LegalShield and GoSmallBiz.com

Yesterday in the Bay Area I completed my certification as a Small Business Consultant for both LegalShield and GoSmallBiz. http://www.GoSmallBiz.com is a leading online resource for the small business owner and entrepreneur. Working in partnership with LegalShield, we help small business owners protect and grow their businesses. GoSmallBiz.com brings small business owners unlimited business consulting via email, access to educational videos and articles, secure web-based software for business, a library of legal forms and documents, and more! This is such a natural fit for me, and a great service for our commercial real estate and small business clients. Never too old to learn

SBA Loan 7A Program and Gas Station Financing

The SBA (Small Business Administration) has two excellent loan programs if you are looking to buy a gas station.  The loan programs are known as the SBA 504 and the SBA 7A, which is preferred by many. Here are some details of the 7A program:

The 7(a) Loan Program includes financial help for businesses with special requirements. For example, funds are available for loans to businesses that handle exports to foreign countries, businesses that operate in rural areas, and for other very specific purposes.

• Special Purpose Loans Program

  SBA offers several special purpose 7(a) loans to aid businesses that have been impacted by NAFTA, to provide financial assistance to Employee Stock Ownership Plans, and to help implement pollution control mechanisms.

• Export Loan Programs
  Approximately 70 percent of all U.S. exporters have 20 or fewer employees. SBA has placed a priority on helping these small business exporters by providing a number of loan programs specifically designed to help them develop or …
• Rural Business Loans
  Rural Lender Advantage The Small/Rural Lender Advantage (S/RLA) initiative is designed to accommodate the unique loan processing needs of small community/rural-based lenders by simplifying and streamlining loan application …
• Use of 7(a) Loan Proceeds
  If you are awarded a 7(a) loan, the loan proceeds may be used to establish a new business or to assist in the acquisition, operation, or expansion of an existing business. Eligible Use of 7(a) Loan Proceeds Include …
• Advantage Loan Initiatives
  Small Loan Advantage and Community Advantage 7(a) Loan Initiatives SBA is committed to expanding access to capital for small businesses and entrepreneurs in underserved communities so that we can help drive economic growth and …
• Community Advantage Approved Lenders
  The following are the Community Advantage lenders approved by SBA. ACCION San Antonio, TX AmPac Tri State CDC Grand Terrace, CA Appalachian Community Enterprises Cleveland, GA Appalachian Development Corp …
• Express & Pilot Programs
  SBA’s Express and pilot programs offer streamlined and expedited loan procedures for particular groups of borrowers, notably active duty military personnel, veterans, and borrowers from distress

Shell Station for sale in Redding, CA

• Shell Gas Station for Sale in Redding, CA..offered at $2,500,000

  Why buy a Shell Gas Station? Great brand with one of the largest credit card followings in the nation; Consistently quality fuel for excellent repeat business; Opportunity for fleet sales versus unbranded stations and gas; Excellent reputation and branding benefits the local owner; Superb management assistance from company; profitable with good mark up and margins.

  Highlights: Great Location-66,000 gallons/month; Very High Inside Sales-$74,000/month average; Subway Sandwich Shop on Premises; Huge pump access area for RV’s and Boats; Excellent condition both inside and out; Priced to sell based on recent bank appraisal.
  Description: This is one of the most impressive gas stations-convenience stores, with Subway in the building, in the North State. Great location on I5 just north of downtown Redding, and opposite planned Regional Shopping Center. The station has been modernized and is in excellent shape. e-mail for complete listing package.

  Best location on Interstate 5 at the Oasis Road exit just 3 miles north of downtown Redding, CA., which is 165 miles north of Sacramento and is the last major city before Lake Shasta and on over the Cascades into Oregon. Extremely busy location with a great deal of added Lake traffic, including boats, motor homes, and interstate travelers. Subway is a huge draw for business. Additional detail, photos, narrative, and financial info at   http://www.oasisshell.com
  
  http://www.oasisshell.com     Offered at $2,500,000.

Reverse Mortgage Update

I just received the following from Elizabeth Ecker, the Editor of Reverse Mortgage Daily…and this was in the Dallas Morning News. Very interesting update….

