Stopp Being Stopped – From Buying a Home

STOP BEING STOPPED

DECIDE TO NOT BE STOPPED FROM BUYING A HOME

By Broker: Forest Tardibuono

Click here to watch the video

 

This Article is addressed to all those who long to buy a home but have not done anything about it.

Let’s be clear on this question of “Buy a home – don’t buy a home?”

It’s obviously not the rates. 30 year fixed rate loans are at the lowest – ever! Did everyone see that headline in every news forum? Lowest ever!

It’s obviously not real estate prices, because the majority of the statistics show they have hit bottom and are projected to rise based on those statistics.

It’s obviously not the fact that there are major tax advantages to owning a home, because those have been preached for years.

So what is stopping you? Think about it for a minute, what is really stopping you?

Whatever you came up with – get over it ! OK that’s rather abrupt but look at the compelling facts above that demonstrate why you should get over whatever it is that has stopped you.

Did you decide to stop being stopped?

Good. So the starting point for becoming a home owner is being pre-approved for a home loan. This is the starting point. You do not want to shop for the home first. That is putting the cart before the horse. Most sellers in this current market will only look at offers from Buyers that have been pre-approved for the home loan.

You have a couple of ways you can go here: If you have a real estate agent already, have them set this up with their favorite lender, preferably a mortgage broker, since you probably have no idea what type of loan you may qualify for. If you don’t have a real estate agent, you could interview a few and decide on one and then have them steer you to their favorite lender. You could also go direct to a local mortgage broker or your favorite bank. You could look in the Yellow Pages (do people still do that?) or go on-line and search mortgage broker and the city you live in.

It does not cost anything to find out what you can buy based on your credit, income and down payment.

Touching on that briefly, you can be a Buyer whether you have perfect credit, good credit or “bad” credit. You can also be a Buyer if you have from easily verifiable income to difficult to prove income. You can be a Buyer with as little as 1/2 % down!

Regularly published are the 30 year fixed rates offered by FNMA, FHLMC, FHA, and VA as well as PERS and loans made by the California Housing Finance Agency. These are deemed “conforming” loans. They are offered through local Brokers and banks. You need good to perfect credit for these as well as verifiable income. You also need to be buying a home that is in pretty good shape. No fixer-uppers.

Finally, any time one of the above traditional lenders cannot approve your loan you need the services of a hard money lender. These are Brokers and companies that offer these non-traditional, that is non-conforming – programs. Some of the reasons conforming lenders say “no” are low FICO scores, a recent bankruptcy, inability to verify income, no tax returns, no bank statements, high debt to income ratios, odd or non-conforming types of properties such as mixed use, multiple units, apartments, land, etc. Hard money generally requires just 2 things: a good down payment and ability to repay the loan.

You’ve already decided to stop being stopped. What are you waiting for?

Don’t miss out! Now is the time to buy.

Forest Tardibuono is a CA DRE Broker with over 23 years experience in real estate and lending. His number is (707) 523-2099. See website @ www.sunpacmortgage.com.

INVESTORS AND “HARD MONEY” LOANS

 

LENDER’S VIEWPOINT

By Forest Tardibuono

There was a really good article in the Wall Street Journal last week about Hard Money loans. It was informational to borrowers and investors alike. It spoke of the fact that Hard Money loans will account for 1% of the 5.5 million home loans originated this year, up sharply from prior years.

The Article features a Dallas attorney who has doing Hard Money loans as a “side business”.

He believes that originating home loans in the current environment, when many economists believe housing is at or near the bottom, is less risky than putting money in the “volatile stock market or opaque bond market.”

He states further “I can’t drive by and look at those stocks and bonds.” Plus, he says, investing in residential real estate earns “passive income that doesn’t require much work from me.”

The interest rate paid on these investments can be anywhere from 9% to 14% with 12% being fairly typical. They can be a first or second mortgage ranging in size from $30,000 to $1,000,000 or larger with a term of from 6 months to 7 years or more. These loans are secured by land, 1 to 4 unit residential, 5+ unit residential (deemed commercial), office buildings, strip centers, large commercial, etc.

The main qualification for a borrower is: 1. Equity or a good down payment and 2. Ability to repay the loan. If they do not make payments, they could forfeit the property that was the security for the loan to the investor.

Check out our website for further details.

