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What Does it Take to be your Own Boss? 4 Best Tips for Getting Started

December 14, 2011 By Leave a Comment

Posted by Jason Wheeler | Fully Follow Me | Subscribe

Be Your Own Boss

Guest Post by Ewan Thompson

What does it take to be your own boss?

No matter what sector or role you work in, most of us wish we could work for ourselves. However it is difficult to take a step that large when you don’t know for sure what qualities you have that would make you a good boss.

The first question is; why? Why do you want to do it in the first place? Are you tired of working for someone else? Maybe you have been counting the pennies and despite the good advice from journals and websites, like lovemoney.com for UK citizens, you feel a career change would be beneficial too. Do you want to have flexible hours controlled by you or just fancy the challenge?

The second thing to consider is what it takes to be your own boss. Most business owners don’t plan on it initiall

Top Four Necessities for Being Your Own Boss

Confidence – In general being your own boss has a lot to do with confidence and belief in your own ability. Many use their own lack of experience as an excuse to not go down the business path. If you endeavor to improve your skills though, are organized and maybe find a mentor to help you, anyone can do it.

Drive – There is a mistaken belief that you have to be ruthless and money orientated to own a business, but in actual fact most entrepreneurs do it for the love of working for themselves and a passion for their industry. It is this which makes them driven. Drive is key to most successful businesses, but what are you driving towards? More money? Higher output?

Experience – when you are your own boss you are working based on your own experience of the industry you work in. Even the negative experiences under someone else’s employ will help steer a new business owner in the right direction.

Education – make sure you are up to date with all the latest information that will help you run your business. You will always have a weakness and you can either do a course (there a tons out there) to educate yourself, or if you have the funds, hire someone to handle that aspect.

 

Filed Under: Articles, Business Tips, Front Page Tagged With: , , , , , , , , , , , ,

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: , , , ,

Banks Listing Fewer Foreclosures | Buying Real Estate Without a Mortgage in California Bay Area

May 4, 2010 By 9 Comments

Posted by Jason Wheeler | Subscribe

Fewer Foreclosures on the Market | Banks are Holding Real Estate Learn to be a Cash Buyer

I talk to Realtor’s and Real Estate Investors everyday throughout the SF Bay Area. Many believe that there are more foreclosures being held by banks than there actually are right now. You might be surprised that the banks on a nationwide level are not holding as many foreclosed homes as originally thought. In many cases they Foreclosuresarea simply letting people live in these homes for free without paying a mortgage.

I personally know several families and individuals that have been living without foreclosure proceedings and without paying their mortgage for 6 months, one year and even up to two and half years in Pleasant Hill California, and all over the Bay Area. However there will be another major wave coming throughout the next two years. The next foreclosure wave is inevitable. The real question is are you going to capitalize as a cash buyer or are you going to be stuck like millions of other Americans that don’t fit into the banking mortgage box?

The Wallstreet Journal Says

Banks have fewer foreclosed homes to sell than previously believed, but those holdings are likely to grow gradually over the next couple of years, a new study by Barclays Capital says.

The investment bank’s latest calculations support the view that the U.S. housing market is stabilizing but that a major recovery isn’t imminent and there are still risks of falling prices.

Barclays estimates banks and mortgage investors including Fannie Mae and Freddie Mac owned 480,000 homes at the end of February. Barclays has acquired more data on mortgages and refined its methods for analyzing foreclosure trends. Under the bank’s previous methods, the estimate for February would have been more than 600,000.

Barclays expects the inventory generally to rise over the next 20 months, peaking at 536,000 in January 2012, and then decline gradually.

Is There Still Time to Capitalize on Real Estate Investment Opportunities?

Absolutely! If there is any truth to the Wall Street Journal there will be more millionaires made in real estate investing right here in the Contra Costa Bay Area than ever before in the next two years. If you would like to learn how to get started and learn how you can buy property without qualifying for a traditional mortgage let us know. We have aligned ourselves with a source that let’s us buy property without the mortgage hassle! You can come to an educational networking event or attend a webcast. Just let us know if you would like to attend an educational networking event to learn.

