How to Find Financing for Apartment Buildings, Mobile Home Parks and Commercial Real Estate Projects
Question about finance
What is the difference between a finance and a balloon finance?I'm planning on purchasing the all new mercedes benz glk 2010..and when i checked the pricing online the balloon finance is cheaper than the finance. i just want to know what the difference between the 2 deals are.
Investors tell us continually that finding financing for Commercial projects such as Apartment Buildings, Mobile Home Parks in today’s market is challenging. “Finding the money to buy , build or refinance property” is an investor’s #1 challenge. The money hurdle keeps investors from making bigger profits and prevents one from amassing a fortune in real estate.
The good news: The money is still there. It is simply harder and more time-consuming for one to find appropriate financing today than before.
The recent financial upheaval has wiped out financial banks and institutions by the dozen. Institutions including Countrywide, Wachovia, Washington Mutual, Lehman Brothers, World Savings, Indymac Bank, IMPAC, EverBank, LaSalle Bank and Column Financial have either stopped lending or scaled their lending operations dramatically back. These financial conduits have been a major source of commercial financing for a very long time. Everyone had come to depend upon the services these money-people were able to provide. For the would-be investor knowing where to “find the money” would seem to be critically important. The good news is commercial financing is still available if you know where to look.
Clients may be broken down into two groups, Group A and Group B. Group A displays an almost intuitive understanding of the role Mortgage Brokers play in assisting in the building of their real estate portfolios.
Group B is property oriented. Totally Property Oriented. By not focusing on financing first, this type of investor plays a dangerous game.
The Group A type of Investor upon first considering a property, will pick up the telephone and call his Mortgage Broker (hopefully, one with whom the investor has developed a long-term association built upon trust and confidence). Why would the investor waste time calling his Broker? Maybe the investor is lonely and would like to speak with someone?
Or maybe the investor makes the call because the investor needs to know what the cost of money is. The investor may readily view and understand the condition, location and attributes of any property in question. But what about the cost and terms of the money one will need?
Not only will the Broker understand whether the property will Debt-Service, but also, where the surviving lenders are. A good Broker should be able to advise what type of financing is available, the amount of down-payment necessary, where the funds will come from, the cost of the funds and what the ROI (return on investment) the investor may expect.
The challenge for you as an investor is to be ready and prepared for the investment property when the situation materializes. If you are from the Group B Investor School, you would call this luck. If one is in Group A, one believes the marriage of good investment property with good financing is planning and preparation.
As an investor, please Think Money First. Factor in the cost of an investment property with the cost of money. Develop a strong-on-going Professional association with a Broker. By taking these small steps investors may put themselves in position to accomplish the following:
1. You, the investor, will become more aggressive in searching for investment properties.
2. You, the investor, are now more confident. This confidence leads to bigger deals, more profit.
3. A confident investor seeks properties yielding greater returns.
4. Financing Power breeds confidence.
5. Sleep at night, take naps during the day. Why Not? One’s good financing is doing all of the work.
Video related to finance
Alex talks with Sam Labrier, who covered the first day of a four day confab in Montreal entitled Adapting to a New World Order. Present at the conference is a whos who of international finance and politics, including the heads of the World Bank and the IMF, Presidents, Prime Ministers, and a large assortment of other Bilderberg and NWO elitists. montreal911truth.org www.mtl911truth.org
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Tags: Apartment Financing, Financing Investment Property, Funding Commercial Real Estate, Mobile Home Park Loans, mortgage Broker
Posted on January 25th, 2010 at 1:11 am
Set up a basic credit criteria, in which based on your clients credit score or certain qualifying options that you create, you base your credit line. Ok to make this easier, you could for example use a 90% credit line for clients whose credit score (or other certain criteria because companies sometimes don't look for a certain score but more or less other items they deem necessary) is 800 or more and it goes down from there…so as if a new client you have has a 500 score you could issue them only a 10% financing line. Second, after you set your standards, go ahead and work out your governing contracts, what is your interest rate (check with other similar companies in the field)? What is your late fee and when are payments due..how about penalties? Boy, that's enough for now huh!
Posted on January 25th, 2010 at 2:09 am
@hurzak says “You could at least tell us the band sounds great as the ship sinks to the bottom of the abyss.”
LOL!!!!
