This document provides information about mortgage and protection services. It aims to help clients understand options for property financing and insurance, the advice process, and fees. The summary reviews key stages of financial life where advice can help, such as buying a home, remortgaging, investing in property, and preserving wealth. It also outlines the marketplace reviewed, types of mortgages and interest rates, and importance of protecting assets with insurance. The document emphasizes providing affordable, sustainable solutions tailored to each client's needs and circumstances.
The document discusses strategies for recapitalizing and restructuring commercial real estate in a deleveraging market. It notes that over $1.7 trillion in commercial loans will mature in the next 5 years as the industry deleverages from too much debt. Options discussed include working with existing lenders through extensions, discounted payoffs, or debt restructures, as well as bringing in new equity partners or buying notes at a discount. The optimal strategy depends on factors like the senior lender's health, the owner's balance sheet, and ability to attract new capital.
Mortgage rates a beginner's guide - dec 6steven milner
This document provides an overview of mortgages and mortgage rates for beginners. It discusses what a mortgage is, different types of mortgages and mortgage rates. It also covers how to find the best mortgage rates, the process of locking in rates, and how changing rates can affect homeowners. The key topics covered are types of fixed and adjustable rate mortgages, factors that influence mortgage rates like credit scores, and the importance of shopping around and locking in rates when getting a mortgage.
Mortgage rates beginner's_guide-maria arruaMaria A. Arrua
The document provides an overview of mortgages, including what a mortgage is, different types of mortgages and mortgage rates, how to find the best mortgage rates, what mortgage rate lock-in is, and how changing mortgage rates can affect homeowners. It serves as a beginner's guide to understanding mortgages and making informed decisions when taking out a home loan.
A Debt Market “Jungle Guide”: Strategies for PE Portfolio Companies and Publi...Michael J. Blankenship
This document summarizes trends in the debt financing market based on a presentation by Locke Lord. It discusses the growth in leveraged lending in 2017 and changing players in the market. It provides an overview of different types of debt financing instruments and compares features of term loans, high yield bonds, unitranches, and deals for sponsors versus corporate issuers. Recent trends show borrower-friendly terms becoming more prevalent in middle market deals, though investors have pushed back on some provisions. Issues around replacing LIBOR are also discussed.
Cash Flow Gold offers a rent-to-own solution for clients who have been declined financing. Brokers can refer declined clients to the program and earn fees without much paperwork. The rent-to-own program allows clients to rent a home with an option to purchase it after 2 years, with 20% of rent payments credited towards the down payment. To qualify, clients must have sufficient income to cover rent and have a minimum 5% security deposit. Brokers should submit client files including application, credit report, income documentation, and notice of assessment for review.
fannie mae Discussion of Credit Book of Business 2006finance6
The document discusses Fannie Mae's single-family mortgage credit book of business as of June 30, 2007. It characterized the book as having a historically disciplined approach to risk management and being highly diversified by origination date, geography, and product type. It also discussed Fannie Mae's exposure to Alt-A loans, which represented 12% of the single-family book, and subprime loans, which represented 0.2% of the book. The document noted that credit losses were expected to increase in 2007 from very low levels in recent years due to economic and housing market challenges.
Timbercreek Senior Mortgage Investment Corporation (MTG) provides mortgages to professional real estate investors in Canada, offering higher yields than banks. MTG's mortgages have low loan-to-value ratios of 53% on average and short terms of 1.1 years, protecting against loss. The company is managed by Timbercreek Asset Management, which has successfully managed a similar fund without any loan impairments since 2008. However, MTG is trading at an 18% discount to book value, which management hopes to close through share buybacks and focusing on strong operations.
This document provides information about mortgage and protection services. It aims to help clients understand options for property financing and insurance, the advice process, and fees. The summary reviews key stages of financial life where advice can help, such as buying a home, remortgaging, investing in property, and preserving wealth. It also outlines the marketplace reviewed, types of mortgages and interest rates, and importance of protecting assets with insurance. The document emphasizes providing affordable, sustainable solutions tailored to each client's needs and circumstances.
The document discusses strategies for recapitalizing and restructuring commercial real estate in a deleveraging market. It notes that over $1.7 trillion in commercial loans will mature in the next 5 years as the industry deleverages from too much debt. Options discussed include working with existing lenders through extensions, discounted payoffs, or debt restructures, as well as bringing in new equity partners or buying notes at a discount. The optimal strategy depends on factors like the senior lender's health, the owner's balance sheet, and ability to attract new capital.
