This webinar will give you a look ahead into 2016 and what's to come this year in financing. Our Mortgage expert and preferred lender for over 10 years will be discussing changes to interest rates, Fannie and Freddie guideline changes, and what types of loan programs are available for investors of all types. Right now interest rates are the lowest our country has ever seen and likely to see ever, but what does this year have in store for interest rates and qualification guidelines? Our mortgage expert will be teaching you: - Which programs are available for investment property financing - How to know if YOU qualify - How long you can expect the transaction to take - How you will know if your property will cash flow - Where interest rates are and where they are headed - Lending qualifications for conventional financing, and more! On this presentation you will learn the power of using OPM (Other People's Money) to turn a small amount of money into a lot by the power of leverage.

2. Reed Hazard – Amerifirst Financial
Branch Manager – Senior Mortgage
Planner/ NMLS # 291490
• Specializes in Purchase and refinance loans
for Investment property and Primary residence
(1-4 units)
• Licensed Continuing Education Instructor/
PSRE (Performance School of Real Estate)
• 12 years of experience with Marshall Reddick
• Seasoned real estate investor
• Purchased 1st property at age 19
• Worked with over 500 Marshall Reddick
members just like you.
• Federally and State licensed to lend in CA, TX
and AZ. – Branch licensed in IN and TN

3. Brett Gilliland – Amerifirst Financial
Sales Manager – Senior Mortgage
Planner/ NMLS # 857828
• Specialize in Purchase and refinance loans
for Investment property and Primary
residence (1-4 units)
• Licensed Continuing Education Instructor/
PSRE (Performance School of Real Estate)
• USC Graduate - 1998
• Purchased 1st property 13 years ago
• Federally and State licensed to lend in CA,
TX, AZ, IN, TN, WA and ID.
• Board of Directors – Joyful Foundation

6. Fed Fund rate (overnight rate at which banks and
institutions have money leant to them from the
federal reserve) was raised on December 16th for
the first time in over a decade.
Fed offers no set dates for their next rates hikes but
on 1-27-16 keeps rates unchanged but does not
take potential rate hikes off the table in 2016
Fed is closely monitoring inflation and
employment as their key driver for when to raise
rates next
What has happened to rates since the first rate hike
in December?

9. Understand your true buying power
Many potential buyers have incorrect expectations of
their buying power (too high / too low)
Knowing your true buying power will save you and your
agent’s time in the process of looking for a home
Even if you are not ready to buy today, it is highly
recommended to get approved to know your financing
options (and limitations) long before you actually start to
consider properties
TRID (TILA / RESPA Integrated Disclosure Rule)
Sellers will not consider you a legitimate buyer if
you have not taken the time to officially become
approved with a lender

10. The five required tasks in the approval process
1. Application taken
2. Credit Report Pulled and Reviewed
3. Automated Underwriting System (AUS) completed
4. Supporting documents have been received and reviewed
5. Underwriter confirms overall accuracy and has issued official
underwritten conditional loan approval
This would represent a “Conditional Loan
Approval Letter”
Reality check: until an underwriter has issued a
conditional loan approval, you have nothing of
value

11. Unfortunately, most pre-approval letters have
only completed the following steps:
Application taken
Credit Report Pulled and Reviewed
Automated Underwriting System
Even worse, many pre-approved letters are
issued with only the following:
Application taken
Protect yourself by getting pre-approved the right way,
by the right lender

12. How to calculate your debt to income ratio?
DEBT Divided into Gross (before tax) monthly income =
Debt to income ratio
Debts include the following: Minimum payments on Credit
cards, Auto loans, mortgages including property taxes and
insurance, student loans, any other loan on credit.
Debts that do not count against DTI ratios include the
following: Auto/Health insurance, cell phone and utilities
(including cable), loans to family and friends that are not
recorded, business loans.

13. 640-660 mid fico score = 43.00% Max
660-680 mid fico score = 45.00% Max
680-700 mid fico score = 45.00% Max
700 mid fico score and above = 45.00% -
49.99% Max
What are compensating factors?
*With our Credit Analyzer Software we can help
IMPROVE a borrower’s credit score in some
cases by ordering a “Rapid Rescore”

15. Borrowers with 4 or less properties financed:
1 Unit - 80% financed (20% down) - 640 Fico
2-4 Units - 75% financed (25% down) – 640 Fico
Borrowers with 5 to 10 properties financed:
1 Unit - 75% financed (25% down) - 720 Fico
2-4 Units - 70% financed (30% down) – 720 Fico

16. Must have a mid fico score of 700 to get properties 5
and 6, must have a 720 for properties 7-10.
Must have 6 months PITI in reserve for each property
Rental income can be used to offset subject monthly
payment at 75.00% of projected monthly rents.
Max debt to income ratio of 45.00%

17. 1-4 unit properties only
May have multiple loans but can only have 10 financed
properties
May purchase or refinance Primary residence
regardless of the amount of financed properties you
own, this rule only pertains to investment property
financing.
15 and 30 year fixed available only

18. Does subject rental income count towards my
debt to income ratios?
Yes, we can use 75.00% of the gross rental income to
qualify
How do you factor the rental amount if the
home is not pre-leased?
A Form 442 is ordered with your appraisal which
will verify local market rents. The underwriter will
use average rents to calculate 75.00% towards your
debt ratios. Most of these properties pay for
themselves or even lower your DTI ratios

19. Lowest rates in the industry and Ability to re-lock if
rates improve throughout the process (please call or
email me for more details on this – market must
improve by .25% minimum to accommodate a re-lock.
Unparalleled service – we take calls in the evening and
on weekends
Direct Lender – we control the loan process from
beginning to end – all loans are processed,
underwritten and funded here our office located in San
Clemente CA.
Marshall Reddick Real Estate is our most-important
referral relationship and we want your Real Estate
Advisor to receive only positive feedback on us