Posted on January 25th, 2010 at 2:13 am
I've been in Finance for so long that I've decided that I wanted to do a different degree that was along the lines of my future goals… Law. I did my BBA in Legal Studies. I was a Finance major at first. I will suggest that you stick with the Finance Major vs the Business Administration. I mean if you think about what exactly is the B.A. offering you when the bottom line of the degree is in Business Administration? To have a specialty gives you a 'know-how' that makes you more adept in taking on positions that offer stellar pay as Finance and Accounting is known for. Each person is different in terms of what they want to do with their future goals. I normally see students minor in Business Administration if their Undergraduate Degree is in a totally different realm. This is only to signal to the employer that you are versatile and have business skills. If you are a business student I suggest Finance if this is what you want. Finance is definitely interesting and keeps you on the toes not just in the sense of performing statistical analysis but also conducting market and financial research including technical analysis which keeps you in the loop of world news as much as national news. You begin to witness the chain in global commerce & media and how it effects one another and inevitably effects the market as well as consumers far and near.
Another point that comes to mind is the institution that is granting the Finance degree. What is their reputation in the Finance Department? Are they first class? Are they top-rated? Usually the "glamourous pay but slave to your job" are firms off of W-Street which hit Ivy league schools to join their Associate or Summer programs. These programs, once selected ..highly selective, gear you up for positions such as equity or fixed-income analysts. Again, the pay is here, the perks are there, but you get no life. If you're looking to have that lifestyle then ensure your alma-matter can deliver. Your grades will obviously have to stand on its own and well .. if you have connections then use them.
If you want something more exciting in Business then go for Marketing. I'm leaning to the Marketing aspect in my MBA program which will play instrumental in my Entertainment Law (Law, Marketing, Finance (Budgeting)).
Good luck with everything.
P.S. I suggest you take a few finance classes (required and as an elective) before you decide.
Posted on January 25th, 2010 at 2:29 am
Prepare or prepare to die.
Posted on January 25th, 2010 at 3:29 am
Very few preachers start a church on their own. They spend some time learning the practical details while working in an established church.
As to how they make a living, did you imagine that what comes in by way of the Sunday collection plate is all they get? The larger donations come from people who are solicited personally, people who can donate thousands, perhaps even millions, in a single check. Those large donations are then invested in real estate and other assets, against which the church can borrow as necessary.
And those are just the relatively honest ones.
Posted on January 25th, 2010 at 11:13 pm
and how many of us will really be shocked when china moves on in and takes over? Not just behind the scenes as it is now, but right up in your face, in your home, etc.
hold on tight and cover your asses folks.
Posted on January 26th, 2010 at 12:31 am
You have a very bad attitude guy. You need to sound more positive. you could at least tell us the band sounds great as the ship sinks to the bottom of the abyss.
Posted on January 26th, 2010 at 3:30 am
Please be aware of what you are proposing on getting yourself into. Please do more research first.
Reminder: We are in a World-wide Recession.
Warning> Jobs in the field of Law are drying up fast!! This is just not a good field to invest time and/or money into. This is a SHRINKING vocational field. Many reasons. Many people today (mistakenly) think they can do their own legal work, thanks to the Internet. Also, we simply already have way too many Legal Professionals – we have an absolute glut!! ("Legal Professionals" includes, but is not limited to: Attorneys/Lawyers, Paralegals, Legal Assistants, Legal Secretaries, Bailiffs, Court Reporters, etc, etc)
Regarding being a Paralegal: Employers (usually law firms) in the field of Law today want employees with Bachelors degrees from traditional colleges/universities. Those "certificates" you see advertised aren't worth the paper they are printed on – they are generally scams. (I found this out the hard way.)
Cost of law school to be lawyer, approx $150,000+.
Be prepared to take on a lot of debt.
Even if you finish law school, you won't be able to find a job when you are done. Since this vocational field is shrinking, many new attorneys/lawyers are, themselves, having to work "down" as Paralegals, Legal Assistants, Legal Secretaries, Bailiffs, Court Reporters, etc, etc, to simply try to keep some of their bills paid <<this would be your competition. And the competition is fierce!!
Now… the law schools know this, but they won't tell you the truth >that the job market/economy is just saturated with way too many Legal Professionals. Instead the schools will feed you a fairytale and will lie to you. The root of the problem is we have too many law schools. We are in a recession, and the schools are fighting for their own survival – they will tell students anything to get to the students' money. (Which is why they won't tell you the truth about the job market for the field of Law.) And these schools continue to recruit and churn out even more graduates………….