Mortgage rates a beginner's guide - dec 6steven milner
This document provides an overview of mortgages and mortgage rates for beginners. It discusses what a mortgage is, different types of mortgages and mortgage rates. It also covers how to find the best mortgage rates, the process of locking in rates, and how changing rates can affect homeowners. The key topics covered are types of fixed and adjustable rate mortgages, factors that influence mortgage rates like credit scores, and the importance of shopping around and locking in rates when getting a mortgage.
Mortgage rates beginner's_guide-maria arruaMaria A. Arrua
The document provides an overview of mortgages, including what a mortgage is, different types of mortgages and mortgage rates, how to find the best mortgage rates, what mortgage rate lock-in is, and how changing mortgage rates can affect homeowners. It serves as a beginner's guide to understanding mortgages and making informed decisions when taking out a home loan.
A Debt Market “Jungle Guide”: Strategies for PE Portfolio Companies and Publi...Michael J. Blankenship
This document summarizes trends in the debt financing market based on a presentation by Locke Lord. It discusses the growth in leveraged lending in 2017 and changing players in the market. It provides an overview of different types of debt financing instruments and compares features of term loans, high yield bonds, unitranches, and deals for sponsors versus corporate issuers. Recent trends show borrower-friendly terms becoming more prevalent in middle market deals, though investors have pushed back on some provisions. Issues around replacing LIBOR are also discussed.
Cash Flow Gold offers a rent-to-own solution for clients who have been declined financing. Brokers can refer declined clients to the program and earn fees without much paperwork. The rent-to-own program allows clients to rent a home with an option to purchase it after 2 years, with 20% of rent payments credited towards the down payment. To qualify, clients must have sufficient income to cover rent and have a minimum 5% security deposit. Brokers should submit client files including application, credit report, income documentation, and notice of assessment for review.
fannie mae Discussion of Credit Book of Business 2006finance6
The document discusses Fannie Mae's single-family mortgage credit book of business as of June 30, 2007. It characterized the book as having a historically disciplined approach to risk management and being highly diversified by origination date, geography, and product type. It also discussed Fannie Mae's exposure to Alt-A loans, which represented 12% of the single-family book, and subprime loans, which represented 0.2% of the book. The document noted that credit losses were expected to increase in 2007 from very low levels in recent years due to economic and housing market challenges.
Timbercreek Senior Mortgage Investment Corporation (MTG) provides mortgages to professional real estate investors in Canada, offering higher yields than banks. MTG's mortgages have low loan-to-value ratios of 53% on average and short terms of 1.1 years, protecting against loss. The company is managed by Timbercreek Asset Management, which has successfully managed a similar fund without any loan impairments since 2008. However, MTG is trading at an 18% discount to book value, which management hopes to close through share buybacks and focusing on strong operations.
Commercial Equity Partners Ltd believes that in both prosperous and tumultuous economic times, small investors deserve to find investment options that offer superior rates of return and provide stability during unpredictable times. Since 2006, we at CEP have been maximizing investment leverage, thus producing high-yielding returns for our clients.
The document discusses establishing an investment program and factors to consider when choosing investments. It recommends setting financial goals, performing a financial checkup, and getting money needed to start investing. It describes how safety, risk, income, growth, liquidity, and time horizon affect investment decisions. It also covers asset allocation, investment alternatives like stocks, bonds, mutual funds and real estate, and the importance of the investor's role and using financial information resources.
The document summarizes recent developments in the commercial real estate lending market. It notes that lending markets are starting to recover slowly, with some lenders like Wells Fargo and Principal Life becoming more competitive in the mid-6% range. It also highlights a $5 million permanent loan deal secured at a low-6% interest rate. In general, commercial banks are doing deals in the low-mid 6% range at 70-75% LTV, while life companies remain at 65% LTV and lower-7% rates for 10-year terms. Fannie Mae and Freddie Mac loans remain attractive at high-5% to low-6% rates. Credit tenant lease deals remain steady, with Walgreens in
Dealing with Covid19 : Managing Spending efficiencyAchmad Zaky
1. The Covid-19 pandemic may last longer than initially expected, with a vaccine still 12-18 months away and production/distribution taking additional months. There is no guarantee things will return to normal even after cases slow down.
2. Startups can be built during difficult times, as was the case with Bukalapak which started with no capital, investors, industry hype or talent.
3. Spending efficiency is critical during the Covid-19 era. Improving efficiency means focusing on variable costs like marketing and sales to acquire the most profitable customers, and reducing fixed costs such as staff, buildings and technology infrastructure.
This document provides an overview of mortgage qualification for both employed and self-employed individuals. It discusses the documentation needed such as tax returns, pay stubs, and bank statements. For self-employed borrowers, additional documents like financial statements or business licenses may be required. It also covers using "stated income" for mortgage qualification when income cannot be fully verified. Stated income allows borrowers to state a reasonable income amount and qualify with lower documentation. The guidelines for various mortgage insurers on their stated income programs are provided, including credit score and debt ratio requirements as well as interest rate premiums.
