Wednesday, May 11, 2011
Tuesday, June 8, 2010
Fannie Mae Homepath
Fannie Mae Foreclosures a great opportunity
Use Fannie Mae HomePath Financing to purchase a Sacramento Foreclosure
Sacramento Area Home Buyers and investors that haven’t discovered Fannie Mae HomePath properties and financing are missing out on a great opportunity. Fannie Mae markets its foreclosed property under the HomePath brand and even has special HomePath Financing to help complete the sale. Fannie Mae lists Sacramento Area foreclosures with local Realtors. HomePath Financing is available through selected banks and your locally approved Sacramento mortgage broker.
Fannie Mae Foreclosures a great opportunity
Use Fannie Mae HomePath Financing to purchase a Sacramento Foreclosure
Sacramento Area Home Buyers and investors that haven’t discovered Fannie Mae HomePath properties and financing are missing out on a great opportunity. Fannie Mae markets its foreclosed property under the HomePath brand and even has special HomePath Financing to help complete the sale. Fannie Mae lists Sacramento Area foreclosures with local Realtors. HomePath Financing is available through selected banks and your locally approved Sacramento mortgage broker.
Use Fannie Mae HomePath Financing to purchase a Sacramento Foreclosure
Sacramento Area Home Buyers and investors that haven’t discovered Fannie Mae HomePath properties and financing are missing out on a great opportunity. Fannie Mae markets its foreclosed property under the HomePath brand and even has special HomePath Financing to help complete the sale. Fannie Mae lists Sacramento Area foreclosures with local Realtors. HomePath Financing is available through selected banks and your locally approved Sacramento mortgage broker.
Fannie Mae announced that it is extending its HomePath buyers incentive program until June 30, 2010. Buyers that purchase a foreclosure that is a HomePath property are eligible for a rebate of 3.5% of the purchase price. This incentive can be used toward closing costs, a choice of selected Whirlpool appliances, or a combination of the two.
Sacramento Realtors signed up with Fannie Mae HomePath to list these properties in their local market are a great source for opportunities. Buyers can search for a foreclosure on-line at http://www.homepath.com/ and find some very well priced Sacramento area homes with low down payment financing options.
Special HomePath Financing includes several benefits:
· Fixed or adjustable rate mortgage programs available.
· Available to owner occupants and investors.
· Credit scores as low as 660.
· Low down payment options down to 3% for owner occupants and 10% for investors.
· Gift funds acceptable for down payment
· No mortgage insurance required.
· No appraisal required.
· Up to 6% seller concessions allowed.
HomePath properties and financing programs offer a unique opportunity for buyers and investors to purchase a home with as little as 3% down. Most of these properties are instant cash flow for investors and close faster then traditional mortgages. First time home buyers, why pay mortgage insurance because you don’t want to put 20% down on a home? FHA just increased their Mortgage insurance premium to 2.50%. This is a cost paid upfront when taking out an FHA loan without putting 20% down. With Homepath Financing there is no mortgage insurance ever!!!! Real Estate buyers can find an exceptional value and opportunity to purchase foreclosures with the ability to upgrade their homes on a tight budget.
Thursday, December 18, 2008
SBA 504 Basics
The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses. There are about 270 CDCs nationwide, with each covering a specific geographic area.Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.Maximum Debenture
The maximum SBA debenture is $1,500,000 when meeting the job creation criteria or a community development goal. Generally, a business must create or retain one job for every $50,000 provided by the SBA except for "Small Manufacturers" which have a $100,000 job creation or retention goal (see below).The maximum SBA debenture is $2.0 million when meeting a public policy goal.The public policy goals are as follows:
· Business district revitalization.
· Expansion of exports.
· Expansion of minority business development.
· Rural development.
· Increasing productivity and competitiveness.
· Restructuring because of federally mandated standards or policies.
· Changes necessitated by federal budget cutbacks.
· Expansion of small business concerns owned and controlled by veterans (especially service-disabled veterans)
· Expansion of small business concerns owned and controlled by women.