What Do I Do to Become a Cash Buyer and Avoid the Mortgage Process?

There are more sources than you might think to purchase property and fix it without using a traditional conventional mortgage or a government mortgage. If you would like to learn about these recourses just subscribe to our news letter on the top right of this page or Contact Us and ask about buying property without a mortgage and without your own money. We don’t look at your credit and we will qualify you as long as you can show you can afford the payments we’ve worked out. You can also pick up a great book to get started by Mike Watson on how to Buy Without the Bank to the right

If you are serious about buying a home and you area tired of trying to fit into the Mortgage Lenders teeny tiny box you need to learn about this program as soon as possible. You can register for an event or just give us a call. We would be happy to chat with you and pre qualify you for this unique program right here in Contra Costa County East Bay Area.

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Until Next time Here is to your success! Jason Wheeler

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CA Tax Credit Details Released | How To Get the New Home Buyer Tax Credit

April 9, 2010 By 8 Comments

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Important Details | The 2010 New Home Credit and First-Time Buyer Credit begins May 1, 2010.

The New Home / First-Time Buyer Credits are available only for purchases that close escrow on or after May 1, 2010. 

Applying for the 2010 New Home/First-Time Buyer tax credits:  Applications must be faxed after escrow closes. The new application will be available by May 1, 2010.  We will deny the application if the 2009 form is used or if we receive the 2010 application before May 1, 2010.

Check this page often. We will add updates as they become available.

General Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010.  The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010.

These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.

The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. For example, if a taxpayer is allocated $10,000 for the New Home Credit, the $100 million cap for the New Home Credit will only be reduced by $7,000. If a taxpayer is allocated $10,000 for the First-Time Buyer Credit, the $100 million cap for the First-Time Buyer Credit will only be reduced by $5,700. The 70 and 57 percent reductions do not impact the amount that can be claimed by the taxpayer.

We will allocate the tax credits on a first-come, first-served basis. 

Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.

Taxpayers will not be eligible for either tax credit if any of the following apply:

  • The taxpayer was allowed a 2009 New Home Credit.
  • The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)
  • The taxpayer or the taxpayer’s spouse/RDP is related to the seller.
  • The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.

New Home Credit:  A qualified principal residence, for purposes of the New Home Credit, must:

  • Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been “purchased.”
  • Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.
  • Be eligible for the California property tax homeowner’s exemption.
  • Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.

Tax credit allocation:

  • A Certificate of Allocation will not be issued if:
    • The seller does not certify the home has never been occupied.
    • We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.
    • We receive the application or reservation request after the total tax credits available have been allocated.
  • FTB’s determination may not be protested or appealed.

First-Time Buyer Credit:  A qualified principal residence, for purposes of the First-Time Buyer Credit, must:

  • Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been “purchased.”
  • Be eligible for the California property tax homeowner’s exemption.
  • Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.

A first-time buyer is any individual (and the individual’s spouse/RDP, if married on the date of purchase) who did not have an ownership interest in a principal residence, either in or out of California, during the preceding 3 year period ending on the date of the purchase of the qualified principal residence. If the buyer is married on the date of purchase and either the buyer or the buyer’s spouse/RDP had an ownership interest in a principal residence during the preceding 3 year period, the buyer does not qualify for the First-Time Buyer Credit even if the spouse/RDP is not going to be on title.

Tax credit allocation:

  • A Certificate of Allocation will not be issued if:
    • We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.
    • We receive the application after the total tax credits available have been allocated.
  • FTB’s determination may not be protested or appealed.

Applications: We will accept applications by fax only beginning May 1, 2010. Do not use the 2009 application. We will post more information by May 1, 2010.

