Commercial Mortgage Loans - Borrower Cash Requirements Are Higher Today

The world wide credit crisis is causing sever problems throughout the global economy, particularly in industries that are highly dependant on borrowed money. Commercial real estate is just such an industry; virtually all commercial property is mortgaged to some extent.
Like residential lenders, commercial lenders have tightened up their underwriting standards and become more conservative in their lending decisions. In short; it's harder to get a commercial mortgage loan today.
One of the first criteria commercial mortgage lenders tweaked is the all-important loan-to-value ratio, or "LTV". LTV represents how much money will lend to a commercial real estate investor as compared to their assessment of the value of the collateral property.

The commercial mortgage industry never embraced 100% financing the way the residential side of the business did, but LTV ratios did climb during the recent run-up in property values and the corresponding economic boom. It was not uncommon for buyers of income producing property to succeed in securing financing with only a 10-15% cash investment. LTV ratios of 80% were the norm and lenders allowed fairly large seller carry-backs of 2nd position mortgages or other junior debt. A typical 80% LTV deal might have been structured with a first mortgage of 80% of the properties value, a mezzanine loan in junior position of 10% and a 10% cash injection from the borrower.

The days of high LTV ratios are miles behind us. Few institutional commercial mortgage lenders will consider lending any more than 75% of any property's value in this challenging market, and private lenders won't go over 65% . And further, their CLTV, or combined loan-to-value ratios have also plummeted. This simply means that first position lenders are restricting the allowable amount of second position debt. They simply won't allow large seller financing or junior debt structures any longer.

The bottom line is that investors, property owners, developers and project sponsors must come up with more of their own cash if they want to close deals today. Stabilized, income producing properties are able to garner up-to 75% LTV from conventional lenders if the sponsor has a good reputation. Private lenders will only go up to 65%. Non-stable buildings (insufficient cash-flow) have been sworn off by banks and Wall Street. Investors will have trouble finding conventional funding. Private lenders, on-the-other-hand will lend between 50% & 60% LTV on assets that don't cash-flow. Land is increasingly difficult to fund, traditional lenders are aggressively avoiding it. Private lenders, might lend about 50% of its value if you find one with an appetite for unimproved land.
If you want a commercial mortgage loan in this tight capital market, be prepared to come to the table with plenty of cash.

How an Agent Can Be of Help in Commercial Real Estate

Generally, if you want to start a business, there are many things that must be done and you have to go through various processes in order to make sure that your business would be a good venture. Added to these preparations, you have to remember that you must learn about the market that you are interested in so that you will know the proper strategies that you must do. Added to this, the location of your business can be additional thing that must be done so there really are too many things that must be done before you can even start.
This is also applied if you are interested in the Florida commercial real estate. This may not be easy but if you want to make a business work, then you have to make the necessary tweaks. There are many things that must be done as part of the whole process and getting help may be a good option for most beginners. A Florida commercial real estate agent can be a big help especially if you are not yet aware of how the market works. His expertise can be your key so that you will have a good commercial property and make use of it in your business.
The Florida commercial real estate that you are looking for may be traced by the agent but you have to communicate to him what form of property do you need. There are more things that can be done by the realtor so if you have properly selected the kind of agent, then you can get more from his services.
First, you have a person who generally has more knowledge about the Florida commercial real estate market and this is beneficial as this can also mean that he has more connection that you do. Thus, the search for the right kind of property can be done faster and more convenient on your part. Added to this, as he has more exposure on the market, he may already have an idea of the prices of the properties so you simply have to tell him your budget and he can try finding the right property for you.
The legal process for acquiring the commercial real estate may be more difficult so you will need a help from someone who already know the process. Also, you can be assured that he will not miss parts of the process since he knows that he is doing.
As there can be many things that can be done trough a real estate agent, you should do your part in searching for the right kind of agent that can help you. The trusted ones are necessary and you must have a good line of communication with your agent so that your needs would be relayed.

Making Money With Life Settlement Investment

Have you recently heard of a simple way to invest and be sure that you are going to make money? If so, you have probably heard of life settlements. Unlike the stock market this is a type of investment that is sure to be fruitful because it has to deal with death, and death is something that is unavoidable for us all. Buying a life settlement is something that has been done since the 1980's and it is a billion dollar business that is growing by leaps and bounds with each passing year. This is a process that can be attractive not only for the investor, but also the owner of the policy.

The way that this works is simple: people who are terminally ill can choose to sell their life insurance settlements. Selling is perhaps too broad of a term, instead they are finding people who want to invest in their life insurance policy. For instance, if someone who is terminally ill has a one million dollar life insurance policy they can find an investor who is willing to give them $200,000 or $300,000 for their policy. The investor will give the terminally ill individual the $200,000 or $300,000 and then they will be made the beneficiary of the policy.

While this sounds like a big investment to make, it pays for itself. Usually the people who are willing to sell their policies will only live for a matter of months. So, the person who invests gives them the money and then when the ill person passes on the investor will receive the proceeds from the life insurance policy! This is a fast and easy way to make money as in investor and even though they have to put up money to make money, the turn around is quick and in the end they end up making $800,000! You can't argue with making this sort of money over the course of a few months.

