Joseph's Blog

Put your portfolio to work for you with Securities Based Loans!

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Mon, 27 Jul 2009 09:20:28 -0500

Put your portfolio to work for you with Securities Based Loans!

MAC Investment Company LLC. brings you... Securities Based Loans!

Securities Based Loans are an ideal source of fast funds for someone who holds publically traded stocks, bonds, mutual funds or US Treasuries, traded on almost any stock exchange in the world, and wants to borrow money against them.

They are also an ideal source of funds for foreign nationals, borrowers with limited or undocumented income, less than perfect credit (we do not check credit) and borrowers who want large loans with no maximum loan amount.

Some important points....

● Interest rates range from 2.5% to 4.5%, fixed, interest only payments

● Up to 80% LTV

● Low origination fees; no other closing costs

● Close in 7 to 10 business days

● Loan periods from 3 to 10 years

● Loans are NON-recourse, and not recorded

● Minimum loan amount $100,000; NO MAXIMUM

● Funds may be used for any purpose except to buy marginable securities

● Stock must be free trading without restrictions

● Retirement accounts, CDs, money markets, and annuities not eligible

Current Commerical Lending Matrix - North America and Caribbean

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Mon, 27 Jul 2009 09:19:00 -0500

MAC Investment Company, LLC

Current Lending Matrix - North America and Caribbean

•· Lending Parameters Overview - Senior Debt

•· Interest Rates: Libor+

•· Amortization: Interest only & Standard Amortization

•· LTV: Up to 80% on income producing properties

•· LTC: Up to 90% on income producing properties

•· CLTV: Up to 90% on income producing properties

•· Origination Fee: 2 - 6% taken at closing from the loan proceeds

•· Loan Terms: 1 - 30 years

•· Closing times: 30 - 90 days

•· Loan Size: $10,000,000 to $150,000,000 +

•· Credit: Greater than 600 Fico (Exceptions on strong collateral)

•· Allow Subordinate Financing: Mezzanine, Cross Collateral, Seller Seconds etc...

•· Cash Down: Borrower needs at least 10% Top Line Equity

•· Lending Parameters Overview - Equity

•· Interest Rates/Required Yield: 12%+

•· LTV: Up to 80% on income producing properties

•· LTC: Up to 95% on income producing properties

•· CLTV: Up to 100% on income producing properties

•· Origination Fee: 5 - 10% taken at closing from the loan proceeds

•· Loan Terms: 1 - 30 years

•· Closing times: 30 - 90 days

•· Loan Size: $5,000,000 to $150,000,000 +

•· Some Collateral types that we are interested in are:

•· Office Buildings

•· Apartment Buildings

•· Mixed-use

•· Shopping Centers

•· Warehouses

•· Multi Family

•· Hotels/Motels (flagged)

•· Owner-Occupied Facilities

•· Vacant Properties

•· Construction

•· Development

•· Land

•· Assisted Living

•· Hospitals

•· Casino's

•· Heavy Industrial Facilities

•· Theme/Water Parks

•· "White Elephants" (very large vacant facilities)

•· Some Collateral types that are not of interest are:

•· Daycare Centers

Joseph V. Scorese

MAC Investment Company, LLC.

joe@reiaofnyc.com

Main Office - 484-221-9277

Direct - 610-351-9927

Fax - 610-351-0903

Interesting Article - Pick-a-payment loans turn poisonous

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Fri, 05 Sep 2008 04:06:46 -0500

http://money.cnn.com/2008/09/02/real_estate/pick_a_poison/index.htm?postversion=2008090311

Interesting Article - Existing home sales rise, but prices still sinking

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Tue, 26 Aug 2008 06:09:43 -0500

http://money.cnn.com/2008/08/25/news/economy/existing_home_sales/index.htm?postversion=2008082514

Interesting Article - Ulzheimer: Why the 'Debt Settlement' Business Is a Scam

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Thu, 21 Aug 2008 16:05:32 -0500

http://www.cnbc.com/id/26316092

Interesting Article - July industrial output better than expected

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Mon, 18 Aug 2008 05:15:54 -0500

http://money.cnn.com/2008/08/15/news/economy/industrial.ap/index.htm?postversion=2008081510

Interesting Article - Foreclosure crisis: The $4 billion fix

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Thu, 07 Aug 2008 22:05:39 -0500

http://money.cnn.com/2008/08/07/news/economy/housing_funds/index.htm?postversion=2008080712

Is it a good time to refinance an Adjustable Rate Mortgage?

