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Commercial Mortgages | Apartment Financing | Construction Lending in Contra Costa SF Bay Area

September 4, 2010 By 6 Comments

Article by Jason Wheeler | Read our Feed | 925-285-2172

Do you invest in apartment buildings or are you buying a Commercial office building in the Contra Costa Bay Area in California?

Are you in need of a construction loan to fund your real estate project? Even in today’s volatile lending environment we have the resources to help you get your commercial financing in the Bay Area. We offer various loan programs and terms such as.

Loan Programs that we offer:

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  • Purchase
  • Refinance
  • Fixed Rate Loans
  • Adjustable Rate Loans
  • Construction Loans
  • Private Money Loans
  • Land Loans
  • Equity Capital for your Real Estate Projects also available

These are only a sample of the loan programs we offer.  For questions on these or any other program not listed, please give us a call.


 
 

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  • Commercial Loan Checklist   (Note below list is for a full doc loan for a Stated loan exclude tax returns) 

    • Summary Letter to include (loan request,interest rate request,term etc.)
    • Rent Roll
    • Financial Statement or 1003 Loan Application
    • Last 2 year Tax Returns (Business & Personal)
    • Property Description (size,location,age,# of units etc.)
    • 2 Year Income & Expense Statement
    • Photo’s of property
    • Purchase Contract (if a purchase)
    • Credit Report
    • Copy of Partnership Agreement (if a partnership)
    • Construction Cost Beak Down (if a construction loan)
    • Current Profit & Loss (if self employed)
    • Escrow Instructions & Preliminary Title Report (if available)

    Construction Loan Checklist

    Thank you for your interest in Capital Equity Inc. Construction Loan Program. In order to consider a Construction Loan we will need the following from you:

    • 1003 Loan Application
    • Personal Financial Statement
    • Entity Documents (LLC, Corp etc.)
    • Two years Federal Income Tax Returns
    • Copy of three most recent Bank Statement
    • Escrow Instructions(if applicable)
    • Title Insurance Policy (if available)
    • Copy of Land Acquisition Settlement Statement (if available)
    • Copy of the monthly Mortgage Statement
    • Copy of Soils Report
    • Environmental Questionnaire & Disclosure Statement
    • Copy of the Building Plans
    • Copy of the Construction Cost Breakdown
    • Copy of Construction Contract
    • Copy of Contractor’s Resume & Qualification

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If you need help with your commercial loan of if you would like to get a free rate quote don’t hesitate to contact us or call us so that we can explore your best options. Interest rates change daily and can be effected by your property or your situation so call us today with your scenario.

Until Next time Here is to your success! Jason Wheeler 925-285-2172 |


 

Filed Under: Mortgage Tips, Real Estate Investing Tips Tagged With: , , , ,

CA Bay Area Contra Costa Mortgage Credit Certificates | Bay Area Tax Credits for Buying Real Estate

February 28, 2010 By 5 Comments

Public Finance

MCC funds now are available.

Program Summary

The Mortgage Credit Certificate Program, authorized by Congress in the Tax Reform Act of 1984, provides financial assistance to "First time homebuyers" for the purchase of new or existing single-family home. In 1985, the State adopted legislation authorizing local agencies, such as Contra Costa County, to make Mortgage Credit Certificates (MCCs) available in California. Contra Costa County MCC authority can be used in all cities as well as the unincorporated areas of the County. The Contra Costa County Community Development Department will administer the program.

What is an MCC?

The MCC Program is a homebuyer assistance program. The MCC provides qualified first time homebuyers with a federal income tax credit. Income tax credits reduce an individual’s tax payment(s) by an amount equal to the credit. Under the MCC program, the maximum tax credit available is equal to 20 percent of the annual interest paid on the borrower’s mortgage. By reducing the borrower’s federal tax liability, the tax credit essentially provides additional income which can be used for mortgage payments.

How does the MCC reduce your taxes?

In the example given in Table 1, a borrower with a 7.5 percent fixed rate 30-year mortgage of $150,000 would make $11,203 in interest payments during the first year of the mortgage.1 Under normal circumstances, the borrower deducts 80 percent of that interest ($8,962 in our example)-along with other allowable deductions-from his total gross income in order to figure the "adjusted gross income" used to calculate his/her total tax liability. After the borrower has calculated the total tax liability, under the MCC program the remaining 20 percent of the interest ($2,241 in our example) is also deducted from his/her total tax liability. If this subtraction results in a negative number-in other words, if the borrower is unable to use the entire MCC tax credit in this particular tax year-the credit may be carried forward and used, up to three calendar years in the future. The borrower may consider adjusting his/her federal income tax withholding (W-4) so as to benefit on a monthly basis for the MCC. By taking this action, the borrower will have more disposable income to make mortgage payments.

Table 1: Effect of a Mortgage Credit Certificate – Example
1.
First Mortgage Amount
$200,000
2.
Mortgage Rate Interest
7.5%
3.
Annual Interest Payment
$15,000
4.
Mortgage Credit Certificate Rate
20%
5.
Annual MCC Amount (Line 3 x Line 4)
$3,000
6.
Monthly Credit Amount (Line 5 ÷ 12)
$250

Note that the MCC program applies only to the borrower’s federal tax liability. State taxes are not affected.