Reservations: Taxpayers who qualify for the New Home Credit may, but are not required to, reserve a tax credit prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached, as a reservation will “hold the taxpayer’s place in line” until 2 weeks after escrow closes. To reserve a tax credit, the taxpayer and seller need to complete, sign, and fax to us a reservation request to certify that they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. A copy of the signed contract must be included with the reservation request. Taxpayers who reserve a tax credit still need to fax an application and a copy of the settlement statement within 2 weeks after the close of escrow. Taxpayers may not reserve a tax credit if the contract was entered into before May 1, 2010. We will post the reservation form and details about the process by May 1, 2010.

If you are only applying for the First-Time Buyer Credit, you will not be able to reserve the tax credit before escrow closes.

Claiming the tax credit:

  • The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.
  • The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available by December, 2010).
  • Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.
  • If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.
  • The tax credit may not reduce regular tax below TMT.
  • The tax credit is not refundable.
  • Any disallowance of the tax credit may not be protested or appealed

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

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Building Your Business and Real Estate Portfolio Locally and Nationwide

March 7, 2010 By 5 Comments

Article by Jason Wheeler | Read our Feed | 925-285-217

Our mission is to provide clients and investors with exceptional services through the intelligent application of real estate investing strategies and the latest mortgage financing options available today. We are dedicated to helping you build a profitable business and real estate portfolio.

Through many of our strategic partners we can help provide the following.

Call or Email Us now for a Quick Approval and Personalized Quote 925-285-2172


 
 

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  • Financing for Your Real Estate – If there is a loan product in the conventional market that you qualify for we will get it for you. We have no allegiance to any one bank and always work for you. We can also provide private transactional funding for your short term Real Estate investments.
  • Transactional Funds for Real Estate Investors as low as 2.25%
  • Real Estate Investment Education – Have you thought of creating an income through Real Estate Investment strategies? If so you can benefit from one of our FREE Events. Learn our unique model in real estate investments and create a long term source of wealth and security.
  • Foreclosure Relief – If you are in a hardship or cannot make your current payments you need to speak with us. Did you know that there are several ways you can avoid going through a foreclosure and often times save your home.

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Call or Email Us now for a Quick Approval and Personalized Quote 925-285-2172

REI Capital Solutions Group was founded by Jason Wheeler. Jason has been practicing in Real Estate Finance and Investments since 2003. His main passion is to help the average consumer create success through building a successful business foundation and real estate portfolio. Jason served his community in Pleasant Hill, CA in the East Bay Area as the Vice President of Government Affairs for the Pleasant Hill Chamber of Commerce Board of Directors from 2006 to 2009..

Jason’s key to success is always finding a mutually beneficial transaction for everyone involved in his real estate transactions and investments. Jason will help you get the knowledge you need to create a significant income in real estate investments and connect you with a network of thousands of investors nationwide that want to help you succeed in Real Estate Investing.

EDUCATION: Education is the key to having success in just about any endeavor or skill we believe that in order to be successful in Real Estate Investment endeavors you must understand the various strategies that you can implement including. We can introduce you to top notch trainers that specialize in strategies like Creative Financing, Buying without using you own money or credit, finding wholesale real estate deals and much much more. You will learn from successful practitioners in the real estate investment field that bring up to date start to money systems for you to implement.

CASH FLOW PROPERTIES: If you are interested in diversifying your investments to include income-producing properties, we can introduce you to a complete turn-key solution: a national network of real estate acquisition and management professionals who can deliver cash-flow-positive, instant-equity properties in great rental markets around the country with as little as 10% down. You can literally shop for great rental properties online. Key services include property acquisition, property management, tenanting services, incorporation and tax services, and much more .You will have direct access to full comps or appraisals, mortgage documents, photos of the property and full financial’s. Contact us for a free online tour of currently available properties.

INCOME: Do you have a strong sales and marketing background? Are you highly ethical, strongly money-motivated, and interested in learning investing? Contact us to find out how you can join our outstanding team. We do not put a cap on your up-side potential. We pay for results.

COMMUNITY: Do you believe that investing is a team sport? We do! We can introduce to you a network of over 12,000 investors, brokers, lenders, lawyers, accountants, agents, property managers, deal locators and instructors so that you always have someone to consult to provide support, mentoring, advice and assistance with your next deal.