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Mon, 04 Aug 2008 14:03:46 -0500

Q - The client has a adjustable rate mortgage. They have been offered a loan modification with a fixed rate for three years. However, at the end of the three-year period the rate will begin adjusting again. Can they refinance at the end of the three-year period and shop for a fixed rate or will they have to wait a certain amount of time.

A - There are different ways to modify a mortgage and your lender would not take such a step unless you had demonstrated that the current arrangement will lead to foreclosure - and loss for the lender.

Traditionally, borrowers have been able to refinance, loans at any time. However, in recent years lenders have created stiff prepayment penalties to discourage refinancing during the first few years of the mortgage term. With the brief background in mind, several points stand out.

First, the lender's offer is better than the alternative,foreclosure now and the loss of the home.Even the lender is plainly working in the best interest, in this case it is also taking a step which can be enormously helpful to you. Many lenders are not offering modifications.

Second, you should do everything possible to re-establish credit and bulk-up savings. Three years is not far away.

Third, what is the new interest rate? New Payment? Is there a prepayment penalty during the modification period. If so, how much?

Fourth, if at all possible do not wait three years to refinance. Instead, look for a fixed rate loan, perhaps somrthing insured by the FHA.

Fifth, also look into seling the property and moving to a home with lower monthly costs. If you can do this when not facing foreclosure your negotiating position will be much stronger.

Your lender has given you a window of opportunity. Since the lender does not have to offer a modification you should take advantage of the situation you have.

Best Regards,

Joseph V. Scorese

MAC Investment Company

http://activerain.com/action/referrals/joemacinvest

joemacinvest@yahoo.com

Toll Free - 877-263-4881

Office - 484-221-9277

Direct - 908-967-4064

Fax - 610-351-0903

Interesting Article - Mortgage rates drop as oil eases

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Sun, 03 Aug 2008 04:45:08 -0500

http://money.cnn.com/2008/07/31/real_estate/mortgage_rates/index.htm?postversion=2008073111

Interesting Article - Instant-Messagers Really Are About Six Degrees

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Sat, 02 Aug 2008 13:46:34 -0500

http://www.washingtonpost.com/wp-dyn/content/article/2008/08/01/AR2008080103718.html

Understanding Cashflow of a Investment Property

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Fri, 01 Aug 2008 09:09:00 -0500

Cashflow Worksheet

Unit Address:

ARV:                                                                                    MDS:

Refi (75%-80%):                                                            Taxes:

Rent:                                                                                   Insurance:

Expenses:                                                                          PM:

Cashflow:                                                                           Expenses:

Cashflow Formula: Rent - Expenses = Cashflow

Terms:

ARV
- After Repair Value. This number is derived from Comps, CMA's,

and other appraisal tools.

Refi

- This the amount you will be refinancing to get your money back from

the property after it has been rehabbed.

Rent

- The highest amount you can get monthly from the property.
Expenses
- The total amount of necessary payments for the property.
Cashflow
- The amount of money you pocket after all expenses are paid

from the rent.

MDS

- Monthly Debt Service. The monthly payment on your refinanced

loan.

Taxes

- The amount of Real Estate Taxes set aside monthly for your

annual payment.

Insurance

- The amount of Property Insurance set aside monthly for your

annual payment.

- Property Management. A monthly portion of the rent paid to the

manager of your property. (Generally Between 6%-10%)

Development Opportunity - Baltimore City

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Thu, 31 Jul 2008 19:47:22 -0500

I met with a developer in regard to this development opportunity. which is
located is south west Baltimore City. The development will be about
20 minutes drive from Fort Meade. The development is comprised of
17 lots- 16 semi-detached homes and 1 detached home which can or can not be
part of the development depending on how the deal is structured.
The estimated resale/sale value of each semi detached home would be
in the region of $275,000. They are 3 bedroom/2.5 bathroom homes
all with off street parking. The planning and zoning is already in
place, the infrastructure is not. The front foot fees have already
been registered with the city.
There are several opportunities available here.
1. An investor can purchase the development outright for
$1,100,000 - the developer can stay on as a consultant for a fee or
not depending on the terms of the sale.
2. An investor can join in a joint venture with the current
developer for a yet to be determined investment. The realty office
I am affiliated with would then list and sell units following
construction or offer them in a presale.
3. The current developer can build the units and realty office I am
affiliated with will offer those for sale at $275,000 per unit.
If you know anyone who might be interested in any of these scenarios
please put them in touch with me.
Thanks.
Best Regards,

