Possibly the Cheapest Private Money Loans in America!

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RATES & Terms for our Best Program

Email:[email protected]

Call 415 680 3454

Interest Rate 6%             2 Points
Term: 5 years or 10 years
Fixed: 5 years or 10 years
Prepay: All interest is due/full yield spread premium
Prepay Buy down: None
Minimum: $500,000 (NO EXCEPTIONS!)
Maximum: $20,000,000
Total per borrower No limit
Available all states but: All states now Available!
Property Type: Residential 1-4, Apartments, mixed use
Minimum Fico: 650
Appraisal Required: $600-$1100 per property
Assumable: Properties can be substituted to avoid interest lock out

 

Economics of Climate Change – KKSF 8-11-2012

SHOW NOTES FOR 8-11-12 Radio Show and Podcast

Special guest Dr. Bernhard Bach:

Dr Bernhard Bach is a physics professor and lab director at the university of Nevada.

Dr Bach was just recently in the Andes mountains of peru, helping atmospheric scientists take snow and ice samples from high altitude peaks.

In addition to his academic interests Dr Bach is an entrepreneur who owned and founded two high tech manufacturing firms.

The World Bank estimates that between 2010 and 2050, climate change will cost the the world GDP ~ $75-$100 billion per year

Recent events: Climate change skeptic Richard Muller finds that human emissions of greenhouse gases (GHG) are most likely the cause of global warming.

http://www.nytimes.com/2012/07/30/opinion/the-conversion-of-a-climate-change-skeptic.html?_r=1&pagewanted=all

Scientist James Hansen reports the extremely hot summer of 2011 is almost certainly a result of climate change.

http://www.pnas.org/content/early/2012/07/30/1205276109

The average American contributes about 20 tons of greenhouse gases (CO2) to the atmosphere per year.

• Someone from the UK contributes about 10 tons per year.

•Someone from Kenya contributes about 0.3 tons per year.

About 50% of these emissions (about 10 tons) come from

–How we:

•Drive (2.5 tons)

•Fly (0.75 tons )

•Heat our house (2.3 tons)

•Heat out water/cook (0.4 tons)

•Lighting and appliances (2.7 tons)

• About 25% of the emissions ( 5 tons) come from powering our workplaces.

• About 10% (2 tons) comes from maintaining public infrastructure and transportation.

• About 20% (4 tons) comes from the production of the things we buy…like food

 Is there a way to go green?

–Reduce your personal footprint

–Environmentally conscious/green investing

Green Investment Sectors: The sectors mirror the ways in which, we use energy.

–Low-carbon or renewable energy

–Transportation

–Organic farming

–Pollution Controls

–Efficiency Technologies

 •Green Investing:

–Choose a green sector that aligns with your interests

–Green Screening:

•Positive screen: define enterprises you want to invest in, for example: solar, wind…

•Negative screen: eliminate enterprises you don’t want to invest in, for example: clean coal, nuclear…

•Screen greenwashers: Ask yourself, “What really makes this enterprise green?”

 •How to find the “green growth” opportunities

–Consult the Dow Jones Sustainability Index http://www.sustainability-indexes.com/

–Search web-based green resources such as

http://www.greenchipstocks.com/ 

http://www.treehugger.com/ 

http://www.greenmoneyjournal.com/

http://www.greenbiz.com/

•How to find the green growth opportunities

–Join an investment club

 http://www.nolo.com/legal-encyclopedia/joining-investment-club-30224.html 

–Seek out green mutual funds

 http://www.greencentury.com/ 

http://blogs.reuters.com/reuters-money/2010/10/15/green-investing-with-mutual-funds/ 

http://www.portfolio21.com/?_kk=green investing&_kt=d6e7d3a7-e913-4dad-9012-3b023dd4d2f4&gclid=CJLT2_TB1rECFYQGRQodxigAKQ
–Seek out green VC firms

http://www.ecpcapital.com/ 

http://www.greensourceweb.com/
http://www.greenvc.org/

•Low-Carbon Energy Sector:

–Wind–Tide–Solar–Biofuels–Geothermal

This market is currently worth ~ $38 bn/year, it is expected to be worth $500 bn/year by 2050

•Pollution Control Sector:

–Carbon trading market: worth $176 billion in 2011, mostly in Europe

–Carbon capture and sequestration: worth more then the entire carbon trading market, if the technology proves itself?