Forest Tardibuono is a CA DRE Broker with over 23 years experience in real estate and lending. His number is (707) 523-2099. See website @ sunpacmortgage.com.

How “The Guy In The White Hat” Came To Be

Hi. My name is Forest Tardibuono and I am the proud Co-owner and Broker of Sun Pacific Mortgage & Real Estate since 1988 – established in Sonoma County, CA!

Thought I’d tell you a bit about myself as my kids have nagged at me to let people know my interesting life history up to now…they say it answers why I came to be a Broker, taking a sincere interest in helping others. So here I go:

I was born in 1957 in Irumagawa, Japan at the Johnson Air Force Base. I have 7 siblings – with 2 sets of twins – so I had my hands full helping out as the eldest!

As my father was in the Air Force, we travelled a lot. One can say I was a military brat until 1972 when my Dad retired at Williams Air Force Base outside of Chandler, Arizona. We had moved back and forth, living in Illinois, Japan and finally settled down in Arizona.

My Mother was a teacher at the Catholic Grade school I attended and she was my teacher through my 7^th and 8^th grades for English, art and music.

I graduated Chandler High School in 1975 and I lettered in football, wrestling and believe it or not, in Debate!

I also must mention my 7 proud years of newspaper delivery of “The Phoenix Gazette” and the Sunday morning paper “The Arizona Republic” every single day! I was paperboy of the month several times out of hundreds of carriers and also paperboy of the year. Guess you could say I liked to excel at everything I put my mind to!

After College I went to Arizona State University on a debate scholarship. Graduated with a Bachelor of Science Degree in Business and Public Administration in 1982 and also joined the national social fraternity Phi Sigma Kappa.

I moved to La Jolla, California and did first year’s law studies at Western State University College of Law where I met my lovely future spouse and co-owner, Lynn. We married in 1987 and chose to move to Santa Rosa, CA. in December of 1987 because they had a law school with a night program as well as how beautiful it was here.

Our daughter, Megan, was born January 30, 1989 and happily joined our family of Lynn’s two sons of her previous marriage: Ken 7 and Phillip 3.

We opened Sun Harbor Mortgage on January 11, 1988 which was a branch of a San Diego Mortgage company. Since we had a true personal desire to help others in this county with honest financial services, we bought them out in June 1990 and changed the name to Sun Pacific Mortgage which has since evolved in 2004 to Sun Pacific Mortgage & Real Estate as we offer both real estate and mortgage/lending services!

Throughout my tenure as the Broker, I worked diligently to deliver the best service to all our customers and received the prestigious Model-Of-Admin-Know-How Award from WISE International for 10 consecutive years, beginning in 1997.

I take pleasure in working hard to help others during the week and on weekends enjoy fishing, gardening and golf – as well as a variety of other activities including spending joyful time with my 1^st grandson, Braden, who was born July 2009.

Having helped literally thousands of customers, I continue to strive to deliver the most honest and friendly service to all Borrowers, Buyers, Agents, Brokers, Investors and other affiliates I am in contact with on a regular basis. I enjoy what I do and am sincerely happy to help in any way I can.

I look forward to doing the same for you!

Feel free to call me up at 707/523-2099 for a free consultation, ask any question you have about mortgages, lending or real estate, to refer a friend or family member in need of my services or to get help yourself!

My website is regularly updated with timely information, tips, articles and videos about the current market of real estate and lending so take a moment to check it out: http://www.sunpacmortgage.com/. You can also sign up there to receive emails and videos with timely information about the real estate and mortgage and lending markets.

Sincerely,

Forest

We Are Looking For Private Investors

I am looking for private money investors willing to fund loans in the following North Bay Area counties: Sonoma, Marin, Contra Costa, Solano, Lake, Alameda, and Mendocino.

As the owner and Broker I have been doing Private Money Loans for 20 plus years and within the past months have been increasing the # of Trust Deeds being sold in the above areas.

These types of loans are first mortgages secured by residential or commercial real estate;  Purchase or refinance;  Owner occupied and investment. Loan sizes from $30,000 to $400,000 although I will put together larger loans.  Rates are 11% to 13%.  Terms are from 12 months to 7 years.  Loan to value up to 70%.

As a local, family owned business in Sonoma County since 1988, we have been offering Private Money or Hard Money loans for over 20 years. We deal with hundreds of Private Investors interested in making safe investments in real estate.

