Thursday, December 10, 2009

 
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Finding Bank Owned Properties

Friday, October 30, 2009

Finding bank owned properties is much easier than most people think. Just Google REO (and the name of the bank). Most larger banks have the homes that they took over right on their website. These homes are usually priced anywhere from 10-30% of the current market value. Banks are looking to unload these properties and are willing to accept offers. These properties are reclaimed by a bank after an unsuccessful auction. So if you are looking to purchase these homes, you need to do some research. These homes may be in need of major repair. It is a wise investment to have a licensed Home Inspector look at the house. They usually provide a detailed report on the condition of the home. Lenders are not held to the same laws that sellers are. Lenders did not live in the home. If you don't want to look through the banks website, There are services that you can subscribe to. These companies usually charge $49 per month for foreclosure listings. They break it down in simple English. They sometimes provide a picture of the home. There is currently,a record amount of foreclosure listing. Investors with cash and good credit are reaping the rewards. For more info on geting financing or a Rehab loan contact Weapprove@gmail.com

When does Hard Money make sense?

Tuesday, October 6, 2009

Hard money is used when companies can't get funding through conventional sources. Rates usually start at 9% and can go as high as 30%. Limited documentation is required. The loan decision is based on the asset and the companies ability to pay back the loan. Hard money loans close within 10 days. We recommend that our clients evaluate what they are going to do with the money. It only makes sense if they can make a profit on the Hard Money. Here is our loan process. Our Loan Process 1. Submit Business Plan / Executive Summary 2. Pre-qualification determination process - project is reviewed and evaluated resulting in: the project being accepted proposed revisions being issued for the project the project being declined 3. Lender / Investor conceptual interest is obtained along with projected terms and the proposal is issued 4. Due-Diligence document checklist of typically requested data is prepared and sent to client 5. Analysis of all documents, preparation and packaging of the data for submission to designated lender/investor; formal due-diligence commences 6. Term Sheet/Conditional Commitment and/or Firm Commitment issued 7. After Term Sheet/Conditional Commitment and/or Firm Commitment are accepted, a site visit and market analysis will commence 8. Closing | Capitalization | Funding

Our Loan Process

Monday, September 28, 2009

Our Loan Process 1. Submit Business Plan / Executive Summary 2. Pre-qualification determination process - project is reviewed and evaluated resulting in: the project being accepted proposed revisions being issued for the project the project being declined 3. Lender / Investor conceptual interest is obtained along with projected terms and the proposal is issued 4. Due-Diligence document checklist of typically requested data is prepared and sent to client 5. Analysis of all documents, preparation and packaging of the data for submission to designated lender/investor; formal due-diligence commences 6. Term Sheet/Conditional Commitment and/or Firm Commitment issued 7. After Term Sheet/Conditional Commitment and/or Firm Commitment are accepted, a site visit and market analysis will commence 8. Closing | Capitalization | Funding

Borrow money on your Stock or Mutual fund holdings

Friday, September 25, 2009

The Time Line and process Here is the time-line and a quick overview of the steps for the completion of the transaction. Submit a Request for Quote. Once we receive your request a Term Sheet is issued. Usually within 24 hours The borrower will be asked to complete a simple 2 page application form. Neither income or credit is not asked. It is simply who they are and where do they want the funds wired to. Conference called is placed between the borrower and Us to answer any questions. Loan Agreement is sent to the borrower to sign. Lender tracks the closing price of the shares for 3 days to obtain an average price. The loan is disbursed based upon the loan-to-value previously agreed upon. Borrower makes Interest Only payments quarterly. Any dividends from the securities is credited to the loan payment and any excess is returned to the borrower in the form of a check. Note: Dividend payments made on behalf of the borrower towards the loan are not taxable. At the end of the loan term the loan is paid off and the same amount of shares are returned to the borrower. The time frame from start to finish may be as little as 5-7 days. Contact Richard for more info: 516 308 2963 WeApprove@gmail.com

