estate – in spite of the facts within their own articles. But I digress.
The current market is hot, hot, hot, where I live in Sonoma County, California. This article also stated that the market, which is already hot, is expected to strengthen. Check these statistics for your area. I’ll bet the numbers are similar.
The main hotness gauge is median price. Median means half sold for more and half the homes sold for less. The median price in this County rose in April by 8% over March. The number of homes sold in April increased by 22% over a year ago.
Sales for the first 4 months of the year are the strongest since the 2005 market, which by many estimates, is when the bubble burst.
Because I am in the know, the most telling statistics are the ones that show sales of the move-up homes. Those are the sales of homes to what were entry-level buyers selling that home and getting a more expensive one. Those higher end homes are now seeing multiple offers. Not only that but upper end homes over $1 million have had their best month “in more than 3 years”.
Finally, 30 year fixed rates were the lowest ever last week. Lowest ever! In my Hard Money business, March and April saw the highest numbers ever for Buyers applying for home loans using Hard Money.
The trend will only continue. This morning already, I Pre-Approved a Buyer who is short selling a rental property and had 2 of them foreclosed 2 years ago. He is renting a home right now and has picked out a house in the same neighborhood he used to live in. His house payment will be just a bit more than his current rent, but with the tax savings by owning instead of renting, his house payment is way lower than his rent!
What are you waiting for??
It can’t get better than this.
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 #01000559. NMLS #289456.
Close More Deals by Making Hard Money Loans Easy
LENDER’S VIEWPOINT
By Broker, Owner
The current line-up to accommodate almost any Buyer for any residential property type is as follows:
1. A 30 year fixed rate lender (FNMA/FHLMC).
2. An FHA and VA lender.
3. A credit union for those that just miss getting a 30 year fixed rate loan.
4. A Hard Money Lender.
Keep in mind that most Hard Money lenders typically will also do more than 4 units, commercial, land loans and construction loans. Hard Money is pretty forgiving on credit. A person can have recent foreclosures, be in bankruptcy, done a recent short sale, low credit scores, have collections, liens, etc., or a combinations of these.
I recently saw a Wall Street Journal article Explaining the Methods of Hard-Money Lenders (written July 21, 2011). It begins with “As banks continue tightening their purse strings…” which is the theme of the article. The article mentioned the increased use of Hard Money due to the “…tight lending these days…” of institutional lenders.
It then goes on to explain the fact that these hard money loans are concerned with “asset valuations and loan to value-ratios.”….”There’s no red tape.”…. “Because there is little bureaucracy when compared with big banks, deals can be approved and closed in just a few days.”
The busy Realtor in today’s market (and well into the future) has to know about Hard Money. The fact is there are the 30 year fixed rate type lenders out there, call them “A” paper lenders, and then there is Hard Money which is now the catch-all for everything else as there are no “B”, “C”, “D” or “sub-prime” lenders in today’s market. So be well versed in Hard Money and make it easy Buyers to get into contract.
True, Hard Money loans average 12% interest but for many buyers Hard Money is the only option. And it is well worth it to get into that new home. Down the line one can refinance once qualified for one of the other loan programs covered above – but one won’t miss out right now! Don’t fret about rate objections, just acknowledge and get the contract signed.
Hard Money is here to stay and is a vital tool for the busy realtor. 2/3 of the loans I do are for purchases. The Buyers are so grateful too, as they thought they had no chance for home ownership.
Why not give me a call at 707-523-2099 and I will get you/your Buyer fully set up for a Hard Money loan and you can go ahead and get the house deal closed!
Owner is a CA DRE Broker with over 24 years experience in real estate and lending. His number is (707) 523-2099. See newly designed website @ www.sunpacmortgage.com. DRE license #01000559. NMLS #289456.
Pride of Ownership: Help Your Buyers Get Their Pride
Pride of Ownership:
Help Your Buyers Get Their Pride
LENDER’S VIEWPOINT
By Broker, Owner
From Webster’s Collegiate Dictionary…pride noun, b: a reasonable or justifiable self-respect.
That is why a person has almost a compulsion about buying a home. That “justifiable self-respect”. That “I did it” feeling when you get handed your very first set of keys to your home. It’s not like renting your first apartment. That’s a pretty good feeling but it’s not Pride of Ownership.
The funny thing is you don’t really know that that is what is compelling you. It’s almost innate that you are drawn to owning your own home. Now you might also be drawn to getting out of your parents house as a young adult but that may be more hormonal than innate. That would be more a Doctors Viewpoint than a Lenders Viewpoint!