Clark Street Capital provides portfolio management solutions and operates a loan sale platform to help banks resolve troubled commercial real estate loans. The company analyzes loan portfolios, provides valuations, and markets loans to institutional buyers. While the bid-ask spread remains wide, commercial mortgage backed securities are returning and life insurance companies and regional banks have increased lending activity, though at lower loan-to-value ratios. Recovery rates on defaulted loans liquidated in 2009 averaged 59% before costs, though dropped in the fourth quarter. Regulators encourage loan workouts over foreclosure and may impose new commercial real estate concentration limits on banks.
This document provides an overview of bond valuation and interest rate sensitivity. It begins with an introduction to bonds and bond markets, including different types of bonds such as zero-coupon bonds and coupon bonds. It then discusses how to value zero-coupon bonds and coupon bonds using present value calculations. The document also examines how bond prices are inversely related to interest rates and how duration can be used to measure a bond's interest rate sensitivity.
This document provides an overview of bond valuation and the bond market. It discusses key bond features and valuation concepts, including how bond prices are determined by expected future cash flows and interest rates. Government bonds such as Treasury securities are described as well as corporate bonds, which have greater default risk. Bond ratings are also covered, with higher rated bonds seen as less risky. The effects of inflation and the term structure of interest rates on bond yields are summarized.
This document provides an overview of money and banking concepts. It discusses the characteristics of money, the functions of money, and components of the money supply. It also describes the US financial system including financial institutions like commercial banks and the Federal Reserve System. The role of the Fed in controlling the money supply and conducting monetary policy is explained. Finally, the document discusses changing banking technologies and the roles of international banking organizations.
The document discusses the key factors that influence changes in interest rates. It explains that interest rates are determined by the supply and demand of funds in the market. A rise in interest rates occurs when demand for borrowing increases or supply of savings decreases, while a fall happens in the reverse situation. It then analyzes how savings behaviors, central bank actions, and economic conditions of countries can impact supply and demand in the market. Specifically, wealthy nations save more so have lower rates, while central banks use tools like bond purchases and lending rates to influence market rates.
Savings accounts allow individuals to earn interest on money set aside for future use. Savings accounts have variable interest rates and restrictions on withdrawals. Checking accounts are used for everyday spending and offer easy access to funds but have low interest rates. Mortgages are loans used to purchase real estate that are paid back over time with interest. Certificates of deposit (CDs) are low-risk savings products offered by banks that have a fixed maturity date and interest rate but restrict withdrawals until maturity.
Money and Banking introduction slides pptOsama Yousaf
This document discusses money and banking concepts. It defines money as anything generally accepted in exchange for goods and services, and identifies four key functions of money: medium of exchange, unit of account, store of value, and standard of deferred payment. It also discusses the money supply, functions of banks and other financial institutions, international banking, and how the banking system creates money through fractional reserve banking.
This document discusses different types of loans including:
- Pure discount loans where the borrower receives money upfront and repays a single sum later with no interest payments.
- Interest-only loans where the borrower pays only interest each period and repays the full principal later.
- Amortized loans where payments are made each period to pay off both principal and interest over the life of the loan.
- Partially amortized loans which are similar to amortized loans but have a balloon payment required at the end to pay off the remaining balance.
Examples of calculating payments and balances are provided for each type.
This chapter discusses money, banking, and central banking. It will cover the functions of money, how banks facilitate financial intermediation, and the role of the Federal Reserve System in the US financial system. The chapter outlines that it will define what money is, explain why banks exist, describe the basic structure of the Federal Reserve, and discuss the major functions of the Federal Reserve.
The document provides an introduction to valuing debt securities. It discusses that valuation involves estimating expected cash flows, determining appropriate discount rates, and calculating the present value of cash flows. The traditional approach discounts all cash flows by a single rate, while the arbitrage-free approach uses different rates for each cash flow. Treasury spot rates are used to avoid arbitrage opportunities when valuing bonds. Models like binomial and Monte Carlo are used to value bonds with embedded options.
Commercial Equity Partners Ltd believes that in both prosperous and tumultuous economic times, small investors deserve to find investment options that offer superior rates of return and provide stability during unpredictable times. Since 2006, we at CEP have been maximizing investment leverage, thus producing high-yielding returns for our clients.