If you don't believe me, then just do a search here on Yahoo Answers to see what other posters are saying about the current status of the field of Law. Call some local law firms – ask to speak to the Manager of Human Resources – ask them if they are hiring; ask them what they think about job availability in the field of Law………………
In the book "So You Want to be a Lawyer?" by Marianne Calabrese and Susanne Calabrese (ISBN 0-88391-136-1): "The United States has more lawyers than any other country in the world. About 38,000 students graduate >each year< from the 200+ law schools in the United States. The competition is very keen for jobs and clients." – Even Associate Justice Antonin Scalia (who served on the U.s. Supreme Court for more than 20 years) says there are too many lawyers. (9/14/2008)
Check out these websites: http://informeddecisionmaking.blogspot.com
http://calicocat.com/2004/08/law-school-big-lie.html
http://abajournal.com/news/triplt_bad_news_for_law_students_three_firms_aX_summer_associate_programs/
http://abajournal.com/news/as_rio_tinto_saves_millions_other_corps_will_outsource_too_counsel_says/
(A link to a website does not constitute endorsement.)
If you want a job when you are done with your studies, consider and look into the field of >>>Healthcare! I spoke to a career counselor from Jobs and Family Services, and HE told me that this is where the jobs are, and future job availability! and scholarships!
Good luck.
(This is based on my current knowledge, information, and belief. This was intended as personal opinion, and not intended to be used as legal advice. Please be careful and do your research.)
Posted on January 26th, 2010 at 3:52 am
I hope it doesn’t get better too quickly. We need to change our economic system to prevent this from happening again. If everything turns around we’ll forget this and go back to the way it was before.
Posted on January 26th, 2010 at 6:53 am
I am sorry i dont know.
Posted on January 26th, 2010 at 9:00 am
how can we spend our way out of the recession, without jobs. Recover I don’t
think so hang on the ride is going to get real scary. If your starving neighbor see’s you eating, never know what he does. Remember we are only humans.
Posted on January 26th, 2010 at 12:42 pm
3:14 beautiful
Posted on January 26th, 2010 at 10:21 pm
There are a lot of different opportunities. You can work in commercial banking, as a loan officer, and work your way up. You can work for the government as a financial examiner or something of the sort. Also, finance is a fantastic degree if you want to do something with insurance, i.e. a claims adjuster, claims representative, or an underwriter. Finance will also give you the necessary knowledge to go into Real Estate too. So, obviously one of the benefits of having this degree is flexibility. It also easily transitions into an MBA (although not required or necessary.) Another benefit (depending on your school) is that finance is sometimes seen as an applied math degree, just depending on the difficulty of the major at your school. Hope this helps!
Posted on January 27th, 2010 at 3:34 am
Traditional financing means your payments are the same every month for the life of the loan, e.g., $500.
In balloon financing, your payments will be lower, except at the end; this will be several times higher. In such an arrangement, your payment may be $350, but your final balloon payment might be $7000.
The latter type of financing is what trips up people, as they're able to make the smaller monthly payments at least until something happens – they lose their job, the economy turns sour, they have huge medical expenses, etc. Then they find themselves unable to make that balloon payment.
When exploring your options, have you crunched your numbers to be able to afford that car? (This is an important step in preparing for a big-ticked purchase.) Next, do you have enough money saved to be able to cover that balloon payment?
Posted on January 27th, 2010 at 7:07 am
There is no such thing as a Finance generalist or Finance specialist. Here are some sample job titles:
Financial Manager
Financial Controller
Financial Adviser
Posted on January 27th, 2010 at 12:50 pm
I wish I could teach the world:
Don't ever carry credit card balances – it ruins your credit
Don't even think of leasing a car – its moronic
Don't ever rent furniture
Don't ever buy a time share
Don't even think of financing furniture – save up for things.
Save to buy a car, as much as possible.
Put 20% down on a house – even if you think your friends will make fun of you for having a small house.
Put money away in a ROTH, 401K – as much as possible
Become as self- insured as possible – stop making insurance companies rich
Always have 6 months worth of living expenses socked away.
/
Posted on January 27th, 2010 at 1:51 pm
ROFL, Dollar TP. is that your one “green shoot ?”.
Posted on January 27th, 2010 at 7:19 pm
World Factbook info, California as an independent state, it would have had the 10th largest economy in the world in 2007.
July 09 California #1 foreclosures at 108K
U.S. 360,000 for 1 month!
Go To: Google maps, select REAL ESTATE @ right options box. Check FORECLOSURES, zip code 91739 and watch the search area w/PINS of homes in foreclosure. MINDBLOWING! zip 91739 the Inland Empire. Ground zero
CA CML RE @ 30% vacancy rate! 5 yr bloodbath more at: CaliforniaRE2009 blogspot