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

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

Leave a Comment or Question Below we Answer Each One!Until Next time Here is to your success! Jason Wheeler 925-285-2172 |
 

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

$100 Down Payment Gets you a Bank Owed Home in Contra Costa CA Bay Area

February 28, 2010 By 1 Comment

What?!? Did you just say that just $100 down payment can get you into a home. What kind of program is the FHA and HUD sales Incentive Program anyway? Because of the foreclosure wave and FHA continuing to struggle and the possibility of more government stimulus being pumped into the FHA they must get those darn bank owned homes off their boos so they can do what they are meant to. LEND and make homes affordable!!

So what are the incentives and advantages of the the FHA and HUD Sales Incentive?

  • 110% Loan to Value is allowed in most counties
  • $100 down payment when you use FHA financing
  • $5000 sales credit allowed from FHA for repairs at closing using FHA
  • 3% HUD allowed for closing cost assistance.

So with all these awesome benefits how the heck to I qualify. Well only HUD owned homes can use this program. You can find a HUD Owned Home Here and only owners who intend to occupy the home are eligible. If you would like to see if you or a friend qualify all you have to do is call us and we can get you qualified in 10 minutes.

Until Next time Here is to your success! Jason Wheeler 925-285-2172 | Come to a FREE Bay Area Event |

Filed Under: Mortgage 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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95% Conventional Mortgage Loans are Back In California | Bay Area Mortgage Financing

February 5, 2010 By 3 Comments



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95% LTV is back on Agency Conventional Loans Borrowers may now get 95% LTV if they meet the following criteria:

  • 95% Purchase and Rate/Term refinances
  • Specific Affordable Products only (see below)
  • Borrower does not have to be a First Time Homebuyer to qualify. However , First Time Home Buyer’s must complete training course.
  • 680 Minimum Score Requirement
  • 1 unit property only (SFR and PUDs. Condos maxed at 90% LTV)
  • 2 months. reserves required regardless of AUS findings
  • 3% down payment and reserves must be borrower’s own
  • Borrowers can only own 1 property (No 2nd homes or rentals)
  • Full appraisal required regardless of AUS findings
  • 3% Seller Concessions maximum allowed
  • Counseling only required for First Time Home Buyers
  • Income limitation waived on MyCommunity program if property is located in a Fannie Neighborhood
  • Mortgage insurance must be ordered through Genworth (GE)
  • These Genworth overlays apply to product guidelines
  • Now available in CA, FL, NV, and AZ
  • Standard Conforming Fixed is not eligible. Must fit into one of the below programs

    Available Programs:
    • Freddie’s Home Possible Doc #5335 (Fixed Rate only) • FNMA MyCommunity Doc #5325 (Fixed Rate, 5 yr ARM and 7 yr ARM

    Additional benefits (see product descriptions for full details):
    • Reduced MI coverage available (16% MI coverage). This is a great selling tool against FHA! MI is reduced and unlike FHA, the MI may be removed after 2 years if home has appreciated in value. Borrowers completing GE’s Counseling Saver Program may receive additional rate discoun

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The Art Of Real Estate Investing Is About People

December 19, 2009 By Leave a Comment

Real estate investing is a wide area of learning as well as practical application of techniques in the market. You might be an experienced real estate investor but every time you realize the fact that there is still something to learn further and further. Then after a commitment of a small mistake, we repent on the fact that why somebody had not taught me about this. Hence we move on to the same topic that real estate investing scenario is a big field that cannot be mastered within one day. But there are a number of webinars, seminars and online options that are available these days and it is upto us how we select them. This article will provide you with some of the basics that should help you in not regretting on the fact “why didn’t I keep myself updated on this”:

We all think that real estate is about properties, deals, financing; but as such we need to understand that no business merely exists with the things that are required for its mere functioning. What it involves is more than all these specified things are people.

Real estate investing cannot be learnt by merely our own actions, but we also need to understand from the actions of our competitors also. Like a child learns from his own mistakes, but for real estate investing you surely need to learn lessons from your mistake as well as be alert about what is happening with the competitors also. Learn from their mistakes also, so that you can have an overview about the mistakes that have to be avoided.