The document discusses establishing an investment program and factors to consider when choosing investments. It recommends setting financial goals, performing a financial checkup, and getting money needed to start investing. It describes how safety, risk, income, growth, liquidity, and time horizon affect investment decisions. It also covers asset allocation, investment alternatives like stocks, bonds, mutual funds and real estate, and the importance of the investor's role and using financial information resources.
The document summarizes recent developments in the commercial real estate lending market. It notes that lending markets are starting to recover slowly, with some lenders like Wells Fargo and Principal Life becoming more competitive in the mid-6% range. It also highlights a $5 million permanent loan deal secured at a low-6% interest rate. In general, commercial banks are doing deals in the low-mid 6% range at 70-75% LTV, while life companies remain at 65% LTV and lower-7% rates for 10-year terms. Fannie Mae and Freddie Mac loans remain attractive at high-5% to low-6% rates. Credit tenant lease deals remain steady, with Walgreens in
Dealing with Covid19 : Managing Spending efficiencyAchmad Zaky
1. The Covid-19 pandemic may last longer than initially expected, with a vaccine still 12-18 months away and production/distribution taking additional months. There is no guarantee things will return to normal even after cases slow down.
2. Startups can be built during difficult times, as was the case with Bukalapak which started with no capital, investors, industry hype or talent.
3. Spending efficiency is critical during the Covid-19 era. Improving efficiency means focusing on variable costs like marketing and sales to acquire the most profitable customers, and reducing fixed costs such as staff, buildings and technology infrastructure.
This document provides an overview of mortgage qualification for both employed and self-employed individuals. It discusses the documentation needed such as tax returns, pay stubs, and bank statements. For self-employed borrowers, additional documents like financial statements or business licenses may be required. It also covers using "stated income" for mortgage qualification when income cannot be fully verified. Stated income allows borrowers to state a reasonable income amount and qualify with lower documentation. The guidelines for various mortgage insurers on their stated income programs are provided, including credit score and debt ratio requirements as well as interest rate premiums.
Clark Street Capital provides portfolio management solutions and operates a loan sale platform to help banks resolve troubled commercial real estate loans. The company analyzes loan portfolios, provides valuations, and markets loans to institutional buyers. While the bid-ask spread remains wide, commercial mortgage backed securities are returning and life insurance companies and regional banks have increased lending activity, though at lower loan-to-value ratios. Recovery rates on defaulted loans liquidated in 2009 averaged 59% before costs, though dropped in the fourth quarter. Regulators encourage loan workouts over foreclosure and may impose new commercial real estate concentration limits on banks.
This document provides an overview of bond valuation and interest rate sensitivity. It begins with an introduction to bonds and bond markets, including different types of bonds such as zero-coupon bonds and coupon bonds. It then discusses how to value zero-coupon bonds and coupon bonds using present value calculations. The document also examines how bond prices are inversely related to interest rates and how duration can be used to measure a bond's interest rate sensitivity.
This document provides an overview of bond valuation and the bond market. It discusses key bond features and valuation concepts, including how bond prices are determined by expected future cash flows and interest rates. Government bonds such as Treasury securities are described as well as corporate bonds, which have greater default risk. Bond ratings are also covered, with higher rated bonds seen as less risky. The effects of inflation and the term structure of interest rates on bond yields are summarized.
This document provides an overview of money and banking concepts. It discusses the characteristics of money, the functions of money, and components of the money supply. It also describes the US financial system including financial institutions like commercial banks and the Federal Reserve System. The role of the Fed in controlling the money supply and conducting monetary policy is explained. Finally, the document discusses changing banking technologies and the roles of international banking organizations.
The document discusses the key factors that influence changes in interest rates. It explains that interest rates are determined by the supply and demand of funds in the market. A rise in interest rates occurs when demand for borrowing increases or supply of savings decreases, while a fall happens in the reverse situation. It then analyzes how savings behaviors, central bank actions, and economic conditions of countries can impact supply and demand in the market. Specifically, wealthy nations save more so have lower rates, while central banks use tools like bond purchases and lending rates to influence market rates.
Savings accounts allow individuals to earn interest on money set aside for future use. Savings accounts have variable interest rates and restrictions on withdrawals. Checking accounts are used for everyday spending and offer easy access to funds but have low interest rates. Mortgages are loans used to purchase real estate that are paid back over time with interest. Certificates of deposit (CDs) are low-risk savings products offered by banks that have a fixed maturity date and interest rate but restrict withdrawals until maturity.
Money and Banking introduction slides pptOsama Yousaf
This document discusses money and banking concepts. It defines money as anything generally accepted in exchange for goods and services, and identifies four key functions of money: medium of exchange, unit of account, store of value, and standard of deferred payment. It also discusses the money supply, functions of banks and other financial institutions, international banking, and how the banking system creates money through fractional reserve banking.