What are the purchase price and income limitations for MCC Participation?

Mortgage Credit Certificates are available to first-time homebuyers in Contra Costa County. Table 2 shows the purchase price and income limitations for MCC Program participants.

Table 2: MCC Program Purchase Price and Income Limitations
Purchase Price Non-Target Areas Target Areas
New (never occupied) units $629,005 $768,784
Existing (resale) units $619,381 $757,021
 
Income
1 and 2 person households $100,560 $120,672
3+ person households $117,320 $140,784

How does a borrower obtain an MCC?

To obtain an MCC, a purchaser of a new or existing single-family home works with any mortgage lender participating in the MCC program and applies for an MCC and a mortgage loan at the same time. Lenders process the underlying mortgage using standard procedures, with adjustments to those procedures as needed to satisfy the MCC requirements. The lender is responsible for underwriting and execution of required State and federal certifications and affidavits. The County reviews executed certifications and affidavits from the lender in order to determine qualification and eligibility of the MCC applicant.

May an MCC be used with a re-financed loan or to assume an existing mortgage?

An MCC cannot be issued to a homeowner who is refinancing an existing mortgage or to an applicant desiring to assume an existing mortgage unless (1) the mortgage is held by a current MCC holder and (2) the sales price of the house being sold falls under the sales price maximum for the program. In all other cases, only new, first mortgages are eligible for MCC participation.

Loans with an MCC attached to them can be refinanced once and the MCC can be reissued. If the refinance loan is then refinanced, the homeowner loses the MCC. The RMCC can be done directly with the homeowner without involving the lender. There are no restrictions regarding the amount that can be refinanced. The fee for an RMCC is non-refundable $200. RMCC Letter, RMCC Application, RMCC Certifications, RMCC Application Checklist

How many MCCs will be available under the program?

The number of MCCs available depends on the amount of issuing authority for which the jurisdiction applies.

Potential for recapture of portion of the tax credit if home is sold within the first nine years after purchase.

In order to discourage individuals from buying a home primarily to benefit from the tax credit and short term appreciation potential, the federal government has initiated a recapture of a portion of the tax credit if a home is sold within the first nine years after purchase. Certain conditions must exist for the recapture to take effect. The County MCC staff and your lender can outline the specifics of this recapture program at the time of your application.

APPLICATION AND ELIGIBILITY REQUIREMENTS FOR MCC PROGRAM

The Contra Costa County MCC Program eligibility requirements are as follows:

  • MCCs will be available only to "first-time homebuyers", (i.e. not owning a home within the past three years).
  • As first-time homebuyers complete their normal loan application process with a participating lending institution, their mortgage lenders will prepare MCC applications and forward them to the County. The County will then issue MCCs on a first-come, first-served basis according to when the initial application is received by the County. County staff requires 5-7 days for application review and processing.
  • Applicants may buy a residence only for their own occupancy, not for rental or reinvestment. Occupancy as "principal residence" must be within 60 days of the close of escrow.
  • Applicants must pay a non-refundable application fee of $200 at the time the lender applies to the County on their behalf.
  • The MCC can be used when buying a new home with a maximum purchase price of $629,005, ($768,784 in Target Areas) or an existing home with a purchase price that does not exceed $619,381 ($757,021 in Target Areas).
  • MCCs can only be transferred in cases where the home is being sold to another eligible MCC applicant. In such a case, all MCC requirements must be met and the mortgage must be assumed for the transfer to occur.

Until Next time Here is to your success! Jason Wheeler 866-833-7413 | Come to a FREE Bay Are Seminar |

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Filed Under: Articles, Mortgage Tips, Real Estate Investing Tips Tagged With: , , , , , , , ,

Real Estate Investing Via Web 2.0

December 19, 2009 By Leave a Comment

Post bubble recessionary real estate investing in a networked world pretty much nails this discussion, grab your web surf board and enjoy the ride.

In this article, I show you what is working in real estate today and how to use the web and automation to create stimulus you can immediately use to ride the crest of real estate investing opportunities today. You’ll be shown how to find, fund and market hot properties while generating large buyer and seller lists using the internet to do some of the critical heavy lifting for you.

There are a variety of reasons why the following types of property are hot, just know that single family homes (SFH), condo’s & town homes, apartment houses (Multi-Units), mobile homes & parks and vacation homes in many markets are on sale now. A few methods of finding and controlling these assets are: wholesaling, rehab & retail, buy, hold & rent, lease w/options to buy, assumption of existing mortgages, taking subject to existing mortgages and working the probates, auctions, foreclosure’s and short sales. (Buying bankruptcy, foreclosure, probate, tax lien, eviction and divorce lists works well too)

Granted it takes education, knowledge, research, follow through, strategy, funding sources and various alternatives to control these assets but these are all easy pieces of the puzzle when a guy like me is willing to help. Researching, locating, analyzing, negotiating, buying, selling or holding techniques can all be taught and their not that difficult to understand, it’s just a matter of getting good information and actually using it to do the deals.

