Mortgage Advice in South Florida

Cigars, Palm Beach Gardens and Networking Does it Get Any Better?!?!?

My Favorite Mortgage.net - Matthew J Blum — Sun, 05 Apr 2009 16:33:01 -0500

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

Wow!!!! Did I Make the Right Choice?!?!

My Favorite Mortgage.net - Matthew J Blum — Tue, 14 Oct 2008 07:02:29 -0500

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.

Another One Bites the Dust... Good Bye

My Favorite Mortgage.net - Matthew J Blum — Mon, 21 Jul 2008 19:14:45 -0500

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

Happy Fathers Day. The Life Lessons We Have Learned

My Favorite Mortgage.net - Matthew J Blum — Sun, 15 Jun 2008 08:29:06 -0500

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?

You Have Come To The Realization That You Need a Hard Money / Private Money Loan.. Now What

My Favorite Mortgage.net - Matthew J Blum — Sat, 14 Jun 2008 09:40:18 -0500

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

Myths About Hard Money / Private Money in Florida

My Favorite Mortgage.net - Matthew J Blum — Fri, 13 Jun 2008 06:11:15 -0500

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

Mortgage Pro Week in Review from June 2nd to June 8th

My Favorite Mortgage.net - Matthew J Blum — Mon, 09 Jun 2008 23:40:32 -0500

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

WOW Great NEWS! Hard Money / Private Money 2nds Are Back In Florida (HELOC'S)

My Favorite Mortgage.net - Matthew J Blum — Wed, 04 Jun 2008 14:26:52 -0500

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

Hurricane Season is Back. Things You Sould Know in the Mortgage Industry

My Favorite Mortgage.net - Matthew J Blum — Wed, 04 Jun 2008 06:28:35 -0500

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

Great News Florida! With a 660 FICO Stated Loans Are Back up to a 90%

My Favorite Mortgage.net - Matthew J Blum — Sat, 31 May 2008 14:29:13 -0500

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

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.

Congrats You Just Bought the CD Set on How to Buy Properties with Hard Money........

My Favorite Mortgage.net - Matthew J Blum — Thu, 15 May 2008 10:55:42 -0500

Before I begin this post a warning it may lean towards a venting of the industry. (Please consider yourself warned) As many of my readers know I work with many Hard Money / Private Money Investors so naturally I receive many phone calls from perspective clients who read my blogs.

It seems right now with our economy in the state that it is in many people are trying to figure out how to make a fast buck. This is why more and more of these late night infomercials are popping up telling the consumer for 3 simple payments of ------ they can learn how to buy property that are undervalued and use creative financing to help you buy with no money down.

OK!!!!!

Yes, traditionaly what they are telling you is the truth. Hard Money and Private Money only uses the appraised value and then a set amount Loan to Value (LTV) and if you are purchasing the property way undervalue you might be able to purchase with little to NO money down. HOWEVER, as anyone can tell you we are not living in the past in Florida. I know of NO Hard Money / Private Money investors giving a 100% on property anymore unless the person has great credit and in that case lets face facts you can go traditional financing and do not need Hard Money.

In Florida for example you are purchasing a home that is appraised at $300,000 and your purchase price is $200,000 yes on paper you are getting a great deal. However, the way most Hard Money Investors are looking at this is the propety is really only worth 200,000 because that is what it is worth in your mind and therefore that is the real value. Now please keep in mind I do have some investors that will still use the appraised value but what those wonderful Infomercials don't tell you is that these programs come with several points upfront and the rates are usally starting at the low double digits. This money does not come cheap.

In closing, before you rush out and spend your hard earned money on a quick rich sceme in Florida why not ask your true Mortgage professional questions. Remember there is never a charge for a question.

For more Mortgage Information: Mortgage Advice in South Florida

In The Business Special From Jupiter AAMCO

My Favorite Mortgage.net - Matthew J Blum — Mon, 05 May 2008 08:35:25 -0500

With our economy in South Florida working at a snails pace many of us our opting to hold on to our cars longer these days. This in turns mean we will have to perform more maintaince on our vehicles. It is nice to know that we have a place in Northern Palm Beach County that feels our pain, Jupiter AAMCO. I know at first I believed all AAMCO does is Transmissions but the fact is they do a lot more than that and lets face facts, if they can tear apart a transmission and rebuilt it the ods are they can probably do most anything to your vehicle.

