Arizona Short Sale Specialist

Thursday, September 21, 2017

Your Credit Data May Have Been Stolen - Who Cares?

Hello clients and friends,

On September 7th, we awoke to news that credit reporting agency, Equifax, had been hacked and some 143 MILLION credit records were stolen. Let's put that number in perspective. The U.S. has a population as of 2016 of 323.1 million.

If we subtract those who do not have credit records, estimated as 26 million, the Equifax data breach exposed the credit records of right at HALF the U.S. population. That is ridiculous!

PLUS, the breach happened in May and we are just hearing about it! I could go on and on, but as successful investors, we need to take action to mitigate possible problems that could affect us going forward.

It is expected much of the data, which includes your name, Social Security number, birth date, addresses and driver’s license number, will be used to generate fake tax returns to steal your refunds and cause massive headaches.

You can check Equifax's website to see if your information was part of the breach here, but be warned that you may get different answers over multiple tries. Equifax wants you to enroll in their TrustedID Premier to monitor your credit, but consumer advocates say this is a waste.

Others have suggested you use Lifelock which offers to protect you from the Equifax breach — by selling you services in part provided by Equifax (see story here). Besides this service can get quite expensive over time.

Here Is What Well-Respected Consumer Advocate Clark Howard Recommends.

1. Go to Credit Karma.com to sign up for free credit monitoring. Follow Clark Howard's guide to sign up. It only takes a few minutes and you will be surprised at the amount of information you can access on the site.

This is a good time to check the accuracy of that information. Be sure you sign up for their alerts so Credit Karma will let you know if someone tries to open an account in your name.

Some have expressed concern that Credit Karma only monitors Equifax and TransUnion, but Clark says that is enough.

2. Next, you want to freeze your credit. Whereas the first step was free, this one will cost you a little, $3 to $10 and a similar amount when you want to unfreeze it.

See a state fee chart here. Read Clark's guide to freezing credit here. You want to freeze your credit at each of the three credit reporting agencies - Expirian, Equifax and TransUnion.

The Equifax freeze is free for the now, but it will cost you for the other two. The Equifax servers are overloaded, so freeze the other two services first and then try Equifax every couple of days until you can complete a freeze there as well.

Congress is considering making all credit freezes/unfreezes free in the light of what has happened. Don't wait though. It could take months for a Bill to pass and be signed into law.

A lot can happen in that time. Besides, there is a good chance any fees charged after the Equifax breach will be refunded.

And don't forget to freeze children's credit as well. You may not think they have any, but remember social security numbers are now issued at the hospital at birth.

The good news is that it will be years until they will need to unfreeze their credit.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage,commercial lenders

Wednesday, September 20, 2017

Commercial Mortgages in Texas Could Face a Potential High Risk Due to Hurricane Harvey

Many are having a hard time figuring out just how to evaluate the impact that Hurricane Harvey had on commercial mortgages in Texas along with other factors of the economy. This is crucial to Houston and other areas in southeastern Texas because they were already seeing some troubling issues in this department before the record-breaking storm hit the area.

It is reported by Barrons.com that Hurricane Harvey caused major flooding in Houston and the surrounding areas, breaking rainfall records whole hitting an estimated $19.4 billions dollars in properties financed by commercial mortgages in Texas. A total of 18 counties in Texas that home these properties have officially been declared disaster areas. In fact, Harris County alone had just $16 billion dollars in properties that were hit hard and saw destruction by the category 4 storm.

High vacancy rates in the Houston area were an issue well before Hurricane Harvey made landfall in southeastern Texas. The vacancy rate was the highest the area has seen since 1994, nearing 19 percent at the end of the 2^nd quarter of this year. That happens to be a 14 percent increase in vacancies in just the short time of three years. Since Texas has been working on recovering from that, it could be even more challenging because of the major flooding that damaged the area brought on by Hurricane Harvey. The flooding could very well jeopardize the ability to pay-off some of these debts.

With a struggling real estate market that was already in place before the storm, most expect that the recovery time from the damage caused by Hurricane Harvey could be a long and difficult road. But luckily, some are forecasting that the damage will be recoverable and maybe even in a quicker time frame than previous hurricanes that have rocked the United States.