Weekly we send out Trust Deed Offerings for sale and are looking to expand our counties with interested Private investors

We offer these types of loans to some of the following qualified individuals:

· Buyer turned down due to poor credit.

· Buyer turned down due to difficult to verify income.

· Property a fixer.

· Buyer has at least 25% down payment but can’t get more conventional financing.

· We can also do Buyers fresh out of bankruptcy, Short Sale and/or foreclosure.

Hard Money specifics: www.sunpacmortgage.com/Private-hard-money

 

Call me, at (707) 523-2099 for a confidential interview or drop me an email

Forest Tardibuono

forest@sunpacmortgage.com

DRE#01464899

NMLS# 360993

Check out our website at www.sunpacmortgage.com/

“Like” Us on Facebook at www.facebook.com/sunpacmortgage to receive a FREE Homebuyers Guide, and regular real estate, mortgage lending tips, and updates.

Sun Pacific Investor Quarterly

A Newsletter for Investors in Trust Deeds

May 2011 Volume 7 Issue 3

Integrity • Knowledge • Honesty

Message from the Broker…

Instead of my usual message here, I want to remind all of this upcoming…

HARD MONEY INVESTOR SEMINAR

Attend this informal discussion of current regulations impacting Hard Money Investments. Tuesday – May 10th @ 5:30 pm at the offices of Sun Pacific Mortgage – 800 Mendocino Avenue #2, Santa Rosa.

RSVP please to Ari, Forest or Lynn or for your convince you can click RVSP

An introduction into the upcoming Investors Seminar on May 10th, 2011 at your convince

 

**SPECIAL GUEST SPEAKER: Santa Rosa Attorney Max Broome will be there to participate in the discussions and answer your questions from a legal perspective.

A Bit More on Predatory Lending

In no particular order here are some of the more relevant topics that apply to Hard Money Investing.

1. Nationwide Mortgage Licensing System and Registry – NMLS. All Mortgage Loan Originators (MLO) need be qualified through this Registry. They have to pass local and federal tests. There are credit checks, criminal background checks, credit checks and financial qualifications. This is above and beyond the state licensing. There is also substantial quarterly and annual reporting. The Mortgage Loan Originator is given a Unique Identifier Number. There is also one for the company he/she works for. Make sure your Broker has this number.

2. Lender Purchaser Disclosure Statement – LPDS. This describes the trust deed offering from the Mortgage Loan Originator. You need to sign this form for each loan you fund.

3. MLDS/GFE. This form must be provided to the borrower within 72 hours of the MLO receiving the loan application.

4. High Priced Mortgage Loan – HPML. There are 2 tests to see if this loan is an HPML. One is the Fee Test and the other is the Interest Rate Test. Both the feds and the State of California have these 2 ways of determining if the if the loan is an HPML. It does not in any way limit the fees that can be charged or the interest rate on the note. It does require additional disclosures.

5. Ability to Repay. The feds want anyone borrowing money against a residential property with 1 to 4 units, to be able to prove they have the ability to repay the loan and their other obligations. This generally applies to the borrowers principal residence.

I think the above are the main areas that an investor should be familiar with. You can go on line and look up any of those areas to get more insight. I’ll continue these Newsletters.

SUMMARY…

From my review of the regulations currently in effect, there is nothing I have seen that should stop you from making Hard Money loans.

I would suggest that the next time you get approached about doing a loan with a better loan to value or strong borrower or nicer property, that you think about the rate you will require for that loan. Your Broker should be compelled to do that on your behalf as a pattern and practice.

Feel free to call or email me anytime with further questions you may have regarding investing in Deeds of Trust.

I would also like to personally invite you to the Hard Money Investor Seminar. It will expand on these topics mentioned here as well as others that are relevant Hard Money Lending. And if you’re reading this, I’m guessing that’s what you do. Whether you do it a little or a lot, knowledge is power. It certainly applies here because it’s your money!

Best,

Forest Tardibuono

Owner/Broker

NMLS Unique Identifier # 289456

Sun Pacific Mortgage & Real Estate

 800 Mendocino Avenue Suite # 2

Santa Rosa, CA 95401

(707) 523-2099

or email Forest at forest@sunpacmortgage.com

Visit us @ www.sunpacmortgage.com

“LIKE” us @ www.facebook.com/sunpacmortgage

Sun Pacific Investor Quarterly

So much change has been wrought in the lending industry since what has been deemed the “mortgage debacle”.  With the dust somewhat settling on the new lending landscape it’s time to inform Investors, Brokers  & Borrowers of some of the regulatory changes impacting Hard Money.  These changes impact each & every one of you. I’ll see YOU on May 10^th.