I met Bruce (The Owner) and the gang when I needed service and found them to be a very honest and caring shop about my needs on my Lincoln. Below where some of the specials that they offered me.

Check Engine Light On (FREE Check)

Oil Change from *$19.95

AC Check (FREE)

71 Point Vehicle Check (FREE)

Brakes From $159.00

To find out more about Jupiter AAMCO please call them at (561)745-6567

It is truly nice know I have found an honest place to handle all of my automobiles service needs.

Summer is Coming is Your Vehicle Ready?

My Favorite Mortgage.net - Matthew J Blum — Thu, 10 Apr 2008 10:28:56 -0500

Living in South Florida (Palm Beach Gardens) and with the Economy slowing down many people are opting to keep their vehicles longer, including your Favorite Mortgage Broker. With the temperature rising it is a sure tell tail sign that Summer is coming and maintain our vehicles is important. Along, with Gas prices at record highs and know sign of relief, is your Car or Truck at peak performance?

Many people believe in just changing the oil for maintenance but the truth is their is much more to do than just oil changes. If you have an older vehicle ask your Tech if a 20/50 weight oil is advised. Also, on your next Oil change make sure to check your air filter. If your car or truck has to work harder to get the oxygen to the engine your gas mileage will suffer as a result. Another recommendation for those of us who have fuel injection systems (almost everyone now) when was the last time they where serviced? By keeping them clean and operating at peak performance you will see how you get better gas mileage as-well.

Newer vehicles have 100,000 mile spark plugs. However, if you read the fine print you will see UP TO 100,000 miles. Have your spark plugs checked by a professional Tech and at the same time maybe a tuneup could be advised. Make sure all your cables and connections are good because with faulty or deterring cables you will suffer gas mileage. Remember if the engine has to work harder your gas mileage will suffer.

As many of us who live in South Florida know the heat in summer is stifling. How do you think your vehicle feels? Make sure your radiator is serviced as well. The last thing you want to be is on the side of the road in this heat.

In closing, living in South Florida and with our Economy hit hard many of us our keeping our cars and trucks much longer than normal. Make sure your vehicle is up for the task.

Want to Refinance Your Home Loan? Have a Home Equity Loan... Be Warned

My Favorite Mortgage.net - Matthew J Blum — Sun, 06 Apr 2008 09:27:42 -0500

As a Mortgage Broker in South Florida (Palm Beach Gardens) I have seen this scenario all to well with my clients. They would like to take advantage of a new lower mortgage and have a Home Equity Line of Credit. Now any lenders including Bank of America will not re-subordinate their HELOC's if your are in Florida.

So what does Re-Subordinate mean?

On the title of your property you have lien positions. Your current mortgage is in first position or first mortgage. When you opened a HELOC on your home that loan went into second position behind your first mortgage. Now when you want to refinance your first your second will automatically be moved into the first position unless the current lien holder on the second will subordinate behind the new first mortgage. In years past this has never really been a problem but with the current housing crisis in Florida plus most of Florida being labeled a "Declining Market" most of the lenders are now not Re-Subordinating anymore.

But I Have Equity

If you have equity more than 20% it will be on a case by case basis. However, please keep in mind the following example of how equity works:

Value of Property 1st Mortgage 2nd Mortgage Balance Credit Line on HELOC

$300,000 $200,000 $50,000 $50,000 (maxed)

This is a very typical Refinance.

The borrower would like to condense the two mortgage into one. The new mortgage would be for $250,000 plus closing costs. If the borrower would leave the second mortgage open even if it had a zero balance it would make for a 100% financing. The reason is the borrower has the ability right after closing to go and take out that money once again.

What If I Don't Pay Off the HELOC?

Even if you don't pay off the the second mortgage or HELOC the lender would still have to approve the new first mortgage.

In closing, if you find yourself searching rates and programs please make sure to find yourself someone who has been recommended or do your home work on the person. Make sure you just don't fill out something online for more information. In most cases these people are not licensed and last week they where doing something else for employment. Make sure you are dealing with a Mortgage Professional.

