Palm Beach Gardens Cigar Networking Event.

Cigar Networking Event
Date: March 31, 2009 (Tuesday)
Time: 5pm to 7pm
Location: Gardens Cigars
Cost: $10.00 (Good towards any purchase)
Come meet other local professionals in the area who appreciate a good quality Cigar in a relaxed networking event. Appetizers will be provided.
Pre-Register
Please Call Matthew Blum (561)294-3202
E-mail: MBlum@SchumacherAuto.com

Hard Equity Home Equity Lines are Now Available in Florida

Hard Money / Private Money Home Equity Lines of Credit

As a Mortgage Broker in Palm Beach Gardens, Florida (Northern Palm Beach County) I have found many of my clients looking for Home Equity Lines of Credit(HELOC) or just plane seconds because they have such a great first Mortgage. Recently, with all of the guideline changes and the market conditions going crazy it was almost impossible to get a first Mortgage let alone a second one. This is why I am so excited to have one of my Investors come back in the market with this product.

Minimum Loan Amount $25,000

No-Prepay

No-Prepay (worth writing that twice)

80% must be drawn at closing

No Proof of Income

Credit only as a guide

Independent Appraisal (not from Lender)

Closing can take place in as little as 5 days



If you have any questions please feel free to call or e-mail any time. (561)294-3202

Myths About Hard Money / Private Money In Florida

As a Licensed Mortgage Broker in South Florida (Palm Beach Gardens) I work with several wholesale Lenders from A+ Credit to those who have a few speed bumps along the way of life (as do most Brokers). With the market the way it is in Florida I have really expanded my product line on the Hard Money / Private money side. Since doing this, I have also found many clients and Realtors really have miss information on these type of loans now.

Myth 1:

Hard Money / Private Money Only Uses the Appraised Value and Not the Purchase Price

WRONG!

When the market was going crazy this was a true statement. Now with the market the way it is they use the purchase price. Lets face facts if the appraisal says $300,000 and your buying it for $200,000.. that is really what the value is. You will NOT BE getting a 100% financing using this type of Financing. Those days are gone..

Myth 2:

Credit is Not Looked At

WRONG!

Your credit is looked however, your score is not what is important on the credit report. They want to see your payment history. In the end it will show what your final rate will become

Myth 3:

Close in Under a Week

WRONG!

While this is really not impossible it is highly unlikely. If a complete file is submitted to a Hard Money / Private Money Investor than you it might be able to. However, be realistic. These Investors DO NOT WANT this property. They want you to make the payments. They all now more than ever really go through each file with a fine tooth comb. In the end they do close pretty quick from start to finish.

Myth 4:

My Loan is NOT a High Risk Loan

WRONG!

The bottom line is, if your loan was not a High Risk Loan then you would seek other financing options. This type of financing does not come cheap. Their is a cost to this money.

In closing, I hope I was able to clear up some myths about Hard Money / Private Money lending. If you seek this type of financing please make sure you are dealing with someone who is licensed and really has the knowledge and ability to close your loan. If someone promises you the moon and the stars... RUN!

Summer is Here! Is Your Car Ready

Living in South Florida (Palm Beach Gardens) and with the Economy slowing down many people are opting to keep their vehicles longer, including your Favorite Mortgage Broker. With the temperature rising it is a sure tell tail sign that Summer is coming and maintain our vehicles is important. Along, with Gas prices at record highs and know sign of relief, is your Car or Truck at peak performance?

Many people believe in just changing the oil for maintenance but the truth is their is much more to do than just oil changes. If you have an older vehicle ask your Tech if a 20/50 weight oil is advised. Also, on your next Oil change make sure to check your air filter. If your car or truck has to work harder to get the oxygen to the engine your gas mileage will suffer as a result. Another recommendation for those of us who have fuel injection systems (almost everyone now) when was the last time they where serviced? By keeping them clean and operating at peak performance you will see how you get better gas mileage as-well.

Newer vehicles have 100,000 mile spark plugs. However, if you read the fine print you will see UP TO 100,000 miles. Have your spark plugs checked by a professional Tech and at the same time maybe a tuneup could be advised. Make sure all your cables and connections are good because with faulty or deterring cables you will suffer gas mileage. Remember if the engine has to work harder your gas mileage will suffer.



As many of us who live in South Florida know the heat in summer is stifling. How do you think your vehicle feels? Make sure your radiator is serviced as well. The last thing you want to be is on the side of the road in this heat.

In closing, living in South Florida and with our Economy hit hard many of us our keeping our cars and trucks much longer than normal. Make sure your vehicle is up for the task.

What is The Blended Rate and Why is it So Important

With Mortgage Rates relatively low and with the Federal Government lowering the Prime Rate many of my clients in Florida are starting to consider refinancing their current Mortgage's. However, before you rush off to your favorite Mortgage Broker I would recommend you find out what your Blended Rate is. (The True Cost of your Money)

Many of my clients have taken out over the years Home Equity Lines of Credit.(HELOC) These type of loans are tied to the Prime rate. The rate as of today (3/25/2008) is 5.25% but in many cases if the clients credit was very strong many banks who issued these Credit Lines had fantastic deals. This is the case of one of my clients. I refinanced their current loan a while back to a fixed rate mortgage, because they had long term plans to stay in the home and the rate was 6.25. After the loan was closed my client was approved at their local bank for prime -.50 for the life of the loan. In today's market that would make the interest rate 5.25 -.50 = 4.75%.