This document discusses different types of loans including:
- Pure discount loans where the borrower receives money upfront and repays a single sum later with no interest payments.
- Interest-only loans where the borrower pays only interest each period and repays the full principal later.
- Amortized loans where payments are made each period to pay off both principal and interest over the life of the loan.
- Partially amortized loans which are similar to amortized loans but have a balloon payment required at the end to pay off the remaining balance.
Examples of calculating payments and balances are provided for each type.
This chapter discusses money, banking, and central banking. It will cover the functions of money, how banks facilitate financial intermediation, and the role of the Federal Reserve System in the US financial system. The chapter outlines that it will define what money is, explain why banks exist, describe the basic structure of the Federal Reserve, and discuss the major functions of the Federal Reserve.
The document provides an introduction to valuing debt securities. It discusses that valuation involves estimating expected cash flows, determining appropriate discount rates, and calculating the present value of cash flows. The traditional approach discounts all cash flows by a single rate, while the arbitrage-free approach uses different rates for each cash flow. Treasury spot rates are used to avoid arbitrage opportunities when valuing bonds. Models like binomial and Monte Carlo are used to value bonds with embedded options.
Recuerdos de estudiantes de 6to Año Escolar 2015-2016Euwith Romero
El documento habla sobre recuerdos de la escuela primaria, incluyendo momentos gratos y amigos inolvidables. Se despide deseando éxito y la bendición de Dios.
El documento describe las diferentes formas y fuentes de energía, incluyendo la energía térmica, solar, radiante, eléctrica, y estatíca. Explica que la energía es la capacidad de producir trabajo o movimiento y que las fuentes de energía primarias incluyen la mareomotriz, hidráulica, eólica y solar. También describe circuitos eléctricos, materiales conductores y aislantes, y las centrales eléctricas de Venezuela.
The document contains lyrics from multiple Christmas songs describing plans to celebrate Jesus's birthday. A church group is organizing a Christmas party and working to spread the word throughout the town by distributing invitations, posting fliers, making phone calls and visits. The songs celebrate the birth of Jesus and encourage listeners to accept him as their savior and king. They describe the biblical Christmas story and remind people that nothing is impossible with God.
What are your top ten favorite movies of all time? This is a very difficult question. But why? Irmak Sirer explains the challenges of measuring how much we like movies, books, songs, or products; combining insights from diverse sources like the Netflix Prize, Duncan Watts' social experiments, or the beginnings of Facebook. The better we get at measuring and ranking levels of enjoyment, the better we can customize websites, sort search results, find other people with similar tastes, and recommend products, so can we overcome these challenges? Drumroll... Yes, we can.
The talk I gave at Uncubed NYC 2015. Goes over the different dimensions of a data science project, and shows the entire process through the example of a passion project: Movie vs Movie.
What are your top ten favorite movies of all time? This is a very difficult question. But why? I explain the challenges of measuring how much we like movies, books, songs, or products; combining insights from diverse sources like the Netflix Prize, Duncan Watts' social experiments, or the beginnings of Facebook. The better we get at measuring and ranking levels of enjoyment, the better we can customize websites, sort search results, find other people with similar tastes, and recommend products, so can we overcome these challenges? Drumroll... Yes, we can.
While Movie vs Movie answers a personal question I'm passionate about, it gives a lot of insights for the entertainment industry, and the backbone process for answering business questions is the same.
Este documento presenta las 4 dimensiones del liderazgo según el Instituto Bíblico Ministerial de Houston, Texas: liderazgo personal (50%), liderazgo hacia arriba hacia los líderes espirituales y naturales (25%), liderazgo lateral hacia los colegas (20%), y liderazgo hacia abajo hacia los subordinados (5%). Describe la importancia del autoconocimiento, la visión, la pasión y el carácter para el liderazgo personal, así como la necesidad de rendir cuentas a los líderes superiores, estable
El grupo musical Ayer y Hoy.es ofrece sus servicios de contratación, presentándose como una formación intergeneracional de 4 generaciones que interpreta versiones de canciones del pasado y actuales. Ofrecen espectáculos de 30-45 minutos o conciertos completos de 1 hora y media, adaptando su puesta en escena a cada caso pero manteniendo siempre la calidad. Adjuntan una maqueta de pupurris italianos y esperan intercambiar impresiones para ampliar la información.
This document discusses different ways of working with arrays and lists in Python, including:
- Creating arrays using ctypes and initializing array values
- Performing operations on arrays like addition, getting/setting items
- Creating lists, and common list operations like appending, extending, inserting, deleting, and slicing elements
The document discusses looking to go in a new direction and try new things from a different perspective while learning. It references the poem "Lenox Avenue Mural" by Langston Hughes about what happens to dreams that are deferred or put off, suggesting the effects are not good as dreams may dry up, fester, or explode.