For more information: Mortgage Advice in South Florida

What is The Blended Rate and Why is So Important

My Favorite Mortgage.net - Matthew J Blum — Tue, 25 Mar 2008 08:05:42 -0500

With Mortgage Rates relatively low and with the Federal Government lowering the Prime Rate many of my clients in Florida are starting to consider refinancing their current Mortgage's. However, before you rush off to your favorite Mortgage Broker I would recommend you find out what your Blended Rate is. (The True Cost of your Money)

Many of my clients have taken out over the years Home Equity Lines of Credit.(HELOC) These type of loans are tied to the Prime rate. The rate as of today (3/25/2008) is 5.25% but in many cases if the clients credit was very strong many banks who issued these Credit Lines had fantastic deals. This is the case of one of my clients. I refinanced their current loan a while back to a fixed rate mortgage, because they had long term plans to stay in the home and the rate was 6.25. After the loan was closed my client was approved at their local bank for prime -.50 for the life of the loan. In today's market that would make the interest rate 5.25 -.50 = 4.75%.

This leads me to the purpose of this post. Earlier in the week the client had seen you can now get a 30 year Fix in the 5's and was thinking maybe they should refinance their current mortgage. This led me to a meeting with my clients to explain what the "Blended Rate" is and to see if it makes sense.

Current Rate 6.25% (1st Mortgage) 4.75 (2nd Mortgage HELOC)

Balance Balance

$300,000 $100,000

Now lets do some simple math:

300,000 + 100,000= 400,000

1st Mortgage = 75% total owed

2nd Mortgage = 25% total owed

Now we take the 1st mortgage rate 6.25 x 75% (6.25 x.75) = 4.69

Now we take the 2nd Mortgage rate 4.75 x 25% (4.75 x.25) = 1.19

From this we total the two numbers to find the "Blended Rate" of 5.88%. This represents the true cost of what my clients mortgage is or the cost of money.

Now with the current state of the economy it would be a pretty safe bet that we are not going to see the Prime Rate going anywhere but down. In Florida, this loan on average would of cost in closing costs around $8,000 with no points or fee's from myself.

My suggestion if you are thinking of refinancing please review both your notes to see what you true rate is. In addition many Home Equity Lines of Credit have different terms and conditions many of them have teaser rates (rate is good only for so long). If you have any questions please consult your Mortgage Professional to find out what your Blended Rate is.

For More Mortgage Advice: Mortgage Advice in South Florida

Payment Calculator: Payment and Amortization Calculator

Oliva Series V, Tiger Woods and Business Does Life Get Any Better?

My Favorite Mortgage.net - Matthew J Blum — Mon, 17 Mar 2008 08:53:57 -0500

Cigars, Tiger Woods and Mortgage Business... Life is Good!

Life is always good when you can go to your local Cigar Shop and enjoy an Oliva Series V, watch Tiger Woods march his way on to a perfect season of Golf and find new business as well.

Now this is not an endorsement for you to run out and start smoking. However, even if you don't smoke, don't assume that what takes place in Cigar Shop's around the country is just a bunch of old fat guys talking about remember when. Because of smoking laws around the country many of these shops have become more lounge like. If you don't enjoy a good cigar that is ok you can still go in these shops, watch TV, drink and mingle with the people. You will be surprised who you will meet.

This past weekend I was at my local Cigar Shop enjoying a Olivia Series V Double Toro (in my opinion a great stick) while watching Vijay blow his lead on Saturday the person next to me had his cell phone ring. OK, so maybe I am nosey. I overheard the conversation about this person moving down to Palm Beach Gardens and the word Mortgage was also used. (The Magic word)

Well one thing leads to another and we started talking about Mortgage's and it turned out this gentlemen is a Hard Money Commercial Investor. He was down in the area because he was tired of the cold and thinking about moving down here. Even though this turned out not to be a loan for me it did however, turn out to be a great new connection for Hard Money Commercial deals. In fact, this gentleman offers some very unique products for the investor of Residential properties as well in the form of Blanket loans (stictley on the wholesale side)

In closing, next time you are near a Cigar Shop you might want to think twice before walking by. You never know where your business will come from.

Want To Know How to Buy a House in Florida?

My Favorite Mortgage.net - Matthew J Blum — Thu, 13 Mar 2008 08:56:01 -0500

Want to know how to buy a house in Florida? Please press play and continue to read while the music is being played.

Ok, so this post is going to be more of a vent but this is the harsh reality people. If you want to buy property now especially in Florida you are going to need MONEY. That is the bottom line. Gone are the 100% financing with a 6% seller concessions. This just does not exist.