The maximum debenture for "Small Manufacturers" is $4.0 million. A Small Manufacturer is defined as a small business concern that has:Its primary business classified in sector 31, 32, or 33 of the North American Industrial Classification System (NAICS); and All of its production facilities located in the United States.In order to qualify for a $4 million 504 loan, the Small Manufacturer must 1) meet the definition of a Small Manufacturer described above, and 2) either (i) create or retain at least 1 job per $100,000 guaranteed by the SBA [Section 501(d)(1) of the Small Business Investment Act (SBI Act)], or (ii) improve the economy of the locality or achieve one or more public policy goals [sections 501(d)(2) or (3) of the SBI Act].
What funds may be used for :
Proceeds from 504 loans must be used for fixed asset projects such as: purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment.The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing.Terms, Interest rates and Fees:
Interest rates on 504 loans are pegged to an increment above the current market rate for five-year and 10-year U.S. Treasury issues. Maturities of 10 and 20 years are available. Fees total approximately three (3) percent of the debenture and may be financed with the loan.Collateral:
Generally, the project assets being financed are used as collateral. Personal guaranties of the principal owners are also required.Eligible Business:
To be eligible, the business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, the business qualifies as small if it does not have a tangible net worth in excess of $7.5 million and does not have an average net income in excess of $2.5 million after taxes for the preceding two years. Loans cannot be made to businesses engaged in speculation or investment in rental real estate.
Andrew Martinez
Vice President
Commercial Capital Funding
www.ccflender.com
The maximum SBA debenture is $1,500,000 when meeting the job creation criteria or a community development goal. Generally, a business must create or retain one job for every $50,000 provided by the SBA except for "Small Manufacturers" which have a $100,000 job creation or retention goal (see below).The maximum SBA debenture is $2.0 million when meeting a public policy goal.The public policy goals are as follows:
· Business district revitalization.
· Expansion of exports.
· Expansion of minority business development.
· Rural development.
· Increasing productivity and competitiveness.
· Restructuring because of federally mandated standards or policies.
· Changes necessitated by federal budget cutbacks.
· Expansion of small business concerns owned and controlled by veterans (especially service-disabled veterans)
· Expansion of small business concerns owned and controlled by women.
The maximum debenture for "Small Manufacturers" is $4.0 million. A Small Manufacturer is defined as a small business concern that has:Its primary business classified in sector 31, 32, or 33 of the North American Industrial Classification System (NAICS); and All of its production facilities located in the United States.In order to qualify for a $4 million 504 loan, the Small Manufacturer must 1) meet the definition of a Small Manufacturer described above, and 2) either (i) create or retain at least 1 job per $100,000 guaranteed by the SBA [Section 501(d)(1) of the Small Business Investment Act (SBI Act)], or (ii) improve the economy of the locality or achieve one or more public policy goals [sections 501(d)(2) or (3) of the SBI Act].
What funds may be used for :
Proceeds from 504 loans must be used for fixed asset projects such as: purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment.The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing.Terms, Interest rates and Fees:
Interest rates on 504 loans are pegged to an increment above the current market rate for five-year and 10-year U.S. Treasury issues. Maturities of 10 and 20 years are available. Fees total approximately three (3) percent of the debenture and may be financed with the loan.Collateral:
Generally, the project assets being financed are used as collateral. Personal guaranties of the principal owners are also required.Eligible Business:
To be eligible, the business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, the business qualifies as small if it does not have a tangible net worth in excess of $7.5 million and does not have an average net income in excess of $2.5 million after taxes for the preceding two years. Loans cannot be made to businesses engaged in speculation or investment in rental real estate.
Andrew Martinez
Vice President
Commercial Capital Funding
www.ccflender.com
Monday, December 15, 2008
Commercial Loans
Boost Business Without Breaking the Bank
Although brokers still can profit in the commercial lending industry, current market conditions have depleted the average broker’s marketing budget. For a number of commercial brokers, it’s more difficult to establish themselves as viable professionals quickly and effectively.
