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This newsletter covers: (detailed articles follow below)
1. Real life examples of commercial loan possibilities.
2. New FREE service. Now your phone number can be your email address. http://www.thisnumber.com.
3. How many houses do you need to retire on?
4. Why won't people lend you money?
5. Note brokers! Market your notes quickly and effectively.
6. Your own professional note broker web site for just $139 a year including design and hosting!
1. Real life examples of recent commercial closings.
$815,000 office complex. Cash out refinance. 70% loan to value.20-year term
$485,000 mobile home park. Purchase. 65% loan to value.15-year term.
$378,000 auto repair shop. Purchase. 60% loan to value.20-year term.
$625,000 apartment complex. Purchase. 75% loan to value.20-year term.
As you can see from the above examples of real loans, real life lenders will not lend you much more than 75% loan to value. Much less if the loan is to buy a business.
If you want to get close to 100% no money down financing you have to be buying at 65% loan to value or less, get the seller to hold a second mortgage and/or have a partner put in cash.
2. Ever have to give out your email address to someone who has phoned you? Or wanted to leave it in a phone message?
Chances are that it was a struggle. Now there is an easier way. Just sign up for an email account with
www.thisnumber.com
You can use any Internet computer to check and reply to your email or even set up the service to forward to your regular, hard to spell, email address.
Then all you have to do is ask your caller to email you at: your phone number (including area code) at thisnumber.com.
You can register landlines, cell phones or even pager numbers.
3. I am assuming you have owned them long enough for them to be free and clear.
Down here in St. Petersburg/ Tampa, Florida one could reasonably expect $800 a month rent for a just below median value home, worth say $100,000. Take out 1/3 for property taxes, vacancy,
insurance and maintenance. This leaves about $530 a month, say $6,400 a year. This means you would need 12.5 houses to provide $80,000 a year.
4. Why won't people lend you money?
Lenders greatest concern will always be to get their money back. Their next concern is the yield. Let's look at two recent ads placed on our web site. And if the advertisers recognize themselves, please don't think I'm picking on you.
One recent ad was placed for a business loan to start a limo service. The borrower wanted to borrow $100,000 and was investing $5,000 of their own money. Unfortunately they do not have good credit.
Nor do they mention any previous experience in this business. Why would a lender take such an incredible risk and basically provide all the financing for a new business?
Now let's improve the borrowers chances a bit.
How about if they had had 5 years experience in this business in another state (if this is true)? They would of course need to offer liens against all the limos, but limos are not the most saleable of assets and lose value quickly. So more collateral will be essential.
What if the borrower owned their own home worth say $200,000 and there was a $100,000 first mortgage on it. As additional security for this business loan they also offer a second charge against their home. They also are willing to invest $20,000 of their own money in the business. Now the loan might be doable.
Next example. A recent advertiser wanted to borrow $259,000 for 30 years with a $10,000 down payment. They want to pay 2.9% or less in interest!
The day they placed this ad I checked 30-year US treasury rates. They were paying 5.2%.
Why would someone lend any borrower at 2.9% or less when they could get over 2 percent more lending it to the US federal government?
So the keys are: Remove the lenders risk as much as possible.
Have your own money at risk too, the more at risk, the more likely you are to get the loan.
Provide adequate assets as collateral.
Have decent credit, pay your current bills on time.
Offer lenders a fair and reasonable yield on their investment.
5. Not only is our web site a great place to find notes for sale, it is also a great place to sell the notes you already have under contract as there are many note investors looking to purchase your note here.
Click here to place an ad.
6. WEB SITES FOR NOTE BROKERS! Your own professional web site for just $139 a year including design and hosting!
* Choice of two domain name styles, www.yourname.buysnotes.com or www.yourname.buyscashflows.com.
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* On line forms for real estate notes, business notes, auto /boat paper, viaticals, lotteries etc.
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Find out more about www.buysnotes.com.
Find out more about www.buyscashflows.com.
For many useful tools you may not have known we have, go to: Click
here for resources.
