Financing and Credit

The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased.

The term is commonly used by banks and building societies to represent the ratio of the first mortgage lien as a percentage of the total appraised value of real property. For instance, if a someone borrows $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000 to $150,000 or $130,000/$150,000, or 87%. The remaining 13% represent the lender's haircut, adding up to 100% and being covered from the borrower's equity. The higher the LTV ratio, the riskier the loan is for a lender.

I have had a number of calls about assuming a mortgage so here is some good information.

Assumption of mortgage is the purchase of mortgaged property whereby the buyer accepts liability for an existing debt secured by a mortgage on the property. This generally requires the consent of the lender that owns or services the existing loan. The seller remains liable to the existing mortgage lender (whether the lender is a commercial bank, thrift, credit union, mortgage banker, or private lender) unless the lender agrees to release the seller from further liability.

We as investors find at certain times when deal is just to good to wholesale but we are out of options for financing in a conventional manner, thus "hard money" comes in to play.

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk taken by the lender. Most hard money loans are used for projects lasting from a few months to a few years.

Serbia: UAE to invest in Serbian infrastructure, , , Economics, Ansa
The Serbian government and Global Capital Advisors Management (GCAM) on Wednesday signed a memorandum of cooperation in which the United Arab Emirates company pledges to invest in the Serbian infrastructure and construction industry.

Arun Panchariya || Arun Panchariya UAE || Arun Panchariya in Serbia

I'm refinancing my residence to pay off an Insider's Cash interest only bridge loan on a rental. My question is I spoke with a company that will do a 5 year ARM 08/19/13 at 3.5% with $3900 total closing costs & refi the loan in 5 years at no cost except for title, $400-500, cost to me. Can refi into a 15 or 20 year fixed in 5 years, have rental into decent loan, pay $84 extra per month and will have lower principal balance to refi to 15 or 20 year fixed in 5 years. I have 3 interest only rentals and MUST refi them within the next year & thought this would clear 1 of them.

I created an LLC a year ago, purchased a property cash, rehab it and rented, which generates a nice positive cash flow and its value has nearly double since purchased. the problem I now face is that I cannot find a lender that will loan on a property owned by my LLC. I was told by numerous banks and brokers that I need to transfer to my personal name, then seasoned(hold) title for six months before they could do a cash out refinance. I purchased the property under my LLC as suggested and what I learned from dean's success academy, unfortunately my time ran out from dean's success academy so I can not longer ask a coach, that's why I am turning to dean's students for help.

if anyone out there knows a lender please share the info.

thank you in advanced

Hello everyone,
I'm a college student looking to purchase a multi family in New Haven, CT because I go to Quinnipiac University. I have a job, but no one want to lend to a 21 year old with no credit history. Also my mother who I live with is in the NACA program which prevents me from buying anything in my name. Is there anyone that has advice on how I would go about buying a multi unit not in my name and advice on financing or even banks that would lend to me? I'd be so grateful. Thanks and God bless,

Carima

I'm looking to get help with possible private lending for Hotel going for 1.5 mill in southern VA. I have 3 previous managers who previously tried to buy through banking but not able too because bank looking for 80% return.

Thanks
Donna

Almost all of the upward pressure on real estate prices is due to the extreme drop in inventories. This decrease in inventory is related in part to the banks manipulating their foreclosure property inventories to slow their entry into the market and reap better prices when they’re finally sold. Nationwide, the average number of days for foreclosure properties held by banks before sale has skyrocketed to almost 900 days.

A momentum shift in national real estate markets is attributed to two major factors:

1. FHA loans have become much more expensive, creating lower demand among the working families those loans were created to help.
2. The FED manipulation has resulted in mortgage rate increases that rose sharply in the last few weeks.

Anyone know of anyone that is willing to lend on MF units and or knows of a bank that will refi on one?...or can help me figure out what the lenders actually look at or?...HELP!?