For instance let’s consider, a real estate investor made the first deal of his house. The house owner was an old woman whose husband had passed away recently and she wanted to move from state urgently to live along with her daughter and grand children. Her property was more than $15000, but she just directly stated that she merely wanted the balance of the property loan amount and $1000 to move out of the state by the end of the month. There were hundreds of real estate deals which had to be provided the right direction by the real estate investor, but the woman in this deal was just expecting speed in her transaction.

The woman made the real estate investor realize that real estate is not merely about properties, finance but it was about people. People do not necessarily want what the investor’s thinks they want. Hence, it is important that we ask them what are there expectations rather than just making assumptions on our own. The woman’s house was in a very good shape, she could have vacated the house after selling it for full value within two months. But what the woman was not motivated by money but what she wanted a very fast transactions. She just wanted to back the property behind her and move to someone dearer to her. We know that people are quite funny but we need to understand the fact that rather than simply making own assumptions, it would be beneficial to know what they want rather than our own assumptions. Then mutual consent could be reached after negotiations.

About The Author

Sharon Samraj is an expert author, who is presently working on the site Jeff Adams. He has written many articles in various topics like real estate investing.  For more information contact jeff adam, real estate millionaire.  http://www.realestatemillionairecode.com/

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

2010 – The Perfect Storm for Real Estate Investors

December 18, 2009 By 1 Comment

 
 

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Guest Post By Chris Record

Foreclosures have been booming around the country, and with the limited ability to get funding we have seen a surge in creative real estate investing. We have also seen the average investor lay low because of the difficulty of today’s real estate market which has presented even more deals and opportunities for sophisticated investors who know how to negotiate and move properties.

Here is a summary of reasons why I feel that 2010 will be the year that sophisticated real estate investors create a tremendous amount of wealth…

SUPPLY AND DEMAND

As the population goes up, the demand always goes up as well. Many amateur investors are focused on where the market is today, rather than looking at the past to recognize trends for the future. Supply and Demand always rules but only savvy investors allow logic to lead over emotion. Remember these three words: “Numbers Never Lie”.

Currently the population in the United States is soaring and according to an article in USA Today, we are projected to reach over 400,000,000 people by 2042. According to the US Census Bureau we are gaining a new person every 11 seconds (one birth every 7 seconds, one death every 13 seconds, and one international migrant every 31 seconds). We are also seeing record numbers of births as more babies were born in the United States in 2007 than any year in the nation’s history, topping the peak during the baby boom 50 years earlier!

Click on the picture to enlarge

Soaring Population in the United States

In order to become a more sophisticated investor, it is important to understand population trends related to your local market that you are investing in as well. Use this tool to compare population growth of the states you are investing in to get an idea of whether your market is growing or not. Here is an example of the DC Metro population growth comparing Virginia, DC & Maryland.

Population Growth in Washington DC, Maryland & Virginia

Population Growth in Washington DC, Maryland & Virginia from 1979 to 2000

So as you can see from this graph, DC has maintained it’s population while Maryland and Virginia have shown tremendous growth. Also take into consideration that this date is only up to the year 2000.

Understanding supply and demand truly helps separate the sophisticated investor from the average investor. When we take a look at the rolling 12 month single-family permit activity across the nation, it become pretty evident that we are ready for a rebound in permit activity in 2010 and many educated investors believe that we will start to see this turnaround in 2010 for a variety of reasons.

Rolling 12-month single-family permit activity from 1960-2009

Rolling 12-month single-family permit activity from 1960-2009

REAL ESTATE IS ON SALE

When we look at the cost of housing compared to family incomes we can see that today’s down real estate market is completely different from the real estate market of the 1980′s when the ratios reached as high as 60%! From this chart we can easily identify that real estate is on sale and is very affordable for the average family. We are currently seeing a 25% affordability ratio on homes nationwide which allows investors to move properties much faster as their are more able buyers out there.