You can keep calling all the Lenders and Mortgage people you want have your credit pulled hundreds of times continue to waste people's time. The harsh reality is Money cures all. Because the Bottom line MONEY TALKS

If your credit isn't perfect this is not a problem you can still qualify for a mortgage keep in mind MONEY TALKS

You have Great Credit but can't prove your Job or Money. Not a Problem MONEY TALKS

You Want to Take advantage of a great buy well under the appraisal. Here is a thought if the property was really worth what the appraisal says it is you would have paid that price for the property. So MONEY TALKS

You just left the $99 Seminar on how to buy property with no money down.. Guess what?!? That person just got $99 from you because MONEY TALKS!

You want to take advantage of a high Appraisal and a low purchase price and after leaving your seminar you found out about "Hard Money" working off appraised values. Guess what?!? The Hard Money Lenders at best today in South Florida will go 50% of Appraised value if that (for a purchase). The feelings they have is the same as above if the property is worth "X" you would have paid "X" not 50% less.

Sorry to vent but we have to face the facts if you want to purchase property in Florida the reality is your need Money Down and also money in the bank after for reserves. Having money down and having money in the bank after says plenty to the Lenders. MONEY TALKS!

We have some amazing Mortgage Professionals on Active Rain: Robert Ashby, Jeff Belonger, Brian Brady, Tom Burris, Ken Cook, Mike Jones, Mike Mueller, David Podgursky, Jason Sardi, George Souto but here is a clue if after going to all of these people and the answer is still NO....Guess What? Let me save you some time the Answer is NOand that is the bottom line unless you have more money....Because MONEY TALKS!! In this market. If Loan Officers are still quoting you either 100% loans in Florida be careful because most likely it is a lie or something that is not legal.

Whew... I feel better now. Thank you for letting me vent. I will now get off my Soap box

Business Cash Advance. No Liens, No Collateral, No Hassle!

My Favorite Mortgage.net - Matthew J Blum — Wed, 12 Mar 2008 08:00:37 -0500

Business Cash Advance

As a Mortgage Broker in Palm Beach Gardens, Florida many of my clients are Self-Employed Borrowers. Many of these Clients Business are based on Seasons and therefore have up's and down's on their cash-flow. This is why I am so excited about a new product that one of my Investors/Lenders is now offering.

Business Cash Advance

You might be asking what is Business Cash Advance. BCA (Business Cash Advance) or sometimes called Merchant Credit Advance, is an advance of real Dollars $$ to a Merchant based upon the average Credit Card use (Visa/Mastercard only) Features include:

NO Personal Guarantees
Quick Funding (Usally between 3-7 Business Days)
Minimal Requirements

So now that I have your attention, you might be asking yourself how does this program work? The Business or Merchant is advanced a percentage of their average monthly credit card use (12 month average) typically 125%. Then a portion is taken out of every future sale over the next 9 months. If you have a slow month your payments will reflect that. Perfect for a Seasonal Business.

Business that are Eligible

Bar / Nightclubs
Beauty Salons
Dry Cleaners

Gas Stations
Restaurants
Retail Sales

Hotels / Motels
Auto Repair Shops
Day Care Centers

Convenience Stores
Nail Salons
and so many more....

The Fun Part:

Requirements

Minimum of 12 months that the Business has been accepting Credit Cards (Visa/Mastercard)
minimum of 15+ Transactions a Month
$5,000+ a Month in Credit Card Sales
All Bankruptcies have been discharged over 12 months
Minimum of 1 year remaining on current Lease
Personal Credit is Looked at as a guide only (FICO is not a determining factor)

Some of my readers on my blog have been asking if I am leaving the Mortgage Business because I have expanded the products that I offer my clients. I believe in the current market conditions only the strong will survive. As a Mortgage Broker I am firm believer that we must expand what we offer our clients and Business Cash Advance is just one of the new products that I am offering.

For More Mortgage Advice: Mortgage Advice in South Florida

For More Info on this Product: Business Cash Advance

ATTN: ATTN: Mortgage Brokers / Loan Officers Turn Cannibalistic

My Favorite Mortgage.net - Matthew J Blum — Tue, 11 Mar 2008 07:25:49 -0500

As the Mortgage Industry continues to make changes and tighter underwriting guidelines more and more websites have popped up to "Help" place loans for the Mortgage Broker as well as the Loan Officer. Recently, I was on one of these sites to place a loan scenario for a hard to place loan. (yes believe it or not I don't know everything)

Now I have been in sales for over 20 years so this isn't my first rodeo. Now keep in mind the responses to these posts are supposed to only be by the Wholesale Lenders Account Executive. Below is two e-mails that I received from these "Account Executives"

Hi Matt,

This is xxxxxxxx from __________, CA. Here is the Pre-Qual for NA deal. Click the following links to access more information regarding the Pre-Qual. You can find any attached loan documents through the link below.

