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Fighting Back Against Foreclosure Nothing in your life is more important than your home. It gives your life stability, and it’s part of your family’s future. In this situation, foreclosure can be a truly menacing prospect. Unfortunately, there are too many people who are dealing with foreclosure. There are many reasons why a foreclosure may take place. Some homeowners struggle to make their mortgage payments on time, but others will deal with property taxes. If you find yourself in this situation, you need to respond. By working with a foreclosure attorney, you can get the help that you need to keep your home. As you are no doubt aware, though, every foreclosure lawyer is unique in some sense. It’s up to you to find an attorney that meets your demands. When it comes down to it, choosing a lawyer is all about knowing what to look for. The first step here is to evaluate your budget. It should be stated that a good foreclosure attorney doesn’t need to cost a great deal of money. If you stay patient, you should come across a foreclosure lawyer who is both skilled and reliable. Remember that your house is an invaluable part of your life. It’s important for you to avoid foreclosure if you expect to live comfortably. It’s worth pointing out that there are many reasons that foreclosures occur. While most foreclosures occur because of late mortgage payments, this isn’t necessarily true for all situations. As a homeowner, you may struggle to pay your property taxes.
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There are many states that have burdensome tax laws. If you aren’t able to make your payments, you will eventually enter a state of arrears. This can lead to a government seizure of your property. Fortunately, there is something that you can do. There are many companies that help homeowners avoid foreclosure. As you may imagine, foreclosure law is remarkably esoteric. If you do everything on your own, it will be almost impossible for you to prevent foreclosure. By hiring an expert, you can get the help that you need to keep your home. As you may be aware, though, no two foreclosure teams are ever identical. It’s important to find someone who meets your particular demands.
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To really fight foreclosure, you’ll need to consider your expectations. Unfortunately, some foreclosures cannot be prevented. If your mortgage payments are very late, foreclosure may be inevitable. Fortunately, there are still actions that you can take if you find yourself in this situation. By working with a foreclosure company, you can delay the process. By delaying the process, you can give yourself time to get your life in order.

What to Do When You’re Turned Down For Your Commercial Real Estate Or Development Loan

What alternatives do you have when you are turned down for your commercial real estate loan by your bank or other lender? Your property has an appraised value, and you have equity in it that you’d like to cash in, or you’re trying to buy a new property and can’t get a lender to give you the purchase money loan. Maybe you’re a real estate developer who is used to getting your loans approved because of a successful track record, and can’t even get a meeting now. Or maybe you’ve been approved for a loan, but can’t stomach the rates or terms.

We’ve all heard more than we’d ever want to know about the liquidity and credit crisis, but what may not be as obvious is that there is plenty of money out there–for the right deal. Change creates new opportunities, and when the traditional financial institutions can’t or won’t take on more risk, there are many lenders and investors who will. It’s all about taking another look at your existing assets, both in real estate and in liquid or paper assets, and making the best choice available. The following is a simple list of ways to create alternative financing possibilities:

  • 1 Which institutions have turned you down, and why? Knowing what has not worked can turn you in the right direction, so make sure to ask as many questions as possible when you’re turned down, including asking if they can direct you toward a lender who might be able to do your loan. While most of the following criteria usually play some role in qualifying for a loan, some lenders focus most on CLTV or LTV (combined loan-to-value or loan-to-value), some on DSCR (debt servicing coverage ratio), some on IRR (Internal Rate of Return), some on Cap Rate, some on credit, and some on the overall financial strength of the borrower. Knowing this is often the key to getting to the right lender.
  • 2 If your loan was approved but you didn’t like the rates and terms, see how much room there is for friendly negotiation, and don’t delay. It’s vital to keep on good terms with anyone willing to loan money these days–don’t burn a bridge if you can help it. I personally know many developers with “sticker shock” who expected to return to the approving lender several weeks or even months later (after they shopped around and couldn’t find anything better, or were turned down by everyone else), only to be turned down this time because the lender starts to wonder if there’s something wrong with the project that they didn’t see the first time, or because conditions have changed.
  • 3 You may have to put more cash down if you’re making a purchase. Risk-averse lenders want a much more attractive LTV loan-to-value before they will step in with the rest of your purchase money funds. If you’re refinancing, remember that a risk-averse lender is very cautious about appreciated value and would rather see more of your own cash in the property.
  • 4 If you don’t have the additional cash, take stock of your other assets. There are lenders who will loan against many different types of assets such as merchant accounts, future cash flow, marketable securities, other financial instruments, cross-collateral real estate, insurance settlements, and factoring receivables. For certain types of projects, such as energy and green-type projects, as well as films, there are tax credits, carbon credits and various types of bonds and partnered participation sponsored by municipalities and states.
  • 5 When considering a purchase, or perhaps if you are designing a new project to build, you may want to look at which property types lenders are looking to finance before you make an offer. Even if you have talent, a niche, tons of experience, or a crystal ball that works, why swim against the current when you could go with the flow?
  • 6 If you’ve gone through all your regular banking relationships, you may want to consider working with a licensed broker. Although you pay for the broker’s services, remember that a broker is keeping up with many more lenders and investors than you generally could, and they can help steer you toward those whose guidelines you fit.
  • 7 One resource that can work well (if done with the right institution) is a leased financial instrument, such as a SBLC or a CD. Some larger real estate transactions can be closed either with this kind of credit enhancement, or with funds deposited in escrow when other funds will be available at closing. It’s also sometimes possible to run a useable line of credit against a certain type of leased instrument when the financial institutions on both ends agree to the terms. Be very careful to have approval from the bank providing the credit line prior to making any payment.

It’s important to be creative as well as realistic when trying to get a commercial real estate loan, and to be willing to accept the changing financial terrain while being open to new suggestions. Look for solid professional advice to improve your own personal and professional goals. Sometimes when you look at things differently, the solutions to the problem become much clearer and perhaps better than the plan you first had.

How to Succeed in Commercial Real Estate With No Tenants

The question that makes up the title to this article might seem a bit confusing. After all, isn’t the business of owning apartments (large or small) about having tenants and a positive cash flow? Of course it is, and that isn’t really the point. The point is that you should not have to be managing any tenants when your business is operating the correct way.

The way to get to this “tenant free” point in your own commercial real estate business is through the effective use of property managers. Managers can and should take care of the many tenant issues that have been the thorn in the side of property owners for decades. So, how do you get to this point in your own business?

It doesn’t necessarily always start out this way. Many real estate investors find it useful to start their businesses by managing at least a portion of their properties, so they develop a good feel for this side of the business. In this way, it’s not unlike a McDonald’s store owner being asked to work in the store for a while to get a good feel for the operation.

The challenge comes in letting go. Many real estate investors, through a committed work ethic, actual enjoyment in working with tenants, or just gluttony for punishment, often find it difficult to release the property management side of their business. As admirable as this may be, I also do not recommend it.

Property management is not only time consuming, but it also introduces an emotional element to real estate investing, given that you are working with real people and real life situations. I find that the best way to handle this real element of the business is to have a professional (and unbiased) third party do it for you, leaving you out of the picture when it comes to your tenants.

Call it sacrilege if you will, but I simply find this to be good business. The best form of business ownership is one where you aren’t enslaved by it, freeing up your time to relax, look for more deals, etc. Choosing a good property management company to handle each property you own can be an excellent way to accomplish this very thing.

Sure, property management is not without its own set of pitfalls, but they generally do not have to be costly to your business. In future articles, I will be discussing more the concept of selecting and managing your management team, so you can feel as comfortable as you should with letting go (at least somewhat) of this lucrative business of commercial real estate.