Senior settlements are the most typical type that investors will consider. The reason for this is that they are usually much more short term and more reliable on a whole. The only thing that needs to be done is that the senior needs to submit to a medical check up, sign papers acknowledging that they know what they are doing, and then sign the investor on as the beneficiary of their policy. The whole process can be taken care of in a matter of a couple of days and this is why this is seen as a really great way to make money as an investor and also a great way to get the money that you need to get you through until the end of your life.

ABCs of Senior Life Settlements

When most of us think of life settlements we think of monies that are paid out when we, or someone who has life insurance passes away. There are many others who have learned to think of life settlements in a much different and more lucrative way. Dating back to the 1980's selling life insurance policies to a third party has become a billion dollar a year business and it is something that is being done by individuals as well as investment companies!

If you have recently found out that you are terminally ill and you don't have enough money in the bank to get you through your last days, you may not have to live out the rest of your life in the poor house. Instead, you may be able to make thousands or even hundreds of thousands of dollars off of your life insurance policies now since you won't need the money later.

The process of selling your life insurance policy to another individual is a practice that is usually only done by the elderly, which is why most refer to the process as senior settlements. All you need to do is find an investor who is willing to buy your policy for less than it is worth. For instance, if you have a policy that is worth $500,000 you may be able to find an investor who is willing to pay $200,000 for it. This will be enough money to get you through the rest of your days while still being an attractive investment offer for someone else.

Generally all you need to do to sell your policy is to submit to a medical checkup, sign the forms, and then sign the investor on as the beneficiary of the insurance policy. What this does is give you the money that you need to get through and when you pass away the life insurance policy will be paid out to the investor. The investor can be someone in your family, but chances are it will be someone that you don't know or have never even met face to face before.

In fact there are companies that deal with these settlements. A life settlement company is either a company that will help you find the right investor or will be a company that will actually buy your life insurance policy from you. The great thing about this is that you don't have to do anything illegal, in fact you are not even bending the law, instead you are simply finding a legal way to profit off of a insurance policy that won't do you much good once you have passed away. The overall appeal of this type of settlement is what has made it very popular with a growing number of people each year

Why You Should Consider Buying Morocan Property

The interest in buying property in Morocco has been partly due to the widespread media coverage that the area has been receiving recently because of the Vision 2010 economic development plans. The emergence of Morocco's property and tourism market has ensured healthy investment opportunities.

Television has certainly picked up on this trend and as a result programmes are being produced to meet the viewer demand for information about when, where and how to invest in property in Morocco.

Currently 1 in 5 African properties owned by British buyers are in Morocco, proving that the nation is of serious interest to UK based investors - whether it's an investment property, a holiday home in the sun, or simply a new home overseas they are looking for.

The number of British owning Moraccan property will increase as more investment pours in from the UK. The market is showing an annual capital appreciation of 15% - 30% and rental yields are set to increase with tourism which, between now and 2016 is set to grow by 4% a year.

And the British are not the only ones who have spotted the potential of the Moroccan property market and to be taken in by its appeal; according to The Observer newspaper so too are the Spanish, French and Italian buyers. French is a common language in Morocco, due to the long protectorate that France had over the nation. For this reason, the French have flocked to Morocco, finding the Costa Vista and the Mediterranean Rivera region similar to their own.

The stunningly beautiful, historically and culturally rich region of Costa Vista is one of the most attractive parts of Morocco - both literally and in terms of the developing opportunity it offers investment and lifestyle home buyers. According to local expert opinion, it is also the top centre for expatriate inward migration in Morocco and where a large concentration of brand new property development interest has centred.

Located directly opposite the Costa del Sol and separated from Spain by just a thin stretch of the Mediterranean Sea, it is impossible not to draw comparisons between the Costa Vista and the Costa del Sol. Both offer up a fabulous climate, a stunning landscape, pristine beaches and a fantastically laidback lifestyle, but this is where the positive comparisons end.

Whilst the Costa del Sol is suffering its worst winter sun season according to Spain's Association of Hoteliers, the Costa Vista and Morocco enjoyed the highest visitor numbers last year for forty years. Additionally, the Sunday Herald revealed recently that property prices in parts of the Costa del Sol have declined, whereas, according to The Times, some investors have benefited from up to a doubling of property prices in Morocco.

It's of little surprise therefore that the Costa Vista is being heralded as the 'next big thing' in the world of overseas property investment.

MOROCCO: BUYERS' GUIDE

* Average summer temperature = 38°c.
* Purchase tax 1.1% or purchase price.
* Government registration fee 3.9%.
* Legal fees 0.5%.
* Estate agent commission 2.5%.
* Owners pay annual property tax similar to UK council tax.
* Rental income taxed at 13.5%.
* No tax on rental income for the first five years.
* 20% Capital Gains Tax if sold within 5 years, 10% to 10 years, 0% thereafter.
* Casablanca and Marrakech buying prices tend to average around ¬2,000 per square meter.
* Normal local rental market yields around 6% (Rabat, Casablanca and Marrakech - 100m² = 7.2%, 150m² = 6%, 200m² = 6.55%).
* Property prices increase by as much as 40% in prime areas.

