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Apr
02
Borrower Benefits of Refinancing By Government Loan Programs

The U.S. Small Business Administration has been assisting small business owners through its 504 loan program since around 1980. Recently this program refinancing option was made permanent and has made the oportunities for business owners greater. These loans have long term, fixed interest rate features to assist property owner users to generated lower montly payments.

Initially introduced as a pilot program under Small Business Jobs Act of 2010, this program expired fall of 2012. Small business owners, lenders as well as SBA fought to bring it back so it was permanently reinstated in May 2016.

This gave business owners an additional way to free up equity in their properties and reduce their monthly loan payments. This loan program allo...


Mar
27
You Only Have 7 Seconds To Leave A Good First Impression. Here’s How You Can Nail It.

There are 86,400 seconds in a day. More than 30 million seconds in a year.

But it only takes 7 seconds to form a first impression.[1]

And these 7 seconds can change your coming years if not the entire life.

7 seconds to leave an impressive first impression on your future partner.

7 seconds to make your prospective employer think you’re trustworthy and bright in an interview.

If we know how to make the best out of these magical 7 second of time, it can be a pot of gold. We will be well ahead of the others.

If You Make A Bad First Impression, You Can Hardly Change It Afterwards…

Wait.. First impression isn’t that important. People can eventually understand who we are actually capable of through interaction afterwards. We can easily prove who we really are later on, can’t we?

Well… Of c...


Mar
06
How to declutter your mind and get organized?

Did you know an average person goes through 70,000 thoughts per day? If you don’t organize these thoughts, they can come in the way of your productivity. Just like our closets, our minds need some tidying up too. There are pretty good chances that your mind is begging to free some headspace.


Feb
06
Why You Can't Pay off a Sleep Debt You've Accumulated Over the Week

We’ve all been there: you’ve woken up promptly at 6 or 7 in the morning Monday through Friday, dragging and exhausted as you got ready for work. Then when Saturday rolls around, you wake up and check your phone to discover it’s already noon.

While this is something we can relate to, it’s not actually “normal.” When you don’t sleep enough during the week yet wake up early every day, you may try to compensate for that sleep-deprivation you feel by sleeping in on the weekend. However, you may have noticed that even when you sleep until late in the day on a weekend, you still feel like you aren’t caught up in your rest. So you make the typical promises to yourself; you’ll get to bed soone...


May
23
Subprime STATED Business Purpose Loans

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Subprime loans are a great alternative when you are turned down by banks and require better terms and pricing than hard money. Stated income with no income verification, no balloon payments and 30 year terms. Minimum credit scores 501 for west coast and 650 for east coast. No due diligence fees or upfront fees. Conditional loan approval in 24-48 hours.

Non Owner Occupied only
Loans from $100,000 - $2,000,000
30 year fully amortized
Rates starting at 6.75%
N.I.V. (No income verified)
No DSCR for residential properties
3/1 ARM (5 & 7 year fixed available)
3 year prepay (reduction to PP available)
Lending in 23 states
Residential collateral (1-4 units) only in NY, NJ, FL, NC, SC, GA & VA
STATES WE WILL CONSIDER LENDING IN:

Residential: California, Colorado, Florida, Georgia, Idaho, Kansas, Montana, Nebraska, New Mexico, New York, New Jersey, North Carolina, Oklahoma, Oregon, South Carolina, Texas, Utah, Virginia, Washington, and Wyoming (licensed broker required in AZ, KS, MT, NE, OR, & UT)
** Owner Occupied only considered in California

Commercial: California, Colorado, Hawaii, Idaho, Kansas, Montana, Nebraska, New Mexico, Oklahoma, Oregon, Texas, Utah, Washington, and Wyoming


May
10
Why Take Out a Reverse Mortgage

A reverse mortgage is a loan that enables homeowners who are at least 62 years old to convert some of their home equity into cash, a line of credit, or to finance a home purchase with the freedom of no monthly mortgage payments. The borrowers continue to live in and own their home.

Unlike a traditional home equity loan or home equity line of credit, a reverse mortgage doesn�t have to be repaid until the last surviving borrower or an eligible Non-Borrowing Spouse, if applicable, no longer lives in the home, or the home is sold. If the borrower does not meet loan obligations such as taxes and insurance, and maintaining the condition of the home, then the loan will need to be repaid.

The following are some of the benefits of a Reverse Mortgag...


May
01
11 Advantages Why Real Estate Investors Need Hard Money

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Hard money is a term primarily used in the United States and Canada. It has been around since the 1950's when there were drastic changes to loan financing. It is a powerful tool to use and consider to gain wealth as a real estate investor.

