What a great way to meet people and network in Palm Beach Gardens.  Come join us and other professionals every other Tueday in the oldest Cigar Shop in Palm Beach Gardens:

Cigar Networking Event
Date: April 14, 2009 (Tuesday)
Time: 5pm to 7pm
Location: Gardens Cigars 10967 N. Military Tr. (In the Publix Shopping Center)
Palm Beach Gardens, FL
Cost: $10.00 (Good towards any purchase)
Come meet other local professionals in the area who appreciate a good quality Cigar in a relaxed networking event. Appetizers will be provided.
Pre-Register
Please Call Matthew Blum (561)294-3202
E-mail: MBlum@SchumacherAuto.com

As many of you may have noticed I have not been around lately (please see my last post) and for a good reason. As I had written in my last post I would still be around but just not as much. I recently came across what I thought was a know brainer Hard Money Loan. Geez at least I thought so. Below are the specifics:

No Current Mortgage (Home is Paid for Free and Clear)

50% LTV (of Lenders appraised Value)

Owned the home for more than 10 years

Primary Residence

Sounds Good Right?

Well it seems it is official now in South Florida nothing is easy.  I have been turned down from just about everyone of my private investors.  The majority of the reason is they have stopped doing primary residence.  The best one I have heard is that one of the Presidential Candidates is pledging to stop foreclosure on all primary residence.  This would kill Private Money / Hard Money Lending if it is true. (please this is not a political post and for those who feel they need to comment about that will be deleted)

BEWARE

As always I work my hardest to place all of my clients loans and this one is know exception.  It always amazes me how many bottom feeders ok lets just come out and write it SCUM BAGS we have in this world. When I make the phone calls looking for additional Private Investors I find other Mortgage people saying they are investors and just send them the application and they can place it.... WRONG!! The best one is the application fee when they can't even give you a straight answer if they can fund a primary residence or not.

All of this brings back to my title did I make the right choice or what about moving mortgages to a second job. 

With the Florida market continuing to decline and the mortgage market getting tougher and tougher to make a living it is time for me to make a move.  To dispel and rumors that maybe floating around ON AR I have gone back to my old business which is GM Commercial & Fleet at one of the largest Dealers in South Florida.  I will still be able to do mortgages, but now it will be more of a part-time job rather than full-time.

I will not be leaving AR but now more of my posts will be based on some advantages GM has to offer especially when dealing with a Commercial Sales person.

I wish everyone on Activerain the very best and know the market will turn.  However, the mortgage market down here has just gotten to tough for now especially when it comes to brokers.

On the bright side I do ship anywhere in the USA. (hint, hint, hint)

I look forward to posting more about information on the programs available for large and small companies that can help your company grow.

To learn more about what I do: GMFleet

Matthew Blum

Last Fathers Day I wrote a post about my Father.  I can't believe how quickly the time goes by it just seems like last month I wrote that post and now a year has passed.  I had planned on writing a whole post about my Father but for those who want to read how great he really is, just look back to my post: Happy Fathers Day to a South Florida Dad

As I sit here writing this post I can't help but reflect on this past year and what I have learned.  Last year this time I was still closing loans Jumbo and Super Jumbo's like crazy and not having a care in the world. How quickly the times change. Now a year later that business has come to a trickle and now I am busy with Hard Money and Private Money loans.  I believe we have to always move forward.

This is one of life's lessons that I have learned from my Father.  Keep moving forward.  I look back when I was a child and my Father had two dauthers in college at the same time and his business was going under.  As a child my parents sheltered me about their finacial problems but we always had food on the table, AC on (it was South Florida), clothes on my back and shoes on my feet.  I just thought I was lucky because I was able to eat my favorite Spagheti and Meatballs.  (Who knew)

As business got tougher for me this past year I looked back and grew strength from my Father and pushed forward. This is just one of lifes lessons that my Father has taught me.