Everyone knows that getting a mortgage is funding method number one for most but what about using 2nd & 3rd position notes, rehab loans, lines of credit, government stimulus programs, grants, private money, fellow investors, partners and owner/seller financing or maybe just using options to control without using any money for starters, this can all be taught so fear not weary credit crunched investor, I’m here to help!

Let’s not get ahead of ourselves here, it’s nice to have funding alternatives in place but you still need to find the deals and most often you had better find them at no more than 65% of value or .65 cents on the dollar if you hope to be successful in selling them to the next buyer for more.

These days you have a serious and very versatile tool at your disposal and that is the internet, the net allows you to market globally, capture and track leads 24/7, drive virtual traffic through your online front door, pre-qualify leads, post property, reports, whitepapers, articles, video’s and so much more. Getting a website up and running is easier than ever and creating an opt in box for the name and e mail capture of your visitors is a snap too, just know that these aren’t obstacles to your progress, it can all be outsourced very inexpensively, again using the web to do it.

Once you have a simple website with squeeze page (lead capture) set up then you can direct all your lead generating activities for buyers and sellers to it by putting your web address (URL) on your bandit signs, classified ads, flyers & newspaper inserts, direct mail letters, business cards, answering machines, for sale signs and so forth. I actually have a friend who will give you 10 websites a month for $27! Websites are easy. Get one or many!

Now that you have that virtual real estate property in place (your website) you should sign up at a few of the better known and highly trafficked social websites like: Facebook, Twitter, MySpace, LinkedIn along with a few real estate networking forums, these allow you to spread the word regarding what you do. Backpage, Craiglist, Kijiji, and other free classifieds posting sites let you tell people what you have; there are thousands of places on the web to post your message once you have a place to bring them back too.

Extra credit: Always carry a small pocket video recorder with you to capture, property, people, places and events, the Sony DSC-T700 is perfect for creating short videos to post on your website, Youtube, Facebook and property listing sites, people do business with people they know, like and trust, let them see you on film to help build those relationships over the web.

The internet allows you to set up systems and outsource just about everything that needs to be done allowing you to focus on the core money making aspects of finding great deals and selling those deals to others for a little bit more than you paid, even dead leads are worth $450-$500 each when you know where to sell them.

I briefly mentioned the reasons for having a website above now let’s get into the nuts & bolts of technology to lighten your load while your leads explode. First off I’ll ask you to take some type of action once you’ve finished reading, doing it now will create momentum and stop procrastination and fear dead in it’s tracks.

Let’s look at what a well planned out website can do for today’s busy real estate investor.

First off technology is great at automating routine tasks and initial follow up, web forms can automate distribution, marketing, contact management and customer service for starters, allowing you to use your website to explain, tell and sell 24/7.

By setting up informative articles banks, email auto-responders, frequently asked questions banks (FAQ’s) you can answer a lot of routine questions on autopilot. Now you have more free time to network with other investors, market deals, mentor new team members while you personally maintain contact with your bird-dogs and other support people.

When considering a website you should begin by asking yourself some questions:

• What is the purpose or desired outcome that I want from my website?
• What will visitors be looking for when they arrive?
• What type of pages will you want to have on your site?
• What will be some of the major features of your site?

Are you trying to attract buyers, sellers, distressed owners, other investors, trainees, bird-dogs? Consider the following as a basic outline from which to begin thinking about:

• Home page
• About us page
• Contact us page
• Available properties page(s)
• Articles page
• Newsletter & product sales pages etc…

Features may be:

• Seller information forms
• An online forum or bulletin board
• A live chat room and member area

This next tip will save you a lot of time, trial and error: Go look at other existing websites that are currently ranking high for the specific search terms of what you want your website to do! This is competitive analysis and it will show you the best of what is currently working now! Save those URL’s so you can show your future webmaster examples of how you want YOUR website to look like and do.

Here are few ideas on what you may consider outsourcing to other specialists who can assist you in the tech sector:

• Website development and updating
• Contact management and auto-responders
• Social book-marking, adding friends and videos
• SEO using articles, blogs and videos
• Database management, adding products and information
• Building landing pages and squeeze pages
• Graphic design and copywriting

It’s best to start with outsourcing the things that you do not know how to do, then begin outsourcing things that you do not like to do. If you want quality people you can trust at very good rates touch base with me and I’ll put you in touch with the people I use.

Hopefully you’ve picked up a few nuggets from the “Be A Real Estate Heavy Weight” series, feel free to Google that phrase to get all the in-depth answers you could ever want regarding what we’ve briefly discussed here today. Take action and you’ll succeed.

About The Author

Please visit www.bearealestateheavyweight.com for further information and resources from your buddy Dan.

Filed Under: Real Estate Investing Tips Tagged With: , , , , , , , , , , , , , , , , , , ,
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