I don't know about you but I've hit the ground running this year!
And one of the things I'm doing is working with the 100% LTV Bond Funding Program. Since this is one of the ways I'm still acquiring property, I wanted to explain a little more about the program since many of you want to know how this works for your own deals.
To get this program to work for you, the purchase price of your property must be at $1 million or above. It cannot be less than $1 million. (And there is no limit or cap.)
Next, you'll have to have a property that can support a 100% LTV mortgage at about an 8% fixed interest rate (30-year amortized). In areas of the country that have low CAP rates like Seattle or Los Angeles or New York...you're not going to be able to make a 100% LTV property cash flow unless you're knocking 50% off the asking price. And no seller will accept that offer from you. Instead, you'll have to focus in on areas of the country that can support 100% LTV deals after, of course, you shave off 10% to 15% off the asking price of any property you're looking at (which you should always do when buying a property anyway).
Where are these areas of the country?
Smaller "big" cities like Cleveland, Detroit, Indianapolis, Jacksonville, Atlanta, and Memphis to name a few make excellent areas to work with. Any area that doesn't have low CAP rates (as an average) that consistently fall below 8% across the board.
Remember, your 100% LTV has to be supported by the cash flow of the property. Deciding to invest in low CAP rate cities will guarantee that you'll end up with a negative cash flow property and your bond funders won't fund a negative cash flow deal.
Next, I have students asking me why the funders want to see that you have 1% to 2% of the purchase price of the property when it's a 100% LTV bond funded loan. The funders need to see that you are somewhat financially sound to the point where, when walking into the property after closing, you can pay for any upgrades, repairs, or get any units (needing new paint and carpet) rent-ready for new tenants. There's nothing worse than funding a property to find out that the lender has funded someone who doesn't have 2 nickels to rub together and can't do basic things for a property if needed.
Also, my students want to know about credit criteria. These funders will allow for people to have some credit issues/problems. I do recommend that if you don't have good personal credit and you don't have built business credit, start getting it together, bub. This upcoming year isn't one to be messing around and dragging ass otherwise you'll lose out on every last opportunity out there!
How do you access this program and other cash resources for your deals PLUS an investor partner who wants to work with you?
CLICK HERE and I'll show you how!
This deal ENDS SOON so get it now before it's too late!
If you have any questions, you can call my office on Monday after 9am PST at (661) 295-5050.
See you at the top!
Your mentor,
Monica Main
