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Loans available today

January 4, 2012 By

 

Please give some thought to using your retirement plan as a source of investment funds! Call us.

LOANS PRESENTLY AVAILABLE FOR PURCHASE

Loan 14071

$40,000 1st T.D. Wanted. The note pays $367.00 per month including 11% interest*** all due in 5 years. Secured by home with a spectacular view on 31472 Panorama Dr, Running Springs. Property is being purchased for $63,000 with $23,000 cash down. Call for additional details.

 

Loan 14069

$31,000 1st T.D. Wanted. The note pays $250.00per month including 10% interest*** all due in 1 year. Secured by permanently attached manufactured home on large lot on Geary Ave, Menifee (near Temecula). Broker estimate of value is $150,000.00. Loan to value ratio based on the above is 21%. Call for additional details.

Loan 14067

$115,000 1st T.D. Wanted At close 12 months interest in advance will be paid ($12,650.00) The note pays $1,150.00 per month including 11% interest*** all due in 5 years. Secured by home on 1816 Scott Ave, Los Angeles (Echo Park, near Dodger Stadium). $18,000 of loan funds will be held to pay for rehab. Broker estimate of value is $250,000.00. Loan to value ratio based on the above is 48%. Call for additional details.

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these trust deeds are offered for sale subject to prior sale. we do not guarantee the accuracy of the above information. to receive a free copy of this brochure, send us your name and address. warning: if payments default on any trust deeds, you may have to foreclose at substantial extra expense to prevent loss of your money. buyer will be required to release the hope trust deed company, inc. dba hope 4 loans from all liability due to any loss, and buyer will be required to satisfy himself as to the adequate security value of the t.d. real property, the payor’s ability to pay, and the sufficiency of all documents.

Filed Under: Investors, Loan Information

A commission or not?

December 30, 2011 By

Quite often we are asked if a licesee can participate in a loan commission.

The answer is absolutely!, maybe.

With a valid R.E. Broker’slicense, & the property is not a 1-4 residential, the answer is how much do you want & can I keep at least a meager amount to buy fuel for the yacht?

With a Salesperson’s license, as long as the check is written to your broker of record, the only difference is how much more I keep for gas for the company plane.

A single family (1-4) is a whole different kettle of fish. RESPA (Real Estate Settlement Procedures Act) mandates that in order to participate in the commission earned, you must perform some or all of 14 services normally performed in the origination of a loan. In the interest of brevity, call & I’ll be happy to send you the whole enchilada.

Additionally, on the 1-4s there’s a very good chance you may need an additional license from the federal government which entails an unbelievable amount of education, reporting, & quite probably more hassle than it’s worth unless you are deeply involved in the conventional lending market.

There is a possible out of this quagmire which has to do with the purpose of the loan. If it is not for consumer purposes, you may be home free.

So there ya go. My best suggestion is to call prior to creating a pickle for yourself.

Filed Under: Investors, Loan Information, Real Estate Professionals Tagged With: , , , , , , , , , , ,

A love note from the City of Los Angeles

December 30, 2011 By

This isn’t particularly new, but they rubbed my nose in it, so I wanted to be sure you are aware & register with them. (Doesn’t that word just send a warm glow directly to your heart)

You need to register properties that have been issued a notice of default every calendar year. If you registered it in 2011, it needs to be reregistered in 2012 or pay  $250 PER DAY AS A FINE.

If you had a NOD filed last year, the property reverted to you (& was sold or not) or reinstated you have until January 31, 2012 to upload supporting documentation so the staff can confirm/deny the status change through a verification process. (I promise I am not making this up!)

The info is available at http//clkrep.lacity.org/onlinedocs/2009/0365_ord_18115.pdf  

 

Filed Under: Investors, Real Estate Professionals Tagged With: , , , , , , , , , ,

late charges; a potential problem to be aware of

December 27, 2011 By

There may be an issue  with your late charge collection.Before you book the reservations to Patagonia, you might wanna read this.

California Civil Code 2954.4 regulates the assessing of late charges on OWNER OCCUPIED single family dwellings (1 to 4 residential units)

A payment receivedwithin the 10 day grace period (realisticly 11 days, the due date +10 days after)  must be credited as a current payment per the late charge assessment. For example, the borrower misses the January 1st payment, he makes a payment on  February 29th,  March 25th & April  9th. Per the law, any payment received within 10 days, either forward or backward is to be considered a payment on time.  The interest would be paid to March 1st & you would be entitled to a late charge for only the January payment. “Rolling 30s” do not exist as to the late charges.

Keep in mind, this festriction  is only on owner occcupied homes. Any other property does not receive the same protection.

Another reason to carefully consider the loan to value on any consumer loans you are thinking about. The bottom line is the government is protecting Joe Lunchbucket to the point his loan is not nearly as attractive as a loan not saddled with the same economic & legislative stumbling blocks.

Another sidebar issue, the late charge provision in the civil code is 6% of the payment. However,  if the loan is arranged by a real estate broker, the  10% limitation applies.

Filed Under: Investors, Real Estate Professionals

Ya wanna referrel fee?

December 21, 2011 By

Every so often somebody calls with a lead, either borrower or lender and wants to generate a couple bucks for it.

Let’s look at the positive side first. If the property to be secured by the loan is either a 5+ residential building or a commercial property there may be a chance. The department of real estate mandates you have a license to arrange, SOLICIT or negotiate a loan. You’re  sitting around the pool drinking beer with your brother in law when he asks if you know anybody he can talk to about a loan. You immediately say, yeah! I know just the guy, lemme have him call you. You then turn us loose on the unsuspecting soul & we do that old black magic we do so well. If you tell me going in you want a referrel fee of X & your brother in law agrees to pay it, you are welcome to it. The issue is significantly skewed if you bring us another borrower 3 weeks later. Now it’s starting to look like you are soliciting for loans & for that you need a license.

