Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warned!
- Thread starter afroyale
- Start date
Man, this is becoming a weekend hobby!!!Real1 said:
I think the problem here, Real1, is you and I have 2 totally different understandings of business and OPM. You borrow money to buy a house. I and many others have bought plenty of homes - we all know that you need 20% of the selling price for a conventional loan, you don't even have to go to business school for that, the mortgage company will tell you. I borrow money to expand business. Obviously, there's a huge difference!!! Let me help you out Real1; please understand that you or your company borrowing money to purchase a home IS NOT OPM!!!!! OPM or OPR (Other Peoples' Resources) is you convincing a private investor, your family, a VC or other organization to invest into a business idea designed to grow your business, generate revenue & ROI.
Now, this example is not for bragginig rights fam, and let me qualify this with the fact that it is a revenue heavy deal (I hope you understand what this means Real1 buddy) - I just closed a 2.5M dollar / yr deal. I wanted 1M WC to ramp up and handle the deal. Bank wanted to secure the loan, guess what, I'm not Bill Gates and neither are you, so yes, the bank wanted to secure the loan - I had 2 options, liquid or non-liquid assets. I chose liquid for hopefully obvious reasons - bottom line, I needed to show an account with 1M in it to secure the loan... this is business, but not OPM because it's My fuckin money - I borrowed it, I'm gonna use it, I gotta pay it back and more importantly, 20% down didn't cut it. Keep in mind, I borrowed money for an idea, a business idea, a concept and a very creative one, not a secondary home. If a banker doesn't understand what you are doing, meaning it's not something as simple and straight forward as land subdivision, you either a. have to convince them of the success potential for your deal; or b. demonstrate your financial capacity to pay the loan back with existing assets. Why is this so confusing to you? You obviously appear to be a business man, your response to my questions about your biz experience appears to be genuine... so what's the deal? Your limitations are showing Real1... truth be told, that's ok; we all have more limitations than we can imagine, but be honest about them!
I don't see flipping as a business as much as it is an opportunity to get some spending money. Problem is, you have to do a lot of flippin and you have to take serious risks to make it work - as your posts demonstrate, you're not interested in being intellectually honest about the associated risks and you still have not addressed my point regarding land - see ya really fucked up and showed your hand on this one, which I guess is why you chose to skip over it... you used this "Pharaoh thinks land is a good investment, ha ha he's stupid" approach in several posts - I'll say it again, land is worth what you can do with it. Now, since you're such a well versed experienced business man, why don't you school us all on why properly zoned commercial land is a bad investment? Go google that and come back and talk to us.
Let's keep it going:
No one said a damn thing about a re-assignable option contract, please stop trying to turn flipping into business... my analogy involved a guy trading cards, who buy the way I must commend for getting 8 bucks out of a $6 card - very simply, what the fuck are you talking about here? Again, you're just trying to throw in another of your remotely related useles terms "re-assignable option contract" that really had nothing to do with the point.Real1 said:
Let's do another quote, I'm loving this...
So, now you're admiting it's not business, it's just can be profitable - are you qualifying that with "if you understand the good and bad" or are you stickin to your story? By the way, you're right, what you're talking about is not business, and yes it has been found to be profitable by many... hmm wonder where you got that from, never saw anyone post such intelligent claims before, except for myself and several other members, in the same post I might add.Real1 said:
.Pharaoh said:
I'll let you close my message out and tell everyone why land is such a bad investment, or how to build a business off of flipping, or how a 20% conventional home loan for a secondary property is OPM.
Good luck my friend!
Peace
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
House Hustler -- Flippin' In Da Hood
House Hustler -- Flippin' In Da Hood
Kenny Rushing says if he can do it, anybody can. He's gone from crack dealer to prison cell to making a fortune in real estate. He calls himself the . . .
-------------------------------------------
By MICHAEL VAN SICKLER, Times Staff Writer
Published May 21, 2006
"God is first and he blesses the hood; Your family is second and flourishes in the hood; Your work ethic is enriched in the hood; Businesses multiply in the hood." - From Rushing's "House Hustling Creed"
TAMPA - Since getting released from his Panhandle prison cell six years ago, Kenny Rushing, aka Captain Save-a-House, has proclaimed himself leader of an unfolding revolution in Tampa's black communities.
Drawing on symbolism from the civil rights movement, Rushing beseeches his growing number of followers to "get on the bus," invest in neighborhood real estate and, like him, make a fortune.
Billboards, radio ads and TV commercials depict Rushing as a friendly businessman who saves grandmothers from losing their homes to shady speculators.
His "House Hustling" method empowers residents by keeping money in the neighborhood, he says. They just need to calculate what it will cost to rehab a distressed property, buy low and eventually resell.
But Rushing rarely rehabs the properties he buys. Sometimes he resells in just days, choosing his buyer from a roster of waiting investors.
It's an insider's game that Rushing frequently plays - with the richest white developers in town.
Is he, as he portrays himself, a superhero caped crusader, protector of grandmothers? Ask Thelma Bennett.
Our people own their own land in the hood. Our people attract all types of businesses to the hood.
It could have been a Friday night Hollywood premiere. But it was a Saturday morning in Ybor City.
A white Bentley trailed by Hummers emblazoned with Kenny Rushing's likeness pulled into the parking lot.
Rushing stepped from the Bentley, his Kangol hat tipped to the side. Inside, 130 mogul wannabes waited to hear him divulge, free of charge, how he built his Tampa Bay real estate empire.
Garbage collectors, college students, contractors and Realtors, they laughed, cheered and murmured choruses of "amen" as Rushing shared his handcuffs to cuff-links life story.
It's a Horatio Alger tale with a Jay-Z soundtrack: three-time Golden Gloves boxing champ turned reluctant crack dealer, reformed, repackaged and redeemed as a real estate hustler.
He connected with his nearly all-black audience when he introduced young men who scout properties for him and have their own real estate businesses.
"Michael Wyche, you can't hide from me!" Rushing yelled to a 27-year-old with a drug dealing past. "How much you make last month?"
"Thirty G," Wyche answered, shorthand for $30,000.
Audience members gasped.
"That's a month," Rushing said.
Wyche and a coterie of proteges personify Rushing's core message of empowerment.
Its essence is this: Why can't black people get into real estate investing and make the money white people have been making? Why can't the young black men who push drugs apply the same business acumen to something legit, like real estate?
"It's time to do for self," Rushing said. "Black folks dominate what? Sports and entertainment. I want them to say that blacks dominate real estate, which has produced more millionaires than anything else I know."
Fred Timmons said he has turned his back on drugs under Rushing's tutelage. He now owns a real estate investment firm and says he makes at least $20,000 a month.
"Kenny doesn't know this, but I call him 'black Moses,' " Timmons said. "He finds people who are lost and brings them to the Promised Land. He knows what it's like to come up from the streets."
Hustling is lucrative, but Rushing emphasizes that his brand is always respectful. It's not about "stealing property, it's not low-balling anyone. Don't do that, taking homes," he told the audience. "I won't talk to you." One elderly woman wanted to sell him two homes for $30,000. He told her they were worth more, and paid twice what she wanted.
A TV commercial portrays him as a cartoon caped crusader named Captain Save-a-House. The premise: Trust Kenny Rushing. Unlike those other guys, he always pays a fair price.
Don't let them other guys steal your house. Uh uh. Uh uh. Don't let them other guys. What? Steal your house.
- Song in radio spot for Rushing's business, Rehabber's Superstore, Inc.
Thelma Bennett, a 73-year-old grandmother, lives on the northern edge of downtown. In 2002, her mother died and Bennett inherited her home in Tampa Heights.
Tired of maintaining two homes, she signed a contract with an investor, Ryan Khouri, giving him rights to the property. Khouri then asked Rushing if he wanted to buy it.
Records show that on Sept. 10, 2003, Bennett sold the house to Rushing and his father-in-law, John Floyd, for $20,187. There was an $18,458 lien on the home, money Bennett's mother owed the city of Tampa housing department. According to Bennett's closing papers, she netted $1,729 on the deal.
When a friend of Bennett's, Cohen Williams, found out that she had sold the home, he was furious.
"This was done in three days, like it was a race car," Williams said. "It was sign this, sign that, bam bam boom, fast and quick. I tried to tell her to wait, but she wouldn't."
Three weeks after buying the home from Bennett, Rushing and Floyd sold it for $70,000 - a markup of $50,000.
When told last month about the sale, Bennett sighed softly and looked down at the pile of closing papers on her kitchen table. She stayed silent for several minutes.
"That's not right," she finally said.
Williams shook his head and slumped against the kitchen wall.
"Oh my God," he said. "Oh my God. I knew it. I knew it."
Though Rushing attended the closing, and though the closing papers specify what Bennett netted, he said he didn't know that she got less than $2,000 from the sale of her home.
"I had no control over the deal, I didn't negotiate it," Rushing said. "Don't slant this, I'm not taking advantage of a woman."
He said it was a stroke of luck that he bought her home, only to discover a week afterward that developers were buying up land in that exact area. Though Rushing has made it his life's work mastering real estate in that part of Tampa, and though it was common knowledge among others in Tampa Heights that a project was slated for that area, he says he was unaware of such activity.
Had he known about the project, he said, he would have shared his good fortune with Bennett.
"If I had known the house was worth $70,000, I would have paid her a lot more," he said. "In that case, I definitely would have paid her $60,000. Easy."
Now that he knows, what would he, or his alter-ego, Captain Save-a-House, do?
"I'm not about to say, 'Here you go, here's all I made on the property.' "
* * *
Many who sell their homes to Rushing leave the negotiating table with an affection for him that goes beyond the economics of the deal.
In October, the property appraiser valued Diana Crum's home on N 21st Street at $67,163. She sold it to Rushing for $56,000. A month later, records show he sold it for $115,000.
"I'm happy with Kenny," said Crum, who is a bus driver. "He was fair with me."
Rushing said he's not sure, but Crum's house may have needed some repairs that he paid for after buying it, reducing his profit considerably.
In February, the property appraiser valued Melvin and Sonia Lake-Gunn's Ybor Heights home at $134,000. They sold it to Rushing for $93,000. He sold it a month later for $195,000.
"He didn't do any harm," Melvin Gunn said.
"I had an offer that was double what Kenny was offering. But I felt comfortable with Kenny. He was honest, there was no pressure. I have nothing bad to say about him. It was a great deal."
Rushing said he sold the house for less than $120,000 and made no more than $30,000 on it. The higher price recorded on public records is there because the buyer fixed up the home before closing, he said. The buyer got an appraisal that valued the home at $195,000, got a loan for that amount and closed the deal.
Another satisfied customer: Mazie Watson.
The 68-year-old grandmother had fallen behind on the taxes on the Belmont Heights home she had owned for 30 years. On welfare, she couldn't keep up with repair bills. She responded to an ad for Rushing's business offering quick cash for homes. He invited her to his office.
"He was very polite and asked if this is what I wanted to do," Watson said. "He didn't force anything on me."
The property appraiser's office valued the house at $77,438. In April 2005, Watson sold it to Rushing for $50,000. She netted $2,935 on the deal.
Records show Rushing sold the house 35 days later for $100,000.
"I can't tell you the specifics of the deal because I don't have them," Rushing said. "The house may have been rehabbed."
Watson has no complaints. She spends her days watching cable TV at Hacienda Villas, an Ybor City retirement home, happy that the "good Lord" led her there.
"I was ready to move on," Watson said. "He Rushing helped me do that."
"CEO, entrepreneur, publisher, motivational speaker, activist, philanthropist. Kenneth Rushing Jr.: The right vision at the right time."
- Article heading in the debut April issue of "House Hustling" magazine, published by Rushing's Rehabber's Superstore.
Rushing, 32, makes his criminal past in Des Moines an integral part of his wheeling-and-dealing persona. But he's reluctant to provide details.
"It's an embarrassment for me to talk about this stuff."
He had to grow up fast in Iowa. Mom lost her job as a nursing home cook, dad couldn't hold a job. When Kenny was just 9, he sold peanut brittle and mint cookies to white suburban kids to help his family get by. He mowed lawns, he shoveled snow.
At 15, he could not resist the pull of the easy money to be had dealing drugs. He asked the neighborhood dealer if he could sell crack, made $760 the first night and started a new career.
"I was a friendly drug dealer," Rushing said. "I didn't like it. I was a good businessman, but drugs made me feel uncomfortable. It wasn't for me."
He had a promising boxing career: 26-0 with 23 knockouts by age 18, he said.
"I was a three-time Golden Gloves champion," Rushing is quoted in a cover story last year for a start-up magazine called Ice Cream, where he's listed as one of two staff writers. "I went to the Olympic trials."
But he was shot in the shoulder, dashing his dreams of greatness, Rushing said. He continued to deal drugs until seven years in prison turned his life around.
This is the official Rushing version of how he embarked on his new career, a redemptive story arc stretching from his reluctance as a petty Iowa drug dealer to a real estate empire built on self-reliance and compassion in Tampa Bay.
Others offer a different script.
The promising boxing career derailed by injury?
Fiction, according to Kervin Veasley, head coach of the gym where Rushing boxed. He remembers Rushing: skinny kid, wore gang colors, sparred sometimes. But three-time Golden Gloves champ?
"He's stretching it," Veasley said. "I'm shocked he said he was."
"There's no way he won the Golden Gloves," said Donald Avant, president of Iowa Golden Gloves. "I'm the guy who would know."
Rushing has an undated newspaper clipping that says he won the Novice Division, 156 pound weight class. Avant said records aren't kept for Novice, which is reserved for inexperienced fighters. If he won in Novice division, he automatically would have gone to the Open division, which keeps records - none of which show him winning.
Who did Rushing defeat for the other two Golden Gloves championships?
"Just put in there that I was a Golden Gloves champ," Rushing said. "I don't want to get into how many times. I won the Golden Gloves, Silver Gloves, the (Amateur Athletic Union) championships."
Rushing also backed away from his statement that he went to the Olympic trials before he got shot. Actually, he said, he just had always wanted to go.
A low-rung, reluctant drug dealer?
Early in 1993, Rushing walked into an apartment filled with smoke, 9mm guns and 2½-pound bags of cocaine. The FBI had wired the room with cameras for its investigation of the L.A. Crips gang operation in Iowa. They caught 19-year-old Kenny Rushing on tape, stuffing what they said was a 1-kilogram package of cocaine into his pants.
"He dealt one time with this group," said his attorney, Peter Berger. "But Kenny was a small-time guy."
The feds say Rushing, aka "Guido," was hardly small time. They described him as the Des Moines crack distributor for the Crips, at a time when crack ravaged the Midwest.
"He was a big fish for Des Moines," said Jamie Bowers, a special assistant state prosecutor on the case. "At the time, he was probably the biggest fish in town, very successful as a drug dealer. The Crips didn't let just anyone into that room. Kenny was the local hookup for these guys."
The Crips had a reputation for unrestrained violence, said Jim Donlan, an FBI agent who helped break the case. The wire on the Des Moines apartment was for a month, but agents cut it short after 17 days because they feared more killings, he said.
Rushing was comfortable in that company, Donlan said. "It wasn't like he stumbled into them one day."
Sentenced to 12½ years in prison, Rushing cooperated with the government, had four years shaved from his sentence and came to Tampa in 2000.
"In only a short 5-year-span, Mr. Rushing has built a successful multimillion dollar real estate investment company, Rehabber's Superstore, Inc. ... with real estate transactions projected to exceed $15-million in 2005. "
- April 2006 "House Hustling"
Rushing studied more than 100 real estate books while in prison. Released on probation from in 2000, he went to work rehabbing houses for a development company his uncle started in Tampa.
He met a nurse named Katrice who worked at Tampa General Hospital, married her in July 2001, and continued to work real estate deals.
Rushing describes his system for buying real estate as an eight-step process. It includes how to scout for distressed homes and calculate if it's worth it to rehab a house.
"Everything I'm teaching you today, I've done," Rushing told his seminar audience. "It's allowed me to be successful."
He doesn't charge an admission fee. Rather, he invites attendees to become prospectors, scour the city for land and show him properties they find. If he buys, he'll pay them a fee.
Buying rundown homes at discount and flipping them for profit is big business. On busy street corners, men wear sandwich boards that advertise fast cash for homes. Billboards blaring "We Buy Ugly Houses," the trademark of Dallas-based giant HomeVestors, loom over blighted areas.