The age of reverse mortgages is here,” writes a Dallas Morning News column by syndicated columnist Scott Burns, who is also founding partner of investment advisory Asset Builder. Crediting the Saver Home Equity Conversion Mortgage with the sea change, Burns addresses this “small” change as opening a “floodgate” of interest.   The Dallas Morning News columnist writes:

“Used for long-term planning rather than emergencies, reverse mortgages are likely to become a major tool for the millions of Americans who have a lot more equity in their homes than in their retirement savings.”   The costs, Burns says, are not a major consideration in a comparison between the Saver and Standard upfront fees on a $250,000 home.   “What is happening is that reverse mortgages are becoming a financial planning tool rather than an emergency loan service,” he says.

Many of us have thought of the Reverse Mortgage arrangement as a Financial Planning “tool”….which is what it is now more generally thought of in the financial industry

Reverse Mortgage Eligibility

In general, to be eligible for a reverse mortgage the youngest homeowner must be 62 years old or older and have sufficient home equity.   Determining whether or not there is sufficient equity in the home is an FHA calculation that takes into account:

Current interest rateWhether the rate will be variable or fixedAge of the youngest homeowner   FHA lending limits   Appraised value of the home   You can use the online reverse mortgage calculator to find out if you have sufficient equity and what the loan principal limit would be.   Things that generally do not affect eligibility for a reverse mortgage:  ■Discharged bankruptcy  ■Health of the homeowners   Frequently asked questions:  If a homeowner is not 62 but they are permanently disabled, can they qualify? No. The FHA use age as a criteria to determine reverse mortgage eligibility and makes no exceptions for disability or Social Security status. Can someone qualify if they have a mortgage? Yes. Where there is sufficient equity a majority of people who take out a reverse mortgage use it to pay off their existing mortgage so they can stop making monthly mortgage payments. Do all 62-year olds who own their home qualify? No. Some homeowners who want to get a reverse mortgage are not eligible because they don’t have enough equity built up in their home. The younger the homeowner is, the more equity they need to have to qualify. Also, some types of homes are not eligible. What happens if there isn’t enough home equity to qualify? This is called a “shortfall.” This means that the reverse mortgage would not provide enough money to pay off the existing mortgage on the home — it is coming up “short.” In this situation, some homeowners may choose to make up the difference by paying down the balance on their mortgage by the amount of the shortfall so that they can qualify for the reverse mortgage. However, most people who want a reverse mortgage and have a shortfall don’t have enough money to do this.

Reverse Mortgage..what is it?

A reverse mortgage is a loan for senior homeowners that uses a portion of the home’s equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage. Eligibility for a reverse mortgage To be eligible for a HECM reverse mortgage, the Federal Housing Administration (FHA) requires that all homeowners be at least age 62. The home must be owned free and clear or all existing liens but be able to be satisfied with the reverse mortgage. If there is a mortgage balance, it can be paid off completely with the proceeds of the reverse mortgage loan at the closing. Generally there are no income or credit score requirements for a reverse mortgage. Outliving the reverse mortgage A reverse mortgage can not be outlived. As long as at least one homeowner lives in the home as their primary residence and maintains the home in accordance with FHA requirements (keeping taxes and insurance current) the loan does will not become due. Estate inheritance In the event of death or in the event that the home ceases to be the primary residence for more than 12 months, the homeowner’s estate can choose to repay the reverse mortgage or put the home up for sale. If the equity in the home is higher than the balance of the loan, the remaining equity belongs to the estate. If the sale of the home is not enough to pay off the reverse mortgage, the lender must take a loss and request reimbursement from the FHA.No other assets are affected by a reverse mortgage. For example, investments, second homes, cars, and other valuable possessions cannot be taken from the estate to pay off the reverse mortgage. Loan limits The amount that is available generally depends on four factors: age (older is better), current interest rate, appraised value of the home and government imposed lending limits. If you have further questions….. ronlargent@shasta.com and thanks,

Hard Money – Private Money…as low as I have seen!

Earlier today, one of my wholesalers sent me this memo on Hard Money-Private Money loans…these are the lowest that many of us have ever seen for hard money….so if you are in need of someone that needs a loan like this…or know of someone, please get in contact with me…as this “special” has a limited time frame. Here it is:

……… is running a 2-Week Special with rates in the 7-9% range on Hard-Money. The special applies to SFR’s, Townhomes, Condos, and 2-4 Units, as well as some 5+ Units . This special makes sense for a huge number of borrowers so get your submissions in ASAP.