One of the other biggest life's lessons my Father has also taught me was how important your children are and always place them first.  When I was going through my divorce (the first one in my family) I felt like a failure after all my parents where married for over 50 years and my sisters where both married for over 25 years at the time and here I am the baby of the family who made it one day shy of 10 years. My father was always their for me never looking down or passed judgement.  

Thanks Dad for giving me some of Life's Lesson's.

Now I ask you a question..The readers of this post.  What life lesson did your Father teach you on this Fathers Day?

As a Mortgage Broker who works with several Hard Money and Private Money Investors it seems my phone is ringing more than ever, with questions about this type of financing.  (Which is a good thing)  It just seems so many people who come to the realization that they need this type of financing really don't know what to ask or what to expect when inquiring for this type of financing.

Below is some basics that you should ask your Licensed Full-Time Mortgage Professional.

• How many Hard Money / Private Money Investors do you work with?
• When Was the Last Time you closed and funded one of these types of Loans
• Are They Licensed?
• How long have they been doing this type of Finance
• Make sure you are upfront and disclose everything to your Mortgage Professional.. Trust me they will find out anyway.
• Remember gone are the days of favors.. These loans are make sense loans.. not favors

Things To Watch Out For

• During your first converstion if the person tells you total fee's and final rate.  This means the person only work with 1 Hard Money person and can only offer you 1 product. Any true professional works with several companies and Private Investors.  I know I have some companies that start off with as little as 2 points and rates that start at 11%.  However, until I have a complete understanding and full application on the client the rate and programs are the last thing.  These loans are all on a case by case situation.  Their is NO FLAT Rate or Program.
• If the person sounds like a Used Car Salesman on the phone... Guess what.. They probably are.  Gone are the days of people slamming people into loans that are bad.  If you get this feeling from the person you are speaking with RUN! With the Mortgage Industry the way it is now, more and more true Mortgage Professionals have entered into this form of lending.

Standard in The Industry

• Application Fee.  Yes believe it or not many Investors want what they call "Glue".  Before they start doing all the paper work, title work, appraisal they want to make sure the client is very serious about the loan and will close. (I still have some Investors that do not require a application fee)
• Points.  Yes Points have an "S" on the end.  Please keep in mind these are all high risk loans it just depends on how much risk.  The Higher the Risk the Higher the rate and points.
• Pre-Payment Penality.  Now please speak to your Licensed Mortgage Professional and check with your state laws first. However, most of these type loans come with a Pre-Payment Penality. These companies want to ensure the most profit they can. ( I still have some Investors that Do Not Have a Pre-Pay)
• Documentation.  No this is not a typo!  Know matter what you read and what people tell you the truth is a these Lenders/Investors DO NOT WANT YOUR PROPERTY PERIOD..... These are high risk loans and also high returns for the Investors. They make money when you pay.  Now keep in mind if you can't provide documenation that is ok as well but as I stated before RISK = RATE.. The more information you can provide the better.
• Exit Strategy. This is mostly for the investors.  Be prepared to have an exit stragety on this loan/property. If you don't know what this means please consult your Mortgage Professional and also re-think being an Investor.

In closing, please remember if a deal sounds to go to be true in this type of lending, it probably is. Take my advice and RUN as fast as you can away.  Before signing anthing make sure you fully understand what you are signing and commiting for. 

For More Mortgage Advice: Mortgage Advice in South Florida

As a Licensed Mortgage Broker in South Florida (Palm Beach Gardens) I work with several wholesale Lenders from A+ Credit to those who have a few speed bumps along the way of life (as do most Brokers).  With the market the way it is in Florida I have really expanded my product line on the Hard Money / Private money side. Since doing this, I have also found many clients and Realtors really have miss information on these type of loans now.

Myth 1:

Hard Money / Private Money Only Uses the Appraised Value and Not the Purchase Price

WRONG!