(now this looks good so far right?!)

This is only RETAIL program, we just launched. We charge only .500. We have over 650 programs on the best innovative engine. We have 40+ yrs experience in the business. Looking forward to working with you. Thank you.______

Now after a little bit of research on my end ok Googles end I was able to find the company and find out they are nothing more than a pass through company. Which means they would close under their names and then sell the paper to the other lender. However, in this case they have no plans of closing under their names just either to steal the client or after everything is done offer a co-broker deal to you.

Here is the second e-mail

I can get it done! I will need a 1003 and credit first. HOWEVER, for now... there is No YSP! So, you will have to make it all on the front. If that's doable, then, shoot me over 1003 & credit. THANKS, .........

(notice this person did not even use my name)

my response back:

_______,Are you the End Lender? I am not looking to co-broker this deal or watch it get stolen from someone else. If you are the end lender please send me your information.

His Response:

I can get it done! I will need a 1003 and credit first. HOWEVER, for now... there is No YSP! So, you will have to make it all on the front. If that's doable, then, shoot me over 1003 & credit. (look familiar)

My Response:

__________, You did not answer the question so I can assume your a broker as well. (funny I did not get an e-mail back)

Now please don't get me wrong, we all need help sometimes and I have used these type of sites for awhile and have found them for the most part pretty good. However, recently with all the changes it seems more and more Mortgage Brokers / Loan Officers are abusing the system and claiming to be the end Lender just to get your clients information.

In closing, please remember before you rush off to send these people your clients information, including their Social Security numbers and all their personal information make sure you really know who you are talking to first.

Don't be:

Do the Zoo! The Palm Beach Zoo

My Favorite Mortgage.net - Matthew J Blum — Sun, 09 Mar 2008 14:57:00 -0500

Do the Zoo

The Palm Beach Zoo

If you are lucky enough to find yourself in South Florida (Palm Beach County) make sure you leave yourself time for the Palm Beach Zoo. Sure Miami has Metro Zoo, (over an hour drive South) but Palm Beach County has its own Zoo right here in the heart of West Palm Beach.

I believe this Zoo is one of the Jewels of the Palm Beaches. It is smaller than the big ones but still has plenty to see and do without all the crowds. Plenty of shows for the little ones...ok big ones as well.

The Zoo is open 363 days a year from 9Am to 5pm daily. The show has shows running throughout the day. Recently, the Zoo has had some changes done so if you have not been their in awhile I recommend it is time for trip back. Palm Beach Zoo even has a Carousel ride.

If you visit in the summer I recommend you bring a swimsuit as the Zoo has great fountains to cool you off on those hot summer days. If you forget your lotion don't worry they have a gift shop where you can purchase some.

Palm Beach Zoo has just added a new Reptile House.

The Zoo is located at 1301 Summit Blvd in West Palm Beach. For directions call (561)547-WILD. For more information you can go directly to the Zoo's web site: Palm Beach Zoo

Attn: Investors! How Would You Like to Be Part of The Hard Money Business? Part II

My Favorite Mortgage.net - Matthew J Blum — Fri, 07 Mar 2008 07:45:35 -0600

If you have not read Attn: Investors! How Would You Like to Be Part of the Hard Money Business part I please read that post first to fully understand how this program will work for you. Once you have read that post and decided you want to move forward here is what you can expect.

After deciding on whay type of properties and loan amounts that you would finance either on your own or with a group below is an example of what can expect on your first e-mail:

FICO 690
Loan Amount $1,800,000
Loan-To-Value 65%
Program Stated Income and Verified Assets
X- Amount of Assets have been Verified
Paying Investor 12%

The 12% is what you, the Investor would be making on your Secured investment. How many other investments in today's world are paying 12% with it being secured? Now the reality is not everyone is liquid enough for that kind of investment. However, as in my first post you can pool your money or set up your comfort level of any set loan amount.

If this sounds like something you are interested in please contact me anytime for more details.