I think it boils down to the security of it from a couple of angles. Back in caveman days I could see the security of having your own cave and guarding that cave. I have seen a rash of man-caves at homes I have been in recently. Same idea. Similarly today you have that security as well as security from the elements. You also have the fact that no one can take it from you as you own it. That security. You can do with it as you see fit. You can decorate it to your tastes, you can paint it any color you desire, you can move walls, change the structure, landscape it any way you want, etc.
Think about this. Picture the last time you felt pride. Nice feeling right? As a homeowner you get that every time you pull into your driveway, or play ball with your child in your yard, or water your lawn, or change a light bulb in your home, or clean out the gutters in your home, or cook in your kitchen, or go to your mailbox, etc., etc., etc.
That’s why you buy a home. That’s why you figure out what it takes you, using all your resources, to get the job done. Despite being turned down for a bank loan there are Hard Money loans available to those who want to take advantage of the current housing market and really want that Pride of Ownership – get yours today!
DRE license #01464899 & NMLS #360993
Owner- The Guy in the White Hat – is a CA DRE Broker with over 24 years of experience in real estate and lending. His phone number is (707) 523-2099. See website @ www.sunpacmortgage.com.
Quick, helpful, holiday tip from me, Owner
Thanksgiving Real Estate and Lending TIP for you.
Click here to watch the video on YouTube
Quick, helpful, holiday tip from me,
Owner
Holidays are upon us and I hope everyone has a happy Thanksgiving! Here’s a very short video and article that CAN HELP YOU this Holiday season, as an individual Homebuyer or as an Agent with Homebuyers, who aren’t quite getting off the dime…
IS THE MARKET TOO SCARY TO BUY? (By the way – NO!)
Wow, we are being hit by all sides these days. It is being blared across the air waves that it’s as bad as the 1920s. Why would anyone buy?
Did you know that A LOT of people made money during that depression. How? They did not follow the pack. This is very hard to do. The best managers of money (Boone Pickens, Warren Buffet, and Bill Gates – for example) are a different breed of cat. They seem to operate opposite of the crowd. They buy when no one else is and they will freely tell you to do the same. It takes a brave soul to not follow the crowd.
There are statistics that show things are not as bad as they seem. In Sonoma County home sales are up – way up. First time buyers can finally afford to buy and they are. There are multiple offers on many homes. Homebuyer loans are getting approved and people are moving into these homes. There are not as many homes on the market as there were at the peak in November 2008, which will serve to drive the prices up. Consequentially rent is going up all around – sometimes more than you would pay for your monthly home mortgage!
The moral of the story is – Buy Now! If you have the required down payment (as low as 3.5%) and can afford the monthly payment (average $1,420 monthly) – do not wait.
Look to the statistics of what is occurring in THIS market (Sonoma County, Marin County, etc…). The statistics show a brisk market that is competitive and will only go up from here – so…. It’s times to buy!)
Owner is a CA DRE Broker with over 23 years experience in real estate and lending. He offers Hard money loans for those with bad credit, difficult-to-prove income, etc. His number is (707) 523-2099.
See website @ www.sunpacmortgage.com. DRE license #0146899 and NMLS #360993.
“HARD MONEY” OR “PRIVATE MONEY” LOAN REVISITED
“HARD MONEY” OR “PRIVATE MONEY” LOAN REVISITED
By Broker, Owner
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 borrowed from private individuals. I bet you’ve borrowed money from a relative. That was a Private Money loan, likely unsecured. 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). The rates and fees are higher than those you’d get from a bank or credit union that does 30 fixed rate mortgages.
Why then would anyone borrow Private Money? There are lots of reasons.
You can get a Private Money loan in spite of a foreclosure, bankruptcy or short sale! I thought to make the above sentence read like a headline, because it should. No bank or credit union or anyone doing home loans other than Private Money will lend to someone who had a recent bankruptcy, foreclosure or short sale. Further, 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? Private Money loans are generally much faster than a bank loan. What if your credit isn’t bank worthy?
That’s because 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, Private Money will not work.
Here is an example of a Private Money Loan. The Buyer 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 dumpy 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 money fix it up and then resell. He got a Private Money loan and was able to fix up the house and pay off the loan within 4 months.
Maybe you need a Private Money Loan!
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.
Stop Being Stopped – From Buying a Home
STOP BEING STOPPED
DECIDE TO NOT BE STOPPED FROM BUYING A HOME
By Broker: Owner
This Article is addressed to all those who long to buy a home but have not done anything about it.
Let’s be clear on this question of “Buy a home – don’t buy a home?”
It’s obviously not the rates. 30 year fixed rate loans are at the lowest – ever! Did everyone see that headline in every news forum? Lowest ever!