What is an SBA (7) a Loan and who qualifies

Sunday, September 13, 2009

Product Type: Owner-Occupied SBA 7a Property Type: Community lending program to improve the locality for almost any business in the U.S. Loan Amount (min/max): $250,000 to $2MM LTV (max): 90% Amortization / Term: 20/20 Minimum FICO: 650 Minimum DSCR: 1.10x Non-Eligible: Ground Lease, Gas Stations, Churches Cash-out: N/A Collateral: Real Property

Hard Money plus declining real estate growth equal disaster

Sunday, July 26, 2009

Hard Money plus declining real estate growth equal disaster
With negative real estate growth and conventional lending getting tougher, real estate investors have turned to hard money loans. Hard money loans are typically easier to get but come with much higher interest rates. Hard-Money-Review.com has reported an increase in new applications. While it is easier to get a hard money loan, credit scores still need to be at 660 FICO or better. A hard money loan is not a less than perfect credit loan. Another consideration is the new Appraisal rules that have caused a backup in loan appraisals. For years real estate investors have profited from refinancing existing properties. I am seeing a flood of owner financing. While some real estate investors are hurting, new opportunities arise for new investors.

While Conventional Lenders are hording cash, Private lenders are lending

Saturday, June 20, 2009

Collateral loans have been the primary source of lending.
Asset backed loans have been on the rise. Companies
that have been getting turned down by banks
have been using assets to secure working capital

Private Money

Wednesday, June 3, 2009

65 LTV
No Credit Score requirements
No Prepayment 100K Minimum

7.75% of Loans showing signs of distress

Monday, June 1, 2009

NT Times reported today.  That can't be too good for Banks.  Declining real estate prices and increasing unemployment.  Yikes

Small-business loans slow to a trickle

Thursday, May 28, 2009

Wednesday, May 27, 2009

Lending to small businesses had slowed even before last fall's financial meltdown, and the credit picture has probably worsened since then, according to a report from the Small Business Administration's Office of Advocacy.

The report issued Tuesday said the growth of small-business loans - those less than $1 million - had fallen to 4 percent as of June 2008, or half the rate that prevailed during 2007.

The SBA defines a small business as any firm with 500 or fewer employees. Collectively, the small-business sector accounts for about half of total U.S. employment and has created roughly 70 percent of all new jobs in recent years.

Charles Ou, co-author of the SBA report, said it's too soon to get data on lending activity since last fall. But he said anecdotal evidence suggests credit to small businesses has slowed even further, giving this economic engine less fuel to grow.

"Since last winter, it has been horrible," Ou said. "You have real, real problems out there."

The SBA report identifies banks that focus on small loans. At Oakland's Innovative Bank, one of California's top-ranked lenders, Vice President Danny Alfonso said he has cut way back on small business loans.

Alfonso said Innovative has been one of the top issuers of SBA-backed small office/home office loans with a $50,000 limit. Through June 2008, Innovative had been funding about 350 such loans per month. Now it is issuing about 70 such loans monthly, mainly because of tougher eligibility requirements, he said.

"Loans that had been paying for two to three years have started to default," he said. "We have really tightened up our credit underwriting."

At Mission National Bank in San Francisco, another top small-business lender, President Dave Joves said he is getting more demand from prospective borrowers but has kept lending steady to err on the side of caution.

"Until the economy turns, you really want to be particular about who you lend to," he said.

The National Federation of Independent Business, a lobbying group, has polled small businesses on credit issues and found that some can't get access to loans or have had their credit limits reduced by banks or credit card issuers.

But economist Bruce Phillips, with the NFIB Research Foundation, said access to credit is not the primary challenge facing small firms.

He said many business owners are reluctant to borrow because they aren't sure they can increase sales to justify the extra expense.

"They have lost faith in the economy and haven't spent much money on capital equipment because they're worried about revenues," he said.

E-mail Tom Abate at tabate@sfchronicle.com

10 reasons to use hard money

Whether a conventional bank loan isn’t available to you, or whether a bank is simply not willing to loan you moneybecause of your credit history, San Diego Hard Money can prove to be extremely useful in many instances. For example, some banks will refuse to help you simply because there may be an issue with the property or collateral.

Or maybe you are unable to provide adequate documentation according to the banks standards. Maybe you have the need for a bridge loan, have specific investment projects, or need money quickly. These all may be reasons you would obtain private financing.