In this crowded field, Rushing has carved a niche. In 45 deals since 2002, records show, he and his companies received a total of $1,367,254 more than they paid. Most were in the city's central core, the properties typically flipped within two months after they were bought. Some sold in days. In every deal, Rushing or his companies paid cash.
All is not profit, however. What's not recorded in the public record is the money Rushing spends to paint, clean or make minor adjustments to improve a home's appearance. He also shares his markups with partners who provided him with cash to close deals.
In many cases, he said, the buyer rehabilitates the home and gets a loan for the higher value of the house. In those deals, the home prices reflect the mortgage amount and are much higher than what he sold for, he said.
Anyone willing to work hard can do what he has done, Rushing said. Those who fail have only themselves to blame.
"Why can't that be you?" Rushing told a seminar audience last month. "The only reason that cannot be you is if you got some kind of physical or mental impairment ... I only see beautiful people and talented people here."
* * *
Tampa has seldom seen a redevelopment project the size and scope of the one planned for Tampa Heights.
With construction to begin next year, the $500-million Heights of Tampa project will transform a 50-acre racially mixed neighborhood of old homes into an upscale community of 1,900 condos and townhomes for downtown professionals.
The developers are among the most powerful in Tampa: Bill Bishop and Don Wallace, the founder of Lazydays RV Supercenter.
Rushing bought properties and sold them to a trust that assembled the land Bishop and Wallace wanted for the Heights of Tampa project.
Did Rushing help obtain property that black people in the neighborhood were reluctant to sell to outside developers? Or was he working independently of the project, relying on his own savvy to buy low from neighbors and sell high to developers he knew needed the land?
It depends on whom you ask.
Rushing said he sold up to 10 properties that became part of the Heights of Tampa project. In a subsequent interview, he said he was involved in no more than eight or nine sales. He said he was not a front man for the project but worked independently. "I'm not a sell-out," he said.
While downplaying his role, Rushing said Wallace and Bishop are business acquaintances. He said he has met several times with Bishop, and that Wallace helped line up someone who may provide a vehicle for his bus tours. "I'm very inspired by Don Wallace," Rushing said.
Wallace and Bishop say they don't know Rushing.
Wallace spokeswoman Deanne Roberts said Wallace told her that Rushing called him once with a business proposition, but Wallace passed.
Bishop said he met Rushing once, during a Tampa Heights neighborhood event when Rushing rolled up in a Hummer and introduced himself. Apart from that brief meeting, however, Bishop said he hasn't spoken with Rushing.
"I wouldn't know him if I bumped into him," Bishop said.
Advised that Bishop and Wallace said they didn't know him, Rushing said he never said he knew them, only that he admired Wallace and met once with Bishop.
Public records show Rushing's direct involvement in three land deals that became part of the Heights of Tampa project, including Thelma Bennett's home. On those deals, Rushing and his associates collected a total of $104,800 more than they paid. He also was listed as a witness on the deeds of two other deals.
All the properties were sold to Tampa Trust Inc., a company owned by Lawrence Fuentes and Albert C. Kreischer Jr. Kreischer said he handles only the title work and does not know details about the deals, which he said are brokered by investors he would not name.
Tampa Trust, in turn, sold the properties in October 2005, along with nearly 100 other parcels, to Land Assemble, for more than $10.7-million. Land Assemble is Bishop's company that put together the property for the Heights of Tampa.
Joe Schwartz is a real estate broker who now provides much of the cash Rushing pays when he buys property. He used to work on Bishop and Wallace's land acquisition team. Schwartz says Rushing had a more prominent role in acquiring land for the Heights of Tampa project than public records or Rushing indicate.
Schwartz said Rushing was adept at dealing with longtime residents unwilling to sell. "There were people who wouldn't talk to us," Schwartz said. "They suspected we were speculators."
"Kenny has the gift of gab," he said. "He was well-liked and had a lot of access we didn't have. He had their ear, he was very honest and straight-forward, and he delivered what they were looking for. They got a fair price."
Told of Schwartz's comments, Roberts said there was no "formal relationship" between the Heights of Tampa project and Rushing. But she said Rushing was adept at figuring out which properties Wallace and Bishop would need. She said company records show 15 confirmed deals with Rushing.
"He would just bring us deals," Roberts said. "Some we turned down. Some we didn't. It was a deal-by-deal basis."
* * *
Thelma Bennett knows little about what Wallace and Bishop are planning in Tampa Heights.
She's more concerned about finding a new home because of what Wallace and Bishop plan for Central Park Village. The Housing Authority plans to start moving residents out of Central Park Village in the next year. Details of a 28-acre plan are to be released on Monday.
Bennett said she certainly could use some of the money Rushing and his father-in-law collected in 2003, three weeks after public records show they resold her Tampa Heights home for $49,800 more than they paid for it.
Whatever happened to that house?
Rushing sold it to Tampa Trust, which demolished it and sold the property to Bishop's land development company. A vacant lot now, it's slated for a new townhouse.
http://sptimes.com/2006/05/21/Tampabay/House_hustler.shtml
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
^ You wished.
http://patrick.net/housing/crash.html
Btw, don't you have a $640K house to sell? Let me guess, you're HELOCed to the max, and now can't sell below 640K or else somebody is gonna get creamed by Mr. Bank
.
Ok, I went back to read your first post, and you took out $100K so you can't sell below $490K. Just cross your fingers and pray that house doesn't depreciate below $490K. On top of that, you're still gonna get killed in 2 years when your ARM loan resets... ouch! which will bump your monthly mortgage payment up a grand or more.. ouch again! And don't forget the increase in your property tax, which will be calculated using the new value of $640K. That will also add $$hundreds to your monthly mortgage bill. Either way, you're dead man walking.
This quote from a rental property manager is what you might experience:
"I have owners that want me to raise the rent because their property taxes went up,’ ... ‘They don’t understand that I can’t arbitrarily raise rent under a lease. Their monthly bill has absolutely nothing to do with what we can get for rent. What the market will bear is what the market will bear, even if their monthly negative (cash flow) is too high."
Financial Sense University - This Time It's Different:
http://www.financialsense.com/fsu/editorials/2005/0909.html
^ You wished.
http://patrick.net/housing/crash.html
Btw, don't you have a $640K house to sell? Let me guess, you're HELOCed to the max, and now can't sell below 640K or else somebody is gonna get creamed by Mr. Bank
.Ok, I went back to read your first post, and you took out $100K so you can't sell below $490K. Just cross your fingers and pray that house doesn't depreciate below $490K. On top of that, you're still gonna get killed in 2 years when your ARM loan resets... ouch! which will bump your monthly mortgage payment up a grand or more.. ouch again! And don't forget the increase in your property tax, which will be calculated using the new value of $640K. That will also add $$hundreds to your monthly mortgage bill. Either way, you're dead man walking.
This quote from a rental property manager is what you might experience:
"I have owners that want me to raise the rent because their property taxes went up,’ ... ‘They don’t understand that I can’t arbitrarily raise rent under a lease. Their monthly bill has absolutely nothing to do with what we can get for rent. What the market will bear is what the market will bear, even if their monthly negative (cash flow) is too high."
Financial Sense University - This Time It's Different:
http://www.financialsense.com/fsu/editorials/2005/0909.html
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What up my brother… Okay and I am sorry I did not see this post earlier… Your first question about the ARM.TENT said:
I love them! I have a 40 year ARM with a 5 year lock. Each month, I receive my statement I am allowed the choice to choose the payment amount that best suits your financial situation: Pay the Minimum amount or Interest only to free up funds for other uses such as paying off high interest credit cards, contributing to college or retirement funds, etc. You can always make larger payments for faster equity build-up but I will NEVER do that. I take the freed up funds and put them in other investments that earns interest. Equity in a home earns 0 dollars!
You should always have a account set up with reserves that can pay your expenses for at least one year. You can do this if you pay yourself first.
All but the one I live in is under a LLC. I don’t have any in another State yet. But when I do I will set up an LLC in that State. You the natural person has to buy the property and get the loan and then you can transfer the deed into the LLC.
For now I manage them myself.
The funds I take out are in the bank, ROTH IRA, Some is going on a CD project, Etc. But for the most part I have the bulk on hold for the next deal I find.
I have several accounts and one for each home to handle up keep of the home.
Feel free to PM me Dawg… One more thing… I have read a lot of books on this subject and the one that is doing the most for me right now is Missed Fortune by Douglas R. Andrew. I know catz that are very big in this game and this is what they are doing… Start slow… Next thing you know you will look back and say to yourself…. Yeah!
Stay up… “LICK”
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
This is what the banks do everyday with our money… Why is it that you seem to want people to fail so something Bruh. I read your posts and the sound I hear is negative. I don’t know if you mean it but that how I see them.
It is enough for all of us and if I share something here to help someone I am cool with it. I wish you well my brother… “LICK”
If this post was for me then let me inform you that I only go up to 80% loan to value, I have an ARM (I don’t use HELOC) and it is not for sell. I buy and hold. I am building wealth. I pay the smallest payment allowed so I can place the difference into a account that makes money for me not the bank… The term for that is; ARBARTGEafroyale said:^ You wished.
http://patrick.net/housing/crash.html
Btw, don't you have a $640K house to sell? Let me guess, you're HELOCed to the max, and now can't sell below 640K or else somebody is gonna get creamed by Mr. Bank
Ok, I went back to read your first post, and you took out $100K so you can't sell below $490K. Just cross your fingers and pray that house doesn't depreciate below $490K. On top of that, you're still gonna get killed in 2 years when your ARM loan resets... ouch! which will bump your monthly mortgage payment up a grand or more.. ouch again! And don't forget the increase in your property tax, which will be calculated using the new value of $640K. That will also add $$hundreds to your monthly mortgage bill. Either way, you're dead man walking.
This quote from a rental property manager is what you might experience:
"I have owners that want me to raise the rent because their property taxes went up,’ ... ‘They don’t understand that I can’t arbitrarily raise rent under a lease. Their monthly bill has absolutely nothing to do with what we can get for rent. What the market will bear is what the market will bear, even if their monthly negative (cash flow) is too high."
Financial Sense University - This Time It's Different:
http://www.financialsense.com/fsu/editorials/2005/0909.html
This is what the banks do everyday with our money… Why is it that you seem to want people to fail so something Bruh. I read your posts and the sound I hear is negative. I don’t know if you mean it but that how I see them.
It is enough for all of us and if I share something here to help someone I am cool with it. I wish you well my brother… “LICK”
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
Mortgage Terms Glossary
Whether you are buying a home or refinancing, applying for a mortgage is a big step. Use our Mortgage Terms Glossary to help understand every step of the process. Our glossary of mortgage loan terminology defines a variety of terms used by loan officers and real estate professionals. Add our Mortgage Terms Glossary to your Favorites for quick look-ups throughout your mortgage application process.
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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11th District Cost of Funds -
A monthly cost-of-funds index (COFI) reflecting the weighted-average interest rate paid by 11th Federal Home Loan Bank District savings institutions for savings and checking accounts. The 11th district covers Arizona, California and Nevada. The index is published on the last day of the month and reflects the cost of funds for the prior month.
A
Acceleration clause -
The clause in a mortgage or trust deed that stipulates the entire debt is due immediately if the mortgagee defaults under the terms of the contract.
Acquisition cost -
Under an FHA loan, the purchase price or appraised value of the property plus the estimated closing costs.
Adjustable Rate Mortgage (ARM) -
A mortgage in which the interest rate is adjusted periodically based on an index. Also called a variable rate mortgage.
Adjustment_date -
The date the interest rate changes on an ARM (adjustable rate mortgage).
Adjustment Interval -
For an adjustable rate mortgage, the time between changes in the interest rate charged. The most common adjustment intervals are one, three or five years.
Adjusted book basis -
The purchase price of a property plus any capital improvements less accrued depreciation, if any, to the date of the sale.
Amortization -
Literally to "kill off" (root: mort) the outstanding balance of a loan by making equal payments on a regular schedule (usually monthly). The payments are structured so that the borrower pays both interest and principal with each equal payment.
Annual Percentage Rate (APR) -
A figure that states the total yearly cost of a mortgage as expressed by the actual rate of interest paid. The APR includes the base interest rate, points, and any other add-on loan fees and costs. As a result the APR is invariably higher for the rate of interest that the lender quotes for the mortgage but gives a more accurate picture of the likely cost of the loan. Keep in mind, however, that most mortgages are not held for their full 15 or 30 year terms, so the effective annual percentage rate is higher than the quoted APR because the points and loan fees are spread out over fewer years.
Annuity -
A series of income payments of receipts over a period of years.
Application -
A mortgage application requires borrowers to submit information regarding their income, savings, assets, debts, and more.
Application Fee -
The fee charged by the lender to the borrower for applying for a loan. Payment of this fee does not guarantee that a loan will be approved. Some lenders may apply the cost of the application fee to certain closing costs.
Appraisal -
The determination of property value based on recent sales information of similar properties.
Assessment -
Determining a property's value for the purpose of taxation.
Assumable Loan -
These loans may be passed on from a seller of a home to the buyer. The buyer "assumes" all outstanding payments.
Assumption -
Buying property and assuming the responsibility of the exiting mortgage.
Appreciation -
Increases in property value due to fluctuations in the market, inflation, et al.
Asset -
Valuable items, encumbered or not, owned by a person, corporation, or entity.
Assumable Mortgage -
A mortgage that provides for a buyer to "assume" all outstanding payments when a home is sold. The buyer usually must meet qualification standards to assume a loan.
B
Balloon Mortgage -
Behaves like a fixed-rate mortgage for a set number of years (usually five or seven) and then must be paid off in full in a single "balloon" payment. Balloon loans are popular with those expecting to sell or refinance their property within a definite period of time.
Balloon Payment -
The final lump sum that is paid at the end of the balloon mortgage.
Bankruptcy -
A tactic that individuals use to relieve themselves of debts and/or liabilities when they are no longer able to repay. The most common form of individual bankruptcy is a Chapter 7, when an individual frees himself from most of his/her debts. Borrowers who have undergone bankruptcy usually cannot qualify for "A" paper loans until after two years after declaration and a re-establishment of credit.
Best Faith Estimate -
An estimate of the total costs for securing a real estate loan, that is given to borrowers prior to closing.
Bill of Sale -
A written document that transfers a title to personal property.
Biweekly Mortgage -
Mortgage loan payments that requires a payment twice monthly, yielding thirteen payments per year instead of twelve. This significantly reduces the time a principal is paid off.
Blanket Mortgage -
A mortgage secured by the pledging of more than one property or collateral.
Book Value -
Acquisition costs less any accrued depreciation.
Broker -
An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.
Bridge Loan -
An equity loan secured to solve short-term financing problem.
Budget Mortgage -
A mortgage that includes a portion for taxes and insurance as well as principal and interest.
Buydown -
Allows loans to be made at less-than-market interest rates by paying front-end discounts. The interest rate is brought down for a temporary period, usually from one to three years. In oder to acquire this discount, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. After the discount period, the payment is calculated as the note rate.
C
Callable Debt -
A debt security in where the issuer has the right to redeem the security at a specified price on or after a specified date, but prior to its stated final maturity date.
Caps -
A set percentage amount by which an adjustable rate mortgage may adjust each adjustment period. For adjustable loans, caps are usually quoted as two numbers as in 2/6. The first number indicates how much a loan may adjust at each adjustment period while the second number indicates how much a loan may adjust over its lifetime.
Loans like the 3/1 and 5/1 adjustable which have an initial fixed period are quoted with 3 numbers as in 3/2/6 which would mean that the first adjustment may be as much as 3%, subsequent adjustments are capped at 2% each, and the lifetime cap is 6%.
Two-Step loans are quoted with a single cap, which is the amount by which the loan may adjust at its single adjustment date.
Carryback Loan -
A loan in which a seller agrees to finance a buyer in order to complete a property sale.
Certificate of Eligibility -
A veteran's evidence of entitlement for a VA-guaranteed loan.
Certificate of Reasonable Value (CRV) -
An appraisal that has been performed on a property that is being paid for a VA loan. After the property has been appraised, the Veterans Administration issues a CRV.
Clear Title -
A title that is free of liens or any legal question as to the ownership of the property.
Closing -
Final arrangements to transfer title of property as well as allocate charges and credits.