Joseph V. Scorese

MAC Investment Company

http://activerain. com/action/ referrals/ joemacinvest

joemacinvest@ yahoo.com

Toll Free - 877-263-4881

Office - 484-221-9277

Direct - 908-967-4064

Fax - 610-351-0903

Interesting Article - Bush signs housing rescue law

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Thu, 31 Jul 2008 05:57:40 -0500

http://money.cnn.com/2008/07/30/news/economy/housing_bill_Bush/index.htm?postversion=2008073011

Interesting Article -Take a bite out of closing costs

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Wed, 30 Jul 2008 05:43:52 -0500

http://money.cnn.com/2004/03/22/pf/yourhome/closingcosts/index.htm

Interesting Article - 10 house-selling secrets

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Tue, 29 Jul 2008 06:13:52 -0500

http://money.cnn.com/2004/03/22/pf/yourhome/closingcosts

What is the Maximum Allowable Offer for Hard Money

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Mon, 28 Jul 2008 09:05:53 -0500

Maximum Allowable Offer for Hard Money Deals





ARV:

*Costs (30%):

Repairs:

MAO:

Starting MAO (-15%):

Formula: ARV - 30% - Repairs = MAO

Terms:

ARV - After Repair Value. This number is derived from Comps, CMA's, and other appraisal tools.

Costs - These are the costs to get into (and sometimes out of) the property. The table below depicts the cost breakdown.

Costs are as follows:

Buying Costs (3%)

Carrying Costs (3%)

Closing Costs (3%)

Margin Of Error (1%)

Equity Or Profit (20%)

Repairs - These are the estimated repairs. Use the supplied Rehab Worksheet to get your initial estimate.

MAO - Maximum Allowable Offer. This is the theoretical maximum you can pay and NOT leave any of your money in the deal after refinancing. This is NOT a requirement to do a deal, however what is acceptable to leave in will be different for everyone depending on your own cash flow and financial ability.

Starting MAO - Get this number by subtracting another 15% from your MAO. This is a decent starting point to begin your negotiations. If you get no counter offers at starting MAO, you will need to increase your initial offer. Market conditions will always impact starting MAO.

Interesting Article - Where the Jobs Are

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Sat, 26 Jul 2008 13:57:15 -0500

http://finance.yahoo.com/career-work/article/105431/Where-the-Jobs-Are

Interesting Article - America's Most Expensive Cities

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Sat, 26 Jul 2008 09:23:13 -0500

http://realestate.yahoo.com/promo/americas-most-expensive-cities.html;_ylc=X3oDMTFubHM5ZnI1BF9TAzI3MTYxNDkEX3MDOTYwMTYyOTIEc2VjA2ZwLXRvZGF5BHNsawNtb3N0LWV4cHNlbnNpdmU-

Interesting Article - America for Sale

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Fri, 25 Jul 2008 17:37:52 -0500

http://www.businessweek.com//investor/content/jul2008/pi20080724_358837.htm?chan=top+news_top+news+index_investing

Interesting Article - Home sales at 10-year low, jobless claims jump

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Thu, 24 Jul 2008 13:50:13 -0500

http://www.reuters.com/article/businessNews/idUSN2450374920080724?feedType=RSS&feedName=businessNews&pageNumber=2&virtualBrandChannel=0

Interesting Article - White House says Bush will sign housing bill

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Wed, 23 Jul 2008 12:33:55 -0500

http://biz.yahoo.com/rb/080723/fannie_freddie.html

Interesting Article - Two Fed myths that need debunking

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Wed, 23 Jul 2008 06:20:39 -0500

http://money.cnn.com/2008/07/22/news/economy/sloan_fed.fortune/index.htm?postversion=2008072213

Refinancing Under the Corporate Entity or LLC

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Wed, 23 Jul 2008 05:46:28 -0500

Investment Property Refinancing

Once you have bought and rehabbed your property, the next step is to refinance your investment property. A lot of people have had difficulty finding refinancing in the present market, especially people seeking 30 year 80% LTV refinancing.

Working with a financial consultant that has access to banks and lending institutions with multiple options for refinancing under the LLC. No guarantee can be made that we can get you a Max ltv's or specified rates under the LLC programs. The programs available for refinancing your investment property under the LLC will depend on your credit score, current earnings and assets.

The mortgage broker should be using a closing company that understands LLC refinancing. The closing can be done right at your own kitchen table at your convenience!!

Putting together your checklist of documentation to be provided to qualify for refinancing. Once all the items on the checklist have been provided and your credit reviewed a loan officer can call you and discuss the programs and terms available for refinancing your investment property.