Need Hard Money / Private Money Short Term? Here is What Can You Expect

My Favorite Mortgage.net - Matthew J Blum — Tue, 04 Mar 2008 07:30:09 -0600

Need Hard Money / Private Money Short Term?

With the Mortgage Crisis in full swing and many "Investors" wanting to take advantage of a down market in Real Estate I have found many Investors are turning towards Hard Money / Private Money Mortgages for their financing needs. The purpose of this post is to inform the novice or the short term investor what to expect when choosing this type of financing.

Before I begin please understand the following:

Your Loan is a High Risk Loan

No Matter if You Have the Following:

Great FICO
Great Loan To Value of the Appraisal
Documentation
Years of Doing Investing

Your Loan is a High Risk Loan Period.

I have found many either Novice investors or Investors new to Hard Money lending getting confused with points vs. rate. Many believe that it is a "Good Thing" for the Hard Money Lender to be paid off quickly and therefore don't have to pay a lot of points. WRONG!

Please remember these Lenders are not the Church, they are not a Charity, they are in business to maximize their profits. The money that they are lending you has to be pulled out of somewhere else where they are making a return on their money so hopefully they will make a higher return with you and your loan. By paying off your loan quickly the Interest rate that they are charging is insignificant because you will only be making a few payments. (Short term meaning under 6 months)

Example:

Loan Amount: $250,000

Interest Rate 12% = $2,500

2 Points = $5,000

Gross Profit of $7,500

Now keep in mind that is gross. They have an office staff they have to pay for out of the profit. In addition please take a look at it from the Hard Money Investor for a moment.

Hard Money Lenders Point of View:

$250,000 liquid making X (in a safe investment)

3% Return on your money for a High Risk loan. ($7,500)

Would you reach in your pocket and lend your money on a high risk loan (No Matter how you look at it, when you go to a Hard Money Lender it is a High Risk Loan) for a 3% return? I know my answer would be a big NO! Now lets take a look at reality.

Loan Amount $250,000

Interest Rate of 12% = $2,500

5 Points = $12,500

For a Gross Return of 6%

This is better but not great. Please remember if you choose to seek out a Hard Money / Private Money loan don't let yourself get to involved. Please look it at from their side for a moment. These Lenders DO NOT want your property. Especially in the current Market.

For more information on Hard Money / Private Money: Mortgage Advice in South Florida

Attn: Investors! How Would You Like to Be Part of The Hard Money Business?

My Favorite Mortgage.net - Matthew J Blum — Thu, 28 Feb 2008 12:53:02 -0600

As a Mortgage Broker in South Florida (Palm Beach Gardens) I have built up a reputation as the "Go To Person" when it comes to Mortgages including Hard Money Loans, Alt A, Sub Prime, Jumbo's and Super Jumbo's. With the housing Market what it is I have found most of my investors (Purchasing investor homes, condo's, commercial, etc...) staying on the sidelines waiting to pounce once they feel comfortable.

I have been approached many times from my Hard Money investors to try and recruit more investors to help pool their money and have never felt comfortable til now. I am very excited to offer this to the "Investor"

Below is a break down on how this works:

You decide what properties you will invest in
You decide what Loan-to-Value you will except
You are in total control of your money
You decide what loan position you want to be in 1st or 2nd
You see the entire application of the Borrower
You see the Appraisal
You can pool your money with others
You decide how much you want to make Minimum of 10% to 14% depending on property and loan position

This company is a 4-year old company. They originate well underwritten and well secured "institutional quality" residential real estate loans while taking advantage of the flexibility afforded through private money lending.

Since the inception of the company in 2003, the Company has never lost Investor capital, while returns have ranged from 10.5% to 15.0% and more, depending on each Investor's risk profile and investment objectives. These interest returns are materially more than the compared to 4% to 5% found in mainstream investments.

Their strength lies in our intense, rigorous professional underwriting prior to each investment and active portfolio management after the investment. They are a conservative in "opinion of value" and invest at a combined LTV of 65% or less, on average, leaving equity protection of at least 35%. In addition, the contracts provide you (on behalf of the Investor) to take immediate actions to protect our Investor's interest and capital. The filtering and due diligence process assures that they present only well-qualified properties to our Investors. Investor funds are always managed through 3rd party reputable accounts (such as, Land America Title). Our servicing collects interest and principal payments.

This is an excellent vehicle for real estate investors who do not have the time to perform the up-front deep due diligence necessary, but desire meaningful returns, on well-secured real estate.

