Article by Juhani Tontti
Have you thought, that the refinancing reverse mortgage loan is impossible? That the deal is the deal for ever? Have you thought, that your own changed circumstances or the market changes can offer better deal for you?
The reverse mortgage loans are for seniors 62 or over, who are so called cash poor, but equity rich. These special loans offer seniors possibilities to reveal a part of their home equities and to turn it into cash money. A senior does not need to pay anything back during the running time. Actually the lender will pay to him or her either as a lump sum, monthly payments, credit line or as the combination of all or some of these. The payments are tax free.
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Article by Alfred Baldwin
Most stockholders know that hedge funds make commercial mortgage loans, but few understand how to approach a fund or precisely how secure an approval. The first and most critical thing to remember about hedge fund chiefs is they have a Wall Street mind-set; they are investors at heart. A trader wants to get into a trade at the right price, get results quickly and exit the trade at a profit. Hedge funds that commit capital to commercial property lending are no different. They want to lend at a low LTV ( loan-to-value ) and get out quickly. Profit takes the form of interest and points, but the general attitude of the decision maker on the loan committee is not different from a member of the stock selection council. It is very important that you present your loan as a break for them to make good money, quickly and safely, not as a method for you to reach your goals. Don’t talk about your issues; money managers will be empathetic but may not be considerate. Emphasise the robust points of your deal, your past successes and your strengths as the deal’s sponsor. Keep the conversation optimistic. We all know it’s tough out-there; sophisticated hedge funds wish to fund folk who are capable of beating obstacles. The large majority of private lenders, including hedge funds and non-public equity firms are equity lenders. Hard equity in the property is the banks downside risk protection. This is intensely necessary to big money hedge funds because they generally do not recover their capital by selling their loans to the government or to the bond market. Hedge funds are usually’portfolio lenders’, meaning they use their own money to finance deals and hold the mortgage paper till it matures. Do not expect any loan offers from non-public funds to come in over 65% LTV ( loan-to-value ). If your deal doesn’t meet this criterion, be prepared to inject more of your own cash or find a partner who can bring money to the closing table. Your exit strategy is a paramount concern to hedge fund executives. Funds make’bridge’ loans; short term, interim financing. They are going to need to know how you may pay them back and will need to be convinced that your exit will work. You’ve got to have a detailed, viable and convincing exit plan worked out before you approach a personal funding source. It helps a-lot if you have an’in’. For good or for unwell, Wall St works like a personal club. They have their own language, their own customs and their own ceremony’s. If you are not member of the club getting their attention is much more troublesome. For those on the outside of this specialized niche, it could be necessary to retain the services of a pro intermediary with Wall Street experience to get you in the door. The banks, insurance companies and brokers aren’t lending like they used to. For many high quality commercial mortgage loans for bad credit, non-public money is the only-game-in-town. Hedge funds are flush with cash and are hungry to make deals. If a property investor can develop a relationship with these unique banks they are going to enjoy a reputedly unending source of funds.
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This digital document is an article from Mortgage Banking, published by Thomson Gale on September 1, 2005. The length of the article is 5145 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
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This digital document is an article from Mortgage Banking, published by Mortgage Bankers Association of America on October 1, 1999. The length of the article is 3850 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
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This digital document is an article from Mortgage Banking, published by Mortgage Bankers Association of America on August 1, 1991. The length of the article is 2316 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
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This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on May 1, 1992. The length of the article is 750 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
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