When the market was going crazy this was a true statement. Now with the market the way it is they use the purchase price.  Lets face facts if the appraisal says $300,000 and your buying it for $200,000.. that is really what the value is. You will NOT BE getting a 100% financing using this type of Financing. Those days are gone..

Myth 2:

Credit is Not Looked At

WRONG!

Your credit is looked however, your score is not what is important on the credit report. They want to see your payment history.  In the end it will show what your final rate will become

Myth 3:

Close in Under a Week

WRONG!

While this is really not impossible it is highly unlikely.  If a complete file is submitted to a Hard Money / Private Money Investor than you it might be able to.  However, be realistic. These Investors DO NOT WANT this property. They want you to make the payments. They all now more than ever really go through each file with a fine tooth comb.  In the end they do close pretty quick from start to finish.

Myth 4:

My Loan is NOT a High Risk Loan

WRONG!

The bottom line is, if your loan was not a High Risk Loan then you would seek other financing options.  This type of financing does not come cheap.  Their is a cost to this money.

In closing, I hope I was able to clear up some myths about Hard Money / Private Money lending.  If you seek this type of financing please make sure you are dealing with someone who is licensed and really has the knowledge and ability to close your loan.   If someone promises you the moon and the stars... RUN!

For more Mortgage Advice: Mortgage Advice in South Florida

I was honored when Jeff Belonger asked me to do this weeks Mortgage Review.  Looking over all the mortgage posts for the week I could not stop thinking of one of my favorite movies...(press play)

Thats Right The Good, The Bad and the Ugly

Now lets jump right into post that I really enjoyed:

The Good:

Robert Ashby: Just How Hard is it To Make Money. Here is the bottom line for those who have not read Roberts posts before... THEY ARE A MUST READ.  Robert really knows the true cost of money.  If he writes it we should read it.

Jeff Belonger: Nehemiah/ Ameridream Down Payment Assistants: I know the norm when posting for the week is try and show posts that where not featured but this post is worth the read twice!  Jeff really spells out how the programs work.. the good and the bad...

Jason Sardi: Some Quips & Tips about Adjustable Rates: Truth be told Jason is one of my favorite writers here on Active Rain and he wrote another great post about ARMS.  No they are not the root of all evil!

Stacey King: The Clear Facts on VA: Stacey really cuts through the Beep (you know what I meant) This is a real overview about VA loans. 

The Bad:

Richard Bueno: A Realestate marriage. Now many of my readers know I am divorced and when I read about the diamond ring in the post I got shivers down my back.  A must read to see and understand what a Diamond Ring means in a Pre-Approval vs. Pre-qualified.

 Casey Brischle: Warning Realtors-Do You Know Who You Are Referring. This post hit a homerun with just from the title alone. I can't tell you how many times I have heard oh I wish I sent my client to you instead of my Mortgage Person... Yada Yada Yada...... Casey really takes the high road in this post

Brian Brady: Negative Amortization Loans: No offense to other Mortgage Professionals on Active Rain but Brian is truly in a class by himself.  I was fortunate to speak to Brian a couple of times on the phone and quickly realized how much he has to offer his readers.  This post is another great one on Neg Am Products. I am with Brian on this I am so sick of the Monday Morning Quarterbacks.

The Ugly:

Travis Neliton: Are You Getting the Best Deal. Travis really wrote a great post about the basics and how many people really don't make sure the person they are dealing with is qualifed for the biggest investment purchase.  

Matthew Blum: Great News Florida! 660 Stated is Back: Ok so maybe this is self-promoting my post but this really is great news for Florida to see some of these programs starting to come back to help our troubled housing market in Florida.

Bob Gammache: Beyond Craigslist. This post is not about mortgage's but the reality of marketing online. It is a pain and yes well all have to do this but this is a great post with lots of amazing links.  For those who market online this is a must read!

 *Note: I was just having some fun with these posts they are very good posts.  Please do not read more into it than is their.  To me these are all the best of this past week.