Closing Costs -
Closing costs are fees paid by the borrower when a property is purchased or refinanced. Costs incurred include a loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, deed recording fee, and credit report charges. All closing costs are separated into "non-recurring," and "pre-paid." Non-recurring charges are any items that are paid only once because a loan was obtained or a property bought, such as a loan origination fee. Pre-paid charges are those that recur over time, like insurance and property taxes. These are summarized in the Good Faith Estimate.
Cloud -
An outstanding claim or encumbrance, that, if valid, would affect or impair the owner's property title.
Collateral -
Property, real or personal, pledged as a security to back up a promise. In a home loan, the property is considered collateral that can be revoked if loan is not repaid according to the terms of the mortgage or deed of trust.
Commitment -
A written letter of agreement detailing the terms and conditions by which the lender will lend and the borrower will borrow funds to finance a home.
Conforming Loan -
A loan for up to and including $417,000 in the continental United States (Alaska and Hawaii limits are higher).
Construction Loan -
A short term loan for funding the cost of construction. The lender advances funds to the builder as the work progresses.
Conversion -
The right of a borrower to convert an adjustable or balloon loan into a fixed loan. The Conversion Option column on Moving.com balloon tables indicates the right of a borrower to convert this balloon loan. The possible options are as follows...
Option Description
Not Available Borrower May Not Convert This Loan.
Must Requalify Borrower May Convert But Must Requalify.
Conversion Fee Applies
Auto-Qualify Borrower May Convert And Is Automatically Qualified.
Conversion Fee Applies
Conventional Mortgage -
A mortgage loan that is obtained without any additional guarantees for repayment, such as FHA insurance, VA guarantees, or private insurance. This is usually given at an 80% loan-to-value ratio.
Credit Loan -
A credit loan is a mortgage that is issued on only the financial strength of a borrower, without great regard for collateral.
Credit-Loss Ratio -
The ratio of credit-related losses to the dollar amount of MBS outstanding and total mortgages owned by the corporation.
Credit Rating -
Borrowers are rated by lenders according to the borrower's credit-worthiness or risk profile. Credit ratings are expressed as letter grades such as A-, B, or C+. These ratings are based on various factors such as a borrower's payment history, foreclosures, bankruptcies and charge-offs. There is no exact science to rating a borrower's credit, and different lenders may assign different grades to the same borrower.
Credit-Related Expenses -
The sum of foreclosed property expenses plus the provision for losses.
Credit-Related Losses -
The sum of foreclosed property expenses plus charge-offs.
Credit Report -
A report to a prospective lender on the credit standing of a prospective borrower. Used to help determine creditworthiness. Information regarding late payments, defaults, or bankruptcies will appear here.
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
D
Debt-to-Income Ratio (DTI) -
The ratio of aggregate monthly debt to aggregate monthly income.
Deed -
A legal document which affects the transfer of ownership of real estate from the seller to the buyer.
Deed of Trust -
Synonymous to a mortgage. A deed of trust or mortgage is obtained, depending on the state in which the borrower will reside.
Default -
The failure to make payments on a loan.
Delinquency -
Late- or non-payments of principal, interest, taxes, or insurance.
Deposit -
A lump sum given in advance as security. A deposit is always paid of a larger amount to be paid in the future. In mortgage and real estate terms, this is called the "earnest money deposit."
Depreciation -
In real estate and mortgage terms, the decline in the property value.
Discount -
Difference between the face amount of a note or mortgage and the price at which the instrument is sold in the secondary market.
Discount Points -
A term used in government subsidized loans, such as FHA and VA loans. Refers to any "points" (one percent of the loan amount) paid in addition to the one percent loan origination fee.
Down Payment -
Money paid by a buyer from his own funds, as opposed to that portion of the purchase price which is financed.
E
Earnest Money Deposit -
A deposit made by a potential home buyer to show that they are serious about purchasing the property.
Esement -
Giving other persons, other than the owner, access to a property.
Eminent Domain -
The government right to take private property for public use depended on the payment of its fair market value.
Encumbrance -
Any lien against a property or any restriction it its use, such as an easement; a right or interest in a property held by one who is not the legal owner.
Equal Credit Opportunity Act (ECOA) -
The act declaring the elimination of discrimination on the basis of age, sex, and race in finance.
Equity -
The difference between the current market value of a property and the principal balance of all outstanding loans.
Escalator Clause -
A clause in a loan providing for increases in payments or interest based on pre-determined schedules or on a specific economic index, such as the consumer price index.
Escrow -
A third party agent that receives, holds, and/or disburses certain funds or documents upon the performance of certain conditions. For example, an earnest money deposit is put into escrow until the transaction is closed. Only then can the seller receive the deposit.
Escrow Account (impound account) -
An account that a borrower can hold with a lender once a purchase transaction is closed. This requires borrowers to pay more than the principal and interest each month. The overage is put into escrow, which the lender uses to pay items like property taxes and homeowner's insurance when they are due. This eliminates the actual number of payments that a homeowner has to worry about, but not the amount that has to actually be paid.
Escrow Analysis -
An analysis performed by a lender each year to escrow accountholders to ensure that the correct amount of money is being collected to cover anticipated payments.
Escrow Fee -
These costs cover the preparation and transmission of all home purchased-related documents and funds. Escrow fees range from several hundred to over a thousand dollars, based on the purchase price of your home. Not all states require funds to be put into escrow accounts for closing.
Estate -
The ownership interest an individual holds in real property. This is also the sum total of all the real property and personal property owned by an individual at time of death.
Eviction -
The legal removal of real property occupants for unlawful actions carried out by those occupants.
F
Fair Credit Reporting Act -
A law that protects consumer that regulates the reporting of consumer credit by agencies and establishes procedures for correcting errors on an individual record.
Fannie Mae (FNMA) -
The Federal National Mortgage Association is a congressionally chartered, shareholder-owned company. This organization is the nation's largest supplier of home mortgage funds.
Fannie Mae's Community Home Buyer's Program -
A program that offers flexible underwriting guidelines to subsidize a low- to moderate-income family's purchase of a home. The program usually decreases the total amount of cash needed to purchase a home.
Federal Housing Administration (FHA) -
An agency under the U.S. Department of Housing and Urban Development (HUD), it insures loans made by approved lenders to qualified borrowers, in accordance with its regulations.
Fees -
Up-front costs associated with a loan. Clicking on the word VIEW shown under the "Fees Detail" column on the quotes results page will display detailed information about the financial institution's fees and requirements pertaining to that rate.
Fee Simple -
The best title that one can obtain; unqualified and conveys the highest bundle of rights.
FHA Loan -
A government-backed mortgage loan supported by the US FHA and the Department of Housing and Urban Development (HUD).
Finance Charge -
The total dollar amount your loan will cost you. It includes all interest payments for the life of the loan, any interest paid at closing, your origination fee and any other charges paid to the lender and/or broker. Appraisal, credit report and title search fees are not included in the finance charge calculation.
Firm Commitment -
A lender's agreement to provide a loan to a specific borrower on a specific property.
First Mortgage -
A mortgage that has priority over other mortgages.
Fixed-Rate Mortgage -
A mortgage where the interest rate does not change for the life of the loan.
Float -
Between the time of application and closing, a borrower may choose to bet on interest rates decreasing by electing to float. Floating is essentially choosing not to lock the interest rate. Since it is the borrower's responsibility to lock his or her rate before (or at) closing, choosing to float is considered risky and may result in a higher interest rate. Request information from your lender regarding lock procedures.
Forbearance -
The postponement for a limited time of a portion or all the payments on a loan when a borrower is delinquent.
Foreclosure -
A legal procedure in which real estate is sold by the lender to pay a defaulting borrower's debt .
401(k)/403(b) -
An investment plan sponsored by employers that allows individuals to set aside tax-deferred income for retirement or emergency purposes. A 401(k) applies to private corporations, while a 403(b) applies to non-profit organizations.
401(k)/403(b) loan -
A loan that can be taken against the amount accumulated in the 401(k)/403(b) plans, if so allowed by the plan administrator. Loans against these plans are an acceptable source of down payment for most types of other loans.
G
Good Faith Estimate -
An estimate of charges which a borrower is likely to incur in connection with a loan closing.
Government Loan -
A type of mortgage insured by the FHA (Federal Housing Authority), VA (Veteran's Administration), or RHS (Rural Housing Authority).
Government National Mortgage Association (Ginny Mae) -
Provides funds for government loans and takes over special assistance and liquidation functions of Fannie Mae.
Grace Period -
A time allowed, usually 15 days, for making late payments without a penalty.
grantee -
The person to whom an interest in real property is conveyed.
grantor -
The person conveying an interest in real property.
Gross Monthly Income -
The total amount the borrower earns per month, not counting any taxes or expenses. Often used in calculations to determine whether a borrower qualifies for a particular loan.
H
Hard-Money Mortgage -
Cash loan to a borrower.
Hazard Insurance -
A form of insurance in which the insurance company protects the insured from certain losses, such as fire, vandalism, storms and certain other natural causes.
Home Equity Conversion Mortgage (HECM) -
Also known as the reverse annuity mortgage. This mortgage provides that instead of making payments to a lender, the lender makes payments to the individual. Older homeowners are able to convert home equity into cash this way, in the form of monthly payments. Borrowers don't qualify on the basis of income, but on the value of his or her home. Such a loan does not have to be repaid until the borrower no longer occupies the property.
home equity line of credit -
A mortgage loan in second position that allows a borrower to obtain cash drawn against home equity, up to a certain amount.
Home Inspection -
A thorough assessment by a professional regarding the structural and mechanical condition of a property.
homeowner's insurance -
An insurance policy that combines personal liability insurance and hazard insurance for a home and its contents.
homeowner's warranty -
An insurance policy that is purchased by a buyer that covers certain repairs, should they be necessary over a certain period.
Housing Ratio -
The ratio of the monthly housing payment to total gross monthly income. Also called Payment-to-Income Ratio or Front-End Ratio.
HUD -
Department of Housing and Urban Development; regulates Fannie Mae and Ginny Mae.
Hybrid Financing -
The joining together of two forms of finance, such as combining a convertible loan with a participation loan, under which the lender has the right at loan maturity to convert the debt to a 50 percent ownership in the property.
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
I
Index -
A published interest rate against which lenders measure the difference between the current interest rate on an adjustable rate mortgage and that earned by other investments (such as one- three-, and five-year U.S. Treasury Security yields, the monthly average interest rate on loans closed by savings and loan institutions, and the monthly average Costs-of-Funds incurred by savings and loans), which is then used to adjust the interest rate on an adjustable mortgage up or down.
Interest -
Consideration in the form of money paid for the use of money, usually expressed as an annual percentage. Also, a right, share, or title in property.
Interest Only -
A term loan arrangement calling for payments of interest only, not to include any amount for principal.
Interest Rate -
The percentage of an amount of money that's paid for its use over a specified time period.
Interest Rate Swap -
A transaction between two parties, in which each agrees to exchange payments tied to different interest rates or indices for a specified period of time.
Intermediate-Term Mortgage -
A mortgage loan with a stated maturity at the time of purchase that it is equal to or less than 20 years.
J
Judicial Foreclosure -
A court procedure used by lenders to secure clear title to a property under a defaulted real estate loan.
Jumbo Loan -
A loan for $417,001 or more in the continental United States (Alaska and Hawaii limits are higher). These limits are set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.
L
Last Updated -
The Last Update column on a quotes results table tells you when the information was last provided by the lender to our site. We always place new listings at the top of each table so that you, the borrower, may have immediate access to the most timely information. Times provided are all Eastern Standard Time.
lease -
A written agreement between a property owner and a tenant that stipulates the payment and conditions under which the tenant may possess the real estate for a specified period of time.
Leasehold Estate -
An estate for a fixed length of time, established when a landlord gives up possession of real estate to a tenant, giving the tenant an equitable interest in the property, as defined by lease terms.
Lease Option -
A rental agreement indicating a tenant's option to purchase a property. Monthly payments consists not only of rent, but an overage that can be applied towards a down payment on an already established amount.
Lender -
The bank, mortgage company, or mortgage broker offering the loan. Many institutions only "originate" loans and then resell the obligation to third parties.
Leverage -
Using someone else's money for the purchase of property.
Liability Insurance -
Insurance that protects property owners against claims that alleges negligence or inappropriate action that resulted in bodily injury or property damage to another party.
LIBOR -
The London Interbank Offered Rate Index (LIBOR) is an average of the interest rates that major international banks charge each other to borrow U.S. dollars in the London money market. Like the U.S. treasury the CD indexes, LIBOR tends to move and adjust quite rapidly to changes in interest rates.
Lien -
A legal claim by one party against the property of another as security for a debt. Must be paid off when property is sold. A mortgage or a first trust deed is a lien.
Life of Loan Cap -
The maximum interest rate that can be charged during the life of the loan. Also called Lifetime Cap. This value is often expressed as an increment above the initial loan rate. For example, an adjustable rate loan with an initial rate of 7.25% and a 6% lifetime cap will never adjust above a rate of 13.25% (7.25+6.0).
Loan -
The principal, or amount of total borrowed money, that is repaid with interest.
Loan Amount -
The amount of money that you intend on borrowing from a financial institution for the purchase of your home. Subtracting the down payment from the purchase price of the home will provide you with the loan amount.
Loan Officer -
An intermediary between lending institutions and borrowers, loan officers solicit loans, represent creditors to borrowers, and represent borrowers to creditors.
Loan Origination -
What the process of obtaining new loans is called.
Loan Servicing -
A service performed by a lender to protect a mortgage investment, including collecting monthly payments from borrowers and dealing with delinquencies.
Loan-To-Value Ratio - -
The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. A LTV ratio of 90 means that a borrower is borrowing 90% of the value of the property and paying 10% as a down payment. For purchases, the value of the property is assumed to be the purchase price, for refinances the value is determined by an appraisal.
Lock noun -
The period, expressed in days, during which a lender will guarantee a rate. Some lenders will lock rates at the time of application while others will allow the borrower to lock the rate after the application is taken. Request information from your lender regarding lock procedures.
Lock verb -
The act of committing to a mortgage rate. This action, taken by a borrower some time between the application and the closing dates, is sometimes accompanied by a payment by the borrower to the lender.
Lock-in Clause -
Clause in a loan agreement that states that the borrower cannot repay a loan prior to a specified date.
M
Margin -
The amount a lender adds to the quoted index rate for an adjustable rate loan to determine the new interest rate.
Maturity -
The "Due Date" of a loan.
Merged Credit Report -
A credit report that reports data from two or more major credit repositories.
Minimum Credit -
This field on the table refers to the minimum credit rating a borrower must have in order to qualify for the listed loan.
Modification -
Any change to the original terms of a mortgage.
Monthly Housing Expense -
Total principal, interest, taxes, and insurance paid by the borrower on a monthly basis. Used with gross income to determine affordability.
Mortgage -
A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself. Some states use the term First Trust Deeds to refer to mortgage loans.
Mortgagee -
The lender in a mortgage agreement.
Mortgage Banker -
A financial intermediary that originates or funds loans, collects payments, inspects the property, and forecloses if necessary. The main difference between a mortgage banker and a loan officer is a banker funds their own loans and sell them on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginny Mae.
Mortgage Broker -
A mortgage company that originates loans, joining the borrower and lender for a real estate loan, earning a placement fee.
Mortgage Constant -
The factor used for rapid computation of the annual payment needed to amortize a loan.
Mortgage Insurance -
Insurance that covers the lender against losses incurred as a result of a default on a home loan. This is usually required on all loans that have a loan-to-value higher than eighty percent. Mortgages that have an 80% LTV that do not require mortgage insurance have higher interest rates. The lenders then pay the mortgage insurance themselves. In addition, FHA loans and some first-time homebuyer programs require mortgage insurance regardless of the loan-to-value.
Mortgagor -
The borrower in a mortgage agreement.
Multidwelling Units -
Properties that provide separate housing units for more than one family, although only a single mortgage is secured.
N
Negative Amortization -
Essentially occurs when a borrower makes a minimum payment that may not cover the interest that is due. Loan balance then increases as a result.
Net Effective Income -
Gross income less federal income tax.
No Cash-out Refinance -
A refinance transaction that is not intended to put cash in the hand of the borrower, but instead calculates a new balance to cover the balance due on a current loan and any costs with obtaining a new mortgage.
No-Cost Loan -
A no-cost loan can either be: 1) a loan that has no "lender costs" associated with it or, 2) a loan that also covers purchases or refinancing costs, which may be incurred in buying a home, obtaining and/or refinancing a loan, but are not directly charged by the lender. The interest rate on this type of loan is higher.
