Lou Tice at the Pacific Institute is a great business leader and motivator…this is what he says about Goals in his encouragement today…

In order to move ahead, to reach goals that we have set for ourselves, we need to make the future picture of what we want more inviting, more attractive, more necessary than staying in our current reality. This is easier than it sounds, because of two things innate in human beings. We have the ability to use “forethought” – looking forward – and to use our imaginations. In other words, we can look ahead and dream of a future. As far as we know, no other creature on earth has these two abilities.

When we set a goal, and create that gap I mentioned yesterday, energy and creativity are unleashed in our minds. Those dreams of the future cause ideas and drive to close the gap – and we are tremendously creative creatures! We can dream of just about anything, and make those dreams reality.

One more piece: As we near completion of the goal or dream, we no longer need the energy and creativity. Drive and ideas disappear. We have closed the gap, and creativity is no longer needed. Effectively, you shut down. You’re done. You compare where you wanted to be with where you have landed, and it is the same place, the same answer.

Goal achievement is a time for a little celebration! Each of us deserves a little pat on the back for a job well done. But keep in mind that we now shut down, and future growth is put on hold.

At Largent Financial, we believe goal setting is very important...and follow Lou's advice. See us at   www.largentfinancial.com

A Jumbo Loan is a mortgage with a loan amount exceeding the conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO), and therefore, not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac. OFHEO sets the conforming loan limit size on an annual basis.
Also referred to as "Jumbo Mortgage".

Jumbo loans are often securitized by institutions other than Fannie Mae or Freddie Mac. These securities carry more credit risk than those issued by Fannie Mae or Freddie Mac, and therefore, trade at a yield premium which translates into slightly higher interest rates. However, in recent years the spread in interest rates between jumbo and conventional mortgages has been reduced.

Depending on where you are in California, the highest conforming loan limit is $729,750....which means a loan higher than this would fall into the Jumbo loan category.

At Ocean Pacific Capital, we do Jumbo loans up to $2 million, and the rate today is as low as 3.75%. For those of you that have an existing mortgage that is at a higher interest rate than this might consider re-financing, and a new Jumbo loan might work. E-mail me with details and we can see what is best for you.

With many commercial real estate owners, this is a question that can now be asked. A few years ago, lenders were not too interested in "re-financing", as they could offer better loans through a new loan....so a new loan was made. And, at the time, these loans were at the going market rate...probably in the 6 or 7% interest range. A good deal for all.

Well, now we are making commercial real estate loans at a much lower rate, and re-financing those more expensive loans makes a lot of sense. And, people are asking me..."just what is re-financing?"

Re-financing means paying off an existing loan with the proceeds from a new loan, usually of the same size, and using the same property as collateral. In order to decide whether this is worthwhile, the savings in interest must be weighed against the fees associated with refinancing. The difficult part of this calculation is predicting how much the up-front money would be worth when the savings are received. Other reasons to refinance include reducing the term of a longer mortgage, or switching between a fixed-rate and an adjustable-rate mortgage. If there are prepayment fees attached to the existing mortgage, refinancing becomes less favorable because of the increased cost to the borrower at the time of the refinancingakes a lot more sense. 

So, re-financing is good for some, and not so good for others. Check with your CPA....and if there is interest, contact me....and we look at all commercial properties. Get some additional detail at   www.largentfinancial.com

As we complete the celebrations of Christmas and start to think abou the new year, which will be upon us shortly....for those os you that are involved in commercial real estate, think about the incredible state of financing that we are in how...interest rates below 5%...low points...and plenty of money to loan. Clearly, this is the time to encourage your commercial buyers-investors to take a good look at the commercial real estate market.

At Largent Financial (www.largentfinancial.com) we not only have money to loan, but we have money to loan on almost every kind of commercial real estate your buyers are considering. From hotels, apartments, commercial strip centers, and student housing projects....we have competitive rates with low points and outstanding terms.

For those that currently own commercial real estate, our re-financing plans are at remarkably low rates...and very competitive. This can be a way to lower your current interest payments....putting more dollars into your pocket.

Check us out...and a Happy New Year....

Ocean Pacific Capital is 30 year old real estate finance corporation specializing in all types of residential and commercial mortgage loans. With a core focus on apartment loans, ranging from loan amounts of $500,000 to $800 million plus, we can create a custom financing solution for you.

We have a variety of the best apartment loan products, allowing us to offer the most competitive rates to our clients, whether they need an apartment loan for construction or refinance..