Ask yourself these questions . . .
1. Are your bank covenants trending up or
down?
2. Are you paying more cash out weekly than you receive?
3. Does your family really agree with your
business plans?
4. Why are you taking this test?
These and the following questions are a self
diagnosis test of your business health. Take the test in the privacy of your own office and see how you rate on these critical risk factors.
Bob Grant provides a summary of comments made by Jeffrey DeBoer to Congress about the struggling state of the commercial real estate industry. Key points include: refinancing capacity presents an ongoing risk to property values as $300-500B in commercial real estate loans will mature annually through 2020; capitalization rates have increased 250 basis points while rents have declined 20% depending on property type; the lack of transactions makes it hard to accurately value properties; and regulatory flexibility is needed to restructure loans and allow banks to extend performing loans based on cash flow to avoid foreclosures. Michigan in particular continues to struggle more than other states with industrial vacancies over 13% and expected retail vacancy increases of 2% and rent declines of 4%
Government intervention hurts investors. As the government focuses on slowing credit growth, it is making it tougher for certain types of investors and borrowers to qualify for financing. Changes to insured mortgage rules have lowered amortization periods, reduced refinancing limits, and tightened debt servicing ratios. Regulators have also imposed new rules that reduce HELOC amounts and require reasonable income verification for stated income borrowers. These changes are restricting the money supply and access to credit for rental portfolios, self-employed individuals, and higher-ratio mortgages.
This document contains information about sharing financial decisions with a spouse. It discusses how investing in a spouse's name can help cut taxes. Specifically, it provides four tax-efficient strategies for couples, such as investing in tax-free investments like the Public Provident Fund or equity mutual funds to avoid additional tax liability. The document also discusses how gifting gold jewelry instead of cash to a spouse does not generate any taxable income.
Tax-Advantaged Real Estate Investing When You've Maxed Out Your Self-Directed...Tom Rutkowski
This document discusses using permanent life insurance as a tax-advantaged way to invest and access funds for real estate investing. It outlines how life insurance provides stable, high returns that can be borrowed against at low rates, allowing investments to earn returns in two places at once. This "micro-banking" strategy improves returns without additional risk compared to traditional real estate investing. The document uses an example of a real estate investor to demonstrate how this strategy provides higher returns, asset protection, a death benefit, and income in case of critical illness.
The document discusses home financing options and introduces the Home Ownership Accelerator product. Key points:
- The HOA is a line of credit attached to a homeowner's primary residence, allowing them to pay down their mortgage faster by making daily payments from deposited income.
- It aims to reduce interest costs over the long run and allow the home to be paid off in half the time compared to a traditional mortgage, with no changes to spending.
- Borrowers have access to the credit line via debit cards and checks, and payments are made automatically via direct deposit each day to reduce the loan balance and interest costs.
Commercial Financing - Pre-Underwriting - Lead GenerationSua Truong
Most residential mortgage finder's fee take 2-3 weeks after completion before the mortgage sub-broker gets paid. Commercial deals get paid out to the agent at completion date. The lawyer writes the cheque to pay everyone out (realtor & mortgage broker). I like that! Don't you?
I am not the best at commercial financing yet but what I am good at is focusing on what is the most efficient use of my time. Return on my investment (of time). Doing what can bring the most money with the least amount of time required.
Most residential mortgage brokers avoid commercial deals like the plague. I love it. Want to know why?
The secret of making more money is not doing what everyone else is doing but doing what most people don't want to do. You do it and you do it well. Not just be good at it but be GREAT at it. Pretty simple really. I don't have to be the best at commercial financing. Just great at my little niche within that sector.
However, you need to craft your skill before you get those big pay cheques!
-You need to know if this client or the deal is going to give you a good ROI or not.
-You need to know how to evaluate the potentials of any deal fast.
-You need to be able to determine the quality and probability of success before you invest countless hours.
In this workshop, you will learn 3 important components to achieve exactly what you need:
- Learn how to pre-underwrite a deal. What pitfalls to look out for and what you need to know before you spend hours to build a losing case (learn from my mistakes).
- Analyze and properly convey the strength of your applicants to overshadow any weakness
- Learn the strategy necessary to get paid 2-3X what a residential deal will pay.
This document analyzes the financial performance and profitability of wholesale greenhouse operations based on data from nearly 50 operations over 5 years. The key points are:
1. Median net profit margins were very low, ranging from 1.06-3.5% of sales, indicating thin margins across the industry.