10. Bank is unwilling to accept your property as collateral

There are essentially a number of reasons as to why a bank may not be willing to accept a property as a source of collateral. In particular, if a property has been designed for a specific purpose, banks are often reluctant to accept them. For example, these could include buildings such as care centers for the elderly, health and spa resorts or any other building where an appraiser has rated as being below average.

9. Poor credit history

Unlike banks, private money lenders tend to focus primarily on collateral, rather than credit history.

Because private investors and lenders look heavily at the property and the amount of equity available to lien, their primary concern is the collateral and typically their secondary concern is the credit history. This is not an absolute guideline but it often happens this way.

8. Banks have stringent documentation requirements

As so many have discovered in the past, being self employed can make it incredibly difficult to get finance from a bank as you simply may not be able to fulfill the banks requirements with regards to the documentation they require.

Hard money lenders on the other hand, will often be willing to accept income tax returns or even bank statements, in order to determine whether or not your income is sufficient for being able to make repayments.

7. Loans for the purpose of Rehabilitating Distressed Properties

For anyone needing a loan for the sole purpose of renovating an existing property, there’s a strong possibility that hard money financing will be made available to you.

However, San Diego hard money lenders and investors do insist that the borrower also make a contribution, if only to establish a certain amount of involvement on the borrower’s part.

6. People who own land but lack finance for the construction of a property

Construction loans are a common use for San Diego private financing. However, in order to qualify, the owner of the land will be required to show proof of ownership, building permits, draw schedule, construction cost break down and etcetera. Providing they can meet these requirements, then in all likelihood they will be granted financing.

5. You need to make use of existing equity in order to obtain an additional property

San Diego hard money can be used to secure cash out on residential and commercial property. The typical closing time is anywhere from 7-14 days from the time a full package is received.

4. You have financed multiple properties but you wish to acquire additional properties with financing.

Unfortunately banks all too often decline loan applications to investors if they already have too many open loans. Of course, in this type of situation, hard money may be the only option available.

As long as the investor can show the ability to repay future obligations with current debts they will have opportunity through private channels.

3. You need to make an offer to acquire real estate but the terms of escrow are limited and short

Unlike banks, where loan applications can take ages to process, private lenders are for the most part able to make decisions in a fraction of the time banks take.

2. You need a bridge loan.

There could be various reasons that you need a bridge loan. Those might include a loan that is getting ready to adjust or balloon, temporary cash flow challenges in a business, or maybe you need to leverage so that you can fulfill some aspect of a real estate project.

1. Time is of the essence

When time is in short supply and financing is required in a hurry, San Diego hard money can usually ensure funds are available to you within seven to fourteen days. Of course, as many will agree, this is often the chief advantage.

No Income Check Loans. Prequal in minutes

Wednesday, May 27, 2009

Hard Money is not so hard, Prequal in minutes

Happy Memorial Day

Sunday, May 24, 2009

660 FICO Commercial Loan You are Approved

Saturday, April 25, 2009

Stated income commercial loans.  We have money to lend

Asset Backed Loans

Sunday, April 5, 2009

Asset Based Loans


Asset Based Loans are loan secured by a company's accounts receivable, inventory, equipment, and real estate, whereby the asset-based lender takes a first priority security interest in those assets financed. It is an alternative to traditional bank lending because asset-based lenders target borrowers with risk characteristics typically outside a bank's comfort level.

Expert in all facets of collateralized lending, asset-based lenders possess the experience and know-how to structure the proper financing program for their borrowers. They specialize in financing businesses and business transactions involving a broad range of products and services.

Acceptable Collateral Types  Asset based loans are made based the market value of a company's collateral. They focus first on the collateral's cash conversion cycle for repayment and on cash flow second. Asset-based lenders loan money to companies using two main types of credit facilities: . • Working capital facilities based on accounts receivable and/or inventory: Loans which finance accounts receivable and inventory are typically structured under a revolving line of credit or "revolver," without a scheduled repayment. The lender advances funds against the revolver to carry accounts receivable and inventory and, when such assets convert to cash, the advances are repaid accordingly. . • Fixed asset facilities to finance equipment and owner-occupied real estate: Loans financing equipment and real estate typically take the form of term facilities with a scheduled repayment usually equal to the fixed assets' useful life. 