Our access to over 130 different lenders allows us to offer flexible apartment financing with fixed, low rates amortized over 30 years with higher loan-to-values. Acquiring an apartment loan doesn't have to be a slow, inefficient process. We have assisted countless real estate developers and investors through this process to quickly and efficiently close their loan.

With over 31 years of experience, we have the knowledge and experience in selecting and fine-tuning the best apartment loans to suit your needs. We will work hard to help you through the application process and assist in acquiring the necessary documents to secure the best apartment loan

Please give me a call and put us to work for you and your Commercial Real Estate Financing needs. We Produce!

The SBA is the Small Business Administration which was established in 1953 after the Small Business Act was introduced. It was established to aid, counsel, assist, and to protect the interest of the small business. Their programs now include financial and federal contract procurement assistance, management assistance, and specialized outreach to women, minorities, and armed forces veterans. They also provide loans to victims of natural disasters and those needing advice and assistance in international trade. The loan programs are considered part of their financial assistance to entrepreneurs in Redding.

The SBA not only guarantees loans and also lends money under certain circumstances but they also assist entrepreneurs in making the right management decisions. They help by assisting entrepreneurs in Redding in forecasting the future of their business, planning for that future, and managing employees to reach that future goal. They also help in cultivating leadership qualities in managers and entrepreneurs. They help teach leadership traits, professional development, and business ethics. They also help entrepreneurs pinpoint marketing opportunities as well as assisting in showing them how to use today's technology for their business. The SBA has a program for all walks of life including young & old, women & minorities.

If you are looking to buy a Gas Station, Convenience Store, or another business that includes real estate...give us a call. We have all kinds of loans, including SBA Loans, for all kinds of properties.

www.largentfinancial.com

As with the Cap Rate...the Gross Rent Multiplier is another measurement of the value of an income producing property...and again, this can be a major factor for a buyer, a lender...and certainly the appraiser.

As a lender, we try to make it as simple as possible, and as understanding as possible. This is a good "textbook' definition, which actually came out of a course that I was taking...and put the GRM in understandable terms:

The Gross Rent Multiplier, or GRM, is a ratio that is used to estimate the value of income producing properties. The GRM provides a rough estimate of value. Only two pieces of financial information are required to calculate the Gross Rent Multiplier for a property, the sales price and the total gross rents possible. If this information is available for multiple recent sales of similar types of income properties in a particular area, it can then be used to estimate the market value of other similar properties in that area. Some investors use a monthly Gross Rent Multiplier and some use a Yearly GRM, which is somewhat unusual these day. The monthly Gross Rent Multiplier is equal to the Sales Price of a property divided by the potential monthly rental income and the Yearly GRM is the Sales Price divided by the yearly potential rental income. Both of these formulas, though, can give a buyer good numbers for his orher consideration.

When you are looking to get a loan for a commercial property, look at what we offer.....many, many products for almost every kind of commercial-investment-income producing properties. Creative Commercial Funding is our goal.

www.largentfinancial.com

Often times we will get a buyer of an investment property....lots of questions, and mostly good ones. One good question that keeps coming up, especially with newer investors...What is the Cap Rate? What cap rates are on the recent sales? So, here is a definition of a Cap Rate...one of the best that I have read....and I think it is from one of the real estate investment text books...

The Capitalization Rate or Cap Rate is a ratio used to estimate the value of income producing properties.The cap rate is the net operating income divided by the sales price or value of a property expressed as a percentage. Investors, lenders, and appraisers use the cap rate to estimate the purchase price for different types of income producing properties, which is a guideline for a new investor. A market cap rate is determined by evaluating the financial data of similar properties which have recently sold in a specific market. It provides a more reliable estimate of value than a market Gross Rent Multiplier since the cap rate calculation utilizes more of a property's financial detail. The GRM calculation only considers a property's selling price and gross rents. The Cap Rate calculation incorporates a property's selling price, gross rents, non rental income, vacancy amount and operating expenses thus providing a more reliable estimate of value. These are all key factors that a buyer should consider in the decision making process.

If you are looking for CREATIVE COMMERCIAL FINANCING for an investment property, give me a call. We have products for almost every possible property...and possibly one for you.

www.largentfinancial.com     

Extreme Health Weekend in Redding, CA

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Running outdoors in the fresh air reinvigorates the mind as well as the body. You will find that not only your physical energy levels will be enhanced but that you will enjoy a feeling of well being that is reflected in having a more positive mood.This is because as you run, the heart is pumping blood more efficiently around your body and your brain.

Join the Crusade…the Health Crusade…..

www.norcalunitedway.org

Extreme Health Weekend in Redding, CA Oct. 1 and 2, 2011

www,norcalunitedway.org