-->
 
  Hard Money Blog
  By Vanguard Hard Money
   
 
All posts by eric

"Rehab Deal Analyzer"

by Eric Allee 27. January 2014 11:50

If you have not tried our free "Rehab Deal Analyzer," now is a good time. It's been completely updated to better calculate your profit/loss.Rehab Deal Analyzer

Bidding On Properties:
The Rehab Deal Analyzer is a great tool to use when comparing properties you are considering to buy.  Use it to help you determine which has the best potential of a higher return.

Rehab Deal Analyzer Instructions: (Click Below)

Property Information:

Purchase/Loan Information:

Holding Information:

Cash Expenditures:

Sales Information:

Gross Profit/Loss:

Once all information has been entered, you can print the spread sheet for your records.

Estimated Net Return:
Purchase price, financing cost, holding cost and cost of sale are factors you should review to compare different, potential net returns.

Need Assistance?
The Rehab Deal Analyzer is designed for you to complete on your own or with assistance from one of our rehab loan consultants.  Please call our office, and ask for Eric Allee at (800) 427-1441 or Email Info@VanguardHardMoney.com. He will be happy to help you complete the form and review different loan options available based upon your particular situation.

Copyright 2010 by Vanguard Hard Money

Fund Special / Record the Same Day

by Eric Allee 29. August 2013 11:26

 Cutoff Time Schedule 

    Southern  California County Recorders

County  Phone Cut-Off Time Special Recordings
Los Angeles (562) 462-2137 6:00pm (the night before) NO
Santa Barbara (805) 568-2250 6:00pm (the night before) NO
Ventura (805) 654-3788 6:00pm (the night before) NO
Orange (714) 834-2710 3:00pm Yes - Daily
San Diego (619) 237-0502 3:00 PM Yes - Purchase Only
 Last day of the month
 or day before a holiday
   
Riverside (951) 486-7000 1:30pm Yes - Daily
San Bernardino (909) 387-8314 11:00am Yes - Daily

Information Provide: My-Trang Nguyen of Lawyers Title Insurance Corporation

Tags: ,

Fast Funding

What to expect with rising mortgage rates.

by Eric Allee 11. August 2013 10:26

Home Prices and Mortgage RatesSince early May 2013 to mid-July 2013, 30-year fixed interest rate mortgages have jumped from 3.35% to 4.51%.  This has led people to the question of what, if any, impact this trend will have on home sales prices.  To address this question, The Federal National Mortgage Association, FNMA or more commonly known as Fannie Mae, studied mortgage rates going back to the 1990s.  Fannie Mae’s research came to the surprising conclusion that rising interest rates had no impact on home sales prices but decreased the number of homes sold.


Fannie Mae’s study examined two time periods with increasing mortgage interest rates:  1) October 1993 – December 1994 when interest rates increased from 6.8% to 9.2%; and 2) October 1998 to May 2000 when interest rates increased from 8.5% to 6.7%.  During the first interest rate increase, home prices leveled and fell slightly.  During the second period, there was no impact whatsoever on housing prices.  The historical study showed increasing mortgage interest rates are more likely to be linked to a decrease in the number of home sales not in home prices.   The study concluded that home sellers are reluctant to lower prices regardless of the interest rate and homebuyers are eager to  purchase and are willing to take on an adjustable rate mortgage loan to achieve their goal.  The Mortgage Bank Association supports the study’s conclusion by saying people’s motivation for purchasing a home is primarily linked to personal factors such as, the need to relocate, changing space needs, and human emotion where the buyer simply falls in love with a particular house and wants to buy it.

Nonetheless, some experts predict that the rapid increase of mortgage points to 4.51% since May 2012 will have a negative impact on housing prices and the housing market recovery.  An economist with Moody Analytics predicts, however,  that buyers will not shy away from the current mortgage rate because it is far lower than the historical average of 6%. 

Regardless of the viewpoint, it appears that the rising interest rate will not hurt housing prices but will simply reduce the volume of houses being sold.  