When do asset based loans make sense?.

Good candidates for an asset based loans have tangible or financeable assets that can be used as collateral, such as accounts receivable, inventory, equipment and real estate. These companies may have high leverage ratios, as measured by debt to equity, typically over 5 to 1, or may be marginally profitable companies, companies with a recent history of losses, or with inconsistent cash flow. .

But since the asset-based lender focuses on collateral, the borrower's eligibility for loan qualification is determined from an evaluation of the quality, liquidity, and sufficiency of the borrower's eligible assets. The lender analyzes each asset class to determine its net realizable value in a liquidation situation. It then uses this information to exclude certain assets from financing and set maximum advance rates. .

If the advance rate established by your lender creates adequate liquidity, asset based lending may be an appropriate solution to your company’s current financial requirements. .

Acceptable Uses of Funds.

Asset based loans provide capital for a wide variety of financial requirements including: . • Leveraged mergers and acquisitions  • Turnaround/restructuring situations  • Liquidity events for family-held businesses  • Growth opportunities  • Capital expenditures  • Tight working capital  • Seasonal or cyclical companies  • Specialized industries  • Stock repurchase  • Public ownership to private ownership  • Debtor-in-possession (DIP)/confirmation financing 

Asset-Based Lending vs. Traditional Bank Financing

The primary difference between commercial banks and asset-based lenders is where they each look first for repayment: The bank looks to cash flow for repayment first, then collateral; while the asset-based lender looks to collateral first. Since banks underwrite cash flow as their primary repayment source, they typically require less collateral controls and monitoring but more financial covenants.  For companies that are "asset heavy," an asset-based credit facility may be able to make more funds available because the loan is not based strictly on the anticipated levels of cash flow. Additionally, the structure often requires fewer covenants, thereby providing more flexibility for many borrowers. 

How does the asset-based lender monitor its borrowers? 

The level of controls and monitoring by the asset-based lender is directly related to the credit-worthiness of the borrower. Typical controls include: • A borrowing base formula that monitors the relationship between the value of the collateral available to secure the outstanding loan and the actual balance of the loan on a regular basis.  • Funding controls (collateral monitoring) that may be administered daily, weekly, or monthly and range from submission of sales invoices/shipping documents to accounts receivable aging and listings/inventory listings. The degree of reporting depends on the borrower's risk rating.  • Collection controls: The asset-based lender requires dominion (control) over cash by establishing a collateral account into which accounts receivable collections are deposited. Access to this account is restricted to the asset-based lender.  Ongoing audits are also used to monitor the account. The asset-based lender will audit the borrower's books and records periodically to test the records' accuracy and validity and to substantiate collateral values as represented by the borrower. 

What private investors need to know before They will approve you

Sunday, March 8, 2009

Most Private lenders want to know the following before 
considering lending you money.  Put together a brief
summary of the following questions will greatly increase 
the chance of you getting approved.
  • A brief summary about the business and the principal owners
  • amount needed
  • use of proceeds and how it will benefit your business
  • Term needed and how you plan to pay back the loan
  • List of collaterial and a Personal financial statement.
For more information email   weapprove@gmail.com