Note -
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
Note Rate -
The stated interest rate on a mortgage note.
O
Origination Fee -
The fee imposed by a lender to cover certain processing expenses in connection with making a loan. Usually a percentage of the amount loaned.
Owner Financing -
A property purchase that is partly or wholly financed by the seller.
Owner's Title Policy -
A policy protecting the buyer for the amount of the purchase price in the event of a future title dispute.
P
Package Mortgage -
A mortgage that /includes equipment and appliances located on the premises in addition to the real property itself.
Partial Entitlement -
Under VA loans, the amount of guarantee still available to an eligible veteran who has used his previous entitlement.
partial payment -
A payment that is not sufficient enough to cover the month payment. During times of economic hardship, a borrower can make this request of the loan servicing collection department.
Participation Financing -
A loan in which more than one mortgagee or more than one mortgagor harbors an interest. It can also be a loan in which the mortgagee receives partial ownership of the property being financed.
Payment Change Date -
The date when a new monthly payment amount takes effect on an adjustable rate mortgage (ARM) or a graduated payment mortgage (GPM). The payment change date occurs the month immediately after the interest rate adjustment date.
Periodic Payment Cap -
The limit on the amount that payments can increase or decrease during any one adjustment period for an adjustable-rate mortgage (ARM) where the interest rate and principal fluctuate independently of one another.
Periodic Rate Cap -
The limit on the amount that payments can increase or decrease during any one adjustment period in an ARM (adjustable rate mortgage), regardless of how high or low the index fluctuates.
Personal Property -
Movable property that does not fit the definition of realty.
Phone -
The table list the correct telephone numbers to access the loan department of each institution.
PITI -
PITI stands for principal, interest, taxes, and insurance. An "impounded" loan means that the monthly payment covers all of these, and perhaps mortgage insurance, if your loan so calls for it. If one does not have an "impounded" account, then the lender still calculates these amounts separately and uses it as part of determining one's debt-to-income ratio.
PITI Reserves -
A cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase of a home. The PITI (principal, interest, taxes, and insurance) must equal the amount that the borrower would have to pay for PITI for a determined number of months.
Planned Unit Development (PUD) -
A type of ownership where individuals actually own the building or unit they reside in, but shared areas are owned jointly with the other members of the development or established association.
Pledge Account Mortgage (PAM) -
Combines GPM (graduated payment mortgage) with a subsidizing savings account to provide the borrower with a low payment plan, the lender with amortizing payments and the seller with cash.
Points -
The site allows lenders to post rates via point ranges. Points are broken out on the site for Discount and Origination. The definitions for each are as follows:
• Discount Points = Interest Charges paid up-front when a borrower closes a loan. A point is equal to 1 percent of the loan amount (e.g. 1.5 points on a $100,000 mortgage would cost the borrower $1,500). Generally, by paying more points at closing, the borrower reduces the interest rate of his loan and thus future monthly payments.
• Origination Points = A fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan. Usually a percentage of the amount loaned, such as one percent.
Pre-Approval -
A term used to mean that a borrower has completed a loan application and provided debt, income, and savings information that has been reviewed and pre-approved by an underwriter.
Pre-Foreclosure Sale -
A procedure in which the borrower is allowed to sell his or her property for an amount less that what is owed on it to avoid foreclosure, fully satisfying the borrower's debt.
Pre-Paids -
Expenses such as taxes, insurance, and assessments, which are paid in advance of their due date, and on a prorated basis at closing.
Pre-Payment -
Any amount paid so as to reduce the principal before the due date.
Prepayment Penalty -
Lenders who impose prepayment penalties will charge borrowers a fee if they wish to repay part or all of their loan in advance of the regular schedule.
Pre-Qualification -
After a loan officer has made inquiries about a borrower's debt, income, and savings, he or she can write a written statement (pre-qualification) about the borrower's chances for qualifying for a home loan.
Prime Rate -
Interest charged by financial institutions to top-rate borrowers.
Principal -
The amount of debt, not counting interest, left on a loan.
Private Mortgage Insurance (PMI) -
Paid by a borrower to protect the lender in case of default. PMI is typically charged to the borrower when the Loan-to-Value Ratio is greater than 80%.
Prorations -
The allocation of charges and credits to the appropriate parties at a real estate sale and/or loan closing at a real-estate sale and/or loan closing.
Promissory Note -
A written promise to repay a specified amount over a specified period of time.
Purchase Agreement -
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
Purchase-Money Mortgage -
Mortgage given by a borrower to the seller as part of the purchase price of the property.
Purchase-Money Transaction -
The acquisition of property through the payment of money or its equivalent.
Q
Qualifying Ratio -
The ratio of the borrower's fixed monthly expenses to his gross monthly income. Ratios are expressed as two numbers like 28/36 where 28 would be the Front-End Ratio and 36 would be the Back-End Ratio.
The Front-End Ratio is the percentage of a borrower's gross monthly income (before income taxes) that would cover the cost of PITI (Mortgage Principal Payment + Mortgage Interest Payment + Property Taxes + Homeowners Insurance). In the case of a 28% Front-End Ratio a borrower could qualify if the proposed monthly PITI payments were 28% or less than the borrower's gross monthly income.
The Back-End Ratio is the percentage of a borrower's gross monthly income that would cover the cost of PITI plus any other monthly debt payments like car or personal loans and credit card debt.
Please note that qualifying ratios are only a rough guideline in determining a potential borrower's credit-worthiness. Many factors such as excellent or poor credit history, amount of down payment, and size of loan will influence the decision to approve or disapprove a particular loan. Moving.com urges all borrowers to discuss their particular situation with a qualified lender regardless of the outcome of any self-qualification exercise.
Quitclaim Deed -
A deed that transfers, without warranty, whatever interest or title a grantor may have at the time the conveyance is made.
R
Rate Lock -
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time at a specific cost.
Real Estate -
A portion of the earth's surface extending downward to the center to the earth and upward into space, including all things permanently attached thereto by nature or man and all legal rights therein.
Real Estate Agent -
A person licensed to negotiate and transact the sale of real estate.
Real Estate Settlement Procedures Act (RESPA) -
An act requiring the revelation of all costs involved in a real estate closing to all participants.
Real property -
See real estate.
Realtor -
A real estate agent, broker, or associate that holds an active membership in a local real estate board that is affiliated with the National Association of Realtors.
Recast -
To redesign an existing loan balance into a new loan for the same period or longer, to reduce payments and help a distressed borrower.
Reconciliation -
Determining the final estimate of value by weighing the results of the various approaches in an appraisal.
Reconveyance Clause -
The clause in a trust deed that gives the title back to the borrower when the loan is paid in full.
Recording -
The formal filing of documents affecting a property's title.
Regulation Z -
A truth-in-lending provision that requires lenders to reveal the actual costs of borrowing.
Refinancing -
The process of paying off one loan with the proceeds from a new loan, using the same property as security.
Rent-Loss Insurance -
Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty, resulting in the tenant being excused from paying rent.
Repayment Plan -
An agreement between a lender and a delinquent borrower regarding mortgage payments, in which the borrower agrees to make additional payments to pay down past due amounts while still making scheduled payments.
Residual Qualifying -
Under a VA loan, using specified housing expenses to qualify for a loan payment.
Restrictions -
Rules imposed on the use of real estate in an effort to preserve property values.
Reverse Annuity Mortgage (RAM) -
A system developed for an elderly property owner in which regular monthly payments can be received from a lender. When the total reaches a pre-determined amount, the owner begins repaying the loan or sells the property.
Revolving Debt -
A credit arrangement that allows a customer to borrow against a pre-approved line of credit used to purchase goods and services. The borrower is responsible for the actual amount borrowed plus any interest due.
Right-of-First Refusal -
A provision that states that a property to be first offered to a specific person before it can be offered for sale or lease to other parties.
Rollover Loan -
A loan that /includes a call date earlier than its normal amortization period.
Rule of 78 -
Calculates proportionate amount of interest due on a loan being paid in full before its maturity.
S
Sale-Buyback -
A financing arrangement in which an investor buys property from a developer and immediately sells it back under a long-term sales agreement, wherein the investor retains legal title.
Sale-Leaseback -
A financing arrangement whereby an investor purchases real estate owned and used by a business corporation, then leases the property back to the business.
Secondary Mortgage Market -
A market where mortgage originators may sell them, freeing up funds for continued lending and distributes mortgage funds nationally from money-rich to money poor areas.
Second Mortgage -
A mortgage that has a lien position subordinate to the first mortgage.
Secured Loan -
A loan that is backed by collateral.
Security -
Something given, deposited, or pledged to make secure the fulfillment of an obligation, usually the repayment of a debt.
Seller Carry-Back -
An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage.
Senior Loan -
A real estate loan in first priority position.
Servicer -
An organization that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
Servicing -
The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
Settlement Costs -
See Closing Costs. v Sinking Fund -
Monies deposited in advance in anticipation of satisfying a debt in the future.
Stop Date -
Date on a term loan when the balloon payment is due.
Subordinate Financing -
Any mortgage or other lien that has a priority lower than that of the first mortgage, or senior loan. See second mortgage.
Survey -
A drawing or map the shows the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.
Sweat Equity -
Increase in property value due to improvement by owners.
T
Takeout Mortgage -
A permanent mortgage, obtained by pre-arrangement between a builder and a financial institution, to repay the interim mortgagee at the completion of construction.
Tax Lien -
A claim against real estate for the amount of its unpaid taxes.
Third-Party Origination -
A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.
Title -
A legal document showing a person's right to or ownership of a property.
Title Company -
A company that specializes in examining and insuring titles to real estate.
Title Insurance -
Title Insurance policies typically insure a homebuyer against any title-search errors or mistakes, and against loss due to disputes over property ownership. Title Insurance can additionally offer protection to the lender under similar circumstances. The cost of title insurance is usually a set value per thousand of dollars of the total loan amount.
Title Search -
A check of the title records to make sure that the seller is the actual legal owner of the property, and that there are no liens or other claims outstanding.
Total Debt Ratio -
Monthly debt and housing payments divided by gross monthly income. Also known as Back-End Ratio.
Transfer of Ownership -
The means by which the ownership of a property changes hands. Examples of such include the purchase of a property "subject to" the mortgage, the assumption of the mortgage debt by the property purchases, and any exchange of possession of the property under a land sales contract or any other land trust device.
Transfer Tax -
State or local tax payable when the title passes from one owner to another.
Truth-in-Lending Law -
Provision that requires lenders to reveal the actual costs of borrowing.
Two-Step Mortgage -
A loan where the interest rate is fixed for the first seven years and then is adjusted one time for the balance of the loan period.
V
VA Loan -
A government-backed mortgage loan supported by the US Veterans Administration.
Variable Rate Mortgage -
See Adjustable Rate Mortgage.
Vested -
Means that one has a right to use a portion of a fund, such as an individual's retirement fund.
Z
Zero Percent Financing -
A loan with no interest in the contract. The IRS imputes 10 percent for both borrower and lender.
Zoning -
The right of a community, under its police power, to dictate the use of property within its boundaries.
"LICK"
Some terms for you my brother;TENT said:
Mortgage Terms Glossary
Whether you are buying a home or refinancing, applying for a mortgage is a big step. Use our Mortgage Terms Glossary to help understand every step of the process. Our glossary of mortgage loan terminology defines a variety of terms used by loan officers and real estate professionals. Add our Mortgage Terms Glossary to your Favorites for quick look-ups throughout your mortgage application process.
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
#
11th District Cost of Funds -
A monthly cost-of-funds index (COFI) reflecting the weighted-average interest rate paid by 11th Federal Home Loan Bank District savings institutions for savings and checking accounts. The 11th district covers Arizona, California and Nevada. The index is published on the last day of the month and reflects the cost of funds for the prior month.
A
Acceleration clause -
The clause in a mortgage or trust deed that stipulates the entire debt is due immediately if the mortgagee defaults under the terms of the contract.
Acquisition cost -
Under an FHA loan, the purchase price or appraised value of the property plus the estimated closing costs.
Adjustable Rate Mortgage (ARM) -
A mortgage in which the interest rate is adjusted periodically based on an index. Also called a variable rate mortgage.
Adjustment_date -
The date the interest rate changes on an ARM (adjustable rate mortgage).
Adjustment Interval -
For an adjustable rate mortgage, the time between changes in the interest rate charged. The most common adjustment intervals are one, three or five years.
Adjusted book basis -
The purchase price of a property plus any capital improvements less accrued depreciation, if any, to the date of the sale.
Amortization -
Literally to "kill off" (root: mort) the outstanding balance of a loan by making equal payments on a regular schedule (usually monthly). The payments are structured so that the borrower pays both interest and principal with each equal payment.
Annual Percentage Rate (APR) -
A figure that states the total yearly cost of a mortgage as expressed by the actual rate of interest paid. The APR includes the base interest rate, points, and any other add-on loan fees and costs. As a result the APR is invariably higher for the rate of interest that the lender quotes for the mortgage but gives a more accurate picture of the likely cost of the loan. Keep in mind, however, that most mortgages are not held for their full 15 or 30 year terms, so the effective annual percentage rate is higher than the quoted APR because the points and loan fees are spread out over fewer years.
Annuity -
A series of income payments of receipts over a period of years.
Application -
A mortgage application requires borrowers to submit information regarding their income, savings, assets, debts, and more.
Application Fee -
The fee charged by the lender to the borrower for applying for a loan. Payment of this fee does not guarantee that a loan will be approved. Some lenders may apply the cost of the application fee to certain closing costs.
Appraisal -
The determination of property value based on recent sales information of similar properties.
Assessment -
Determining a property's value for the purpose of taxation.
Assumable Loan -
These loans may be passed on from a seller of a home to the buyer. The buyer "assumes" all outstanding payments.
Assumption -
Buying property and assuming the responsibility of the exiting mortgage.
Appreciation -
Increases in property value due to fluctuations in the market, inflation, et al.
Asset -
Valuable items, encumbered or not, owned by a person, corporation, or entity.
Assumable Mortgage -
A mortgage that provides for a buyer to "assume" all outstanding payments when a home is sold. The buyer usually must meet qualification standards to assume a loan.
B
Balloon Mortgage -
Behaves like a fixed-rate mortgage for a set number of years (usually five or seven) and then must be paid off in full in a single "balloon" payment. Balloon loans are popular with those expecting to sell or refinance their property within a definite period of time.
Balloon Payment -
The final lump sum that is paid at the end of the balloon mortgage.
Bankruptcy -
A tactic that individuals use to relieve themselves of debts and/or liabilities when they are no longer able to repay. The most common form of individual bankruptcy is a Chapter 7, when an individual frees himself from most of his/her debts. Borrowers who have undergone bankruptcy usually cannot qualify for "A" paper loans until after two years after declaration and a re-establishment of credit.
Best Faith Estimate -
An estimate of the total costs for securing a real estate loan, that is given to borrowers prior to closing.
Bill of Sale -
A written document that transfers a title to personal property.
Biweekly Mortgage -
Mortgage loan payments that requires a payment twice monthly, yielding thirteen payments per year instead of twelve. This significantly reduces the time a principal is paid off.
Blanket Mortgage -
A mortgage secured by the pledging of more than one property or collateral.
Book Value -
Acquisition costs less any accrued depreciation.
Broker -
An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.
Bridge Loan -
An equity loan secured to solve short-term financing problem.
Budget Mortgage -
A mortgage that includes a portion for taxes and insurance as well as principal and interest.
Buydown -
Allows loans to be made at less-than-market interest rates by paying front-end discounts. The interest rate is brought down for a temporary period, usually from one to three years. In oder to acquire this discount, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. After the discount period, the payment is calculated as the note rate.
C
Callable Debt -
A debt security in where the issuer has the right to redeem the security at a specified price on or after a specified date, but prior to its stated final maturity date.
Caps -
A set percentage amount by which an adjustable rate mortgage may adjust each adjustment period. For adjustable loans, caps are usually quoted as two numbers as in 2/6. The first number indicates how much a loan may adjust at each adjustment period while the second number indicates how much a loan may adjust over its lifetime.
Loans like the 3/1 and 5/1 adjustable which have an initial fixed period are quoted with 3 numbers as in 3/2/6 which would mean that the first adjustment may be as much as 3%, subsequent adjustments are capped at 2% each, and the lifetime cap is 6%.
Two-Step loans are quoted with a single cap, which is the amount by which the loan may adjust at its single adjustment date.
