Real Estate Investing Advice & Information

In this day and age of recessionary concerns and foreclosures both in the residential and the commercial market, it is a prime time to pick up on some good self storage business deals. The market is ripe for self storage units that are going under amid the weight of the continuing recession and the mortgage banking woes that are affecting each and every American citizen.

Just as the home mortgage meltdown has created an influx of foreclosed on properties that can be had for pennies on the dollar, this is also true in the commercial sector. When self storage units run into trouble they usually call upon the bank to repurchase the loan and if the bank does not want to go through with that deal then they are forced to put the business on the market for the highest bidder. This is where you come into play with a bid that is right below the maximum bid for like kind and quality self storage unit business in the neighborhood and more than likely the property will be yours.

This is not to say that you should drive the price down this is only to say that you would be doing them a favor, them being the business owner of the failed self storage unit endeavor and it will make their load that much lighter. What it takes is a glut of capital and this is not in reference to a few thousand dollars as it takes easily over fifty to one-hundred thousand dollars to even invest in any type of property that is suitable for a self storage unit business. continue reading…

One of the most commonly sought loans is mortgages. People are always looking for different ways to buy real estate. The market for mortgages has been significantly affected by the lending crisis that has occurred within the past couple of years. No longer are people able to get low credit mortgages with ease. If you are looking to get approve for mortgage loans for poor credit borrowers it is important that you look around for the right lender.

Before you decide to apply for a mortgage you should decide if purchasing a home is the right decision for you. Because buying a home is one of the most important financial decisions that you will have to make in your life, it is important to make the right decision. If you are in a financially tight situation, you should avoid locking yourself down with a mortgage. continue reading…

Bad credit is a problem that burdens millions of Americans on a daily basis. If you suffer from a low credit score then you will often find it very difficult to get loans approved. This is especially true for people who are looking to obtain a home loan. Most people probably think it is impossible to get a home loan approved with a low score. The honest answer is that getting a poor credit home loan approved will be a long and hard road, but if you are diligent you can get your loan approved.

It is important for anyone who is looking to get a loan to check their credit rating. Knowing your rating is important to allow you to determine exactly how bad your situation is. If you find any discrepancies on your report you should contact the credit bureau and get it resolved. There are often occasions where people suffer from a low score due to errors in their report. continue reading…

Buying a home is the goal of many people across the country. Home ownership is the symbol of wealth and success to many individuals. One thing that can have a significant impact on whether or not you are able to own a home is your credit rating. Your score will determine if lenders approve your loan application or not. Getting poor credit home loans approved is possible if you are willing to put the work in.

One of the best ways to get a home mortgage approved is to apply for a FHA (Federal Housing Administration) loan. These loans are government backed loans. This means that if you default on the loan, the government will cover your losses. Because these loans are backed from the government, many lenders are often willing to approve borrowers who have FHA approval.

Another benefit of the FHA loan is that a borrower doesn’t have to worry about having a very low credit rating. These loans are designed to allow borrowers who wouldn’t be traditionally accepted for loans to get approval. They place a greater emphasis on the borrower’s recent credit history within the past couple of years.

Borrowers are also expected to have a good debt to income ratio for the loan. If you don’t have a good debt to income ratio then you shouldn’t expect to get approval for the loan. You debt to income ratio will determine how likely you are to pay off poor credit home loans. A good way to improve your ratio is to pay off any outstanding debts that you might have.

Poor Credit Home loans are available to anyone who is willing to apply. If you are interested in a Poor Credit Mortgage you should do a thorough search online for the different lenders that are available.

There are so many people who seem to have a common question which is: what is a loan modification program? To simply define it, a loan modification might be your way out if you are on the brink of foreclosure on your home mortgage which has been unsettled. Since everyone is experiencing the effects of the downfall of the US economy, there are several homes which have been allowed to go to foreclosure simply because; they do not have any more ways to keep up with the monthly payment on their loan.

If you are one of the several people who are experiencing a huge financial problem with your home mortgage, this loan modification program might be your easy way out. This program can be compared to a mortgage loan refinance since it is aimed to produce a more convenient and affordable plan for your current financial situation. What differentiates the program with a refinance is because it does not let you get a new loan. The loan modification plan simply modifies the terms of your current mortgage loan.

In order to apply for the program, you have to meet the eligibility criteria. This criteria however, depends on who you are applying the loan from. But there is one similarity on the qualification criteria being observed by most banks. This is if you have endured a financial hardship or if you have gone through a major change in your current financial situation. Such major changes are affected by factors like a loss of a job. Also, if you have not been able to pay three or more monthly payments on the home which is under the loan, this makes you qualified. continue reading…

Loan modification is one of the methods to save the borrower from the threat of foreclosure. Foreclosure is never beneficial for either borrower or the lender. Hence most of the time even the lender want to avoid foreclosure. However both have to find some way so that neither of the party is in loss. The lender wants to confirm that they suffer from minimum loss. Hence they have to modify the loan in some way or the other. This is called loan modification. Let us see how it works?

Actually there are different ways of modifying the loan. The first method which one can recall is related to the ARM and FRM. You should know that the fixed rate mortgage is taken when you want to buy a house for long period of time. The interest rates in the case of the ARM are more and that in the case of FRM is less. Hence one way of modifying the loan is to convert the Adjustable rate mortgage interest rate into fixed rate mortgage interest rate. In this way the borrower will have to deposit the low monthly installment.

There are some other ways as well. Sometimes the lender agrees to collect the past dues at the end of the total payment. In this way you will have to deposit just the present installment and you need not worry about the previous unpaid installments. You will have to pay them at the end. continue reading…

Hard Money Rehab Loan Qualifications.

Many times investors ask me to send them information on a hard money loan. As a mortgage broker with many programs and options it is hard to tell them exactly what the qualifications are for financing their project. They are so many because hard money real estate lenders are private investors. Each private investor create their own qualification criteria. Unlike conventional financing there is no secondary market and there are no quasi government organizations like Fannie Mae or Freddie Mac that establish uniform or conventional guidelines. There are qualifications that each bridge and real estate rehab lender have in common. They are:

1. The property and after rehab value.
2. The exit strategy.
3. The down payment.
4. The investors experience.
5. The investors credit.
6. The investors cash reserves.

The Property.

There was a time and will be again were the property and the after rehab value of the property was the sole consideration of doing a short term loan to a real estate investor. Whether the deal is commercial or residential investment property the collateral remains the most important criteria to qualify for funding. The reasons it is not the only criteria is that lenders have been burned by the declining value of properties and the excess of properties available. This means that if they have foreclose on collateral the property has been more difficult to sell and they get less money for it. Yet the collateral still remains the most important criteria. The lower the loan to value the better the deal. Even though some lenders will go as high as 65 to 70% of the after rehab value those deals are tough when so many are available at or below 50%. continue reading…