National Housing Cost/Income Ratio 1971-2009

National Housing Cost/Income Ratio 1971-2009

MONEY IS ON SALE

Next we take a look at the 30-year FRM rates vs. Prime Rates from 1971-2009. I remember back in 2004 when every loan officer and mortgage broker was urging everyone to refinance and lock in low rates before they catapulted back up to over 10%. Of course we all believed the could not possibly stay that low so record numbers of refinances started happening and people were happy they locked in such a low interest rate. However, here we are several years later and interest rates are still unbelievably low! In a traditional real estate bubble you would expect rates to jump up as high as 15-20% but we are in a fortunate situation where rates have stayed low and money is still on sale!

30 Year Fixed Rate Mortgage Rates 1971-2009

30 Year Fixed Rate Mortgage Rates 1971-2009

When you take into consideration that money is on sale and real estate is on sale it starts to really become clear why NOW is such an ideal time to become an investor. I.D.E.A.L. is actually a great acronym for real estate investors because real estate can provide:

  • Income
  • Deductions
  • Equity
  • Appreciation
  • Leverage

FORECLOSURE BOOM

According to My Budget 360 the foreclosure filings nationwide have risen from 100 million to 300 million in the past few years alone!

Foreclosure Filings Nationwide

Foreclosure Filings Nationwide

There are countless reasons as to why our country got itself in this mess, and it is incredibly sad for many people that are facing foreclosure, faced with losing their homes, their dignity, their equity and their credit. On the other hand if you are someone that is looking to purchase a home, the opportunity has never been better!

in 2001 only 1% of all mortgage loans originated were interest-only or neg-am loans. By 2006 that number had reached nearly 30%! The first graph below shows the Option ARM (adjustable rate mortgages) reset schedule, totaling hundreds of billions of dollars in the next two years. The next graph is the interest only and negative amortization share of total mortgage purchase origination’s for 2000-2006. Keep in mind that “73 percent of homeowners with ARM’s don’t even know how much their monthly payment will increase the next time the rate goes up.”

Option Arm Reset Schedule 2008-2012

Option Arm Reset Schedule 2008-2012

Interest Only and Negative Amortization Share of Originations from 2000-2006

Interest Only and Negative Amortization Share of Originations from 2000-2006

My reason for sharing these graphs with you is to help you understand that we are getting ready to see another wave of foreclosures come in as a result of the ARM’s resetting and people not being able to afford their new payments. When I really started diving deep into these statistics it became clear to me that 2010 would be a great year of investing, but that it would require becoming a sophisticated investor to take advantage of it.

  • I believe that we will start to see a turnaround in the single family permit activity in 2010. Most of my professional contacts in the construction industry share this opinion with me as well.
  • I also believe that we will continue to see a steady flow of foreclosures that won’t stop anytime soon. This provides a great opportunity to pick up properties at deep discounts either directly from homeowners in the pre-foreclosure phase, or from auctions and banks after they have been foreclosed.
  • Due to the difficulty in getting traditional financing, the majority of these properties are going to be picked up by sophisticated real estate investors using creative acquisition strategies.
  • Since real estate and money are both on sale, now is the time to take advantage of these trends and opportunities.

Bank REO's and Foreclosures Still on the Rise

So in summary, I would encourage any would-be real estate investor to start studying pre-foreclosure investing as well as auctions and REO’s. There are opportunities in today’s market to pick up properties for 50% of the appraised value when you know what you’re doing and there is an influx in hard money lenders and private investors out there that are looking for better returns than they have been getting in the stock market lately.

The key to becoming a sophisticated investor to take advantage of this perfect storm in 2010 is to first get educated. Learn about Subject-To as a technique to pick up properties with no money and no credit. Learn about Wholesaling as a way to move these properties quickly to other investors who will fix them up and retail them. Learn about Hard Money Lending and how to raise private capital by helping people self-direct their retirement plans. And most importantly get connected with other local sophisticated investors in your area that you can do deals with and partner with to help ease your learning curve.

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