Unfortunately, the investment refinancing market has tightened up and there are more specificed LTV loans programs for properties with an appraisal/post rehab values under the LLC.

Common Questions About an FHA Loan

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Tue, 22 Jul 2008 21:44:58 -0500

Mac Investment Company, LLC.

Common Questions About an FHA Loan

Why choose an FHA loan?
What kinds of loans does FHA offer?
How do FHA loans compare to conventional loans?
Do you have to buy mortgage insurance on an FHA loan?

Why choose an FHA loan?

There are lots of good reasons to choose an FHA loan, especially if one or more of the following apply to you:

You're a first-time homebuyer
You don't have a lot of money to put down on a house
You want to keep your monthly payments as low as possible
You're worried about your monthly payments going up
You're worried about qualifying for a loan
You don't have perfect credit

You're worried about what will happen if you fall behind on your payments

If any of these things describe you, then an FHA loan may be right for you. Why? FHA-insured loans offer many benefits and protections that you won't find in other loans including:

Lower cost: FHA loans have competitive interest rates because the Federal government insures the loans for lenders. Always compare an FHA loan with other loan types.

Smaller down payment: FHA loans have a low 3% down payment and the money can come from a family member, employer or charitable organization as a gift. Other loan programs don't allow this.

Easier qualification: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.

Less than perfect credit: You don't have to have perfect credit to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.

More protection to keep your home: The FHA has been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, the FHA has many options to help you keep you in your home and avoid foreclosure.

The FHA does not give money to people for a home and it does not set the interest rates on mortgages it insures. FHA insures loans for lenders against defaults. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the loan application process.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured or mobile home (provided it is on a permanent foundation).

What kinds of loans does FHA offer?

Fixed rate loans - Most FHA loans are fixed-rate mortgages (loans). In a fixed rate mortgage, your interest rate stays the same during the whole loan period, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.

Adjustable rate loans - Most first-time homebuyers are a little stretched financially, so they want payments as low as possible at the beginning. With FHA's adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (1 Yr CMT the most widely used index, to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum amount that the interest rate on your loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate, again depending upon the type of ARM you choose. The advantage of an ARM is that you may be able to afford more house because your initial interest rate will be lower, as will your payment. For a more in-depth explanationï¿½

Purchase/rehabilitation loans - Sometimes you might see a home you'd like to buy, but it needs a lot of work. FHA has a loan for rehabilitating and repairing single-family properties called the SF Rehabilitation Loan program (203k). You can get just one mortgage loan which includes the mortgage and the cost of repairs combined. The mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. The advantage of this loan is that you can buy a home that needs a lot of work, but you still have only one mortgage payment, and you can complete the repairs after buying the home.
Read more about these loans.

Indian Reservations and Other Restricted Landsï¿½ - A family who purchases a home under this program can apply for financing through a FHA approved lending institution such as a bank, savings and loan, or a mortgage company. To qualify, the borrower must meet standard FHA credit qualifications. An eligible borrower can receive approximately 97% financing. An eligible party can produce a gift for the down payment. Closing cost can be financed; covered by a gift, grant or secondary financing; or paid by the seller without reduction in value. More...ï¿½

How do FHA loans compare to conventional loans?

Conventional loans usually require a larger down payment. And, if you have less than perfect credit you may not qualify for many conventional loans and find yourself being offered loans with higher interest rates and/or fees than you expected. The best thing to do is compare the cost of the conventional loan to an FHA loan line-by-line. What are the fees on each? What is the interest rate? How much is the mortgage insurance on each? How much down payment is required? For some borrowers, a conventional loan may be less expensive. For many others, it will be more expensive than FHA.

Do you have to buy mortgage insurance on an FHA loan?

Yes - as you will with most all of them. There is an up front mortgage insurance premium equal to 1.5% of the loan amount that is paid at settlement. In most cases, this mortgage insurance premium is included in your loan amount, so you are really paying it over the life of the loan. In addition, on loans with a term of greater than 15 years and a loan-to-value ratio of 90% or greater (meaning you are borrowing more than 90% of the value of the home), you will pay an annual mortgage insurance premium of 0.5% of the loan amount in monthly installments.

Example:

Up Front Mortgage Insurance Premium
Mortgage amount: $100,000 X 1.5% = $1,500 @ 6.5% for 30 years = $ 9.48 per month

Annual Mortgage Insurance Premium
Mortgage amount: $100,000 X 0.5% = $ 500/12 months = $41.67 per month

Total Mortgage Insurance Premium $51.15 per month

Most loans require mortgage insurance when your down payment is less than 20% of the sales price. On conventional and subprime loans, mortgage insurance is provided by private companies. Whether private mortgage insurance is less than, equal to, or more than FHA loan insurance will depend upon the loan program and your qualifications.