The next 3 members for the Mortgage Pro Week in Review : 

 •1.      Joey Aszterbaum    06/09/2008    through    06/15/2008

•2.      Alan 'AJ' Nisen        06/16/2008    through    06/22/2008

•3.      Jennifer Bukaty       06/23/2008    through    06/29/2008

Mortgage blogs by loan officers   Here is a list of Loan Officers.  If you are not listed, please email Jeff Belonger to be added. This way the person doing the Mortgage Pro week in review can try and find most mortgage related posts in one section. ActiveRain is growing rapidly and it is difficult to keep up.... If you think you have been ignored, you have not. This is open to all!!!

All About Mortgages/Mortgage Networking   Here is a group that many loan officers post their mortgage related blogs in.  A good place to learn more about the type of programs, new industry news, and sometimes some inside tips. Don't hesitate to join.

 We really could use some new volunteers for the Mortgage Pro Week in Review. Even if you are a realtor, a title person, or someone else that is related to the mortgage/real estate industry..... please read below.

MORTGAGE PRO Week in Review    A repository for the Mortgage Week in Review.  Please don't hesitate in joining this group. And any volunteers for the mortgage week in review, please e-mail Jeff Belonger at   jbelonger@ihmci.com

There will be no recreations of any type regarding the titles or content of this group or Review without the permission and expressed written consent of the Group's founder

Mortgage Pro Week In Review - Copyright 2008^©

Hard Money / Private Money Home Equity Lines of Credit

As a Mortgage Broker in Palm Beach Gardens, Florida (Northern Palm Beach County) I have found many of my clients looking for Home Equity Lines of Credit(HELOC) or just plane seconds because they have such a great first Mortgage. Recently, with all of the guideline changes and the market conditions going crazy it was almost impossible to get a first Mortgage let alone a second one.  This is why I am so excited to have one of my Investors come back in the market with this product.

Minimum Loan Amount $25,000

No-Prepay

No-Prepay (worth writing that twice)

80% must be drawn at closing

No Proof of Income

Credit only as a guide

Independent Appraisal (not from Lender)

Closing can take place in as little as 5 days

If you have any questions please feel free to call or e-mail any time. (561)294-3202

For FREE Mortgage Advice: Mortgage Advice in South Florida

Last year I wrote a post about purchasing a home during Hurricane season and the things you should be prepared for. Thankfully the AR higher up's did feature this post and after reviewing it I believe it really should re-looked at. so here is the post:

Mortgage Advice For Hurricane Season

Right now Florida really has really become a true buyers market. With Mortgage programs coming back such as Stated programs and many more I have seen people wanting to start to take advantage of such great buys. Don't let this true buyers market go by.

For More Mortgage Advice: Mortgage Advice in South Florida

First off: No the headline is not a typo. (5/30/2008).

It is true in South Florida we have seen a surge of a true Buyers market. However, many of my clients cannot always provide full income documentation. This is why I am so excited to start to see some of the loan programs coming back.

If your credit score is above a 660 and can provide proof of your assets you may still be able to qualify for up to a 90% financing on a primary property. (w/ a 700 FICO No proof of assets would be required)
These programs are not Fannie Mae, Freddie Mac or FHA programs. This type of financing are manually underwritten. (no Computers) Their will be an actual person at the other end of your file to review your application.  You don't have to listen to what a computer has to say! 

Before all the changes within the mortgage industry many people would have called this Alt "A" Financing.  What this basically means is that these borrowers are genuinely solid borrowers, but just for some reason don't fit into a square hole.  Before you ask YES the rate is slightly higher than that of a true Fannie Mae or FHA Loan but please keep in mind those loans are either for higher credit scores or full documentation loans.  As always RISK = RATE

XX

Basically if you have a 660 FICO to borrow a quote from Jerry Macguire "Show Me The Money" and if you have a 700 + Fico then you might be able to go with no proof of assets as well.