Friday, October 5, 2012
Posted by Ling Tseng at 6:19 PM
Wednesday, April 18, 2012
- Confirm ALL repair costs, this is NOT an estimate, this is a CONFIRMED dollar amount. Why is this so important? This is often overlooked with inexperienced investors. Many beginning investors are so over zealous in making 'quick money', they believe that they are qualified to make ALL repairs and more importantly, cut corners by waiving thorough professional home inspections. Many hidden damages or deferred maintenance problems can include structural foundation damages, entire structure electrical wiring damages, major plumbing issues hidden in raised foundation older built homes. These are just a few major and yet very COMMON mistakes that has the ability to bankrupt a beginning investor.
- Confirm exact dollar amount for down payment, repair costs, operation costs TOTALS. This another key that is so important. Why? Every dollar you put into your purchase as an investor, you must know how that equity dollar will make you profit every year you own the property. Be an expert on how to 'leverage' when buying investment property. It is similar to the concept of 'using other people's money' to create profit. What does this mean? You find and establish relationships with a hard money lender and reputable direct lender and/or mortgage broker. These people will be your allies when you begin building your portfolio of real property assets.
- Establish your ROI (Return On Investment) minimum and commit to that amount. Never, ever waiver from that amount. In today's real estate market, it is best to be conservative because of the volatility of the property prices.
- Create a dynamic team that includes, an experienced escrow and title company who understands investment property sales and purchases, a State experienced licensed general contractor, an experienced licensed real estate professional (who knows how to work with investors, who will scout for great properties to purchase and who will sell your flips quickly and efficiently)
- Exercise PATIENCE and be over the top thorough with every property you consider purchasing!
- Never become emotionally attached to any investment property you are considering for purchase. Treat every investment property as a business decision ONLY! You may save the emotional attachment for your personal residence.
- Building your financial future with real estate investing is fun and exciting. When conducted with an educated mind, it affords many options for your future and secures a lifestyle that can be hugely rewarding!
Posted by Ling Tseng at 11:26 PM
Thursday, October 27, 2011
While our team does not conduct loan modifications, we work to give these people tips on how best to approach their banks, specifically their mortgage servicer, with the hopes of a successful modification, a loan modification on the homeowner's terms. It is not enough for the homeowner to state to their mortgage servicer, "my home is upside down in value and I don't want to pay the mortgage on an upside valued home."
Unfortunately when the homeowner is unsuccessful in obtaining a loan modification, our team informs these homeowners of other options, either short sale or foreclose and not something these homeowners want to hear. When a homeowner chooses to short sale their property, our team works to make this process as painless as possible. We are nationally Certified Distressed Property Specialists and very experienced at working with distressed property owners... Please check out my testimonies on my website...www.myfengshuiagent.com
In the eyes of the mortgage servicer who contracted with the homeowner to lend money to the buyer to purchase their home, the servicer does not see the depreciated market as their responsibility. I realize this is stating the obvious.
What most upside homeowners desire is either a principal reduction and/or interest rate reduction. It is rare the bank will grant a principal reduction and it is more common to obtain an interest rate reduction. Given this information, it is up to the homeowner to provide clear evidence of "hardship" supported by a detailed financial statement in order to position themselves to obtain a successful modification.
Here's what the banks are looking for in your "hardship" letter when attempting loan modification.
1- Explain what changes or events have occurred since your loan originated that have caused you as the homeowner to fall behind. (***very important note *** if you are making your payments, the servicer does not view this as a hardship... )
2- Explain how these changes impair your ability to afford your mortgage payments.
3- Explain when the changes and/or events occur.
4- Explain if you foresee your financial situation improving in the future. If you state "yes", there is a strong likelihood that your mortgage servicer will ask what you are able to contribute towards your loan...
Any statement you make in your hardship letter must be supported in detail on your financial worksheet. It is critical that the financial worksheet is completed with 'accurate' detail. Accurate in this case, an honest and truthful detail because the mortgage servicer will definitely verify every accounting detail you've documented on your financial worksheet.
Should the mortgage servicer offer a loan modification after these filings have taken place, it is imperative that the borrower (homeowner) understands 100% what the new loan terms are. I've seen many modification packages that offer extremely attractive interest only packages for SHORT term and when the interest only portion expires, the payments adjust to nearly triple that of the original offer. . .This is a small bandaid and a very LARGE wound!!! Be careful....
As I mentioned earlier in this article, many of these homeowners who cannot afford to stay in their homes or cannot live without a loan modification or even with the modification with unacceptable terms choose the short sale option. This means that we work with the homeowner to sell their home for less than what is owed on the property. With California's new short sale law, Senate Bill 458, Prohibits Recourse and Anti Deficiency On Second Mortgages, the short sale option is a more common option than foreclosure to distressed homeowners these days.
Posted by Ling Tseng at 8:51 PM
Thursday, October 13, 2011
Posted by Ling Tseng at 7:12 PM
Saturday, January 22, 2011
Posted by Ling Tseng at 11:13 PM
Sunday, January 2, 2011
Posted by Ling Tseng at 11:55 PM
Tuesday, December 21, 2010
Posted by Ling Tseng at 4:10 PM