Carryback Loan -
A loan in which a seller agrees to finance a buyer in order to complete a property sale.
Certificate of Eligibility -
A veteran's evidence of entitlement for a VA-guaranteed loan.
Certificate of Reasonable Value (CRV) -
An appraisal that has been performed on a property that is being paid for a VA loan. After the property has been appraised, the Veterans Administration issues a CRV.
Clear Title -
A title that is free of liens or any legal question as to the ownership of the property.
Closing -
Final arrangements to transfer title of property as well as allocate charges and credits.
Closing Costs -
Closing costs are fees paid by the borrower when a property is purchased or refinanced. Costs incurred include a loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, deed recording fee, and credit report charges. All closing costs are separated into "non-recurring," and "pre-paid." Non-recurring charges are any items that are paid only once because a loan was obtained or a property bought, such as a loan origination fee. Pre-paid charges are those that recur over time, like insurance and property taxes. These are summarized in the Good Faith Estimate.
Cloud -
An outstanding claim or encumbrance, that, if valid, would affect or impair the owner's property title.
Collateral -
Property, real or personal, pledged as a security to back up a promise. In a home loan, the property is considered collateral that can be revoked if loan is not repaid according to the terms of the mortgage or deed of trust.
Commitment -
A written letter of agreement detailing the terms and conditions by which the lender will lend and the borrower will borrow funds to finance a home.
Conforming Loan -
A loan for up to and including $417,000 in the continental United States (Alaska and Hawaii limits are higher).
Construction Loan -
A short term loan for funding the cost of construction. The lender advances funds to the builder as the work progresses.
Conversion -
The right of a borrower to convert an adjustable or balloon loan into a fixed loan. The Conversion Option column on Moving.com balloon tables indicates the right of a borrower to convert this balloon loan. The possible options are as follows...
Option Description
Not Available Borrower May Not Convert This Loan.
Must Requalify Borrower May Convert But Must Requalify.
Conversion Fee Applies
Auto-Qualify Borrower May Convert And Is Automatically Qualified.
Conversion Fee Applies
Conventional Mortgage -
A mortgage loan that is obtained without any additional guarantees for repayment, such as FHA insurance, VA guarantees, or private insurance. This is usually given at an 80% loan-to-value ratio.
Credit Loan -
A credit loan is a mortgage that is issued on only the financial strength of a borrower, without great regard for collateral.
Credit-Loss Ratio -
The ratio of credit-related losses to the dollar amount of MBS outstanding and total mortgages owned by the corporation.
Credit Rating -
Borrowers are rated by lenders according to the borrower's credit-worthiness or risk profile. Credit ratings are expressed as letter grades such as A-, B, or C+. These ratings are based on various factors such as a borrower's payment history, foreclosures, bankruptcies and charge-offs. There is no exact science to rating a borrower's credit, and different lenders may assign different grades to the same borrower.
Credit-Related Expenses -
The sum of foreclosed property expenses plus the provision for losses.
Credit-Related Losses -
The sum of foreclosed property expenses plus charge-offs.
Credit Report -
A report to a prospective lender on the credit standing of a prospective borrower. Used to help determine creditworthiness. Information regarding late payments, defaults, or bankruptcies will appear here.
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
D
Debt-to-Income Ratio (DTI) -
The ratio of aggregate monthly debt to aggregate monthly income.
Deed -
A legal document which affects the transfer of ownership of real estate from the seller to the buyer.
Deed of Trust -
Synonymous to a mortgage. A deed of trust or mortgage is obtained, depending on the state in which the borrower will reside.
Default -
The failure to make payments on a loan.
Delinquency -
Late- or non-payments of principal, interest, taxes, or insurance.
Deposit -
A lump sum given in advance as security. A deposit is always paid of a larger amount to be paid in the future. In mortgage and real estate terms, this is called the "earnest money deposit."
Depreciation -
In real estate and mortgage terms, the decline in the property value.
Discount -
Difference between the face amount of a note or mortgage and the price at which the instrument is sold in the secondary market.
Discount Points -
A term used in government subsidized loans, such as FHA and VA loans. Refers to any "points" (one percent of the loan amount) paid in addition to the one percent loan origination fee.
Down Payment -
Money paid by a buyer from his own funds, as opposed to that portion of the purchase price which is financed.
E
Earnest Money Deposit -
A deposit made by a potential home buyer to show that they are serious about purchasing the property.
Esement -
Giving other persons, other than the owner, access to a property.
Eminent Domain -
The government right to take private property for public use depended on the payment of its fair market value.
Encumbrance -
Any lien against a property or any restriction it its use, such as an easement; a right or interest in a property held by one who is not the legal owner.
Equal Credit Opportunity Act (ECOA) -
The act declaring the elimination of discrimination on the basis of age, sex, and race in finance.
Equity -
The difference between the current market value of a property and the principal balance of all outstanding loans.
Escalator Clause -
A clause in a loan providing for increases in payments or interest based on pre-determined schedules or on a specific economic index, such as the consumer price index.
Escrow -
A third party agent that receives, holds, and/or disburses certain funds or documents upon the performance of certain conditions. For example, an earnest money deposit is put into escrow until the transaction is closed. Only then can the seller receive the deposit.
Escrow Account (impound account) -
An account that a borrower can hold with a lender once a purchase transaction is closed. This requires borrowers to pay more than the principal and interest each month. The overage is put into escrow, which the lender uses to pay items like property taxes and homeowner's insurance when they are due. This eliminates the actual number of payments that a homeowner has to worry about, but not the amount that has to actually be paid.
Escrow Analysis -
An analysis performed by a lender each year to escrow accountholders to ensure that the correct amount of money is being collected to cover anticipated payments.
Escrow Fee -
These costs cover the preparation and transmission of all home purchased-related documents and funds. Escrow fees range from several hundred to over a thousand dollars, based on the purchase price of your home. Not all states require funds to be put into escrow accounts for closing.
Estate -
The ownership interest an individual holds in real property. This is also the sum total of all the real property and personal property owned by an individual at time of death.
Eviction -
The legal removal of real property occupants for unlawful actions carried out by those occupants.
F
Fair Credit Reporting Act -
A law that protects consumer that regulates the reporting of consumer credit by agencies and establishes procedures for correcting errors on an individual record.
Fannie Mae (FNMA) -
The Federal National Mortgage Association is a congressionally chartered, shareholder-owned company. This organization is the nation's largest supplier of home mortgage funds.
Fannie Mae's Community Home Buyer's Program -
A program that offers flexible underwriting guidelines to subsidize a low- to moderate-income family's purchase of a home. The program usually decreases the total amount of cash needed to purchase a home.
Federal Housing Administration (FHA) -
An agency under the U.S. Department of Housing and Urban Development (HUD), it insures loans made by approved lenders to qualified borrowers, in accordance with its regulations.
Fees -
Up-front costs associated with a loan. Clicking on the word VIEW shown under the "Fees Detail" column on the quotes results page will display detailed information about the financial institution's fees and requirements pertaining to that rate.
Fee Simple -
The best title that one can obtain; unqualified and conveys the highest bundle of rights.
FHA Loan -
A government-backed mortgage loan supported by the US FHA and the Department of Housing and Urban Development (HUD).
Finance Charge -
The total dollar amount your loan will cost you. It includes all interest payments for the life of the loan, any interest paid at closing, your origination fee and any other charges paid to the lender and/or broker. Appraisal, credit report and title search fees are not included in the finance charge calculation.
Firm Commitment -
A lender's agreement to provide a loan to a specific borrower on a specific property.
First Mortgage -
A mortgage that has priority over other mortgages.
Fixed-Rate Mortgage -
A mortgage where the interest rate does not change for the life of the loan.
Float -
Between the time of application and closing, a borrower may choose to bet on interest rates decreasing by electing to float. Floating is essentially choosing not to lock the interest rate. Since it is the borrower's responsibility to lock his or her rate before (or at) closing, choosing to float is considered risky and may result in a higher interest rate. Request information from your lender regarding lock procedures.
Forbearance -
The postponement for a limited time of a portion or all the payments on a loan when a borrower is delinquent.
Foreclosure -
A legal procedure in which real estate is sold by the lender to pay a defaulting borrower's debt .
401(k)/403(b) -
An investment plan sponsored by employers that allows individuals to set aside tax-deferred income for retirement or emergency purposes. A 401(k) applies to private corporations, while a 403(b) applies to non-profit organizations.
401(k)/403(b) loan -
A loan that can be taken against the amount accumulated in the 401(k)/403(b) plans, if so allowed by the plan administrator. Loans against these plans are an acceptable source of down payment for most types of other loans.
G
Good Faith Estimate -
An estimate of charges which a borrower is likely to incur in connection with a loan closing.
Government Loan -
A type of mortgage insured by the FHA (Federal Housing Authority), VA (Veteran's Administration), or RHS (Rural Housing Authority).
Government National Mortgage Association (Ginny Mae) -
Provides funds for government loans and takes over special assistance and liquidation functions of Fannie Mae.
Grace Period -
A time allowed, usually 15 days, for making late payments without a penalty.
grantee -
The person to whom an interest in real property is conveyed.
grantor -
The person conveying an interest in real property.
Gross Monthly Income -
The total amount the borrower earns per month, not counting any taxes or expenses. Often used in calculations to determine whether a borrower qualifies for a particular loan.
H
Hard-Money Mortgage -
Cash loan to a borrower.
Hazard Insurance -
A form of insurance in which the insurance company protects the insured from certain losses, such as fire, vandalism, storms and certain other natural causes.
Home Equity Conversion Mortgage (HECM) -
Also known as the reverse annuity mortgage. This mortgage provides that instead of making payments to a lender, the lender makes payments to the individual. Older homeowners are able to convert home equity into cash this way, in the form of monthly payments. Borrowers don't qualify on the basis of income, but on the value of his or her home. Such a loan does not have to be repaid until the borrower no longer occupies the property.
home equity line of credit -
A mortgage loan in second position that allows a borrower to obtain cash drawn against home equity, up to a certain amount.
Home Inspection -
A thorough assessment by a professional regarding the structural and mechanical condition of a property.
homeowner's insurance -
An insurance policy that combines personal liability insurance and hazard insurance for a home and its contents.
homeowner's warranty -
An insurance policy that is purchased by a buyer that covers certain repairs, should they be necessary over a certain period.
Housing Ratio -
The ratio of the monthly housing payment to total gross monthly income. Also called Payment-to-Income Ratio or Front-End Ratio.
HUD -
Department of Housing and Urban Development; regulates Fannie Mae and Ginny Mae.
Hybrid Financing -
The joining together of two forms of finance, such as combining a convertible loan with a participation loan, under which the lender has the right at loan maturity to convert the debt to a 50 percent ownership in the property.
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
I
Index -
A published interest rate against which lenders measure the difference between the current interest rate on an adjustable rate mortgage and that earned by other investments (such as one- three-, and five-year U.S. Treasury Security yields, the monthly average interest rate on loans closed by savings and loan institutions, and the monthly average Costs-of-Funds incurred by savings and loans), which is then used to adjust the interest rate on an adjustable mortgage up or down.
Interest -
Consideration in the form of money paid for the use of money, usually expressed as an annual percentage. Also, a right, share, or title in property.
Interest Only -
A term loan arrangement calling for payments of interest only, not to include any amount for principal.
Interest Rate -
The percentage of an amount of money that's paid for its use over a specified time period.
Interest Rate Swap -
A transaction between two parties, in which each agrees to exchange payments tied to different interest rates or indices for a specified period of time.
Intermediate-Term Mortgage -
A mortgage loan with a stated maturity at the time of purchase that it is equal to or less than 20 years.
J
Judicial Foreclosure -
A court procedure used by lenders to secure clear title to a property under a defaulted real estate loan.
Jumbo Loan -
A loan for $417,001 or more in the continental United States (Alaska and Hawaii limits are higher). These limits are set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.
L
Last Updated -
The Last Update column on a quotes results table tells you when the information was last provided by the lender to our site. We always place new listings at the top of each table so that you, the borrower, may have immediate access to the most timely information. Times provided are all Eastern Standard Time.
lease -
A written agreement between a property owner and a tenant that stipulates the payment and conditions under which the tenant may possess the real estate for a specified period of time.
Leasehold Estate -
An estate for a fixed length of time, established when a landlord gives up possession of real estate to a tenant, giving the tenant an equitable interest in the property, as defined by lease terms.
Lease Option -
A rental agreement indicating a tenant's option to purchase a property. Monthly payments consists not only of rent, but an overage that can be applied towards a down payment on an already established amount.
Lender -
The bank, mortgage company, or mortgage broker offering the loan. Many institutions only "originate" loans and then resell the obligation to third parties.
Leverage -
Using someone else's money for the purchase of property.
Liability Insurance -
Insurance that protects property owners against claims that alleges negligence or inappropriate action that resulted in bodily injury or property damage to another party.
LIBOR -
The London Interbank Offered Rate Index (LIBOR) is an average of the interest rates that major international banks charge each other to borrow U.S. dollars in the London money market. Like the U.S. treasury the CD indexes, LIBOR tends to move and adjust quite rapidly to changes in interest rates.
Lien -
A legal claim by one party against the property of another as security for a debt. Must be paid off when property is sold. A mortgage or a first trust deed is a lien.
Life of Loan Cap -
The maximum interest rate that can be charged during the life of the loan. Also called Lifetime Cap. This value is often expressed as an increment above the initial loan rate. For example, an adjustable rate loan with an initial rate of 7.25% and a 6% lifetime cap will never adjust above a rate of 13.25% (7.25+6.0).
Loan -
The principal, or amount of total borrowed money, that is repaid with interest.
Loan Amount -
The amount of money that you intend on borrowing from a financial institution for the purchase of your home. Subtracting the down payment from the purchase price of the home will provide you with the loan amount.
Loan Officer -
An intermediary between lending institutions and borrowers, loan officers solicit loans, represent creditors to borrowers, and represent borrowers to creditors.
Loan Origination -
What the process of obtaining new loans is called.
Loan Servicing -
A service performed by a lender to protect a mortgage investment, including collecting monthly payments from borrowers and dealing with delinquencies.
Loan-To-Value Ratio - -
The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. A LTV ratio of 90 means that a borrower is borrowing 90% of the value of the property and paying 10% as a down payment. For purchases, the value of the property is assumed to be the purchase price, for refinances the value is determined by an appraisal.
Lock noun -
The period, expressed in days, during which a lender will guarantee a rate. Some lenders will lock rates at the time of application while others will allow the borrower to lock the rate after the application is taken. Request information from your lender regarding lock procedures.
Lock verb -
The act of committing to a mortgage rate. This action, taken by a borrower some time between the application and the closing dates, is sometimes accompanied by a payment by the borrower to the lender.
Lock-in Clause -
Clause in a loan agreement that states that the borrower cannot repay a loan prior to a specified date.
M
Margin -
The amount a lender adds to the quoted index rate for an adjustable rate loan to determine the new interest rate.
Maturity -
The "Due Date" of a loan.
Merged Credit Report -
A credit report that reports data from two or more major credit repositories.
Minimum Credit -
This field on the table refers to the minimum credit rating a borrower must have in order to qualify for the listed loan.
Modification -
Any change to the original terms of a mortgage.
Monthly Housing Expense -
Total principal, interest, taxes, and insurance paid by the borrower on a monthly basis. Used with gross income to determine affordability.
Mortgage -
A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself. Some states use the term First Trust Deeds to refer to mortgage loans.
Mortgagee -
The lender in a mortgage agreement.
Mortgage Banker -
A financial intermediary that originates or funds loans, collects payments, inspects the property, and forecloses if necessary. The main difference between a mortgage banker and a loan officer is a banker funds their own loans and sell them on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginny Mae.
Mortgage Broker -
A mortgage company that originates loans, joining the borrower and lender for a real estate loan, earning a placement fee.
Mortgage Constant -
The factor used for rapid computation of the annual payment needed to amortize a loan.
Mortgage Insurance -
Insurance that covers the lender against losses incurred as a result of a default on a home loan. This is usually required on all loans that have a loan-to-value higher than eighty percent. Mortgages that have an 80% LTV that do not require mortgage insurance have higher interest rates. The lenders then pay the mortgage insurance themselves. In addition, FHA loans and some first-time homebuyer programs require mortgage insurance regardless of the loan-to-value.
Mortgagor -
The borrower in a mortgage agreement.