•Transportation Sector:

–Rail–Shipping

 http://www.informamaritimeevents.com/event/greenshiptechnology 

http://www.greenbiz.com/news/2011/02/28/cargill-cuts-co2-emissions-worlds-largest-kite-powered-ship
–Green vehicles

http://en.wikipedia.org/wiki/Green_vehicle

•Farming Sector: In the U.S., industrial food production emits approximately 2 tons of CO2 per person, per year

•Most of these emissions result from food processing, manufacture of fertilizer and greenhouse heating…not transportation.

•Farming Sector:

•By buying organic produce a person could cut these emissions in half, to 1 ton per year

•By buying locally produced, non-processed foods an individual could shave another 0.7 tons of this total

•From 2 tons to 0.3 tons per year, per person

We hope you enjoyed the show!

Russell Roesner*Equitycoalition

415 680 3454

[email protected]

 

 

Investment Scams NewsTalk 910 KKSF

 Here is a summary from your favorite San Francisco and California Hard Money Consultant,  EquityCoalition where we did a recent radio broadcast on June 23, 2012  on the Best of Investing Radio show broadcast on NewsTalk 910-KKSF radio. (Broadcast every Saturday at 1pm)

Ponzi Scheme - A type of pyramid scheme, this is where money from new investors is used to provide a return to previous investors. The scheme collapses when money owed to previous investors is greater than the money that can be raised from new ones. Ponzi schemes always collapse eventually.

Advance Fee Fraud—which plays on an investor’s hope that he or she will be able to reverse a previous investment mistake involving the purchase of a low-priced stock. The scam generally begins with an offer to pay you an enticingly high price for worthless stock in your portfolio. To take the deal, you must send a fee in advance to pay for the service. But if you do so, you never see that money—or any of the money from the deal—again.

Pump and Dump - A highly illegal practice where a small group of informed people buy a stock before they recommend it to thousands of investors. The result is a quick spike in stock price followed by an equally fast downfall. The perpetrators who bought the stock early sell off when the price peaks at a huge profit. Most pump and dump schemes recommend companies that are over-the-counter bulletin board (OTCBB) and have a small float. Small companies are more volatile and it’s easier to manipulate a stock when there’s little or no information available about the company. There is also a variation of this scam called the “short and distort.” Instead of spreading positive news, fraudsters use a smear campaign and attempt to drive the stock price down. Profit is then made by short selling.
Off Shore Investing - These are becoming one of the more popular scams to trap U.S. and Canadian investors. Conflicting time zones, differing currencies, and the high costs of international telephone calls made it difficult for fraudsters to prey on North American residents. The Internet has eroded these barriers. Be all the more cautious when considering an investment opportunity originating in another country. It’s extremely difficult for your local law enforcement agencies to investigate and prosecute foreign criminals.

Prime Bank - This term usually describes the top 50 banks (or thereabouts) in the world. Prime banks trade high quality and low risk instruments such as world paper, International Monetary Fund bonds, and Federal Reserve notes. You should be very wary when you hear this term–it is often used by fraudsters looking to lend legitimacy to their cause. Prime bank programs often claim investors’ funds will be used to purchase and trade “prime bank” financial instruments for huge gains. Unfortunately these “prime bank” instruments often never exist and people lose all of their money.

To your Wealth!
Russell Roesner
Equity Coalition
415 680 3454
[email protected]
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Top Reasons Borrowers Don’t Qualify for Hard Money Real Estate Loans

Hard Money real Estate

I receive calls everyday from Real Estate investors wanting to borrow private money (hard money) through my company and more often than not, I have to tell them no. Inexperienced borrowers often make the same mistakes so let’s review.

1) No down payment or too small of a down payment. 