For brokers, your goal is threefold: to establish yourself in the commercial marketplace, to garner immediate commercial leads, and to build a qualified database of business-owners who are familiar with you and your company.
By employing the steps below, you will be on your way to success in the commercial market. Become a student
and build a reputation: Before you do anything else, take the time to learn the commercial business. Learn the terms. Make sure you know the difference between net operating income (NOI) and debt-service-coverage ratio (DSCR). There is a great deal of information available, from Web sites to magazines — read it. Become a student again and learn where to ask the questions. The Internet is a great resource, and so is your lender representative.
Start with the basics: Things as simple as adding a tagline on your e-mail signature will do wonders for establishing your business. Adding “commercial loan specialist” or “commercial loan officer” after your name is instant credibility. Do this to your business cards as well. Along that line, add “We do commercial loans” to all of your e-mails and outgoing correspondence. You never know who will see those words and call. Of course, the same applies to your Web site.
Network: Networking still works. It is a tested method of offering your services to a specific group of like-minded individuals. All Boost Business Without Breaking the Bank By following seven steps, you can create a strong database of viable clients communities offer networking opportunities at functions such as after-work mixers and special events. Those who participate in these groups are generally business-owners. Become a vocal member of your local chapter and seek not only business from the other members of the group but also referrals to other business-owners. Networking has been incorporated into the Internet, where your reach can be larger. Join networking sites that offer online networking capabilities. Not much effort is required to set up your profile, and the sites frequently offer tips for maximizing your contacts.
Institute a daily telemarketing campaign geared to business-owners: This doesn’t have to be elaborate or time-consuming. Spend at least one hour per day making calls to local businesses and build your database. A simple introduction and offering your services is all it takes. Ask for an e-mail address. This call is not necessarily a sales pitch but an opportunity to network with other businessowners. Make sure you get the information you need for growing your business. This includes the primary contact’s name, e-mail address, ownership status and desire to discuss financing options. Again, your goal here is not to take a loan application but to have an opportunity to build your database.
Take it to the streets: In addition to your telemarketing efforts, institute a day each week when you meet and greet your prospective clients. Walk into local businesses in your area. Dress the part. You are competing with bankers, so model your appearance after them. Above all, be professional. When you dress well, you gain instant credibility, and you are more likely to get the call when a loan opportunity arises. Leave your business card and take one of theirs — and make sure to add it to your database. In addition, go to your local banks, talk to commercial banking officers and ask what they do with turndowns. Ask if they would be willing to hand out your business cards when they have an applicant they cannot qualify. Banks generally will do whatever they can to better serve their customers, and a quality referral from a bank goes a long way with a borrower. The banks often are willing to do this because their primary business is depositors, and you offer them no direct competition. Now that you have spent time and effort getting your name out there, capitalize on every contact that comes your way as a result.
Start big and finish smart: Although a localized, grass-roots marketing plan will provide you with a qualified database, you can market effectively to a wider audience if finances allow. Your title company can provide lists and labels of commercial property-owners. By instituting a statewide or targeted nationwide direct-mail campaign, you can build your database of potential borrowers and get loan applications along the way. A simple direct-mail piece — such as a postcard informing a buildingowner that you would like to discuss financing options — could provide leads, as well.
Use your database: As your database grows, send regular e-mails to your clients. Create and follow a timeline so there is an e-mail in front of your client at least once every 30 days. Experts say repetition is the key to marketing. There are services available that can assist you with creating, managing and sending professional e-mail campaigns for a fairly small price. A good e-mail campaign will reap significant results with the right database.
Keep your database clean by following up with your potential clients regularly, as well. Update contact information with pertinent data, including the topic of your last conversation, and keep a diary of the contact for followups based on your conversation. There are many ways to build your commercial loan business without investing a financial fortune.
Time and effort are all it takes. Be smart with your time, and value each contact as if it were gold. A true grass-roots marketing effort and a well-maintained database will yield a treasure trove of future business.
Although brokers still can profit in the commercial lending industry, current market conditions have depleted the average broker’s marketing budget. For a number of commercial brokers, it’s more difficult to establish themselves as viable professionals quickly and effectively.