Multidwelling Units -
Properties that provide separate housing units for more than one family, although only a single mortgage is secured.
N
Negative Amortization -
Essentially occurs when a borrower makes a minimum payment that may not cover the interest that is due. Loan balance then increases as a result.
Net Effective Income -
Gross income less federal income tax.
No Cash-out Refinance -
A refinance transaction that is not intended to put cash in the hand of the borrower, but instead calculates a new balance to cover the balance due on a current loan and any costs with obtaining a new mortgage.
No-Cost Loan -
A no-cost loan can either be: 1) a loan that has no "lender costs" associated with it or, 2) a loan that also covers purchases or refinancing costs, which may be incurred in buying a home, obtaining and/or refinancing a loan, but are not directly charged by the lender. The interest rate on this type of loan is higher.
Note -
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
Note Rate -
The stated interest rate on a mortgage note.
O
Origination Fee -
The fee imposed by a lender to cover certain processing expenses in connection with making a loan. Usually a percentage of the amount loaned.
Owner Financing -
A property purchase that is partly or wholly financed by the seller.
Owner's Title Policy -
A policy protecting the buyer for the amount of the purchase price in the event of a future title dispute.
P
Package Mortgage -
A mortgage that /includes equipment and appliances located on the premises in addition to the real property itself.
Partial Entitlement -
Under VA loans, the amount of guarantee still available to an eligible veteran who has used his previous entitlement.
partial payment -
A payment that is not sufficient enough to cover the month payment. During times of economic hardship, a borrower can make this request of the loan servicing collection department.
Participation Financing -
A loan in which more than one mortgagee or more than one mortgagor harbors an interest. It can also be a loan in which the mortgagee receives partial ownership of the property being financed.
Payment Change Date -
The date when a new monthly payment amount takes effect on an adjustable rate mortgage (ARM) or a graduated payment mortgage (GPM). The payment change date occurs the month immediately after the interest rate adjustment date.
Periodic Payment Cap -
The limit on the amount that payments can increase or decrease during any one adjustment period for an adjustable-rate mortgage (ARM) where the interest rate and principal fluctuate independently of one another.
Periodic Rate Cap -
The limit on the amount that payments can increase or decrease during any one adjustment period in an ARM (adjustable rate mortgage), regardless of how high or low the index fluctuates.
Personal Property -
Movable property that does not fit the definition of realty.
Phone -
The table list the correct telephone numbers to access the loan department of each institution.
PITI -
PITI stands for principal, interest, taxes, and insurance. An "impounded" loan means that the monthly payment covers all of these, and perhaps mortgage insurance, if your loan so calls for it. If one does not have an "impounded" account, then the lender still calculates these amounts separately and uses it as part of determining one's debt-to-income ratio.
PITI Reserves -
A cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase of a home. The PITI (principal, interest, taxes, and insurance) must equal the amount that the borrower would have to pay for PITI for a determined number of months.
Planned Unit Development (PUD) -
A type of ownership where individuals actually own the building or unit they reside in, but shared areas are owned jointly with the other members of the development or established association.
Pledge Account Mortgage (PAM) -
Combines GPM (graduated payment mortgage) with a subsidizing savings account to provide the borrower with a low payment plan, the lender with amortizing payments and the seller with cash.
Points -
The site allows lenders to post rates via point ranges. Points are broken out on the site for Discount and Origination. The definitions for each are as follows:
• Discount Points = Interest Charges paid up-front when a borrower closes a loan. A point is equal to 1 percent of the loan amount (e.g. 1.5 points on a $100,000 mortgage would cost the borrower $1,500). Generally, by paying more points at closing, the borrower reduces the interest rate of his loan and thus future monthly payments.
• Origination Points = A fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan. Usually a percentage of the amount loaned, such as one percent.
Pre-Approval -
A term used to mean that a borrower has completed a loan application and provided debt, income, and savings information that has been reviewed and pre-approved by an underwriter.
Pre-Foreclosure Sale -
A procedure in which the borrower is allowed to sell his or her property for an amount less that what is owed on it to avoid foreclosure, fully satisfying the borrower's debt.
Pre-Paids -
Expenses such as taxes, insurance, and assessments, which are paid in advance of their due date, and on a prorated basis at closing.
Pre-Payment -
Any amount paid so as to reduce the principal before the due date.
Prepayment Penalty -
Lenders who impose prepayment penalties will charge borrowers a fee if they wish to repay part or all of their loan in advance of the regular schedule.
Pre-Qualification -
After a loan officer has made inquiries about a borrower's debt, income, and savings, he or she can write a written statement (pre-qualification) about the borrower's chances for qualifying for a home loan.
Prime Rate -
Interest charged by financial institutions to top-rate borrowers.
Principal -
The amount of debt, not counting interest, left on a loan.
Private Mortgage Insurance (PMI) -
Paid by a borrower to protect the lender in case of default. PMI is typically charged to the borrower when the Loan-to-Value Ratio is greater than 80%.
Prorations -
The allocation of charges and credits to the appropriate parties at a real estate sale and/or loan closing at a real-estate sale and/or loan closing.
Promissory Note -
A written promise to repay a specified amount over a specified period of time.
Purchase Agreement -
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
Purchase-Money Mortgage -
Mortgage given by a borrower to the seller as part of the purchase price of the property.
Purchase-Money Transaction -
The acquisition of property through the payment of money or its equivalent.
Q
Qualifying Ratio -
The ratio of the borrower's fixed monthly expenses to his gross monthly income. Ratios are expressed as two numbers like 28/36 where 28 would be the Front-End Ratio and 36 would be the Back-End Ratio.
The Front-End Ratio is the percentage of a borrower's gross monthly income (before income taxes) that would cover the cost of PITI (Mortgage Principal Payment + Mortgage Interest Payment + Property Taxes + Homeowners Insurance). In the case of a 28% Front-End Ratio a borrower could qualify if the proposed monthly PITI payments were 28% or less than the borrower's gross monthly income.
The Back-End Ratio is the percentage of a borrower's gross monthly income that would cover the cost of PITI plus any other monthly debt payments like car or personal loans and credit card debt.
Please note that qualifying ratios are only a rough guideline in determining a potential borrower's credit-worthiness. Many factors such as excellent or poor credit history, amount of down payment, and size of loan will influence the decision to approve or disapprove a particular loan. Moving.com urges all borrowers to discuss their particular situation with a qualified lender regardless of the outcome of any self-qualification exercise.
Quitclaim Deed -
A deed that transfers, without warranty, whatever interest or title a grantor may have at the time the conveyance is made.
R
Rate Lock -
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time at a specific cost.
Real Estate -
A portion of the earth's surface extending downward to the center to the earth and upward into space, including all things permanently attached thereto by nature or man and all legal rights therein.
Real Estate Agent -
A person licensed to negotiate and transact the sale of real estate.
Real Estate Settlement Procedures Act (RESPA) -
An act requiring the revelation of all costs involved in a real estate closing to all participants.
Real property -
See real estate.
Realtor -
A real estate agent, broker, or associate that holds an active membership in a local real estate board that is affiliated with the National Association of Realtors.
Recast -
To redesign an existing loan balance into a new loan for the same period or longer, to reduce payments and help a distressed borrower.
Reconciliation -
Determining the final estimate of value by weighing the results of the various approaches in an appraisal.
Reconveyance Clause -
The clause in a trust deed that gives the title back to the borrower when the loan is paid in full.
Recording -
The formal filing of documents affecting a property's title.
Regulation Z -
A truth-in-lending provision that requires lenders to reveal the actual costs of borrowing.
Refinancing -
The process of paying off one loan with the proceeds from a new loan, using the same property as security.
Rent-Loss Insurance -
Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty, resulting in the tenant being excused from paying rent.
Repayment Plan -
An agreement between a lender and a delinquent borrower regarding mortgage payments, in which the borrower agrees to make additional payments to pay down past due amounts while still making scheduled payments.
Residual Qualifying -
Under a VA loan, using specified housing expenses to qualify for a loan payment.
Restrictions -
Rules imposed on the use of real estate in an effort to preserve property values.
Reverse Annuity Mortgage (RAM) -
A system developed for an elderly property owner in which regular monthly payments can be received from a lender. When the total reaches a pre-determined amount, the owner begins repaying the loan or sells the property.
Revolving Debt -
A credit arrangement that allows a customer to borrow against a pre-approved line of credit used to purchase goods and services. The borrower is responsible for the actual amount borrowed plus any interest due.
Right-of-First Refusal -
A provision that states that a property to be first offered to a specific person before it can be offered for sale or lease to other parties.
Rollover Loan -
A loan that /includes a call date earlier than its normal amortization period.
Rule of 78 -
Calculates proportionate amount of interest due on a loan being paid in full before its maturity.
S
Sale-Buyback -
A financing arrangement in which an investor buys property from a developer and immediately sells it back under a long-term sales agreement, wherein the investor retains legal title.
Sale-Leaseback -
A financing arrangement whereby an investor purchases real estate owned and used by a business corporation, then leases the property back to the business.
Secondary Mortgage Market -
A market where mortgage originators may sell them, freeing up funds for continued lending and distributes mortgage funds nationally from money-rich to money poor areas.
Second Mortgage -
A mortgage that has a lien position subordinate to the first mortgage.
Secured Loan -
A loan that is backed by collateral.
Security -
Something given, deposited, or pledged to make secure the fulfillment of an obligation, usually the repayment of a debt.
Seller Carry-Back -
An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage.
Senior Loan -
A real estate loan in first priority position.
Servicer -
An organization that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
Servicing -
The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.
Settlement Costs -
See Closing Costs. v Sinking Fund -
Monies deposited in advance in anticipation of satisfying a debt in the future.
Stop Date -
Date on a term loan when the balloon payment is due.
Subordinate Financing -
Any mortgage or other lien that has a priority lower than that of the first mortgage, or senior loan. See second mortgage.
Survey -
A drawing or map the shows the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.
Sweat Equity -
Increase in property value due to improvement by owners.
T
Takeout Mortgage -
A permanent mortgage, obtained by pre-arrangement between a builder and a financial institution, to repay the interim mortgagee at the completion of construction.
Tax Lien -
A claim against real estate for the amount of its unpaid taxes.
Third-Party Origination -
A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.
Title -
A legal document showing a person's right to or ownership of a property.
Title Company -
A company that specializes in examining and insuring titles to real estate.
Title Insurance -
Title Insurance policies typically insure a homebuyer against any title-search errors or mistakes, and against loss due to disputes over property ownership. Title Insurance can additionally offer protection to the lender under similar circumstances. The cost of title insurance is usually a set value per thousand of dollars of the total loan amount.
Title Search -
A check of the title records to make sure that the seller is the actual legal owner of the property, and that there are no liens or other claims outstanding.
Total Debt Ratio -
Monthly debt and housing payments divided by gross monthly income. Also known as Back-End Ratio.
Transfer of Ownership -
The means by which the ownership of a property changes hands. Examples of such include the purchase of a property "subject to" the mortgage, the assumption of the mortgage debt by the property purchases, and any exchange of possession of the property under a land sales contract or any other land trust device.
Transfer Tax -
State or local tax payable when the title passes from one owner to another.
Truth-in-Lending Law -
Provision that requires lenders to reveal the actual costs of borrowing.
Two-Step Mortgage -
A loan where the interest rate is fixed for the first seven years and then is adjusted one time for the balance of the loan period.
V
VA Loan -
A government-backed mortgage loan supported by the US Veterans Administration.
Variable Rate Mortgage -
See Adjustable Rate Mortgage.
Vested -
Means that one has a right to use a portion of a fund, such as an individual's retirement fund.
Z
Zero Percent Financing -
A loan with no interest in the contract. The IRS imputes 10 percent for both borrower and lender.
Zoning -
The right of a community, under its police power, to dictate the use of property within its boundaries.
"LICK"
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
Word… Put your money to work for you and put in something that will grow for you tax deferred or tax free with compound interest.
Stay up…. “LICK”
I agree, A safe is good for documents, gold & silver coins, bars, jewelry and items like that. Any cash you put in the may be safe from a fire or theft (If they cannot find it) but it earns you NO money. The wealthy let their money work for them and hire the right people to advise them on tax codes, what they can and cannot do.temple said:
Word… Put your money to work for you and put in something that will grow for you tax deferred or tax free with compound interest.
Stay up…. “LICK”
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Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
"in·vest·ment ( P ) Pronunciation Key (n-vstmnt)
n.
Property or another possession acquired for future financial return or benefit."
keywords "acquired" and "benefit"
BTW, me saying flipping is not investing just to be an asshole is not right! I'll let you figure out why..
Having said that, one thing most folks don't tell you my man is that in order to "invest" you need a resource of some kind first! This is typically cash! if you make a bad investment, which you will because that's what learning is all about - making mistakes, then how can you recover? Yes investing is great, but you gotta get there first and if you're talking to a guy who recommends you start investing with petty cash as if it's the fuckin lotto and you know you don't have a pot to piss in, then.... well, it is what it is. Folks love to try and teach you how to play the lotto or gamble, very few are students of life.
Good luck to you!
That's right fam, don't learn how to earn, save to recover from incidents and certainly don't learn the right way to invest cause the rich make their money by not working and plus you can make money out of thin air. Hell, fuck high school and college, just jump right into investing and forget about the day when a hurricane may flood your home or office and shut down the bank - there's really no point in investing in a good safe and then making sure you put essentials like cash, a firearm to uphold your consitutional rights, private/confidential documents, etc. Forget about things like getting a safety deposit box or making sure you have your own family DR plan, cause the buses will come and take you to the stadium. Being a government educated, controlled, taxed ruled simpleton is pure bliss.temple said:
"in·vest·ment ( P ) Pronunciation Key (n-vstmnt)
n.
Property or another possession acquired for future financial return or benefit."
keywords "acquired" and "benefit"
BTW, me saying flipping is not investing just to be an asshole is not right! I'll let you figure out why..
Having said that, one thing most folks don't tell you my man is that in order to "invest" you need a resource of some kind first! This is typically cash! if you make a bad investment, which you will because that's what learning is all about - making mistakes, then how can you recover? Yes investing is great, but you gotta get there first and if you're talking to a guy who recommends you start investing with petty cash as if it's the fuckin lotto and you know you don't have a pot to piss in, then.... well, it is what it is. Folks love to try and teach you how to play the lotto or gamble, very few are students of life.
Good luck to you!
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
HELOC means Home Equity Line Of Credit (I thought you knew). You've already taken out $100K Home Equity Loan against your house, with the FALSE assumption that you'd be able to sell it at $640K in a down market. That is where the bad judgement lies. I am trying to save you from a very screwed up money making strategy, but yet you don't see it.
If that 100K HEL is doing well in another "investment", then you may be ok for now. But you're still not on safe grounds because when your ARM loan resets and/or your property taxes go up, you can't continue to rent that house out because the rent wouldn't be able to pay the mortgage in full.
It's easy to play with borrowed money and come out ahead (build wealth) in an up RE market. But when the market starts to tank, and interest rates starts going up with rising supply of houses, you'd have to be very careful and a smart business person to not fall into the red.
Lick said:
HELOC means Home Equity Line Of Credit (I thought you knew). You've already taken out $100K Home Equity Loan against your house, with the FALSE assumption that you'd be able to sell it at $640K in a down market. That is where the bad judgement lies. I am trying to save you from a very screwed up money making strategy, but yet you don't see it.
If that 100K HEL is doing well in another "investment", then you may be ok for now. But you're still not on safe grounds because when your ARM loan resets and/or your property taxes go up, you can't continue to rent that house out because the rent wouldn't be able to pay the mortgage in full.
It's easy to play with borrowed money and come out ahead (build wealth) in an up RE market. But when the market starts to tank, and interest rates starts going up with rising supply of houses, you'd have to be very careful and a smart business person to not fall into the red.
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Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
WOW
This has turned into a beef thread quick!!!!!!!
We should never argue about success. What may work for Pharoah might not work for "Lick" and so on...........
I haven't seen one stupid person in this thread yet.
(I hope I don't have to edit that later)
We are all looking to better ourselves.
The original poster and I did not fully agree however I RESPECT the information and I LEARNED SOMETHING.
Lets keep our emotions lower and our thinking higher.
Now to quote from my favorite movie "Wall Street" : "The key to the game is capital reserves, without it you can't piss in the tall weeds with the big dogs"
As far as the consumerism aspect:.....unless you build your own house,provide your own electricity,grow your own food,drill for your own gas,build your own car......YOU ARE A CONSUMER.
