Real Estate Investor Opportunity

I answer questions on Bigger Pockets to help people looking to purchase property as a way to invest in their future. There often are new investors who have no experience or money to purchase real estate. They want to know shortcuts to leverage with a mortgage or get 100% financing. There is no low risk magic. Many of these new small syndications of real estate go belly up within a year. The investors don't control anything about the non owner occupied rentals and have no control what the general partner does. They lose all their investment and don't learn anything about the details of buying and owning a home, then finding a great tenant. It takes good income in the past two years, great credit, liquid assets and smarts to find property that can cash flow. Then there is applying for a home loan, checking the title, getting insurance, repairing any structural flaws or improving to get the property rent ready. Then the long term haul of managing the rental. 

Here is a summary of the new SEC accredited investor exam. It's an exciting development that has the potential to open up investment opportunities to a wider range of people. I'm curious to see how the exam is designed and what level of financial sophistication it will require.

It's important to note that the exam is not a guarantee of investment success. Even if you pass the exam, you'll still need to do your own research and due diligence before investing in any security. But the exam can guide you to develop the skills and knowledge you need to make informed investment decisions.

SEC is creating an accredited investor exam. Here’s everything you need to know:

The current requirements: To be an individual accredited investor you must either: Have an income exceeding $200,000 for the past two years with the same expectation for the next year, OR have a net worth exceeding $1 million, excluding the value of your primary residence. Often these small syndicators do not check if an investor properly qualifies and the small individual loses.

A new option: As of May 2023, the House voted to pass legislation, administering the SEC to introduce an exam program that would qualify investors as accredited. The accredited investor exam requires potential investors to demonstrate a certain level of financial sophistication and understanding of investment concepts. The exam will measure an individual's ability to assess risks and make informed investment decisions.

The passage of the bill to establish an SEC accredited investor exam is a step towards strengthening investor protection and opening the door for new investors, even if they don't meet the wealth-based requirements. For commercial real estate investors, this change may add access to the sector. Hopefully it won't create loss of everything a small investor owns and cripple them. 

Sometimes failure is the best teacher. So get on that bull and start riding? What do you think about this as a new law?

Forget Me Nots

Forget ME NOTS for home loans and mortgages 

Things to remember when applying for a home loan.

Check your credit and contact my mail or email any errors to correct. 

Make sure your funds are ready to wire. 

If you have money overseas

or in crypto currency you need to know what the time line is to cash

the money into United States dollars.

Make sure  your identification is current for notary.

Don't plan a vacation during the escrow period.

Know how to open your email daily during the process.

Familiarize yourself with docusign by watching some Youtube videos.

Keep a notebook of all the houses you like.

Know the price you can afford.

Understand the principle and interest payment as well as what

property taxes and fire insurance will cost.

Homeowner Associations are also another consideration.

HOA fees always increase and though you maybe don't have

to maintain certain home structures such as roof, the HOA

has to have enough funds for disaster and enough coverage

in the Master Insurance Policy. You also will need a HO6

policy

PreApproval Mortgage

{!Userc} Home Shopping Tips: Is Now the Time to Buy? How to get ready to make an Offer? What preapproval letter works best? Hi {!My Friends},   Some potential home owners are on the fence wondering if they should wait until next year, or start shopping for a home now. The good news is, when you do decide to buy a home, you start building equity immediately. Here are some things to consider before you start shopping for a home.   Check Your Credit Score Review a copy of your credit report (before the lender does) and make sure there are no errors. Get a mortgage report it's different than a consumer report. If you do find errors in your credit report, they can be disputed. Of course, a higher credit score will secure you a better interest rate. Map out how to pay down or pay off outstanding debt, if possible.   Have Your Documentation Ready When you apply for a mortgage, you will need: Proof of Identity – Have your government-issued ID or driver’s license, social security card and birth certificate or passport. Proof of Income – This includes at least one month’s paycheck stubs, unemployment payment records, and any other documentation of regular income such as alimony or bonuses. Tax Documents – Be ready to show your last two year’s tax returns, including W-2 and/or 1099 forms. Bank Statements – The lender will want to look at your banking activity for the last 60 days to know you can manage your down payment and closing costs with sufficient cash reserves. Monthly Debt Documentation – Have your paperwork in order to document student loans, car loans, credit cards, etc. to establish your debt-to-income ratio. If you have no credit history, utility bills or records of other regular payments may be used to help you qualify for a mortgage. Additional Assets – Have documentation ready to support any additional savings, stocks, bonds, securities, etc. Get Pre-Approval By having written pre-approval from a lender, you know exactly how much home you qualify for. This helps you manage your expectations – and when you do make an offer – the Seller will consider it to be more valid. We have a wide variety of loans to choose from. Give us a call to find out what program works best for you! (949) 784 -9699   Sincerely, {!User.FirstName}   C G Caroline Gerardo Barbeau NMLS # 324982 }

Bank Statement Loans - Mortgage for Self employed

 

NON QM Mortgages

BANK STATEMENT LOANS

Mortgages for Investment Properties

Mortgages for Self Employed Borrowers

• Non-QM loans are not required to meet the same requirements as qualified mortgages, which are insured or guaranteed by government agencies such as Fannie Mae and Freddie Mac.
• Non-QM loans can be a good option for borrowers who do not meet the requirements for a qualified mortgage, such as those with high debt-to-income ratios or irregular income.
• Non-QM loans typically have higher interest rates and fees than qualified mortgages.
• Non-QM loans are not as widely available as qualified mortgages.

Here are some additional details about the features available listed:

• 3, 12, or 24 months of bank statements: Lenders will typically require 3 months of bank statements for a non-QM loan, but some lenders may require more. The type of account (business or personal) and the deposits made will be reviewed carefully to make sure they are consistent with the borrower's income and expenses.
• Reserves: Lenders will typically require borrowers to have reserves equal to 12 or 24 months of mortgage payments. Reserves can be in the form of cash, investments, or other liquid assets.
• FICO mortgage middle score is used not your Credit Genie one
• Lenders will typically use the borrower's FICO mortgage middle score to determine the interest rate on a non-QM loan. The higher the score, the lower the interest rate will be.
• Other requirements: Non-QM loans may also have other requirements, such as a minimum down payment, a maximum loan-to-value ratio, and a maximum debt-to-income ratio.

If you are considering a non-QM loan, there are different rules guidelines and ins and outs to each different mortgage non qm lender. A number of NonQM lenders have gone out of business in 2023,

so it's vital to understand how strong the particular shop is to withstand this storm.

Business types are categorized. A business with many employees and large office

will have a higher expense ratio than a one person office from home. Sometimes

a CPA letter is required to explain the type or business or expenses.

Properties need to be in good condition.

1- 8 units

There are minimum loan amounts

These loans are securitized and sold to a different market investor than conventional loans.

Each wholesale shop has it's own rules.

You should also make sure that you understand all of the terms and conditions of the loan before you sign any paperwork. It is important to have an experienced Loan Officer explain every step

Here to answer your questions

Caroline Gerardo (949) 784 - 9699

NMLS 324982