 

If you would like to read more about the current trends in home sales, please refer to the following links that were used to write this article:

http://money.com

http://www.housingwire.com

http://www.fanniemae.com


Eric Allee

Tags: , ,

Real Estate Market Trends

California Foreclosure Activity

by Eric Allee 11. October 2011 07:34

California Foreclosure Activity

Research the number of California homes going into foreclosure.

 

Click Here

Where can I find REO properties in California?

by Eric Allee 28. August 2011 01:29

There are many sources to find properties available for purchase. The best way is to contact your local Real Estate Agent.  They are the most qualified to help you with your search. Lenders and major banks can also be a good source for REO's.

 The links below may help you find that perfect rehab project.

  1.    Yahoo Real Estate

        2.    Trulia

        3.    Foreclosure Destination

        4.    Foreclosure Listings.com

        5.    Foreclosure.com

        6.    Bank Foreclosures.com

        7.    Chase

        8.    Citi Mortgage

        9.    Fannie Mae

       10.   Freddie Mac

Eric Allee

Hard Money After Repair Value Benefits

by Eric Allee 25. September 2010 00:14

Hard Money AppraiserA limited number of hard money lenders arrange and appraise rehab financing based upon "Future Value" of a property. Which is also called "After Repair Value" appraising. 
To clarify: Assume an investor/borrower has an opportunity to purchase a house for $125,000 and believes the "After Repair Value" is $175,000. If a loan is based upon the purchase price and the maximum Loan to Value (LTV) is 60%, the gross loan amount would be $75,000 ($125,000 times 60%). The down payment would be $50,000 plus cost.
If a loan is based upon "Future Market Value" and maximum Loan to Value is 60%, the gross loan amount would be $105,000 ($175,000 times 60%). The down payment would be $20,000 plus cost, which is $30,000 less than the scenario above. This also increases the potential yield on invested dollars. 
Assuming the investor is able to negotiate a lower purchase price of $120,000, potentially his down payment would be decreased from $20,000 to $15,000 ($120,000 less $105,000). 

This is why purchase of rehab properties using "Future Value" appraisals is so popular!

Prior to 2007 hard money lenders were lending as much as 75% of "Future Value". Today, because of the recession their guidelines are between 50% and 65% of "After Repair Value". Most lenders require a down payment of 10% to 20%.

The above example assumes the lender likes the property, borrower has decent credit and ability to make monthly payments. Hard money guidelines are not standardized and the example loan above may be approved by some hard money lenders and turned down by others.

Hard Money Financing is King!

by Eric Allee 24. August 2010 09:50

 

Hard money, financing vs. bank loans.

Hard Money vs Bank LoansWith limited availability of funding from banks and other institutions hard money for many borrowers is the only game in town. Hard money lenders are helping with the purchase of both residential and commercial properties. Popular among lenders are loans to finance the purchase of non-owner occupied houses for short term holding. Typical dollars loaned on these properties are $100,000 to $600,000. Buyers are purchasing the properties substantially below the current market value. After repair and fix up they are sold for potential short term profit. If annualized the return on invested dollars can be substantial.


Hard money, also called private money financing is also available for apartments and small commercial properties. Bank guidelines are more conservative for these loans. Documentation is very  extensive as banks pick and choose who to lend to. Fortunately, hard money lenders are in the market and are more liberal and aggressive than banks!

While hard money is available it is not as plentiful as it was prior to 2007. Many hard money lenders were burnt by the recession and have not returned to the market. Currently, there is a greater demand for loans than available money. As the real estate market improves private money lenders will return as they did after the seventies and nineties recessions.

It is more important than ever to present a complete and professional package to lenders when applying for financing. With the large volume of applications lenders have a tendency to put the poorly prepared packages at the bottom of the stack. Additionally, make honest full disclosure. Lenders will automatically turn down a loan if they feel the borrower is less than honest. 

Tweets

RecentPosts

Older Tweets