Let's focus on why you need hard money if you're a real estate investor vs a traditional conventional bank loan. The following presentation is based on non owner occupied properties.

Here are just 11 advantages and there's so many more...

Leverage
Interest only payments
Fast loans with no income documentation
No limit to amount of loans you can fund
Bad or little credit is not an issue
No red tape
Take title in LLC
The property can be in bad condition
The loan can be based off of after repaired value (ARV)
No limit on quick flips
Fast closings
So let's make the case for the 10 reasons investors need hard money.

Leverage ~ it's all about controlling an asset such as an income producing property with the least amount of capital outlay. In Southern California where I'm located, you can acquire properties between 20-30% down and keep the rest of your money for doing rehab or purchasing more properties. The return of investment is much higher based on the small amount of down payment vs paying all cash. Example... you acquire a home for $300,000 for cash and net profit of $60,000 after all expenses and closing costs your return would be 20% ROI. On the other hand, if you purchase the same property with 30% down of $90,000 your ROI is more than triple at 66% ROI or 330% greater ROI than buying all cash. If there were no other advantages besides leverage, it is a compelling reason why investors should use hard money.

Interest only payments ~ Cash flow preservation is king. No need to pay down principal like conventional loans so your payment is the minimum required to control the asset, which makes cash flow more manageable if you are flipping homes or fixing up properties and then refinancing as a rental.

Fast loans with no income documentation ~ No tedious tax returns, W2's or pay stubs required. The focus is on the equity vs. your income. Conventional loans are full documentation which is more prohibitive to be approved.

No limit to amount of loans you can fund ~ Conventional loans allow you to have up to 10 loans that will show on your credit report. Hard money loans do not report on your credit report and thereby have no limits on how may loans you can do.

Bad or Little credit ~ Credit scores don't make a difference with hard money thereby making it more promising to do more deals. On conventional loans if you're score is below 640 you cannot purchase an investment property. If that is the case & you have a great property you can be losing out on tens of thousands.

No red tape ~ No banks or committees to approve you. Very fast decisions on approval based on equity and a drive by or appraisal as long as there's clear title.

Take title in LLC ~ Unlike conventional loans that require you to take title in individual names, hard money allows you to take title in entities such as LLC, corporations, even trusts. Shrewd investors take title in LLC's.

The property can be in bad condition ~ Conventional loans will not fund if the property is missing items such as flooring, a toilet as an example. Hard money is only concerned with equity or value of property less loans against it.

The loan can be based off of ARV ~ Conventional loans will lend of the lesser of purchase or appraised value. With hard money many investor will lend off of after repaired value which requires a smaller down payment, in many cases only 10% down.

No time limit on quick flips ~ Conventional lenders and banks want long term loans and are not designed for investors that purchase and flip for quick profits. Hard money lenders have no concern if you buy and re-sell the property the following month and repeat the process, as long as you make the payments it is a win-win relationship.

Fast closings ~ Conventional loans with all the regulations take 30-60 days to close. Hard money can close in as little as 3 days.

Final thought...Consider hard money as a silent partner that will cost you much less than partnering with someone that you have to split the profit.


Apr
19
Commercial Loans For Less Than Perfect Credit

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Here's something better than hard money loans - Less than perfect credit multifamily and commercial loans. If you own a multifamily or commercial property and had a challenging time getting financed due to credit or cash flow issues, there are certain niche lenders who can get you out of the high rate hard money loans.

These are 30 year loans rather than a short-term bridge loan for one to 3 years. As of this writing rates for these types of multifamily and commercial loans are around 5%. Our private money lenders in California will consider the following:
1. Short sale
2. Foreclosure
3. Bankruptcy
4. Limited liquidity
5. Poor cash flow resulting from vacancies

So, what benefit does this have for you? For example, if you have credit type of dings in your past history, it can negatively affect your credit or vacancies that have an adverse effect on your cash flow, thus your only option is hard money commercial loans.

Now, there may be an option that will save your investment property from the negative to possibly even positive cash flow. The benefits are if you or your properties qualify, you can take advantage of the low rates rather than paying double digit hard money rates and you will also save quite a bit on closing costs such as broker origination fee points.

Bottom line is that they are willing to consider commercial loans that most other lenders will not. If you would like to see whether your loan scenario will benefit you or not, you can reach out to us today!

Written by Alex Haiek
alexhloans99@gmail.com
805-388-4614
http://americanfinancialoans.com


Apr
07
Benefits to Fix and Flip Loans

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