It’s obviously not real estate prices, because the majority of the statistics show they have hit bottom and are projected to rise based on those statistics.
It’s obviously not the fact that there are major tax advantages to owning a home, because those have been preached for years.
So what is stopping you? Think about it for a minute, what is really stopping you?
Whatever you came up with – get over it !OK that’s rather abrupt but look at the compelling facts above that demonstrate why you should get over whatever it is that has stopped you.
Did you decide to stop being stopped?
Good. So the starting point for becoming a home owner is being pre-approved for a home loan. This isthe starting point. You do not want to shop for the home first. That is putting the cart before the horse. Most sellers in this current market will only look at offers from Buyers that have been pre-approved for the home loan.
You have a couple of ways you can go here: If you have a real estate agent already, have them set this up with their favorite lender, preferably a mortgage broker, since you probably have no idea what type of loan you may qualify for. If you don’t have a real estate agent, you could interview a few and decide on one and then have them steer you to their favorite lender. You could also go direct to a local mortgage broker or your favorite bank. You could look in the Yellow Pages (do people still do that?) or go on-line and search mortgage broker and the city you live in.
It does not cost anything to find out what you can buy based on your credit, income and down payment.
Touching on that briefly, you can be a Buyer whether you have perfect credit, good credit or “bad” credit. You can also be a Buyer if you have from easily verifiable income to difficult to prove income. You can be a Buyer with as little as 1/2 % down!
Regularly published are the 30 year fixed rates offered by FNMA, FHLMC, FHA, and VA as well as PERS and loans made by the California Housing Finance Agency. These are deemed “conforming” loans. They are offered through local Brokers and banks. You need good to perfect credit for these as well as verifiable income. You also need to be buying a home that is in pretty good shape. No fixer-uppers.
Finally, any time one of the above traditional lenders cannot approve your loan you need the services of a hard money lender. These are Brokers and companies that offer these non-traditional, that is non-conforming – programs. Some of the reasons conforming lenders say “no” are low FICO scores, a recent bankruptcy, inability to verify income, no tax returns, no bank statements, high debt to income ratios, odd or non-conforming types of properties such as mixed use, multiple units, apartments, land, etc. Hard money generally requires just 2 things: a good down payment and ability to repay the loan.
You’ve already decided to stop being stopped. What are you waiting for?
Don’t miss out! Now is the time to buy.
Owner is a CA DRE Broker with over 23 years experience in real estate and lending. His number is (707) 523-2099. See website @ www.sunpacmortgage.com.
Statistics, Statistics, Statistics
LENDER’S VIEWPOINT
By Owner
I debated in high school and then went to Loan Originatorzona State University on a tuition scholarship for debate. Not too long into my college debate team tenure, I discovered concurrently, the girls dormitory housing 1,500 suntanned beauties, 7 oz. beers 6 for a buck, and the pool life around Lemon Grove Terrace – among other things. So much for the debate team.
But from all those years of competition one thing did become clear and that was that statistics require scrutiny. They also need to be compared to other statistics to have any real meaning. Even more important is to look at who was giving forth the statistic and the source of the statistic. You probably innately know this, maybe you don’t. But in these trying economic times people the world over need to be reminded to think for themselves and not blindly trust what we are being told. Bad news and even worse headlines sell newspapers and draw us to news shows on television, radio and the internet. This is in spite of the fact there is good news buried under the headlines. It is commonly known that bad news sells newspapers.
This is really all that is holding down housing right now – the preponderance of bad news. It is really all that is hampering business expansion leading to the current unemployment rate. I have heard it called a lack of confidence. People are beat up about the bad news, the publishing of “bad” statistics. The real drag on the economy is that people get so beat up by bad news they feel like they can’t do anything about it – lack of confidence.
Can you have another viewpoint though? I mean can you subtly change your thinking just slightly?
America isn’t going to dry up and disappear. It will recover from the current mess. Don’t you truly believe that? I do. I mean I’m not done with supporting my family, I’m gonna go camping again and fishing and golfing, and buying clothes and going to church and paying taxes and eating right and eating badly and working my b___ off for all of this. That’s what I’m going to do. And I’m going to go about it confidently and with good cheer because it does not accomplish anything to be other than that. And I’m going to see headlines and statistics and hear news that I’m going to take with a grain of salt because I know their stated purpose is to put forth bad news. So I’m not going to let it affect me one little bit.
My initial purpose for writing this article was to motivate buyers to get out there and buy right now because the statistics I view as a mortgage broker and real estate broker all point to BUY NOW. Get your confidence back in America. That is simply your decision. And the next time you see a bad headline just know that they are probably all bad headlines with the worst statistics. It sells newspapers.
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.