2. Cash flow was also low, with median EBITDA less than 10% of sales and not enough cash left over after operations and debt payments to fund needs.
3. Continued low margins are putting pressure on liquidity and balance sheets, though debt ratios have improved due to cautious spending.
4. Greenhouse operations need to improve margins to around 5% to generate sufficient cash flows
This document provides an overview and presentation on the CMG Home Ownership Accelerator program. It begins by noting how previous generations spent their working years paying off 30-year mortgages, and that there may be better tools available. It then discusses trends toward smaller mortgage payments and how debt has still grown significantly. The presentation argues that the conventional wisdom of fixed-rate 30-year loans may not be the best strategy, as they are high cost and most borrowers refinance within 5 years. It introduces the Home Ownership Accelerator program as a line of credit that allows depositing income directly into the loan to pay it off faster by reducing interest costs. Key benefits are outlined as being flexible, maximizing
This document provides an overview and presentation on the CMG Home Ownership Accelerator program. It begins by noting how previous generations spent their working years paying off 30-year mortgages. It then discusses trends toward smaller mortgage payments and rising household debt levels. The presentation argues that the conventional wisdom of opting for a 30-year fixed rate mortgage may not be the best strategy, as it can result in paying a high amount of interest over the long run. It introduces the Home Ownership Accelerator program as an alternative that allows borrowers to pay down their principal faster by depositing income directly into a line of credit, saving on interest costs over time. Key details about the program are outlined, and objections to
This document describes a monetization program for financing projects from $5-50 million. It involves using a standby letter of credit (SBLC) that can be monetized at a rate of 75-80% of its face value as a loan. The approval process takes 2 days and involves submitting a project profile, business plan, pro forma, and resumes. No personal guarantee or upfront fees are required. Once approved, the SBLC is provided by a major bank, purchased by the client for 10-12% of its value, and then monetized as a loan through a third party. The loan has a 5 year term at 6% interest and the investor takes no equity stake.
The document summarizes a CNN article that outlines how refinancing a mortgage into a 15-year term at a lower interest rate can save $50,000 over 9 years compared to a 30-year term. It provides an example of how refinancing a $280,000 loan with 25 years remaining into a 15-year term at 4.375% interest could save $175,000 in interest versus keeping the 30-year term at 5.125% interest. It notes that while this strategy is effective, borrowers must be able to qualify and have sufficient equity. For those who cannot afford higher monthly payments, refinancing into a 20-year term could still save $44,000 over 10 years
Wake Up and Smell the New M&A Imperative_ May 2019 FBA CFO SymposiumMona Ashour
This document discusses how core IT suppliers benefit from mergers and acquisitions between banks due to termination fees, conversion fees, and lost profit clauses in existing contracts. It argues that banks should proactively negotiate their core IT contracts to minimize costs for future M&A activity by reducing fees, aligning terms for a larger combined institution, and limiting supplier benefits from bank consolidation. The presentation provides examples of banks that achieved significant cost savings through negotiations facilitated by Paladin prior to mergers closing. It recommends that banks assess their current contracts and technology to understand risks and opportunities in order to negotiate from a position of strength.
Adam J Petriella is presenting an opportunity for investor participation in his commercial mortgage brokerage business, The Real Estate Finance Group. Commercial mortgage origination volumes are increasing and projected to continue rising through 2015, presenting an opportunity. However, hiring and stabilizing capable loan originators is challenging for commission-only sales organizations. The goal is to hire and develop 20 stabilized loan originators over 24 months. Offering draws and incentives could double the number of stabilized originators, growing profits faster. Petriella is requesting $250,000 in financing at 8% annual interest over 5 years to conservatively offer draws to top candidates and better position the company to take advantage of the growing commercial mortgage market.
The document discusses multiple mortgage funding programs and options available through US Bank for mortgage brokers and correspondents. It outlines traditional broker, table funded hybrid broker, and purchase funded traditional correspondent programs. It also summarizes various loan products available, including conventional, FHA, VA, jumbo, and ARM loans. Additional services discussed include the Sell US website, underwriting support, and competitive pricing.
The document discusses multiple mortgage funding programs and options available through US Bank for mortgage brokers and correspondents. It outlines traditional broker, table funded hybrid, and purchase funded traditional correspondent programs. It also summarizes various loan products like conventional, FHA, VA, jumbo, and ARM loans. Additional services discussed include the Sell US website, underwriting support, and competitive pricing.
The accounting firm proposes changing TEC's fuel inventory accounting to LIFO and writing off $20,000 of obsolete computer equipment. These changes could cause TEC to violate terms of its bank loan by lowering its return on assets below 5% or increasing its liabilities to surplus ratio above 200%. The memorandum suggests arguments the organization could make to the bank, such as the long-term accuracy of LIFO, to avoid defaulting on the loan due to the accounting changes.
