Beach Press

Last month the U.S. emergency Stimulus package was signed into law, with a whole lot of excitement and expectations...

Especially in regards to increasing the Conforming loan limits.

However there are a few catches...

While the loan limits have been increased from 417K all the way up to 729K...

Actually they have created a 3 tier system.
1. Conforming: $417,000 or less
2. Conforming Jumbo: $417,001 to $729,750
3. Jumbo: $729,751 and higher

With Each Tier having a different interest rate... the higher you go, the more interest you pay.

Combining both a current 1st and 2nd mortgage into one new conforming Jumbo loan comes with an even higher interest rate...

And having a 2nd loan behind the new conforming Jumbo is currently not allowed or even offered...

Basically the lending guide lines have moved back to the 1990's.... where buying a home required putting 20% down or getting an FHA loan...

The FHA loans are excellent, and will allow up to 97% financing however it will be only 1 loan and require paying mortgage insurance if the loan is greater than 80% of the value of the home...

Just like in the 90's.

Now is a great time to take a good look at your real estate holdings, especially in regards to:

1. Home values

2. Loan amounts and programs

3. How much you pay for insurance, etc.

If you have not already done so, set a meeting with a Certified Mortgage Planner for your annual debt and equity review to see where you are and if you need to make a change...

Cezar Mansour is Certified Mortgage Planner, and is president and owner of Beach Lending, and Clear Blue Realty in Redondo Beach, CA.

A real Esate finacing frim assiting people buy their first home, investment and or comercial property.

He is a the author of "The Official Guide to Building a Referral Based Business" available on Amazon.com

You may also contact Cezar directly at: Cezar@cezarmansour.com

Flip That House

Buy a home for $500,000, spend $50,000 in renovations, then sell it for $650,000. You make a profit of $100,000 right? Not exactly. Beach Lending held a seminar last week at the Santa Monica Chamber of Commerce, that gave a similar example. The shows like "Flip That House" and "Property Ladder" are great at showing you how to clean up a house for resale, but they give you no insight on how to do anything else.

What else is there? First you have to find the home. Sounds easy, but you need to be looking for ten + items that would make that house a good investment. Once you found it, you need to know how to negotiate. Once you get your offer accepted, how are you going to finance it? There are many fees, commissions, taxes, mortgage payments, etc...on top of the money you put down on the house, plus the money you are spending to clean the place up.

Yes, there are many many great deals out there, and yes, you can make some great money flipping homes...even in today's market. But you do need a team. You need someone to sniff out the deals, you need a financing guru, you need a good crew and a handy man. Beach Lending and Clear Blue Realty have worked hard to put that team together for our investors. We make it as easy as possibly for you to flip a house, or to get it ready for rent. If you don't believe us, just ask us!

Gary Dempsey
Executive Vice President
310.383.0740
gary@beachlending.com