That is what being "CIVIL---LIE-ZED " means, Having a banking system that issues credit and prints money. No One will really ever get ahead AS LONG AS THEY USE MONEY OR CREDIT AND PAY TAXES.
That being said, it then becomes a matter of what game you want to play...
the 5 zero or the 6-7 zero game. 10,000.00 vs 100,000.00 vs 1,000,000.00.
Rich and poor is a relative thing and a state of mind.
WOW
This has turned into a beef thread quick!!!!!!!
We should never argue about success. What may work for Pharoah might not work for "Lick" and so on...........
I haven't seen one stupid person in this thread yet.
(I hope I don't have to edit that later)
We are all looking to better ourselves.
The original poster and I did not fully agree however I RESPECT the information and I LEARNED SOMETHING.
Lets keep our emotions lower and our thinking higher.
Now to quote from my favorite movie "Wall Street" : "The key to the game is capital reserves, without it you can't piss in the tall weeds with the big dogs"
As far as the consumerism aspect:.....unless you build your own house,provide your own electricity,grow your own food,drill for your own gas,build your own car......YOU ARE A CONSUMER.
That is what being "CIVIL---LIE-ZED " means, Having a banking system that issues credit and prints money. No One will really ever get ahead AS LONG AS THEY USE MONEY OR CREDIT AND PAY TAXES.
That being said, it then becomes a matter of what game you want to play...
the 5 zero or the 6-7 zero game. 10,000.00 vs 100,000.00 vs 1,000,000.00.
Rich and poor is a relative thing and a state of mind.
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
There's really no "beef" going on, but just a conflict in business principles.
For the past 5 years, greed has fueled this RE mania. Everybody and their grandmas bought into the "real estate always goes up" argument. They think an ARM, Interest-Only or 100% loan isn’t risky because they'd just use their houses as an ATM machine to bail them out.
On top of the ARM loan adjustments (which adds hundreds of $$ to their mortgage payments), they've racked up massive credit purchases, or "investments" and financed them by equity-mining their homes. That's exactly what LICK did. Now the appreciation of their properties or collateral has stopped, decreased or about to, and so most can't borrow as much as they’ve come to expect. It's only gonna get worse from here for the stubborn folks who bought within the past 3 years and don't wanna let go.
SpiritualPorn said:
There's really no "beef" going on, but just a conflict in business principles.
For the past 5 years, greed has fueled this RE mania. Everybody and their grandmas bought into the "real estate always goes up" argument. They think an ARM, Interest-Only or 100% loan isn’t risky because they'd just use their houses as an ATM machine to bail them out.
On top of the ARM loan adjustments (which adds hundreds of $$ to their mortgage payments), they've racked up massive credit purchases, or "investments" and financed them by equity-mining their homes. That's exactly what LICK did. Now the appreciation of their properties or collateral has stopped, decreased or about to, and so most can't borrow as much as they’ve come to expect. It's only gonna get worse from here for the stubborn folks who bought within the past 3 years and don't wanna let go.
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This was never a beef thread.
When I hear these urban myths that are rampant in the black community, I speak on it.
1) Black people shouldn't mess with banks. Keep it under your bed, in a safe, or etc.
2) Black shouldn't vote because "They" (i.e. the man) will know if you are republican or democrat according to how you vote. Nevermind the fact that "man" assumes that most blacks are not going to vote and the ones that do vote, will vote democrat.
3) This is how the white boys make their money, "[Insert whatever exotic investment type]". I've seen dudes try to pedal $5,000 services that are designed to "set up a family foundation so that you don't have to pay any taxes....again.....ever....for life". I think our folks often confuse wealth creation and wealth preservation. You can't preserve what you have not created. The real sad thing is that alot of the information is readily available, but people are not interested until someone wants to charge them for it.
A buyer's market is going to mean great opportunities to acquire rental properties. Acquiring rental properties that had positive cash flow hasn't been an easy thing to do in Washington,DC. Even doing it in Baltimore is a lot tougher than it used to be.
Condo conversions provided an alternative exit strategy for Landlords that were ready to retire or just wanted to cash out now. A lot of Landlords were HAPPY to have an empty building. No tenants to evict, they didn't have to give first rights of refusal to anyone and affordable housing initiatives are a joke. Landlords sold condos in the hood for whatever they wanted to sell them for. Buyers thought that they couldn't afford to miss out on the chance for homeownership. A slowdown in the real estate market will have alot of people that have strong credit and strong income, deciding to stay renters. That is a good thing for me. The pool of qualified tenants was getting dried up.
Ahh...To think.......I actually hit BGOL up to get away from Real Estate related talk......
When I hear these urban myths that are rampant in the black community, I speak on it.
1) Black people shouldn't mess with banks. Keep it under your bed, in a safe, or etc.
2) Black shouldn't vote because "They" (i.e. the man) will know if you are republican or democrat according to how you vote. Nevermind the fact that "man" assumes that most blacks are not going to vote and the ones that do vote, will vote democrat.
3) This is how the white boys make their money, "[Insert whatever exotic investment type]". I've seen dudes try to pedal $5,000 services that are designed to "set up a family foundation so that you don't have to pay any taxes....again.....ever....for life". I think our folks often confuse wealth creation and wealth preservation. You can't preserve what you have not created. The real sad thing is that alot of the information is readily available, but people are not interested until someone wants to charge them for it.
A buyer's market is going to mean great opportunities to acquire rental properties. Acquiring rental properties that had positive cash flow hasn't been an easy thing to do in Washington,DC. Even doing it in Baltimore is a lot tougher than it used to be.
Condo conversions provided an alternative exit strategy for Landlords that were ready to retire or just wanted to cash out now. A lot of Landlords were HAPPY to have an empty building. No tenants to evict, they didn't have to give first rights of refusal to anyone and affordable housing initiatives are a joke. Landlords sold condos in the hood for whatever they wanted to sell them for. Buyers thought that they couldn't afford to miss out on the chance for homeownership. A slowdown in the real estate market will have alot of people that have strong credit and strong income, deciding to stay renters. That is a good thing for me. The pool of qualified tenants was getting dried up.
Ahh...To think.......I actually hit BGOL up to get away from Real Estate related talk......
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
I hadn't been to the thread for a while and I come back and hear people name calling. It walked like a duck so ...............
I understand what you mean however this is not a myth. Some older people have lived through depressions and S&L scandals and know what it's like to go to the bank and not have the money you deposited. To each his own however Pharohs point had a validity to it.
My friend..( I know I will catch hell for this) your vote has never meant anything. It's another trick to keep people feeling as if they have a voice. Live a little longer and you will see. The leaders change but situations stay the same.
3
I co-sign the fuck out of this. MoFo's think they "own" homes ??!?!? WTF?!?!?
I will have to steal the line I made bold. That sums it up
Co-sign again
Cosign ....I come here to see some pussy and these dudes got me dropping work knowledge. I love to see people THINKING.
I hadn't been to the thread for a while and I come back and hear people name calling. It walked like a duck so ...............
I understand what you mean however this is not a myth. Some older people have lived through depressions and S&L scandals and know what it's like to go to the bank and not have the money you deposited. To each his own however Pharohs point had a validity to it.
My friend..( I know I will catch hell for this) your vote has never meant anything. It's another trick to keep people feeling as if they have a voice. Live a little longer and you will see. The leaders change but situations stay the same.
3
I co-sign the fuck out of this. MoFo's think they "own" homes ??!?!? WTF?!?!?
I will have to steal the line I made bold. That sums it up
Co-sign again
Ahh...To think.......I actually hit BGOL up to get away from Real Estate related talk......
Cosign ....I come here to see some pussy and these dudes got me dropping work knowledge. I love to see people THINKING.
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
I am in the business so I know all of the terms bruh.
Okay… This is where you are not getting it… IT IS NOT A DOWN MARKET WERE I LIVE.
Ya gonna freak now…. I just had that same property appraised and it came in at 635K so I pulled another 60K out of it.
The lenders I deal with know me so well that I never have prepays in my notes. Most people have to buy them out if they don’t want a prepay. I just work out terms with the same lender.
I use to say; don’t hate the player, hate the game. But now I say and brother you need to think about this… Don’t hate the player nor the game. Learn the game and become a star player!
Don’t hate… You may learn something! “LICK”
P.S. Sorry… I must add this… I was thinking about doing business with this young brother. He came to my home, sat on my couch and we talked. I will only do ARM loans. This brother has been trained on fix loans.
Can you believe this young brother… sitting on my couch… Drinking the drinks I have paid for and tells me that I am not that smart, that I should change all of my loans to fixed notes and that he is just the guy to get it done… LOL…
So I said to the brother… As you can see, I control over 6.2 mil and yes your credit score is almost 800 and mine is under 700. But you don’t own shit but a damn car… I also said to the young brother it is time to go and good luck.
So I say to you Dawg… We don’t have to agree on how we get things done. I only ask that you share what is working for you. Maybe you know something that I may be able to put into my program.
I am all about winning. As long as it is legal and it is a win, win then I am in!
Stay up! “LICK”
My brother… Ya need some help and I see now that I can not help you.afroyale said:
I am in the business so I know all of the terms bruh.
Okay… This is where you are not getting it… IT IS NOT A DOWN MARKET WERE I LIVE.
Ya gonna freak now…. I just had that same property appraised and it came in at 635K so I pulled another 60K out of it.
The lenders I deal with know me so well that I never have prepays in my notes. Most people have to buy them out if they don’t want a prepay. I just work out terms with the same lender.
I use to say; don’t hate the player, hate the game. But now I say and brother you need to think about this… Don’t hate the player nor the game. Learn the game and become a star player!
Don’t hate… You may learn something! “LICK”
P.S. Sorry… I must add this… I was thinking about doing business with this young brother. He came to my home, sat on my couch and we talked. I will only do ARM loans. This brother has been trained on fix loans.
Can you believe this young brother… sitting on my couch… Drinking the drinks I have paid for and tells me that I am not that smart, that I should change all of my loans to fixed notes and that he is just the guy to get it done… LOL…
So I said to the brother… As you can see, I control over 6.2 mil and yes your credit score is almost 800 and mine is under 700. But you don’t own shit but a damn car… I also said to the young brother it is time to go and good luck.
So I say to you Dawg… We don’t have to agree on how we get things done. I only ask that you share what is working for you. Maybe you know something that I may be able to put into my program.
I am all about winning. As long as it is legal and it is a win, win then I am in!
Stay up! “LICK”
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None are my words, but good ones nonetheless...
"Extreme use of leverage. Leverage means using debt to amplify gain. Most people forget that losses get amplified as well. If a buyer puts 10% down and the house goes down 10%, he has lost 100% of his money on paper. If he has to sell due to job loss, he's bankrupt in the real world. Even a small price decline will bankrupt buyers with small equity. Buyers foolish enough to buy with no money down are already bankrupt, but still unaware of the fact.
House prices do not even have to fall to cause big losses. The cost of selling a house is six percent. On a $600,000 house, that's $36,000 lost even if prices just stay flat. "
"Interest rates going back up. When rates go from 5% to 7%, that's a 40% increase in the amount of interest a buyer has to pay. House prices must drop proportionately to compensate"
"Remember that buyers do not deduct interest from income tax; they deduct interest from taxable income. Interest is paid in real pre-tax dollars that buyers suffered to earn. That money is really entirely gone, even if the buyer didn't pay income tax on those dollars before spending them. "
"Buyers do not get interest back at tax time. If a buyer gets an income tax refund, that's just because he overpaid his taxes, giving the government an interest-free loan. The rest of us are grateful."
"It's true that house prices do not fall to zero, but also true that the value of your equity in a house can easily fall to zero, and then way past zero into the red. Even a fall of only 10% completely wipes out everyone who has only 10% equity in their house. This means that house price crashes are actually worse than stock crashes. Most people have most of their money in their house, and that money is highly leveraged."
"There is a large oversupply of housing. To repeat: builders are making houses at a record rate, which is increasing supply dramatically at a time when new houses are not needed."
"Less than 5% of all existing houses were sold last year. The other 95% are merely assuming they can get the same prices"
"People on the border of bankruptcy take out ARMs because they can't afford fixed rate loans. The rich don't have loans at all"
"Most bankers use a multiple of 3 as a "safe" price to income ratio. We are well beyond the danger zone, into the twilight zone. Another rule of thumb is that a fair house price is between 100 and 200 times the monthly rent. If a house rents for $2000 per month, then a fair price is from $200,000 to $400,000."
My personal favorite:
There's a saying in Las Vegas: "There's a patsy in every game, and if you don't know who the patsy is, you're it."
Viva Los Vegas!!!
"The key to the game is capital reserves, without it you can't piss in the tall weeds with the big dogs"
"Some older people have lived through depressions and S&L scandals and know what it's like to go to the bank and not have the money you deposited."
"You should always have a account set up with reserves that can pay your expenses for at least one year."
-----------------------------------------------------
Now, again I say the worst vice is advice, but I'll try anyway - my advice for the young folks... study your math and master that shit man, it is the basic fundamental principle of business - lot of folks make many games sound good, but at the end of the day, well - no point in me beating a dead horse - Feel free to fill in the blanks.
Peace!
"Extreme use of leverage. Leverage means using debt to amplify gain. Most people forget that losses get amplified as well. If a buyer puts 10% down and the house goes down 10%, he has lost 100% of his money on paper. If he has to sell due to job loss, he's bankrupt in the real world. Even a small price decline will bankrupt buyers with small equity. Buyers foolish enough to buy with no money down are already bankrupt, but still unaware of the fact.
House prices do not even have to fall to cause big losses. The cost of selling a house is six percent. On a $600,000 house, that's $36,000 lost even if prices just stay flat. "
"Interest rates going back up. When rates go from 5% to 7%, that's a 40% increase in the amount of interest a buyer has to pay. House prices must drop proportionately to compensate"
"Remember that buyers do not deduct interest from income tax; they deduct interest from taxable income. Interest is paid in real pre-tax dollars that buyers suffered to earn. That money is really entirely gone, even if the buyer didn't pay income tax on those dollars before spending them. "
"Buyers do not get interest back at tax time. If a buyer gets an income tax refund, that's just because he overpaid his taxes, giving the government an interest-free loan. The rest of us are grateful."
"It's true that house prices do not fall to zero, but also true that the value of your equity in a house can easily fall to zero, and then way past zero into the red. Even a fall of only 10% completely wipes out everyone who has only 10% equity in their house. This means that house price crashes are actually worse than stock crashes. Most people have most of their money in their house, and that money is highly leveraged."
"There is a large oversupply of housing. To repeat: builders are making houses at a record rate, which is increasing supply dramatically at a time when new houses are not needed."
"Less than 5% of all existing houses were sold last year. The other 95% are merely assuming they can get the same prices"
"People on the border of bankruptcy take out ARMs because they can't afford fixed rate loans. The rich don't have loans at all"
"Most bankers use a multiple of 3 as a "safe" price to income ratio. We are well beyond the danger zone, into the twilight zone. Another rule of thumb is that a fair house price is between 100 and 200 times the monthly rent. If a house rents for $2000 per month, then a fair price is from $200,000 to $400,000."
My personal favorite:
There's a saying in Las Vegas: "There's a patsy in every game, and if you don't know who the patsy is, you're it."
Viva Los Vegas!!!
"The key to the game is capital reserves, without it you can't piss in the tall weeds with the big dogs"
"Some older people have lived through depressions and S&L scandals and know what it's like to go to the bank and not have the money you deposited."
"You should always have a account set up with reserves that can pay your expenses for at least one year."
-----------------------------------------------------
Now, again I say the worst vice is advice, but I'll try anyway - my advice for the young folks... study your math and master that shit man, it is the basic fundamental principle of business - lot of folks make many games sound good, but at the end of the day, well - no point in me beating a dead horse - Feel free to fill in the blanks.
Peace!