OK, now let’s consider the 1-4 residential market. Good luck. Not only do you need a license from the California DRE, you need a federal “NMLS” license to go along with it. Trust me, you do NOT wanna go anywhere near these guys.

As my saintly father used to tell me; you’ll get your reward in heaven.

Filed Under: Investors, Real Estate Professionals Tagged With: , , , , , , ,

A short treatise on default interest rates

December 20, 2011 By

 

 We had a borrowerexpress some concern over the default interest rate provision built into the commercial note we use.

His initial concern was over the time frame & whether or not once incurred, it stayed there forever. I had to call his attntion to the part that said the rate would apply until the default is cured.

 His follow up concern was how many months he could go not making payments until the default rate was invoked. (This sounds like a guy you’d want on your books, rite?)

 I answered as follows:

In theory the loan is in default once the grace period on the payment is passed, 11 days. I don’t know of anyone who will hold him to such a literal time deadline. Our policy is to wait 30 days before accruing the default rate. However if he becomes a consistant payment problem, the 11 day window may apply.

 Addiitionally, there are any number of reasons the loan could be in default over & above the timely payments. For example, not paying the taxes, the insurance, transferring ownership, not maintaining the condition of the property exceeding the maturity date, are some that come readily to mind. Does this mean he automatically goes to the default rate if he’s a week late renewing his insurance coverage? While the technical answer is yes, in the real world he would have to seriously aggravate the lender to cause them to accrue the default rate in this case.

Filed Under: Investors Tagged With: , , , , , ,

An insurance question

October 31, 2011 By

I recently ran into a lender who was requesting fire insurance in the amount of his prospective loan, $200,000. The facts are; the property is valued at $400,000 with a 1,000 square foot house on a 5,000 square foot lot. Based on a $100.00 per square foot construction cost, the most they could require would be $100,000 in fire insurance coverage. Any additional coverage (liability, personal possessions, etc) are borrower requirements, not loan related. 

Land doesn’t burn,meaning the lion’s share of the value in this (average) situation would preclude the lender from demanding additional coverage. In point of fact, the lender is cutting their own throat because a property that is overinsured will get hammered  due to the insurance carrier reducing the payment by the same percentage the property is overinsured. Using our same facts, if the lender required twice the coverage as necessary & there is a fire loss of $50,000, the insurance carrier will only pay $25,000, 1/2 the loss.

Be careful what you wish for………………

Filed Under: Borrowers, Investors Tagged With: , , , , , , ,

Wanna increase your business?

October 12, 2011 By

 

How much did you earn eating your chicken suprise today?

I just returned from a lunch meeting of CAMP (California Association of Mortgage Professionals, the South Los Angeles Chapter (SOLA). The featured speaker was Mark Burrell, MarkBurrell.com, who let me know in no uncertain terms how much I don’t know about being successful in business. Notice I didn’t say what business. For him, it doesn’t matter. He’ll teach you how to increase your website presence & how to increase your contacts dramatically. Without spending the gross national product of Tahiti on new computers, programs, or employees. You can throw $$ at him to do it, or better yet,listen to him teach you how to do it yourself.. For free.( The labor, not the knowledge).

If you listen to this guy for more than 10 minutes & don’t see at least 2 opportunities to grow,,, call it a day, fold up your tent & get out of Dodge.

I’m real close to the last guy on the planet to gush over anybody, but Mark deserves anything I can think of to gush. Well OK, I guess he could have a cuter sister that owns a liquor store, but you can’t have it all. If you’re ever able to hear him speak that won’t set you back $500.00, make time fot it, you’ll be glad you did. I’m going to do everything I can to get him back again. Stay tuned.

Filed Under: Borrowers, Industry Trends, Investors, Real Estate Professionals Tagged With: , , , , , , , , , ,

Here’s a good introduction to retirement planning

October 6, 2011 By

 Andy Veldcamp is an account executive with a local pension administrator.

He stresses  retirement portfolios need to be more diverse and require more attention in these uncertain financial times.   Gone our the days you can rely on the faceless corporate largess taking tender care of your fiscal health after you pull the plug. 

He statesMany investors are exploring options outside the stock market as part of their diversification strategy and are pleasantly surprised to hear that Trust Deeds and Real Property are perfectly acceptable retirement investments. 

He goes on to say;

Great, so now I know that theoretically I can buy a loan with a retirement plan.  But how do I actually buy a loan you ask?  No smoke, mirrors, or hocus pocus here folks, it really is as simple as finding a loan, finding a custodian to hold the loan, and making the purchase. 

His advice to anyone considering this approach follows;

The key thing to remember is that when purchasing investments through retirement plans that you must keep appropriate distance between you and the investment.  This is where the custodian comes in, acting as the government mandated intermediary between you and your retirement assets.  In terms of importance, choosing a good custodian is second only to choosing a great broker.  Service, experience, knowledge, fees, and transaction speed all should factor into your choice so take the time to choose well.

Both of us would suggest that retirement plan and loan requirements do vary with circumstance so feel free to call with questions, but rest assured knowing that diversification is within easy reach.

 Andy can be reached at

Andy Veldkamp
IRA Consultant

Polycomp Administrative Services, Inc.
6400 Canoga Avenue Suite 250
Woodland Hills, CA 91367

TEL: 818.716.0111 ext. 121
FAX: 818.346.8672
Toll free: 800.736.7090

aveldkamp@polycomp.net

www.polycomp.net

 

Filed Under: Borrowers, Industry Trends, Investors, Real Estate Professionals Tagged With: , , , , , , , ,