Currently only Lending in California. The Investor can be anywhere.

Products

•□ 1st Trust Deeds 10.5% - 14.0%

•□ 2nd Trust Deeds 15.0% - 19.9%

The typical range and size of each investment are:

Products Range Average

•□ 1st Trust Deeds $300,000 to $1.5mm $500,000

•□ 2nd Trust Deeds $ 40,000 to $300,000 $ 70,000

A Typical Investor

•□ 10 or more properties (for diversification purposes)

•□ 15% Return (on average)

•□ Fully secured with California-only residential real estate

•□ Average combined LTV of 65%

•□ Average repayment of 1 year; (money is reinvested again, if desired)

•□ Selectively chosen properties to protect Investor's capital

For more information please contact me (561)294-3202

Spring Training is Back for the Marlins and Cardinals in Jupiter Florida

My Favorite Mortgage.net - Matthew J Blum — Mon, 25 Feb 2008 06:11:17 -0600

Jupiter, Florida has an area called Abacoa which houses the Spring training facilities for the Florida Marlins and the St. Louis Cardinals. Yesterday (Sunday) was another picture perfect day in South Florida for this time of the year. I was able to take my son (6) along with my Father and Uncle to go watch the Florida Marlins practice.

For those who have not made it out to these practice facilities, (Roger Dean Stadium) I am here to tell you that they are so fan friendly. From the even Staff asking if they can help you find anything down to the players themselves. My son was able to have his baseball signed by 9 players from the Marlins. (some are very big names) All the players where very nice and took their time to sign all the kids baseballs. Unfortunately, you also see the ugly side of the business when you have grown men with books and books of baseball cards trying to get the players to sign so they can then sell it for a profit. However, nothing could spoil our day at Roger Dean Stadium.

When players go from field to field they are usually asked for autographs by many of the children. One of the Marlin's players told my son the only reason why he signed his ball was because he had good maners and used the word please. A great lesson for the other children and grown men who where pushing the pens in these players faces like they owed it to them to sign.

If you find yourself in South Florida (Northern Palm Beach County) and want to make a great day of it. Come on out to Roger Dean Stadium located in Abacoa and watch the Florida Marlins and the St. Louis Cardinals play ball. (Jupiter, Florida)

Need More Information on Hard Money Type Loans? Please Read.......

My Favorite Mortgage.net - Matthew J Blum — Thu, 21 Feb 2008 15:28:45 -0600

As many of my readers know I am a Mortgage Broker in South Florida (Palm Beach Gardens) and work with several different lenders. Throughout my years in the business I have built up a reputation for Hard Money Loans, Jumbo, Super Jumbo's and Sub-Prime Mortgages. Lately, I have seen a big surge in Hard Money lending and have received many inquires as to them.

The phone call or E-Mail usually starts off with "Can you Give me Your Rates on Hard Money Lending". To me this is the same is if someone is asking what is your rate today on a conforming A+ loan? A good Loan Officer/Mortgage Broker can't answer that without having more knowledge about what your needs and wants are. Hard Money Lending is NO different.

LENDERS/INVESTORS WANT TO KNOW THE FOLLOWING:

Credit. (Yes credit is looked at, but as a guide)
Loan-To-Value. No it is not a standard 65% across the board some will go higher some will go less
Type of Property. Condo's, Single Family, Duplex, etc......
Documentation. No this is not a typo Lenders DO NOT Want Your property. They want to see the ability to repay the loan. Yes you can still go "No Documentation or Stated" however, pleaser keep mind of the previous bullets.
Exit Strategy. This is for Investors.
Purchase Price or Appraised Value. Yes Some Hard Money Lenders will still go off the Appraised value and not the Purchase price.

So What is My Rate?

Now that you see everything that goes into a file (looks familiar) you can see why I don't advertise rates. The reality is I have some lenders/Investors that can start in the 10% and go as high as 18% depending on all of the above. In addition, the points to do these loans can be as low as 3 points or as high as 10 points. (point = 1% of loan amount) It all goes back to the complete file not just something I pulled out of thin air.

In closing, when searching out one a Hard Money Lender be prepared to give the full financial picture of what you are trying to accomplish. Let's face facts you don't go to these type of lenders because the rate is so good. You go their because of time, guidelines or because of credit issues. NOT RATE.

For More Mortgage Advice: Mortgage Advice in South Florida

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