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
No, YOU need help. If you don't change your strategies, I predict in less than a year you'd end up begging for money like these fools:
https://www.prosper.com/public/lend/listing.aspx?listingID=13292
https://www.prosper.com/public/lend/listing.aspx?listingID=15330
https://www.prosper.com/public/lend/listing.aspx?listingID=13817
https://www.prosper.com/public/lend/listing.aspx?listingID=14012
https://www.prosper.com/public/lend/listing.aspx?listingID=14206
https://www.prosper.com/public/lend/listing.aspx?listingID=14286
https://www.prosper.com/public/lend/listing.aspx?listingID=15126
Lick said:
No, YOU need help. If you don't change your strategies, I predict in less than a year you'd end up begging for money like these fools:
https://www.prosper.com/public/lend/listing.aspx?listingID=13292
https://www.prosper.com/public/lend/listing.aspx?listingID=15330
https://www.prosper.com/public/lend/listing.aspx?listingID=13817
https://www.prosper.com/public/lend/listing.aspx?listingID=14012
https://www.prosper.com/public/lend/listing.aspx?listingID=14206
https://www.prosper.com/public/lend/listing.aspx?listingID=14286
https://www.prosper.com/public/lend/listing.aspx?listingID=15126
Last edited:
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
I remember what it was like back in the day when I did not own anything but cars and thought I had it going on. Then one day I was on my way home (DWB) from working all night and I was stopped by a Racist Downey cop.
This Latina bitch arrested me and placed false charges against me that changed life.
I lost my JOB (Just Over Broke) and it was not long before my rent was late. I was evicted with a wife and two kids.
I had a Downey judge that was trying to put my black ass in jail and I did not do the crime!
Years passed, life was not easy and I had to work very hard on my attitude.
It is not easy to make changes in your life. However, if you want more out of life and willing to go the distance… You can do it!
I’m done venting…. Stay up! “LICK”
It is my brother… That is what this is all about for me is to share information and help any brother that wants to make a change in his or her life.DESTROSIS said:
This is a good information!
I remember what it was like back in the day when I did not own anything but cars and thought I had it going on. Then one day I was on my way home (DWB) from working all night and I was stopped by a Racist Downey cop.
This Latina bitch arrested me and placed false charges against me that changed life.
I lost my JOB (Just Over Broke) and it was not long before my rent was late. I was evicted with a wife and two kids.
I had a Downey judge that was trying to put my black ass in jail and I did not do the crime!
Years passed, life was not easy and I had to work very hard on my attitude.
It is not easy to make changes in your life. However, if you want more out of life and willing to go the distance… You can do it!
I’m done venting…. Stay up! “LICK”
We are already starting to get more and more calls from people with pretty houses. A pretty house is just that... a pretty house in a pretty area that is going for a pretty penny. The problem is that many people have decided to trade up to the American Dream (nevermind that they live in a nice house already). The American Dream is no longer a little house with a white picket fence. The new American Dream is a 5,000+ colonial or contemporary on at least .50 acre with a 3 car side load garage, and deck, a fully finished basement, with hardwood floors throughout, a huge master bedroom with marble in the bathroom, and a gourmet kitchen. This new American Dream STARTS at $600,000 - $800,000 in Maryland or Northern Va.
Many of these people have their current house on the market, and need to go to closing on their new house within a matter of weeks. The old reality was that they could have multiple offers on their house in 2 weeks and close 2-3 weeks later. The new reality is that it will take about 45 days to get winning offer... that's 30 days additional. 30 days feels like an eternity when you are up against a deadline. It doesn't help that other people in the same sub-divsion that may have more equity than them, can afford to drop the price by $10k-$20k. Not a big deal when you are gonna still walk away with $200k+
Some people get offended when I tell them that the most I will pay for a $500,000 house is $350,000...on a good day. I'll honestly tell them that if time isn't an issue, then they should be patient and get full price. I tell them that if time is an issue (time is an issue to everyone), then they should really consider my offer. I remind them a 6% sales commsion at $500k willl cost them $30k. If I buy it, there is no commision to pay. I also remind them that if they close on the new house, before they sell the old one. They are gonna be paying two mortgages. I ask them what is the price tag on being able to rest well at night. Hint: It's priceless.
Many of these people have their current house on the market, and need to go to closing on their new house within a matter of weeks. The old reality was that they could have multiple offers on their house in 2 weeks and close 2-3 weeks later. The new reality is that it will take about 45 days to get winning offer... that's 30 days additional. 30 days feels like an eternity when you are up against a deadline. It doesn't help that other people in the same sub-divsion that may have more equity than them, can afford to drop the price by $10k-$20k. Not a big deal when you are gonna still walk away with $200k+
Some people get offended when I tell them that the most I will pay for a $500,000 house is $350,000...on a good day. I'll honestly tell them that if time isn't an issue, then they should be patient and get full price. I tell them that if time is an issue (time is an issue to everyone), then they should really consider my offer. I remind them a 6% sales commsion at $500k willl cost them $30k. If I buy it, there is no commision to pay. I also remind them that if they close on the new house, before they sell the old one. They are gonna be paying two mortgages. I ask them what is the price tag on being able to rest well at night. Hint: It's priceless.
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
This some funny shit here Bruh!
The difference between them and me is; I’m NOT selling any of mine & I have (another term for ya) “Reserves”.
The largest number I saw was someone asking for 15K. That is not a lot of money. They should call “Cash Call”. They can get 10K and if they pay it off in thirty days, they only pay $200.00 for the “Hard Money” loan.
My brother, I am worth more dead. How are you worth??? Don’t tell me. I don’t care to know. I just want you to think about it for a sec…
Why count someone else paper when you should be counting your own.
“Don’t hate the player, don’t hate the game. Get in the game and become a star”!!!
Stay up my brother! “LICK”
afroyale said:No, YOU need help. If you don't change your strategies, I predict in less than a year you'd end up begging for money like these fools:
https://www.prosper.com/public/lend/listing.aspx?listingID=13292
https://www.prosper.com/public/lend/listing.aspx?listingID=15330
https://www.prosper.com/public/lend/listing.aspx?listingID=13817
https://www.prosper.com/public/lend/listing.aspx?listingID=14012
https://www.prosper.com/public/lend/listing.aspx?listingID=14206
https://www.prosper.com/public/lend/listing.aspx?listingID=14286
https://www.prosper.com/public/lend/listing.aspx?listingID=15126
This some funny shit here Bruh!
The difference between them and me is; I’m NOT selling any of mine & I have (another term for ya) “Reserves”.
The largest number I saw was someone asking for 15K.
That is not a lot of money. They should call “Cash Call”. They can get 10K and if they pay it off in thirty days, they only pay $200.00 for the “Hard Money” loan. My brother, I am worth more dead. How are you worth??? Don’t tell me. I don’t care to know. I just want you to think about it for a sec…
Why count someone else paper when you should be counting your own.
“Don’t hate the player, don’t hate the game. Get in the game and become a star”!!! Stay up my brother! “LICK”
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
bump...
It's always interesting to look back.
bump...
It's always interesting to look back.
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
I don't post much but I felt the need to speak on this thread ..1st off I must say that this thread has been very informative and rewarding as well and it is great to see so many of US out here grinding and those that want to grind in the real estate game.
It is a hustle and not for the faint of heart. I learned a very long time ago that you won't and never will achive wealth working a damn job. and my 26 years of Practicing Real Estate it has been pretty good for me and my family.
It aint a hobby for me this is my lifestyle and you got to look at like that before you jump into it ...this is your way of life.
Having a license to sell something that MAN cannot reproduce LAND is a pretty powerful tool.
Enough about that ...Flipping in these days and times in MOST areas of the country it aint gonna happen. However there are a couple of things you can do things you can do to maximize your investment and Section 8 aint one of them for me. I did that when I 1st got into the bussiness and it caused me nothing but headaches. Corporate rentals are the way to go in these days and times. Corporate rentals are a 3 or 4 or more bedrooms homes in a decent area fully furnished with washer dryer basic phone and cable.
A good example a empty 3 bedroom home a shell in a decent area rents for say 1300-1500 a month
a Coporate Rental fully furnished in a decent area 8,000. upwards do the math
There is a huge demand for Corporate Rentals all over the US and Abroad tap into this market. Typically they pay the entire term of the lease upfront too and you don't have to go thru the hassel of screening tennants and hearing that bullshyt about we a christian family they are the worse ones. I can tell you some horror stories. The same rules apply for your tax write offs as with any other rental property
Flipping is good when you can sell now is not the time though if you can get some properties well below market and Corporate Lease them out It should tide you over until the Flipping gets good again
Y'all keep it going I may not post a lot but I will answer if need be
REMEMBER AS WITH ANY OTHER BUSSINESS VENTURE YOU JUMP INTO KNOWING WHO NOT TO FUCK WITH IS THE BEST ADVICE I CAN GIVE
I don't post much but I felt the need to speak on this thread ..1st off I must say that this thread has been very informative and rewarding as well and it is great to see so many of US out here grinding and those that want to grind in the real estate game.
It is a hustle and not for the faint of heart. I learned a very long time ago that you won't and never will achive wealth working a damn job. and my 26 years of Practicing Real Estate it has been pretty good for me and my family.
It aint a hobby for me this is my lifestyle and you got to look at like that before you jump into it ...this is your way of life.
Having a license to sell something that MAN cannot reproduce LAND is a pretty powerful tool.
Enough about that ...Flipping in these days and times in MOST areas of the country it aint gonna happen. However there are a couple of things you can do things you can do to maximize your investment and Section 8 aint one of them for me. I did that when I 1st got into the bussiness and it caused me nothing but headaches. Corporate rentals are the way to go in these days and times. Corporate rentals are a 3 or 4 or more bedrooms homes in a decent area fully furnished with washer dryer basic phone and cable.
A good example a empty 3 bedroom home a shell in a decent area rents for say 1300-1500 a month
a Coporate Rental fully furnished in a decent area 8,000. upwards do the math
There is a huge demand for Corporate Rentals all over the US and Abroad tap into this market. Typically they pay the entire term of the lease upfront too and you don't have to go thru the hassel of screening tennants and hearing that bullshyt about we a christian family they are the worse ones. I can tell you some horror stories. The same rules apply for your tax write offs as with any other rental property
Flipping is good when you can sell now is not the time though if you can get some properties well below market and Corporate Lease them out It should tide you over until the Flipping gets good again
Y'all keep it going I may not post a lot but I will answer if need be
REMEMBER AS WITH ANY OTHER BUSSINESS VENTURE YOU JUMP INTO KNOWING WHO NOT TO FUCK WITH IS THE BEST ADVICE I CAN GIVE
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
Great thread, great debate. I'm a newbie trying to get into real estate investing but also looking for some direction. I've been reading and looking into picking up one of the real estate courses to get me started.
Do you have any recommendations?
Books read so far: Rich Dad, Poor Dad
Think and Grow Rich
Yet to read: How to be a quick turn real estate millionaire
Missed fortune
Incorporating your Business
Currently reading: The Millionaire real estate investor
Great thread, great debate. I'm a newbie trying to get into real estate investing but also looking for some direction. I've been reading and looking into picking up one of the real estate courses to get me started.
Do you have any recommendations?
Books read so far: Rich Dad, Poor Dad
Think and Grow Rich
Yet to read: How to be a quick turn real estate millionaire
Missed fortune
Incorporating your Business
Currently reading: The Millionaire real estate investor
Last edited:
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
The real estate game is definitely an interesting market.
I just bought on the west coast and moved into my place on April 1st. I looked from September - late-February and saw a good 55 - 65 places in person during weekly open houses, and probably researched a good 500 + online ... I felt comfortable with my decision.
- 2007 condo
- Top floor (4th floor)
- Quiet community with pride of ownership and minimal renters / plenty of owners
- 904 square feet
- 2 bed, 2 bath
- Moved here after living 8 years in a 50 year-old house in a busy, heavily-rented neighbourhood with punk-ass neighbours
- Assessed value of this place = $309,900 in 2007
- Assessed value in 2008 = $339,000
- Assessed value in 2009 = $324,000
- Seller was a speculator and TRIED to turn a profit. They LOST money
- Tried to sell it in the fall of 2008 for $339,000
- Their 2 agents told them to re-price it at 324,000
- I offered $301,000 in late-February 2009
- They countered at 320,000
- I re-offered 305, 307, 308, 310, 312
- They countered back and said $315,000 was the LOWEST they would go
- I told them $314,000 - take it or leave it, bitches
- They accepted my offer and I closed in March 2009
* Best feelings of all =
- I got the homeowners grant for $570 + in savings
- I'm a first-time buyer and I was EXEMPT from property purchase tax ($4280)
- She had to pay GST (Government Sales Tax) of thousands of dollars as SHE bought it new in 2007
- I was EXEMPT from said GST tax
- I saved 30% on my condo insurance as well. I went with the company my dad deals with / got a discount for being mortgage-free on the condo / first-time homebuyer discount, and another discount ... so that was cool ... felt good knowing the SELLER paid a total of 320 - 325,000 in 2007 and looked to turn a profit. I got it for 314,000 (and it's worth 324,000).
The real estate game is definitely an interesting market.
I just bought on the west coast and moved into my place on April 1st. I looked from September - late-February and saw a good 55 - 65 places in person during weekly open houses, and probably researched a good 500 + online ... I felt comfortable with my decision.
- 2007 condo
- Top floor (4th floor)
- Quiet community with pride of ownership and minimal renters / plenty of owners
- 904 square feet
- 2 bed, 2 bath
- Moved here after living 8 years in a 50 year-old house in a busy, heavily-rented neighbourhood with punk-ass neighbours
- Assessed value of this place = $309,900 in 2007
- Assessed value in 2008 = $339,000
- Assessed value in 2009 = $324,000
- Seller was a speculator and TRIED to turn a profit. They LOST money
- Tried to sell it in the fall of 2008 for $339,000
- Their 2 agents told them to re-price it at 324,000
- I offered $301,000 in late-February 2009
- They countered at 320,000
- I re-offered 305, 307, 308, 310, 312
- They countered back and said $315,000 was the LOWEST they would go
- I told them $314,000 - take it or leave it, bitches
- They accepted my offer and I closed in March 2009
* Best feelings of all =
- I got the homeowners grant for $570 + in savings
- I'm a first-time buyer and I was EXEMPT from property purchase tax ($4280)
- She had to pay GST (Government Sales Tax) of thousands of dollars as SHE bought it new in 2007
- I was EXEMPT from said GST tax
- I saved 30% on my condo insurance as well. I went with the company my dad deals with / got a discount for being mortgage-free on the condo / first-time homebuyer discount, and another discount ... so that was cool ... felt good knowing the SELLER paid a total of 320 - 325,000 in 2007 and looked to turn a profit. I got it for 314,000 (and it's worth 324,000).
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
I'm here too checking this shit 3 years later. Thought it was new. Come on, I want some advice...
I'm here too checking this shit 3 years later. Thought it was new. Come on, I want some advice...
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
Oh my!!!
This has GOT to be one of three of the most interesting threads I've ever read on BGOL (If not the MOST!).
I'm really only posting to disguise this BUMP...
... and to thank the OP and everyone who has contributed with their jewels of knowledge.
Bravo & Thankyou (In a strange belated kind of way).
Oh my!!!
This has GOT to be one of three of the most interesting threads I've ever read on BGOL (If not the MOST!).
I'm really only posting to disguise this BUMP...
... and to thank the OP and everyone who has contributed with their jewels of knowledge.
Bravo & Thankyou (In a strange belated kind of way).
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
Smartest post in BGOL history!
Considering the collapse of the housing bubble I am surprised Afroyale isn't on here more beating his chest.
Really speaks to his character that he is taking the high road.
Smartest post in BGOL history!
Considering the collapse of the housing bubble I am surprised Afroyale isn't on here more beating his chest.
Really speaks to his character that he is taking the high road.
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
Something tells me Afroyale is out there collecting bargain property and damn near owning an entire town/city/village with these rock-bottom prices.
Something tells me Afroyale is out there collecting bargain property and damn near owning an entire town/city/village with these rock-bottom prices.
Re: Real Estate Bubble In Full Effect!..This is not the time to buy. Flippers be warn
Im an investor in nyc looking for wholesale properties, including short-sales and commercial properties. I will pay a 2% referral fee to anyone who finds a good deal in these following states,
NYC, California, Las Vegas, Seattle Washington & Arizona.
Oh if any of you are serious about getting started and need to be pointed in the right direction go to www.reiclub.com tons of resources and well like minded business people.
Happy Investings
Im an investor in nyc looking for wholesale properties, including short-sales and commercial properties. I will pay a 2% referral fee to anyone who finds a good deal in these following states,
NYC, California, Las Vegas, Seattle Washington & Arizona.
Oh if any of you are serious about getting started and need to be pointed in the right direction go to www.reiclub.com tons of resources and well like minded business people.
Happy Investings
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