Private lenders require a minimum of 35% down most of the time. If you are looking for a no money down loan or very little money down, the only place to go is to either friends/family/business associates willing to co-invest with you or to the banks. Regular banks have a product from the Federal Housing Authority called FHA where you can buy a house for as little as 3% down. However, these loans are difficult to qualify for and can only be used for personal residents and not for investments.

2) The purchase price and loan for a home is just too small. 

In places like the San Francisco Bay Area of California and New York City, this is usually not a big problem but private lenders do not like to make loans for less than $100,000. If you are looking at properties for sale under $100,000, you should probably look elsewhere. Private lenders make their money on the points and if a loan is $100,000 or $1M, the amount of work is the same.

3) Borrower is trying to buy at auction or at the courthouse.

Auctions require all cash offers and almost never allow for financing. If you are buying at the courthouse steps, a private lender cannot help you because the home will not be able to qualify for title insurance until the trustee’s deed is delivered. (usually 1-3 weeks after the house is purchased)

4) Borrower is buying an REO or short sale and has made an “all cash” offer. 

90% of the time, banks (who sell almost all short sales) award a purchase contract not to the buyer offering the most money but to the buyer that can close the fastest. If a borrower states they are making an all cash offer and they really need to borrow some of the money, the bank will stop the sale and move to the next person in line that really has the cash to close.

5) Borrower thinks their property is worth more than it is.

This happens most often with refinancing. Please, if you are looking to get a loan on your real estate, spend a few minutes looking on websites like Zillow and see what the value really is. If every house within 6 blocks of your home is selling for half or less than what you think your house is worth, you are probably wrong and won’t qualify for a loan.

6) Borrower is buying in an area with an extremely high amount of foreclosure sales. 

Unfortunately, even if a borrower is getting a great deal, it will be very difficult for them to resell their property at a higher “retail value” even if they fix it up and a new buyer wants it. Why? The reason is that banks require appraisals and if there are no retail sales at the higher price near the subject property, the house will not appraise for the purchase price so the buyer won’t get enough of a loan to buy your house.
Now that you know what not to do, if you still think you can qualify for a private money/hard money loan in California, Nevada, or Arizona, go to our website

To your Wealth!

Russell Roesner

415 680 3454

How do I become a lender with Trust Deeds?

How do I become a lender with Trust DeedsHow do I invest in deeds of trust?

One of the best investments you can make is in a trust deed. Simply put, you become the bank for someone looking to put a loan on real estate. Yields to you can range from 7-15% annually and you can even use money gathering dust in your IRA account too. Most commonly interest payments are made monthly creating a nice form of income.

What is the process? Most investors use a local private lender/broker who already is set up to do deeds of trust or hard money loans. The company will market to borrowers and when a loan comes in, they underwrite the loan just as a bank would. However, instead of the loan being funded by a bank, the lender will use investors like you to obtain financing. What do these brokers look at before deciding to offer a deed of trust to their investors? First of all, they look at both the borrower and the property to see if the loan request makes sense. Here is a short list of items they look at:
Borrower
Real Estate
Credit Score
Condition
Income/Tax returns, W-2s, rents
Value
Assets-Cash , investments, Real Estate
Loan amount vs. value (LTV)
Experience-invested in RE before?
Title- liens currently against property?
Exit Strategy – How will loan be repaid?
Location
Type – Commercial, residential, land, etc.
Income – what is potential rental income?

After the analysis, the broker usually will decide to do the loan and send the borrower an offer sheet outlining the terms of the loan. If the borrower accepts, the broker will then notify his investors there is a new loan to fund and send them an offering.