This leads me to the purpose of this post. Earlier in the week the client had seen you can now get a 30 year Fix in the 5's and was thinking maybe they should refinance their current mortgage. This led me to a meeting with my clients to explain what the "Blended Rate" is and to see if it makes sense.

Current Rate 6.25% (1st Mortgage) 4.75 (2nd Mortgage HELOC)

Balance Balance

$300,000 $100,000

Now lets do some simple math:

300,000 + 100,000= 400,000

or

1st Mortgage = 75% total owed

2nd Mortgage = 25% total owed

Now we take the 1st mortgage rate 6.25 x 75% (6.25 x.75) = 4.69

Now we take the 2nd Mortgage rate 4.75 x 25% (4.75 x.25) = 1.19

From this we total the two numbers to find the "Blended Rate" of 5.88%. This represents the true cost of what my clients mortgage is or the cost of money.

Now with the current state of the economy it would be a pretty safe bet that we are not going to see the Prime Rate going anywhere but down. In Florida, this loan on average would of cost in closing costs around $8,000 with no points or fee's from myself.

My suggestion if you are thinking of refinancing please review both your notes to see what you true rate is. In addition many Home Equity Lines of Credit have different terms and conditions many of them have teaser rates (rate is good only for so long). If you have any questions please consult your Mortgage Professional to find out what your Blended Rate is.

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Want to Know How To Buy a House in Florida?

Want to know how to buy a house in Florida?
Please Press Play. Once it loads please continue to read below:


Ok, so this post is going to be more of a vent but this is the harsh reality people. If you want to buy property now especially in Florida you are going to need MONEY. That is the bottom line. Gone are the 100% financing with a 6% seller concessions. This just does not exist.
You can keep calling all the Lenders and Mortgage people you want have your credit pulled hundreds of times continue to waste people's time. The harsh reality is Money cures all. Because the Bottom line MONEY TALKS
If your credit isn't perfect this is not a problem you can still qualify for a mortgage keep in mind MONEY TALKS
You have Great Credit but can't prove your Job or Money. Not a Problem MONEY TALKS

You Want to Take advantage of a great buy well under the appraisal. Here is a thought if the property was really worth what the appraisal says it is you would have paid that price for the property. So MONEY TALKS

You just left the $99 Seminar on how to buy property with no money down.. Guess what?!? That person just got $99 from you because MONEY TALKS!
You want to take advantage of a high Appraisal and a low purchase price and after leaving your seminar you found out about "Hard Money" working off appraised values. Guess what?!? The Hard Money Lenders at best today in South Florida will go 50% of Appraised value if that (for a purchase). The feelings they have is the same as above if the property is worth "X" you would have paid "X" not 50% less.

Sorry to vent but we have to face the facts if you want to purchase property in Florida the reality is your need Money Down and also money in the bank after for reserves. Having money down and having money in the bank after says plenty to the Lenders. MONEY TALKS!

Business Cash Advance. No Liens, No Collateral, No Hassle!

Business Cash Advance
As a Mortgage Broker in Palm Beach Gardens, Florida many of my clients are Self-Employed Borrowers. Many of these Clients Business are based on Seasons and therefore have up's and down's on their cash-flow. This is why I am so excited about a new product that one of my Investors/Lenders is now offering.
Business Cash Advance
You might be asking what is Business Cash Advance. BCA (Business Cash Advance) or sometimes called Merchant Credit Advance, is an advance of real Dollars $$ to a Merchant based upon the average Credit Card use (Visa/Mastercard only) Features include:

NO Personal Guarantees
Quick Funding (Usally between 3-7 Business Days)
Minimal Requirements


So now that I have your attention, you might be asking yourself how does this program work? The Business or Merchant is advanced a percentage of their average monthly credit card use (12 month average) typically 125%. Then a portion is taken out of every future sale over the next 9 months. If you have a slow month your payments will reflect that. Perfect for a Seasonal Business.
Business that are Eligible
Bar / Nightclubs,Beauty Salons, Dry Cleaners, Gas Stations, Restaurants, Retail Sales,
Hotels / Motels, Auto Repair Shops, Day Care Centers, Convenience Stores, Nail Salons
and so many more....
The Fun Part:
Requirements
*Minimum of 12 months that the Business has been accepting Credit Cards (Visa/Mastercard)
*Minimum of 15+ Transactions a Month
*$5,000+ a Month in Credit Card Sales
*All Bankruptcies have been discharged over 12 months
*Minimum of 1 year remaining on current Lease
*Personal Credit is Looked at as a guide only (FICO is not a determining factor)


Some of my readers on my blog have been asking if I am leaving the Mortgage Business because I have expanded the products that I offer my clients. I believe in the current market conditions only the strong will survive. As a Mortgage Broker I am firm believer that we must expand what we offer our clients and Business Cash Advance is just one of the new products that I am offering.