Compare the cost of FHA over the life of your loan and how much it costs monthly to subprime and conventional types of loans. With the protection you get with FHA - it's a very good deal.

FHA Multifamily Programs

Joseph Scorese (Hawthorne Capital Corporation, Mortgage Bank) — Tue, 22 Jul 2008 17:30:10 -0500

Mac Investment Company, LLC.

FHA Multifamily Programs

Rental Housing for New Construction and Substantial Rehabilitation - Section 221(d)(4)
Rental Housing for Refinancing of Existing Properties - Section 207/223(f)

FHA multifamily mortgage insurance, in conjunction with HUD assisted housing programs, has provided multifamily lenders and owners with the ability and the incentives to create tens of thousands of rental projects which otherwise may not have existed.

Thousands of American residents who live in apartment projects, nursing homes, hospitals, and group homes benefit indirectly from FHA multifamily mortgage insurance. They benefit directly from HUD's assisted housing programs.

FHA has two primary multifamily programs:

New construction or substantial rehabilitation Section 221(d)(4)

Refinance or purchase of existing multifamily rental housing Section 223(f)

FHA multifamily housing also:

Administers grants for special needs and supportive services that relate to rental housing

Administers Neighborhood Networks, computer centers in subsidized housing to promote self-sufficiency

Participates as a major partner in the Rental Housing Integrity Improvement Project, a presidential initiative

FHA multifamily handles the following:

Oversight of regulated property ownership and management

Routine mortgage servicing, default servicing, acquisition and disposition of loans (mortgage notes) and properties

Management of HUD-owned properties

Rental Housing for New Construction and Substantial Rehabilitation - Section 221(d)(4)

FHA provides mortgage insurance to facilitate the development of rental housing. The 221(d)(4) program is FHA's primary program for the new construction and substantial rehabilitation of multifamily rental properties by profit motivated sponsors.

The 221(d)(4) program is not a direct loan program. FHA insures loans originated by private, HUD-approved lenders. Prospective project sponsors/mortgagors are responsible for selecting an approved lender, making a loan and submitting an application for commitment to the HUD office with jurisdiction over the property.

Benefits:

Long-term (up to 40 years), fixed rate financing is always available

Mortgage amount up to 90% of project replacement cost

Rates may be fixed before start of construction

Many developers obtain FHA insurance commitments and then pick the best time to lock the rate

Federal guarantee results in AAA rating on financing

Eligible for securitization by the Government National Mortgage Association (Ginnie Mae)

Provides construction and permanent financing

Non-recourse loans

Program Eligibility:

Properties must contain 5 or more rental units

Projects may be designated for elderly (age 62 or older) or handicapped residents

Properties must comply with specified HUD and local standards

Owner must sign regulatory agreement with FHA governing project operations

Projects are subject to cost certification

Prevailing wage requirements under the Davis-Bacon Act do apply

Rental Housing for Refinancing of Existing Properties - Section 207/223(f) - (Top)

FHA provides mortgage insurance to ease the refinancing or purchase of rental housing that does not require substantial rehabilitation. The Section 207/223(f) program is FHA's program for insuring such properties, which could require minor repairs and improvements.

The Section 207/223(f) program is not a direct loan program. FHA insures loans originated by private, HUD-approved lenders. Prospective project sponsors/borrowers are responsible for selecting an approved lender to make a loan and submit an application to the HUD office with jurisdiction over the property.

Benefits:

Long-term (up to 35 years), fixed-rate financing, with interest rates negotiated between the lender and the borrower

Mortgage amount up to 85% of the project's value

Eligible for securitization by the Government National Mortgage Association (Ginnie Mae)

Federal guarantee with Ginnie Mae securitization, resulting in AAA rating on financing

Non-recourse loans

Program Eligibility:

Properties must contain 5 or more rental or cooperative units

Properties must not require substantial rehabilitation (minor repairs and improvements are permitted)

Properties must be at least 3 years old prior to filing of an application

Projects must be continually occupied before insurance endorsement or an operating deficit escrow is required

Eligible mortgagors (borrowers) include individuals, partnerships, corporations or other legal entities approved by FHA

No construction financing is available

Owner must sign a regulatory agreement with FHA governing project operation

Projects are subject to cost certification

Prevailing wage requirements under the Davis-Bacon Act do not apply