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RESIDENTIAL & COMMERCIAL FINANCING
MORTGAGE POWER
1 – 2 – 3
A Real Estate Financing Concept of
PURCHASE POWER PROGRAM
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Real Estate Market Conditions
The Tale of Two Cities begins with “It was the best of times, it was the worst of times”. Charles Dickens’ depiction of the French Revolution aptly describes the current real estate market conditions.
It is the worst of times. The real estate community is experiencing unprecedented conditions including mortgage lender failures, record foreclosures and tightening of financing availability for real estate buyers. The result of this industrial implosion is that many mortgage programs and products that were previously available to consumer and investor buyers have been discontinued.
Investor buyers can no longer use the same strategies of buying low and immediately selling high or immediately refinancing with cash out. No longer can an investor buyer purchase an investment home using an LLC or Corporation as the named mortgagor. In addition, new underwriting requirements for higher credit scores, larger down payments, limitations on the number of financed properties owned and the verification of income and assets, together with several other adverse restrictions, have all severely limited the investor’s ability to pursue the active investments previously enjoyed.
It is the best of times. The tightening of credit and the elimination of many sub-prime mortgage products has resulted in fewer home buyers and a larger market of renters. Record levels of foreclosures have likewise caused a burgeoning renter’s market. Conversely, foreclosure sales and motivated seller sales have caused a large inventory of properties at attractively low prices for opportunistic investors.
In good times, smart investors make their profit. In bad times, smart investors make their fortunes. This combination of conditions in today’s real estate investment world can be described as THE PERFECT STORM. A large market of renters, increasing rents due to demand and a growing opportunity to purchase property at great value produce almost perfect conditions for investors to buy rental properties in large and profitable volumes. What makes these current real estate market conditions almost perfect is addressed in the following section.
What’s Missing
What is missing for investors to take full advantage of the opportunities of this Perfect Storm, is a mortgage product that has the following characteristics:
- Permanent financing with Interest rates, points and balloon terms that are better than those of “hard money” loans.
- The ability to close in the name of an LLC or Corporation owned by the investor.
- Relaxed underwriting guidelines.
- Fast and inexpensive closings.
What’s Even Better
What would be better than having a mortgage product that incorporated all of the 4 characteristics listed above? The answer is closing with that kind of mortgage with the PURCHASE POWER PROGRAM, a unique program which can supply the buyer with funds that can be used to pay for the down payment, closing and repair costs.
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To get all the info and apply for the PPP program, you must register here..
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