20. Appraisal credit at closing for
All Marshall Reddick Buyers!
Offer only valid through AmerfiFirst
Rodriguez/Hazard Office
Redeemable at closing
One coupon per transaction

22. Reed Hazard
Branch Manager
Cell: 949-973-5226
101 South El Camino Real, San
Clemente CA. 92672
Email: rhazard@amerifirst.us
Website: www.reedhazard.com

24. • Long Beach State University
Finance, Real Estate & Law
• 13 Years w/Marshall Reddick
• Rental Property Owner
• Private Real Estate Lender
• Real Estate Broker
Patrick Prunty
Controller
Marshall Reddick Real Estate
BRE 01949337 - NMLS 1205733

25. Lend or Borrow!
I can help you when Reed or your bank can’t.

26. Conventional vs Private
You should always use conventional financing when possible…
…only use private financing when necessary.
Question:
When would a borrower need to use private financing?
1) Non-Recourse Loan (Self-Directed Retirement Borrowers)
2) If you have more than 10 mortgaged properties
3) Loan amounts of less than $50,000

27. Buy & Hold
Asset Based Lending
We qualify the property not the borrower
your down payment or your equity is all that is required.
Available for both:
Purchase Money Loans
or
Refinance/Cash-Out

28. 3 Loan Programs Available
15 Year Fixed = 7.0%
30 Year Amortization w/Balloon = 7.5%
30 Year Fixed = 8.5%
Marshall Reddick Real Estate : BRE 01904891 - NMLS 1306115

29. All 3 Loan Programs Require
Minimum 40% Down
Subject Property Must Cash-Flow
(including Maintenance & Vacancy)
3 Year Interest Guaranty
Escrow & Title Insurance
Homeowners Insurance
Marshall Reddick Approval
Marshall Reddick Real Estate : BRE 01904891 - NMLS 1306115

30. Asset Based Private Lending Programs
The payments, Rates, APR and Interest Guaranty above are based on a loan amount of $60,000 and 7% closing costs.
Question:
What does Marshall Reddick charge to do a private loan?
3 Points
(3% of the loan amount)
Marshall Reddick Real Estate : BRE 01904891 - NMLS 1306115

33. $97,500.00
60.00%
8.50%
360
$58,500.00
$449.81
Borrower Loan Fee $1,755.00
9.4625%
$14,745.88
Month Payment Interest Principal Balance Cumulative Interest
1 $449.81 $414.38 $35.44 $58,464.56 $414.38
2 $449.81 $414.12 $35.69 $58,428.87 $828.50
3 $449.81 $413.87 $35.94 $58,392.93 $1,242.37
4 $449.81 $413.62 $36.20 $58,356.73 $1,655.99
5 $449.81 $413.36 $36.45 $58,320.27 $2,069.35
6 $449.81 $413.10 $36.71 $58,283.56 $2,482.45
7 $449.81 $412.84 $36.97 $58,246.59 $2,895.29
8 $449.81 $412.58 $37.23 $58,209.36 $3,307.87
9 $449.81 $412.32 $37.50 $58,171.86 $3,720.19
10 $449.81 $412.05 $37.76 $58,134.09 $4,132.24
11 $449.81 $411.78 $38.03 $58,096.06 $4,544.02
12 $449.81 $411.51 $38.30 $58,057.76 $4,955.53
13 $449.81 $411.24 $38.57 $58,019.19 $5,366.78
14 $449.81 $410.97 $38.85 $57,980.34 $5,777.75
15 $449.81 $410.69 $39.12 $57,941.22 $6,188.44
16 $449.81 $410.42 $39.40 $57,901.83 $6,598.86
17 $449.81 $410.14 $39.68 $57,862.15 $7,009.00
18 $449.81 $409.86 $39.96 $57,822.19 $7,418.85
19 $449.81 $409.57 $40.24 $57,781.95 $7,828.43
20 $449.81 $409.29 $40.53 $57,741.43 $8,237.72
21 $449.81 $409.00 $40.81 $57,700.61 $8,646.72
22 $449.81 $408.71 $41.10 $57,659.51 $9,055.43
23 $449.81 $408.42 $41.39 $57,618.12 $9,463.85
24 $449.81 $408.13 $41.69 $57,576.43 $9,871.98
25 $449.81 $407.83 $41.98 $57,534.45 $10,279.81
26 $449.81 $407.54 $42.28 $57,492.17 $10,687.35
27 $449.81 $407.24 $42.58 $57,449.60 $11,094.58
28 $449.81 $406.93 $42.88 $57,406.72 $11,501.52
29 $449.81 $406.63 $43.18 $57,363.53 $11,908.15
30 $449.81 $406.33 $43.49 $57,320.04 $12,314.47
31 $449.81 $406.02 $43.80 $57,276.25 $12,720.49
32 $449.81 $405.71 $44.11 $57,232.14 $13,126.20
33 $449.81 $405.39 $44.42 $57,187.72 $13,531.59
34 $449.81 $405.08 $44.73 $57,142.98 $13,936.67
35 $449.81 $404.76 $45.05 $57,097.93 $14,341.44
36 $449.81 $404.44 $45.37 $57,052.56 $14,745.88
First Mortgage/Loan Amount
Monthly Payment
APR Est.
Interest Guaranty (Month 36)
Current Market Value
Loan-to-Value
Interest Rate
Amortization Term (Months)

34. Talk to your real estate advisor.
Use the website to run cash-flow and return analysis.
Complete an application & obtain a pre-approval letter.
Getting Started

36. Christin Tabar
Real Estate Advisor/Realtor
949.885.5162
ctabar@marshallreddick.com