In this special series the Russell Shaw Group shares with us their Short Sale Package. This extensive document will give you a great start to building your own package.
The document summarizes current mortgage qualification requirements for purchases and refinances. It outlines the basics needed to qualify including a job/income, down payment, decent credit, and being able to afford the home. It then defines key terms and details the requirements for various loan types like conventional, jumbo, FHA, VA, and ARM loans. Requirements outlined include credit score, debt-to-income ratio, reserves, loan-to-value ratio, down payment amount, and documentation needed.
21. Must Cash Flow at 1.2 unless Special Purpose Property, then generally 1.25 DSCR
22. 65% max LTV (local bank may go to 75%) (understand that with a conventional loan, the entire loan is at risk. On an SBA loan, 75-90% of the losses are guaranteed by the government so exposure is limited-hence, the bank is more aggressive)
23.
24. 30 Yr. Terms for RE, 15 yrs. or useful life for Equip., 7 yrs. Working Cap.
25. Can’t be used to Relocate Jobs, C/O to Owners…but CAN do Const., Working Cap…
26. Need 10% Tangible Equity available after Closing to get Approved if existing Business, 20% if start-up
31. FHA Program 223 for Apartments $2 million to $50 Million Loan Amt. Acquisition or Refinance 85% LTV for purchase/80% LTV for C/O refi 1.18 DSCR, 35 Year Terms, Fully Amortizing, Awesome Rates Non-Recourse 660 Credit Scores Downside is Time Frame (expect 4-6 months to close)
32. FHA PROGRAM 221(d)4 For construction and substantial rehab (at least 15% of the finished appraised value in repairs) $2 million to $50 Million 1.11 DSCR 90% LTV Up to 40 Yrs. Fully Amortizing, Non-Recourse, Great Rates 660 Credit Score Experience Critical Time Frame-6 Months Minimum
33. FHA- Healthcare- section 232/223 Skilled Nursing, Assisted Living Facilities, Treatment Centers, Aggregate Care-only for Purchase, Refinance, New Construction or Substantial Renovation of Healthcare Facilities Facility must have NO more than 25% of the units be Independent (own kitchen and bath facilities) Must Provide Continuous Oversight of Residents and Offer 3 Meals a Day 90% LTV 1.11 DSCR Up to 40 year, Fully Amortizing, Non-Recourse 660 scores Experience a Must, 3 Plus Years Minimum (FHA is the only source that has not adjusted to the declining values, everyone else has including FNMA. Keep this in mind.)
34. FNMA/FHLMC Apartments primarily 75% LTV is the Most Generally, 80% LTV in Extremely Strong Cases Only 680 Score 1.20 DSCR Possible BUT Everything Else Must be Rock Solid, 1.25 DSCR is Norm Need 9 Months of PITI in Reserves Generally Mixed Use OK as Long as Less Than 25% of Income from Commercial 90% Occupancy Needed (otherwise a bridge loan) C/O Possible to 65-70% on Limited Cases, all Else Must be Wicked Strong Must Have at least 3 Yrs. Landlord Experience Generally Non-Recourse (can get 10 year fixed, 30 year am, rates are good) Minimum L/A $1M, max $25M
51. Wall Street Gen. >$5M (no real max) Much Different. (deals can be broken up into pieces to combine first mortgages, mezzanine ((like a second)), equity) Everything needs to be Strong (nothing marginal) DCR >1.3 Generally need 1 yr. worth of Liquid Res. 5 yrs. Exp. Needed min. 680 Scores (really looking for 700) Special Use Properties carry much lower LTV’s Using a Combination of Equity, Debt, & Mezzanine, higher LTV’s are possible Looking for MAJOR Players (be careful of PFS statements that have huge net worth in real estate and almost no other liquid assets- that guy is not a player)
55. Good Exit Strategy is KEY to Hard Money- what is the story and how will this get paid off in two years or so? (hint-“going to fix my credit then refinance” does not fly)
72. Lenders are Still Aggressive for Const.There are many other products that you can do at Commercial Capital like our self directed IRA program, loan modification, factoring, merchant accounts receivables, etc. These programs help me get more deals done…which takes us to the next big point…..
81. Cash-Out to Max(remember, underwriters can lose their jobs if too many loans they approve go bad, banks can be taken over if too many loans go bad-they look at the deal differently than you as a salesperson-the key is to be aggressive getting the deal in but screen hard like an underwriter-don’t underwrite, but make sure it hits the general guidelines)