How do I decide if this loan (deed of trust) is for me? Unless you are making a loan yourself, you are probably putting a lot of faith in the broker who sent you the offering. A few questions to ask yourself and the broker come to mind.
  • What is the loan to value? The higher the loan to value, the riskier the loan because if something should go wrong, there is less equity in the property if you have to foreclose and sell it to get your money back. Typically, 50-65% is the maximum you want to go.
  • Can the borrower make his loan payments?
  • If the borrower cannot pay, could we rent the property?
  • Is the property in a stable market?
  • What is the exit strategy of the loan? This is by far the most overlooked but most important question. After the loan comes due in 1-5 years, how will the borrower pay us off? A few ways are refinancing with another lender or selling the property.
  • Does doing this loan make sense? Why can’t the borrower do a regular bank loan? Find out!
So you have decided to make a trust deed investment. Now create your own loan criteria that you can discuss with the borrower or the broker.
Loan size preferred or amount you want to invest?
What areas will you lend within?
What is your interest rate return minimum?
What is your minimum and maximum loan term? Less than 1 year? 1,2,3 or even 5 years?
What is the maximum LTV you will go up to?
Where do I find available trust deed offerings?
We can put you on our mailing list and when new deeds of trust come available, you will receive a deal sheet with everything there is to know about the opportunity.
I still have questions.
We are at your service. Our contact information is below.
Russell Roesner
[email protected]
www.equitycoalition.com
415 680 3454








Hard Money-What is it and how to get it

Hard Money is a term for a loan product offered by private companies instead of the banks. It is also referred to as Private money, Private lending, and Bridge money. Usually the capital comes from private investors that live locally to where the loans are being made. Although the loan process is similar to a bank, there are distinct differences.

First let’s compare bank money with hard money:
Bank Money Drawbacks
Bank Money Benefits
Hard to get
Low interest rates: 4-6%
Takes a long time (45-60 days)
Low Closing Costs: 1-2% of loan amount
Minimum Credit Scores Imposed
Long Term: Up to 40 years
Property must be in good condition
Small down payment: As little as 3%
Only 4-6 loans per person
Available Nationwide
Personal Guarantee is required
Money is always available
Borrower cannot be a company
Hard Money Drawbacks
Hard Money Benefits
High interest rates: 9-15%
Easier to get and to qualify
High closing costs: 4-8%
Quicker to close: 15-30 days
Short Term: 12-60 months
Credit not as big of a factor
Limited Area: Only lend locally
Borrower Can be a company: LLC, Corp
High down payment: Up to 40%
Personal guarantee variable
Property can be in any condition
Why use hard money?
Most borrowers who use hard money do it for the following reasons:
  • They personally cannot qualify or the real estate does not qualify for a regular bank loan.
  • They do not have time to wait for a bank loan to be approved.
  • They want to borrow money with a business entity and/or do not want to personally guarantee a loan

 

Even though the rates can be high, hard money can be quite useful when an investor has an opportunity to buy a property for a low price and sell it for a profit. Simply put, hard money even with its drawbacks can be a great tool in providing the capital necessary to be a real estate investor.
How do find a private lender and get a hard money loan?
Please review the loan programs section of our website where you can learn more and inquire about a getting a hard money loan. Our contact information is below.
Russell Roesner
Equity Coalition President
San Francisco, CA 94104
415 680 3454
www.equitycoalition.com
Linkedin Profile
Blog

Borrowers

California Hard Money BorrowersBorrowers: Hot off the presses: Review our new real estate investor bulk fix and flip equity line program. If you are looking for a real estate loan, remember we only consult and assist clients looking for a business purpose loans.  The loan cannot be primarily for personal, family, or household use. Please contact us directly to discuss a real estate equity project that requires both a loan and a direct equity investment. We only arrange equity capital on a retainer basis in combination with a success fee. Our success fee is net of the retainer after your project is funded.

Borrowers

If you are in a hurry, complete this short submission form. If you are looking to borrow money or secure a direct investment into your real estate project, please review our loan programs for more information. We will not consider any transaction under $250,000 and this is non-negotiable so please do contact us for small balance loans. Here you can familiarize yourself with our bridge loans, credit facilities, mezzanine debt, and residential real estate loan products. If you are only looking for a loan, please fill out our short loan application. Note: Due to the complexity of direct equity and working capital requests, please contact us directly to discuss a real estate equity project that requires both a loan and a direct equity investment. We only arrange equity capital on a retainer basis in combination with a success fee. Our success fee is net of the retainer after your project is funded.