For brokers, your goal is threefold: to establish yourself in the commercial marketplace, to garner immediate commercial leads, and to build a qualified database of business-owners who are familiar with you and your company.
By employing the steps below, you will be on your way to success in the commercial market. Become a student
and build a reputation: Before you do anything else, take the time to learn the commercial business. Learn the terms. Make sure you know the difference between net operating income (NOI) and debt-service-coverage ratio (DSCR). There is a great deal of information available, from Web sites to magazines — read it. Become a student again and learn where to ask the questions. The Internet is a great resource, and so is your lender representative.
Start with the basics: Things as simple as adding a tagline on your e-mail signature will do wonders for establishing your business. Adding “commercial loan specialist” or “commercial loan officer” after your name is instant credibility. Do this to your business cards as well. Along that line, add “We do commercial loans” to all of your e-mails and outgoing correspondence. You never know who will see those words and call. Of course, the same applies to your Web site.
Network: Networking still works. It is a tested method of offering your services to a specific group of like-minded individuals. All Boost Business Without Breaking the Bank By following seven steps, you can create a strong database of viable clients communities offer networking opportunities at functions such as after-work mixers and special events. Those who participate in these groups are generally business-owners. Become a vocal member of your local chapter and seek not only business from the other members of the group but also referrals to other business-owners. Networking has been incorporated into the Internet, where your reach can be larger. Join networking sites that offer online networking capabilities. Not much effort is required to set up your profile, and the sites frequently offer tips for maximizing your contacts.
Institute a daily telemarketing campaign geared to business-owners: This doesn’t have to be elaborate or time-consuming. Spend at least one hour per day making calls to local businesses and build your database. A simple introduction and offering your services is all it takes. Ask for an e-mail address. This call is not necessarily a sales pitch but an opportunity to network with other businessowners. Make sure you get the information you need for growing your business. This includes the primary contact’s name, e-mail address, ownership status and desire to discuss financing options. Again, your goal here is not to take a loan application but to have an opportunity to build your database.
Take it to the streets: In addition to your telemarketing efforts, institute a day each week when you meet and greet your prospective clients. Walk into local businesses in your area. Dress the part. You are competing with bankers, so model your appearance after them. Above all, be professional. When you dress well, you gain instant credibility, and you are more likely to get the call when a loan opportunity arises. Leave your business card and take one of theirs — and make sure to add it to your database. In addition, go to your local banks, talk to commercial banking officers and ask what they do with turndowns. Ask if they would be willing to hand out your business cards when they have an applicant they cannot qualify. Banks generally will do whatever they can to better serve their customers, and a quality referral from a bank goes a long way with a borrower. The banks often are willing to do this because their primary business is depositors, and you offer them no direct competition. Now that you have spent time and effort getting your name out there, capitalize on every contact that comes your way as a result.
Start big and finish smart: Although a localized, grass-roots marketing plan will provide you with a qualified database, you can market effectively to a wider audience if finances allow. Your title company can provide lists and labels of commercial property-owners. By instituting a statewide or targeted nationwide direct-mail campaign, you can build your database of potential borrowers and get loan applications along the way. A simple direct-mail piece — such as a postcard informing a buildingowner that you would like to discuss financing options — could provide leads, as well.
Use your database: As your database grows, send regular e-mails to your clients. Create and follow a timeline so there is an e-mail in front of your client at least once every 30 days. Experts say repetition is the key to marketing. There are services available that can assist you with creating, managing and sending professional e-mail campaigns for a fairly small price. A good e-mail campaign will reap significant results with the right database.
Keep your database clean by following up with your potential clients regularly, as well. Update contact information with pertinent data, including the topic of your last conversation, and keep a diary of the contact for followups based on your conversation. There are many ways to build your commercial loan business without investing a financial fortune.
Time and effort are all it takes. Be smart with your time, and value each contact as if it were gold. A true grass-roots marketing effort and a well-maintained database will yield a treasure trove of future business.
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