Financing and Credit

According to RealtyTrac's latest U.S. Home Equity & Underwater Report for the first quarter of 2014, 9.1 million U.S. residential properties were seriously underwater -- where the combined loan amount secured by the property is at least 25 percent higher than the property's estimated market value -- representing 17 percent of all properties with a mortgage in the first quarter.

17 Percent of U.S. Properties Seriously Underwater, Down From 26 Percent Year Ago
9.9 Million Properties With 50 Percent Equity or More, Up From 9.1 Million in Q4 2013
35 Percent of Residential Properties in Foreclosure Process With Positive Equity

Here is a interesting article I found on Yahoo Finance that talks about how demand for mortgages has drop. It is base on several factors, one of which is the rise of interest rates which has cut the demand for refinancing. Another factor is the rising home prices, and the fact that it is still difficult to qualify for a mortgage. According to the article something else that is hurting the mortgage industry is wage and job growth.

Mortgage lending declined to the lowest level in 14 years in the first quarter as homeowners pulled back sharply from refinancing and house hunters showed little appetite for new loans, the latest sign of how rising interest rates have dented the housing recovery.

Fear they will not qualify for a mortgage has stopped nearly half (46%) of today's potential home buyers from pursuing the financing they need to buy a home, according to a new national consumer survey from loanDepot, the nation's third largest private, independent retail home loan lender.
While strong pent up demand to buy a home exists among a broad national cross section of the population, very few prospective buyers have actually taken any steps to see if they'll qualify for a home loan.

In the financial markets there are two initials you may see from time to time. One is called DIP financing and the other is DPO financing. What is the meaning of these two terms and do they have anything in common.

DIP financing, better known as Debtor In Possession financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process. Usually, this debt is considered senior to all other debt, equity, and any other securities issued by a company. It gives a troubled company a new start, albeit under strict conditions.

Chapter 11 gives the debtor a fresh start, which is, however, subject to the debtor's fulfillment of its obligations under its plan of reorganization.

Raise $5 million to $50+ million to make loans, acquire or develop properties through public and private capital markets.

If you have $100k to $150k in working capital, we can structure and place a real estate fund to acquire land, development projects, and income properties.

A key long-term objective of many real estate firms is to build a large, diversified base of high quality investors. This can provide funding security over many years, irrespective of changes in investor sentiment and capital raising cycles.

It can allow firms to grow, to plan for the future and to provide a valuable forum for investor insight and contribution beyond just capital. smeyer

If you have used them please reply. I have the VIP membership but I have not yet used them for financing. I did see on one of the websites, not sure if it was bigger pockets or not but it was one of them, someone had used them and his deal was funded, but that is the only time I have been able to find they have actually funded.

Do not let a bad credit history get in the way of owning your piece of the American dream. And do not let your bad credit keep you from considering all the options when looking to land a home loan for those with bad credit. Generally home loans are somewhat hard to come by since the housing bubble burst, but getting one is not impossible. Many lenders, many of them online, make it a specialty to help those with bad credit get their homes. People with bad credit move into their new homes all the time.

Home Loans

Credit Scores Are No Mystery

I found an interesting article that discusses the idea of potentially using your IRS Tax Return as a part of your down payment. It was in interesting read and I hope it helps you like it did me. It’s all about getting ideas from different resources.
Getting a Tax Refund? Consider Using It for Your Down Payment
By: Michele Lerner
While most people dread tax time, if you are getting a refund, this time of year can seem almost as rewarding as end-of-the-year bonus season.
Whether you are receiving a refund of a few hundred dollars or several thousand dollars, if you’re contemplating buying your first home, you may want to deposit your refund into an account dedicated to your down payment fund.

Has anyone set up their own self directed IRA LLC to invest in real estate and act as your own fudiciary? Instead of having a custodian this would seem the way to go instead of giving up control and being charged fees for everything you do while making transactions, not to mention that you don't loose out on deals waiting for the custodian to handle your affairs.

Finding money for our deals can be difficult. It is something you are always looking for if you are an active investor. Recently, I was introduced to a great company that has helped me find lenders that are interested in making a deal instead of saying no.

This company has put together a very large pool of lenders and then has vetted those lenders. They have weeded out the bad and kept the good. There are a wide variety of lenders who will do all kinds of deals.

Contact me and I will be happy to pass this information along.

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