Encompassing five square miles in the East Valley, Eastmark will blend together residential, retail, tourism, recreation and employment into one destination.
That is the Twitter bio for @EastmarkAZ. We have focused a lot recently on Eastmark Mesa. With good reason. This new community is selling out fast.
The three members of Phoenix Real Estate Guy recently received a tour of the facilities, and all three of us were ready to sign on the dotted line for a new house. What a great community they are building in East Mesa close to the new Apple plant.
Eastmark in Mesa AZ is also very active on Instagram where you can also find them @EastmarkAZ.
Make sure you give them a follow and tell them that @phxreguy sent you.
Originally posted on Phoenix Real Estate Guy. If you are reading this anywhere but inside your RSS feed reader or your email client, the site you are on is guilty of stealing content.
Today’s edition of Ask The Phoenix Real Estate Guys comes from a discussion on a house I recently sold. I was the listing agent representing the Seller and using our usual strategy, we received multiple offers the first weekend on the market.
Let’s take a look at how some numbers worked out. I’m going to change the numbers slightly to protect the transaction, but the ratios are accurate.
We received a full price offer of $300,000 where the Buyer was using a conventional loan. As the listing agent, I did my homework, talked to the lender of the Buyer, and asked qualifying questions. The Buyer easily qualified for what they were writing an offer for. They had a solid job, low DTI ratios and the lender did not see any reason we could not close in 30-35 days.
We also received a cash offer for $292,000. When I talked to the agent representing the cash Buyer, he stated they believed that a cash offer should be worth at least that amount of a discount.
I can understand why the Buyer thought that, but there are two parties in the deal. As the Buyer or Seller, you have to consider the other side of the transaction too and what is in their best interest.
It is not like the cash buyer was walking into the closing room with a suitcase of unmarked bills that have some magical buying power. No matter which offer the Seller accepts, they will walk away with a check. But one check will be $8,000 more than the other, if you were the Seller what would you do?
Now there are times a cash deal is better. If you are worried about appraisal. If you need a really quick 10-day close. If they are really close offers and you would rather not have to deal with the possibility of financing falling through. If the Buyer’s pre-qualified letter is not worth the paper it was written on. This is something that the listing agent can help determine.
So yes, there may be a small discount that you can get with a cash offer, but it is probably not as big as you think if you are the cash buyer.
Originally posted on Phoenix Real Estate Guy. If you are reading this anywhere but inside your RSS feed reader or your email client, the site you are on is guilty of stealing content.
Due to the slightly higher risk to the lender when dealing with hard money loans, they are not provided by banks but rather by private lenders, and as such, the interest rates of these loans aren't based on bank rates.
Typically the interest rate on a hard money loan will range from 12% - 18% (a little less for bridge loans, which are similar, but not necessarily used in times of financial hardship), which means that you probably don't want to look to hard money loans as sources of long term financing. In fact, the term is often fairly short.
Normally the most happening thing is at the time when banks actually bid what is owed when it comes to foreclosure sale.
That is not always the case and nothing is hard and fast but most of them do, which basically means the properties are going to go back to the bank, and we are seeing that probably more than 98% of the time that property is actually going back to the bank.
Here comes your chance to get hard money loans and invest in an opportunity for you to actually contacting the bank or the Asset Manager, and in case the present owner of that property after foreclosure activity.
Keeping the whole scenario in your mind you get in touch with that Asset Manager and see if you can purchase the property before they put it over the market. It is easy for you to do such offer with the aid of hard money loans by some reliable hard money lender.
When you do that you want to give them comparables and show what property is really worth and see what you can put together for them to actually make that happen.
If that doesnt work out the next thing you want to do is watch the property to get listed with an agent. You know that may take some time. You are going to watch it to get listed with an agent.
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If you have a business that is growing at a rapid pace and you are ready to expand by constructing a new building or updating your current building.
Obtaining enough capital to obtain traditional financing for this construction can take a while.
In this case, it would be worthwhile to pay a higher interest rate for a hard money loan, and be able to start construction within days.
But since traditional lenders such as banks are not granting real estate loans, many investors are forced to look for alternative ways to fund their deals.
This is where hard money lenders come in. Despite the banks tight lending policies, investors in USA are still very active in the market with the help of hard money loans, which are now considered the king of the real estate financing business.
Hard money lenders are providing much needed liquidity in a badly damaged real estate market, helping the state recover from the devastating housing crisis.
Your expected results are bearing fruits of SUCCESS, as you have a plan to invest in something safe and secure.
All there needed is to make a quick but wise decision, regarding the selection of your property. You have another wise decision to make, to select a Hard Money loan as your primary lender.
If you are applying for a Flipping Loan, then you have to understand the terms with its true perspective. If you are going to purchase a property, which requires a lot of amendments and fixture.
It shows that the property was not properly being looked after by its owner.
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Do you really think private hard money loans are feasible option?
If you have average credit score or suppose bad credit score then consider opting for hard money loans.
Hard money lenders in market today are popularly known for meeting emergency financial needs, especially when it comes to real estate investment.
Such lenders lend money on the basis of equity of property and not as per your credit score. On the other hand they charge high interest rate and such loans are generally issue for short time span.
These are short term loans which you can avail by finding reputed private money lender in market.
The qualifying criteria for a hard money loan varies widely by lender and loan purpose. Credit scores, income and other conventional lending criteria may be analyzed.
However, most hard money lenders primarily qualify a loan amount based on the value of the real estate being collateralized.
Typically, the biggest loan one can expect would be between 65% and 75% of the property value. That is, if the property is worth $100,000, the lender would advance $65,000 - $70,000 against it.
This low LTV (loan to value) provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.
As a real estate investor there may come a time that it is to your advantage to get a Hard Money Loan (HML, bridge loan, private financing or equity based loan) for a transaction that you cannot get financing from a conventional lending.
As a matter of fact even if the rate and fees may be higher on an HML it may be better for you even if you qualify for conventional financing.
These short term bridge loans can help you close a "HOT" real estate investment deal and utilize creative financing that you may not have been able to employ using conventional financing.
Ultimately the goal is to make money. Private money programs are designed to do just that.
They help the borrower make money as well as the lender, with as little red tape as possible.
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Hard Money Loans are also known as Bridge loans, Asset Based loans, and Equity based loans.
They are used as short term loans to purchase real estate or refi real estate when the borrower needs the deal done quickly and the plan is to refi or sell the property in a short period of time.
They are used when a person's credit is not up to par, and the borrower plans to fix his/her credit in a year or two.
Points on a hard money loan are traditionally 1 to 3 more than a traditional loan, which would amount to 3 to 6 points on the average hard loan.
It is very common for a commercial hard money loan to be upwards of four points, and as high as 10 points. There are as many reasons a borrower would pay rates this high as there are borrowers. Almost all reasons have something to do with the speed or lack of credit requirements that are beneficial characteristics of most hard money loans.
Sometimes there is an opportunity to purchase a property at a profitable discount if the buyer can raise the cash quick enough.
Sometimes personal or business needs require cash quickly or money is needed by a borrower who not otherwise would be able to get funds due to his credit or existing debt not qualifying him for a conventional mortgage.
Term of loan: hard money loans are typically of a shorter term than conventional loans, although you can find terms of up to 10 years depending on the lender.
Because of the shorter term, borrower should ensure that they have the resources necessary to pay off the loan when it becomes due.
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We also received a cash offer for $292,000. When I talked to the agent representing the cash Buyer, he stated they believed that a cash offer should be worth at least that amount of a discount.