Our current wholesale submission requirements are as follows. We will respond with a written approval within 24 hours but usually before the end of the business day:
• Submission Form (see attached)
• 1003
• Credit Report
• Purchase Contract (if applicable)
• Current Rent Roll (Multi-Family 5+ Units)

This is about as easy as it gets….and now we are getting thes

Commercial Equipment Leasing Now Available

Although our primary emphasis is on commercial real estate financing, what we have found is that many of our clients, once they purchase their investment or income property, often are in need of commercial operating equipment. Through our affiliates in our national lending programs, our commercial equipment lease programs cover a wide variety of industries. Whether you are looking for aircraft leasing, transportation equipment leasing, medical equipment leasing, or any other equipment and accessories needed for your business, rest assured that with our knowledgeable and professional team by your side you are certain to obtain the financing you need without all the hassle.

For more information regarding equipment leasing in your industry, we have a variety of financing options that include start-up businesses.  Getting approved is quick and easy regardless of your personal or business credit situation, we can help!

• Aircraft and Aircraft Equipment
• Fitness Center Equipment
• Health Center Equipment
• Automotive Equipment
• Agricultural Equipment
• Computers & Networking Equipment
• Construction Equipment
• Dry Cleaning Equipment
• Heavy Equipment
• Industrial Equipment
• Medical Equipment
• Metalworking Equipment
• Office Equipment
• Oil and Gas Equipment
• Printing Equipment
• Restaurant Equipment
• Telecommunications Equipment

We also offer software leasing and have special programs for start-up business leasing.

What is a Lease? A lease is a contractual arrangement-agreement in which a leasing company, known as the Lessor, gives a customer, known as a Lessee, the right to use equipment for a specified length or time, referred to as the lease term, and a pre-agreed upon payment plan, which is usually monthly. Depending on the equipment, the nature of the lease, and the needs of the customer, the customer may have the opportunity to purchase the equipment, return the equipment, or continue to lease the equipment by executing a new lease or a lease extension.

The overriding positives of leasing include the general application to almost every business that has a need for some form or kind of equipment to conduct its daily business operations, which includes every part of the business from capital equipment to computer hardware and software, and can include both installation and follow on management assistance and consultation. Irregardless of the legal structure of the lessee, including churches and other non-profits, leases make a lot of sense if only for the cash savings realized.

Hard Money-Private Money Loans Now Available

I have just expanded my real estate financing business to include Hard Money and Private Money Loans on both residential and commercial real estate. I am associated with one of the best companies in the nation; a sterling reputation; and one that produces loans…not just a “talker”.  Many have asked me, “what is a hard money loan”…so here is my answer. Please call or e-mail me if you are in need of one of these loans:

A hard money loan is a specific type of real estate based loan through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans because of the shorter loan durations associated with hard money loans. Most hard money loans are used for projects lasting from a few months to a few years. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring….which are very present in the current economy.

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. This is a key factor in an economy such as we are in now. Typically, the biggest loan one can expect would be between 65% and 70% 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.

This kind of says it all…so let me know if I can be of service…for both residential and commercial real estate loans.

In 2012….is refinancing an option?

As we approach a new year, I get questions on where I see real estate going in the next year. Who knows? The guru’s were wrong 5 years ago when they said, and I was probably among some of these….downturn would be over in a couple of years, and here we are 6 later and still seeing some of the lowest prices of real estate in 25 years. But, one thing is also very evident, namely the unbelievable low rates to borrow money. The next question is “should we refinance our property?”.  This is a very individual option, but if one is an owner-investor in commercial real estate, it might be worth the time to check this out. During the “boom time” some 6-10 years ago, a lot of commercial development was taking place, and money was plentiful but the interest rates were consistently higher than the residential rates. Because of this, the timing might be right for an owner to consider re-financing now, for the commercial rates are almost where the residential rates are, which is a first time occurrence. And, it might be a “slam dunk” process for many.

With a new loan, the lender has to take an in-depth look at all aspects of the transaction, from the value of the property to the credit-worthiness of the buyer. All aspects of the transaction has to “make sense”. With a re-finance, there is a track record of performance for the property. And, there is a history of maintenance and improvements, and all of this is considered by the appraiser, and the lender.  It is easier for the lender to consider the positives and negatives of a property when a pattern of success in the management of the property has occurred.

If re-financing is something that you have been thinking about, let’s talk.  A number of factors has to be considered, from the cost of the new fiance to the savings over a period of time. You may want to involved your CPA for advice. But, contact me and we can start the conversation. And,   www.largentfinancial.com   has info on rates and the various programs that might fit for your particular property.