Non-Institutional Forms of Lenders and How Private Financing can be Achieved

Friday, March 6, 2009

Private financing options are available for personal, investment, and commercial purposes. Private financing simply means you are not dealing with a traditional bank. Private financing can be obtained from private parties who are also known as Angel Investors, hard money lenders, private equity investors, investment groups, or venture capitalists.  Angel investors make up the largest – and the most flexible group – of private financing options. Angel investors may be relatives, friends, colleagues, or persons as yet unknown to you. If your scope of acquaintances does not yield suitable private financing, spread the word about your project among all of the above, as well as bankers, brokers, business development groups, etc. The right angel investor will for private financing will probably be someone who has some knowledge of your industry. Angel investors may provide a simply loan, repayable with interest and possibly points and a prepayment fee. Alternatively, they may want to take an equity position with your company, taking stock in combination with or instead of interest on the private financing they offer you.  Private equity lenders, aka venture capital firms, can be thought of as a group of Angel Investors providing private financing as a group. Venture capital firms sometimes offer incubators: office suites in which their darling companies (for whom they provide private financing) are housed, watched over, and assisted through the early stages of development. To give private financing groups the returns that their investors are looking for, private equity lenders always want a piece of the action. In exchange for the private financing they offer, private equity lenders take an equity position in your company through stock or some other means and become your financial partner.  Private financing obtained in exchange for stock can be an excellent way to get the initial operating capital needed to start a business, but it can be extremely expensive on the far end. While you will likely not be paying interest in the early stages of your business, you will pay dearly should you become a success.  If you have real estate to collateralize, you may be able to obtain private financing without having to give away an equity position (and a place on your Board, control of your business decisions and all that comes with having a financial partner) by working with a hard money lender. Naturally, hard money lenders can provide financing for real estate investment projects, land acquisitions, and construction projects. But, by collateralizing real estate you already own, you may be able to obtain private financing for purposes completely unrelated to real estate. When it comes to hard money private financing, the use of funds is not as important as a clear indication of how the loan will be paid back. Naturally, if you are unable to repay the loan, the real estate collateralized by this kind of private financing will be sold off by the private financing lender, just as traditional banks foreclose on homes when you cannot pay the mortgage.  Regardless of the path you choose in obtaining private financing, you will find private financing companies are more flexible in lending criteria than banks, SBA, or similar traditional lending institutions. Check out private financing companies and brokers online to see which will suit your business needs most effectively. 

weapprove@gmail.com

Stated income Nationwide

Thursday, March 5, 2009

 NATIONWIDE STATED LENDING: MOST COMMERCIAL PROPERTY TYPES. $125,000 - $375,000. MIN MID CREDIT 640 RATE 8.5% - 11.4% . This Program is for borrowers that need money, it is not for Rate shoppers.

 

COMMERCIAL REFINANCE OR PURCHASE 65% MAXIMUM, 80% CLTV Ok. Profitable Tax Returns Required. Minimum 660 Experian Credit. Rates 6%-7.5% . Cash Out Only to Pay off Mortgage plus any Personal or Corporate Debt

 

 

No Construction.No Land.No Farms.

No Gas Stations.No Churches. No Residential.

 

Email for more info   weapprove@gmail.com

 

Tags:  Hard money, commercial, stated income, fast closings,

Using hard money & bridge loans to stall foreclosure on a commercial or residential property

Hard money loans can forestall a foreclosure. Such loans are the specialty that brings out the best and the worst in non-conforming (aka hard money) lenders. If you are facing foreclosure on a property – either one that you own or one that you want to purchase before it hits or is already in foreclosure, hard money lenders may be your only resource for sufficient cash in a timely manner.  Hard money lenders can fund a real estate purchase or refinance loan in two weeks – or sometimes even less – from the time all your documentation is in their hands. Be sure to have all your documentation ready for your broker or lender. Use the following list as a guide:

  • Written real estate appraisal with photos
  • Purchase contract if you are purchasing the property
  • Personal financial statement
  • Income statement for the borrower
  • 2 yrs P&L for the property if it is income producing
  • 2 yrs Tax returns for the borrower
  • Statement of use of funds
  • Proof of where the balance of funding will come from (such as a bank statement showing the funds available) if you are buying the property.  Being prepared with a complete package will speed your funding.
Contact Rich for more info   weapprove@gmail.com

Definition of Hard Money

Wednesday, March 4, 2009

hard money loan is a specific type of asset-based loan financing in which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property orinvestment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.

Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan to value ratio is 65-70%. That is, if the property is worth $100,000, the lender would advance $65,000-70,000 against it. This low LTV provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.

Need Hard Money

Tuesday, March 3, 2009

Rates as low as 9% and 3 points.  Close in as little as 5 Days

 

  • Rates as low as 9% and 3 points
  • 48 hour commitment
  • Fast turnaround with limited documentation
  • Proceeds for Business Use Only
  • Up to 70 LTV
  • Bridge Loans
  • Hard Money
  • Receivables Financing
  • Bankruptcies & Foreclosures
  • Own Real Estate and/or Equipment and short on Cash and credit?

 

Please email:  weapprove@gmail.com for more information

 

 

 

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