Credit Repair During a Credit Crisis

These days, people are finding that their once solid credit rating has fallen faster than the stock market, and they are in danger of spending the next few years dealing with high interest rates and credit rejections. Millions have been foreclosed on, gone bankrupt or fallen behind on their bills during these tough economic times, and they are looking for a way out.

Your credit is not written in stone. Your FICO credit rating can change based on how seriously you take the task of repairing it. While you may have a FICO score of 500 right now, through hard work you can get that credit rating back up to 650 or higher in no time. In fact, repairing your credit is a step-by-step process that can be made very easy when you know how to do it.

First, you need to cut out all the expenses you don't need. Renting a movie or going out to dinner a few times a week may be nice, but it's unnecessary. Instead, save that money and put it into a savings account so that you can build a float that will help you pay your bills. Why are paying your bills important? For the simple reason that one missed payment can lower your credit rating significantly. Paying your bills is incredibly important, which brings us to our second point of credit repair.

Second, pay your bills on time with as much as you can. When you pay your bills on time, your credit rating will improve because you are showing a payment history where you make regular payments on time and for how much you owe. It can be hard to pay your bills of course, but that is where minimum payments come in. By making minimum payments on your bills and credit card, you can keep the interest from piling up. Even making minimum payments on your credit card will help improve your credit rating. That being said, you cannot rely on minimum payments forever. You will have to continue to save your money in order to pay everything off.

Third, limit your credit cards to two. Having one credit card can hurt your credit score because it will look like you are inexperienced with credit, while having four credit cards will make you look like a compulsive borrower. Therefore, limit your cards to two or three and make sure you always make at least the minimum payments on all of your cards every month. The worst thing you can do for yourself is to fall behind on credit card payments.

Lastly, you should always know what your credit rating is. This means getting your credit score report on a regular basis and finding out what your score is. When you know your score, you know what kind of interest rates you will get on loans, whether you will get a loan and what kind of terms you will have on it. People don't realize that applying for credit and not getting it can also hurt your credit score. Only apply when you know your credit score is good enough. Checking your credit report will also allow you to look for errors that may be on the report. This is very common and as many as 75 percent of all reports have errors on them.

It may seem like you are drowning in debt and your credit rating is falling faster than you can repair it, but by taking the time to sit back, look at what you owe and begin repairing it in a concise fashion, you should be alright.

How to Survive and Win in This Bear Market - Follow the Candlestick Patterns

The near-collapse of the entire financial system of the country unnerved most investors, and panicked some of them. Stock prices have been gyrating for days on end, pending a resolution or non-resolution of the Administration's bailout proposal. Matters came to a head over this past weekend, and as of this writing we are being given some assurances that the contentious dispute has been resolved and that the effectuating legislation will be presented to the House today.

No doubt the recriminations will flare up again when many Members, who have not been parties to the negotiations, will have their chance to take the floor and voice their various outrages. The main difficulty is that the horse escaped from the barn long ago. As is typical with Government, it is much better at addressing past issues or problems which have come to a head rather than anticipating them and acting in time to prevent damage. Most legislation is enacted in order to address or correct past problems. This case is no different.

In the face of a developing bear market and chaotic price moves, what can an investor do in order to protect his portfolio, and indeed all of his assets, from the precipitous decline in stock prices which many observers expect? First of all, he or she should come to understand that ups and downs in market prices are perfectly normal, and are to be expected. In other words, it is a fact that price action moves in up-and-down waves; and by definition, up-and-down waves reverse and go in the opposite direction. It follows that if one can read the signals and anticipate a change of trend, he or she will be ahead of the game.

More and more, professionals and investors are using the Japanese Candlestick format of financial price information when analyzing market action. The great advantage of Candlestick presentation is that it deals in visuals - pictures - rather than raw numbers. The eye instantly recognizes the formations which are shown by the pictures, some of which have a remarkable capacity to predict reversals of trend.

The investor need not, and should not, simply stand idly by on the sidelines while the value of his or portfolio declines in an ongoing bear market. He should take an active stance in learning what the Candlestick patterns mean and the effect which they have on prices in the days which follow their appearance. If the investor can spot reversals of trend as they are happening or about to unfold, it is possible to capitalize on short-term upside reversals, while at the same time maintaining a basic plan to be on the "short" side, recognizing that the major underlying trend is Down.

In order to establish such a "short" plan, the investor should utilize one of the most valuable defensive tools ever invented - the Inverse Fund. There are many of them on the market, offered by reputable houses. Some of them operate inversely as to the Dow Industrials; some inversely as to the S&P 500; and some inversely as to the NASDAQ 100. The Exchange-traded inverse funds arrived later, and have achieved great acceptance in the market. Their great advantage is that they are traded exactly like stocks.

The intelligent investor owes it to himself or herself to learn about these tools. If he or she adapts them to his or her own particular investment situation, they - in combination with an understanding of Candlestick trend reversal patterns - will help one to weather the storm and come through intact.