Real Estate Trends

How to Obtain Business credit When Banks Aren't Lending

There is no doubt that with the onslaught of bank foreclosures there is plenty of inventory to buy. If you are in the market for bulk REOs or performing and non-performing notes pools now is a good time to invest. However, getting real inventory from a bank that is willing to play ball may prove difficult unless you have already established a relationship with that bank. If you do manage to get a bank to provide you with a portfolio of REOs or notes and to manage to get it at good discount you have a now have the assets to resell for a 5-20% profit maybe more or hold them for cash flow. Congrats

Both investment strategies are can reap handsome returns when you are deal in the tens to hundreds of millions of dollars. The downside to buying bulk REOs and notes is that the cash flow or return on investment will mostly depend on the market. For example, if you are a flipper, your return on investment depends on how fast your end buyer buys or if you buy and hold your return on investment depends on the rental markets and the tenants’ ability to pay on your properties and the borrower ability to pay on the notes.

Now contrary to what you maybe hearing on the news the economy is tanked to due to the record high employment rate. So a lot more people don’t have to cash to buy or just make those payments. Also to lending across the board has come to almost complete stop therefore capital to investment is hard to come by or very expensive to get. There is a way to address these issues. Either the way risk and reward factor is definitely swinging more toward the risk. There may be a solution to this pitfall though.

Why not invest in such a way so that you can profit from multiple streams of income while acquiring the assets you seek at a much better discount? This is quite possible to accomplish this, while investing the same amount on capital. Think about it. Instead of spending $10M or more for the a REO package or note pool, why not buy the bank along with it’s assets. Doing so will allow you to:

· Recoup your investment from day one
· Acquire bank assets for much less than you would if you bought just the assets
· Gives access to nine times more capital then using your own investment capital
· Takeover a massive profit center from the interest and fees the bank generates
· Instantly increase the value of the bank the minute your buy it by a third or more
· Get the inside track to purchase more banks after you buy your first one.

In case you haven’t notice over 80 banks have failed this year so far and more failures are expected to come. Most banks would rather try to sell their financial institution rather than let fail and have the FDIC take it over.

So there are plenty of opportunities out there. I know of one bank that was for sale for $10M with over $100M in assets! Banks are buying selling on a daily basis. As a matter of fact, this is how a lot of banks used their TARP money if you ever wondered where some of that $700B went.

Now you won’t here of a banking centers publicly listing their banks for sale because they don’t want their investors to know that their investments are at risk basically. These deals happen within the very closed circles. That doesn’t mean that you can’t pay this game too. The trick is getting in those circles. Once you are in those circles, you will have access to many more inside deals that can reap you huge returns.

If you would like more information about buying banks please email me at kyleransom@directreoandmore.com

How to Obtain Business credit When Banks Aren't Lending

If you are in business like me you could use some business credit. Every business needs some credit to help them sustain during this tough economy. Now getting that business credit may be challenging to say the least. The underwriting guidelines for obtaining business lines of credit have changed over the last few years and small to mid sized businesses are finding very difficult for secure business credit.

These days in order to qualify for business credit most lending institutions require a personal guarantor use their personal credit to qualify. That person must show a high credit score and have personal financials showing substantial assets and income. The business itself must have been in business for at least two to three years and showing a profit for that long.

Unfortunately, most businesses and businesses owners have severely been affected by the slowing economy to the point where they cannot qualify for business credit because of poor personal credit or lack of profit.

You would think that there is just no way to get business credit right? Well not quite. One thing I have learned from running a business is that there are at least 12 solutions to one problem and here is one.

One-way get money for your business is to establish business credit. Doing so will get you access to business lines of credit without having to use your personal credit. In order to establish business credit you need to create a credit profile with Dun & Bradstreet. What that will do is provide the business with Paydex number, the highest being 80. The Paydex number is like your FICO number but for your business. Then basically what you do is establish credit through other companies i.e Staples or a company that provides support for your business.

Now this process won’t get you $250K in five days. It does take some time to build your business credit. But over time your Paydex score will increase showing a strong credit history. This will open up more channels for business credit.

To learn more about how to build your business credit Click Here

You can make money tell people you know how to get business credit too. Just Click Here to started at no cost.

Where Is The Money To Buy For The Real Estate Investor?

Over the pass few years, lenders have all pretty much cut of loans for investor purchase and rehab loans even though many of the lenders have received tarp funds to lend money but that another topic.

Anyway, gone are the days of easy underwriting and fast closings. Or so it seems. The truth is, there is still money available for the investor to purchase investment properties for both the commercial and residential investor. I am finding that more and more private equity firms are creating funds to invest in real estate projects offering purchase and rehab money. Many offer terms that are similar to typical hard money terms i.e 60% LTV 6-8 points 12 months term for commercial and 60-70% LTV 6-8 points with a six months term for residential.

In a time where capital to buy real estate is not as plentiful as it once was, tapping into these sources of funds maybe a great alternative funding solution.

Why Every Foreclosure Should Be Challenged - Part 1

Unfortunately, many homeowners don't contest the foreclosure and end up losing their homes or have tried to find a solution to stop foreclosure through conventional means i.e. Chapter 13 Bankruptcy or through a loan modification with moderate success overall. The problem though is that a Chapter 13 almost requires that you hire a lawyer to get it done. If you hire a lawyer, you will need to pay a fee of about $3,500 or more plus court fees. Yes the payments can be put in the bankruptcy monthly payment plan but guess what? The payments mostly all go toward fees before one dime goes towards paying off your debt. So you have essentially picked up another creditor. This is not what you need if you are having trouble making your mortgage payments.

A loan modification is troublesome because many lenders are difficult to work with if you try to do a loan modification yourself, so you almost have to hire a third party to negotiate your loan modification terms for you to get it done. And while there are some reputable companies that offer loan modification services and even free services, many scammers take your money and let the house foreclose. So you have to be careful about who you decide to work with.

Typically your mortgage lender is unwilling to grant you the best deal in a loan modification at first. Generally, a loan modification or filing a Chapter 13 first is not the best alternative to stop foreclosure. It will be necessary to challenge your mortgage lender's rights to foreclose to ensure you get the best deal to receive a mortgage note you can actually afford to stop your foreclosure.

There is a growing trend across the nation which local judges are issuing court orders to stop foreclosures because the lenders are unable to show that they legally own the mortgage notes in due course.

In other words lenders are failing to show proof how they took possession of the mortgage notes. A good example of this would be like having anyone off the streets approach you and say, "You owe me $140K pay me or I am going to foreclose on your home." Without showing any proof that you owe that person, so why should you pay the lender without any proof that they own your home? This is essentially what the majority of mortgage lenders are doing today and largely lenders can not produce the original mortgage notes but have a harder time showing that they own the mortgage notes in due course to have a legal standing to foreclose.

Here is where you can receive a free report about "Secrets Lenders Don't Want You to Know" http://www.gofightforeclosure.com/freereport.html

Kyle Ransom is the president of Ultisky Inc. Ransom professional credits include real estate mortgage broker, investor, and developer. He speaks to public audiences about real estate trends and practices. Ransom is respected as a national expert on Foreclosure Consulting Business.