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Entries posted on “September, 2008”
An efficient process and proper methodology of re-institutionalizing equity based lending amidst the Credit Crunch is the focus of this article. First, I must define 1) equity based lending, and 2) what qualifies as ?institutionalized? in today?s market.
Equity-Based Lending (EBL), a derivative of Asset-Based Lending (ABL), is simply summarized as lending and underwriting based upon the remaining equity in the collateral after the new loan is secured. For an ABL situation, the typical average Loan-To-Value (LTV) is less than 60%.
An example of the process would be a borrower in the foreclosure process. Their existing loan has an Unpaid Principal Balance (UPB) of $200,000. Back interest and fees have added another $20,000 to the borrower?s obligation. Based on a new valuation; the collateral value is $500,000. An equity based lender would be able to make a new loan for up to $325,000 to save the asset from being sold at foreclosure and to recapitalize the borrower.
September 1st, 2008 | Posted in Articles | Read More »
When talking to Glen Weinberg, the COO for Fairview Lending, I got an overwhelming feeling of just how savvy he is regarding commercial/ hard money lending. Glen offers us a glimpse of this insight as well as grounded advice for those of us pushing through these turbulent times.
Tell me a little about Fairview?
Fairview Commercial Lending is a privately funded national hard money (private money) commercial lender. We have been in business for over 25 years specializing in non conventional commercial loans. The partners have over 100 years of commercial real-estate lending experience and have been lending since 1975. We have offices in Atlanta, GA and Denver, CO and are able to lend nationwide (loan sizes range from $250,000 to $3,000,000). We strictly lend our own funds and hold all of the loans in our portfolio and service them in house after the closing. This depth of knowledge and experience allows us to fund loans quickly that many others would never consider.
September 1st, 2008 | Posted in Archive,Articles,Center Stage | Read More »
How to make or kill a deal at your first point of contact!
Before you delve into too much of the technical stuff like Blended Rates, Effective Rates with MI or how to effectively communicate with a bank rep, we need to realize we’re really in the people business. Being the most wiz-bang-mortgage-techie person in the world isn’t going to pay you a dime if you can’t connect with a customer who wants to do business with you. A wise friend of mine is a marketing guru and public speaker. Years ago he happened to stop by my office just as the phone rang. Normally, I wouldn’t interrupt a meeting to take a call but this was a customer and my friend was a social visit. I noticed my friend started jotting down some notes which I didn’t think much of since I was focused on my customer… or so I thought. After the call ended he asked me, “Mind if I share with you some observations?” I agreed and here’s what he said:
September 1st, 2008 | Posted in Articles | Read More »
In today?s world, price is everything. Everyone seems to be looking for a bargain. Shopping the grocery stores for the weekly deals: hunting down the gas station with the lowest price, or waiting for retail stores to put merchandise on sale or clearance. Everyone wants a bargain. But is shopping for a bargain always the best strategy? For sales professionals, bargain shoppers will not guarantee long term business prospects. Although it is essential to be competitive, it is more important to be trust worthy, service oriented and conscience of the specific needs of the client.
For the mortgage and real estate professional as well as most sales professionals, losing a sale means not only commissions lost in the present, but the opportunity for future business and referrals. Building a referral based business focuses you as the best person for the job. Undercutting price to ?get the deal? may work for awhile, but without substance behind it, business will soon dry up. Negotiating a price for the sake of a sale without consideration of profit will soon leave you with no income.
September 1st, 2008 | Posted in Articles | Read More »
Any business needs to keep in touch with its customers; before, during and even after any transactions that might occur. These contacts can help to increase sales or even increase repeat business. The concept of a newsletter is as simple as writing a note to your aunt ? the difference is only in how you put the material together.
You can create an online newsletter that can be sent by email or you can create a traditional newsletter that can be handed out at the office or mailed to current and past customers. It may be a little more time consuming, but you could create a format for your newsletter that would allow you to distribute it both ways (without a large amount of changes being required).
September 1st, 2008 | Posted in Articles | Read More »
As a mortgage professional, your job is to understand a client?s full financial situation and needs. You need to be part mortgage professional, part attorney, part CPA and part financial advisor. The more you know, and the more you bring to the table, the more you can help. And the more you help, the more loyalty you will see from your clients.
With that in mind, I would like to focus on two financial vehicles ? 1031 exchange and its lesser known cousin, the 121 exclusion. Both deal with the profit (capital gains) from the sale of property and both can be used to the benefit of your client
September 1st, 2008 | Posted in Articles | Read More »
For the first time since our inception, we have allowed a non-lending institution to grace our front cover. This is no mistake, but rather, a simple message. The Niche Report is all about presenting the loan originator with options, and in this climate our options are limited. Therefore, in an effort to help expand your products and services we present to you a company that helps borrowers and lenders perform loss mitigation via loan modification ? Green Credit Solutions. This segment of the industry is said to be filled with crooks and scam artists, however, Green Credit Solutions stands out as an honest leader in this field and should be recognized. I think it should also be noted that The Implode O? Meter, a website that helps to keep our industry transparent, has backed them.
I would also like to take this opportunity to thank CAMB (California Association of Mortgage Brokers) for having us out at their Annual Convention in Sacramento California. It was held downtown at the Sacramento Convention Center with an air of hope and perseverance among its attendees.
This month in TNR we have Lane Bacon, founder of Advantage Capital Equity Solutions, presenting to us our feature article; a clear and concise process on the potential of re-Institutionalizing equity based lending. TNR will be running this fantastic piece as a two part series highlighting the ?Problem? we face in this arena and following up with the ?Solution? in our October issue.
I would like to leave you all with a tip. I found a new lender committed to wholesale ? NetMore America, Inc. I know very little about them except that they launched in October of 2007 and now have over 150 employees and funding, on average, $50 Million per month. 80% of this volume is wholesale. My hat is off to them and I wish them luck.
Enjoy this issue of TNR and take away from it what you can.
Keep up the fight
Robert Pegg
September 1st, 2008 | Posted in Articles | Read More »
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