Increase your income doing hard money loans & learn more about investing safely by attending our Hard Money Seminar with local attorney as guest speaker!  5:30pm on TUESDAY, MAY 10^th at the offices of Sun Pacific Mortgage – 800 Mendocino Avenue #2, Santa Rosa.  RSVP please

Unique Identifier # 289456

forest@sunpacmortgage.com

Sun Pacific Mortgage & Real Estate (707) 523-2099

800 Mendocino Avenue #2, Santa Rosa, CA 95401

www.sunpacmortgage.com

“Like” us at www.facebook.com/sunpacmortgage

Sun Pacific Investor Quarterly Volume 7 Issue 3

A Newsletter for Investors in Trust Deeds

Volume 7 Issue 3

Integrity • Knowledge • Honesty April 2011

HARD MONEY INVESTOR SEMINAR

Attend this informal discussion of current regulations impacting Hard Money Investments. Tuesday – May 9th @ 5:30 pm at the offices of Sun Pacific Mortgage – 800 Mendocino Avenue #2, Santa Rosa. RSVP please to Ari, Forest or Lynn.

SPECIAL GUEST SPEAKER: Santa Rosa Attorney Max Broome will be there to participate in the discussions and answer your questions from a legal perspective.

Message from the Broker…

So much change has been wrought in the lending industry since what has been deemed the “mortgage debacle”. With the dust somewhat settling on the new lending landscape I thought it time to inform Investors of just a few of the regulatory changes impacting Hard Money. These changes impact the Borrower, the Mortgage Broker and the Investor.

PREDATORY LENDING

I have to admit that I’ve been doing these Hard Money loans for years and I thought the Feds had labeled them Predatory Loans. In really digging in to the more recent laws that apply to these loans I made an interesting discovery for myself. These loans are not called Predatory Loans because they are high interest rate and high cost loans. Investors are not predatory lenders because they make private money loans. Predatory Lending is the practice of making a loan to someone that is not in their best interest. Or making a loan to them that does not have a tangible benefit. Or giving them a loan that is not the best loan available for their borrowing profile. Or bait and switch. Or no disclosures to them. Or an onerous prepayment penalty.

The Predatory Lending Laws have as their purpose the eradication of the patterns and practices of lenders that might be deemed predatory.

I personally think it was the federal and of course overblown response to the few bad eggs who were predators with their patterns and practices as mentioned above. Those guys are likely out of business but the remaining mortgage lenders (this means you) are left with the cumbersome compliances that were designed to keep those already chased out of business from harming borrowers further.

AFTER FURTHER REVIEW…

PREDATORY LENDING

The only area I can see for improvement in my own operation is the interest rate we charge borrowers. It is usually 12%, which is not at all

predatory. What may approach predatory per the intent of the feds is that we give that rate to everyone. The practice of giving a borrower who has 50% loan to value the same rate as someone who is at 75% loan to value is borderline in my new view of what the feds are looking for. That gap magnifies when you look at ability to repay, which the feds also now mandate the lender look at.

And I mentioned at my last Seminar the fact that the feds deem the person actually putting out the money as the lender. Not the Broker. So you as the lender should be looking at your patterns and practices.

SUMMARY…

From my review of the regulations currently plaguing us, there is nothing I have seen that should stop you from making Hard Money loans.

I would suggest that the next time you get approached about doing a loan with a better loan to value or strong borrower or nicer property, that you think about the rate you will require for that loan.

Your Broker should be compelled to do that on your behalf as a pattern and practice.

Feel free to call or email me anytime with further questions you may have regarding investing in Deeds of Trust.

Best,

Forest Tardibuono

Owner/Broker

Unique Identifier # 289456

forest@sunpacmortgage.com

Sun Pacific Mortgage & Real Estate (707) 523-2099

800 Mendocino Avenue #2, Santa Rosa, CA 95401

Visit us at: www.sunpacmortgage.com

Like us at: www.facebook.com/sunpacmortgage