Local analysts try to set recovery expectations for commercial mortgages in Texas

Morningstar analysts are trying to forecast how the area will recover from Hurricane Harvey. They had a total of 10 properties in the flood zone that happened to be their largest properties backed by commercial mortgages in Texas. The company was only able to reach one of the properties, the Two Allen Center. Even though they are temporary closed, they reported no flood damage.

Commercial mortgages in Texas still need a helping hand after being hit by Hurricane Harvey

Some of the properties hit the hardest from the storm were lucky enough to have flood insurance that will cover most of the damage costs, but they still have a long road ahead of them to fully recover. Commercial mortgages in Texas were suffering before the hurricane, but hopefully the impact of Hurricane Harvey isn’t too devastating, but it could take months to get that answer. But there is some news on local properties. According to Willowbrook Mall and Deerbrook Mall’s website, their properties were closed until further notice, not stating if damages from the floods were the cause.

Technorati Tags: commercial loans,commercial lending,commercial mortgage,commercial lenders

Hurricane Harvey Could Make a Huge Impact on Commercial Real Estate Loans in Texas

There were already plenty of complaints about commercial real estate loans in Texas well before Hurricane Harvey made landfall in the southeastern portion of the state. But with the destruction brought on by Hurricane Harvey, it might take the Houston area even longer to recover from their economic and real estate slump.

In the 2^nd quarter of 2017, Houston and the surrounding cities have seen the highest percentage of commercial vacancies since the year 1994. With a vacancy rate nearing 19 percent, proving that commercial real estate loans in Texas were already hurting before Hurricane Harvey hit. The area has been trying to bounce back, but since the hurricane has caused quite a bit of damage in its path, unfortunately, it could take even longer than expected for the Houston area to recover.

The real estate market including commercial real estate loans in Texas may take months to rebuild and could face many challenges while trying to do so. Local businesses not only have to clean up from all of the damage that was caused by the category 4 storm, which produced record breaking rain and flooding, they also have had to deal with loss of revenue for days or even weeks. The damages caused by the storm is only going to amplify already existing issues in southeastern Texas, leading many to fear that it might be too much for some to recover from.

Some businesses could face disruption for 2-3 months and some were forced to deal with these issues without power for several weeks. That is why it is hard for us to be able to predict the long-term impact of Hurricane Harvey had on commercial real estate loans in Texas. Luckily, the forecasts that have been released think that the area may be able to recover quicker that some other areas that have been impacted by previous hurricanes. But, it may take months for us to even know how much damaged was caused by the record-breaking storm.

However, commercial real estate loans in Texas could see some benefits

After Hurricane Sandy hit the southern part of the United States, self-storage companies and local hotels saw a spike in businesses. The need for these two things sky rocketed after heavy storms hit the area and Houston can expect to see the same. While the southeastern part of the Lone Star state works on rebuilding, these companies could see some economic reward, but there is still a great deal of work to be done to repair all of the loss the area suffered from, especially with around 2,900 commercial properties being affected from the hurricane.

Many are eager to see commercial real estate loans in Texas grow

Luckily, it is estimated that most of the commercial businesses hit hard by Hurricane Harvey have coverage from flood insurance. This still doesn’t mean that it will take a lot of time and work to rebuild not only from Hurricane Harvey, but from the already suffering real estate market in the Houston area.

Technorati Tags: commercial loans,commercial lending,commercial mortgage,commercial lenders

Commercial Real Estate Loans in Texas Have High Expectations to Recover Quickly from the Aftermath of Hurricane Harvey

Frost Bank located in San Antonio forecasts that most of the businesses impacted by Hurricane Harvey will be able to recover rather quickly from the damages caused by massive flooding from the category 4 storm. And because of this, many are eager to see what the affect the hurricane will have on commercial real estate loans in Texas.

Areas hit hard throughout southeastern Texas by Hurricane Harvey have some fear that there would be negative impact on commercial real estate loans in Texas. Especially since the storm brought record-breaking rain and caused damage to most of the area. But, along with Frost Bank, Prosperity Bank in Houston are optimistically forecasting that the most affected businesses will be able to manage a quick recovery. Both banks have projected the loss from Hurricane Harvey to be around an outstanding $53.4 million dollars, but this is estimated to only be about 10 percent of the 2017 consensus of earnings in Texas, as reported by My San Antonio.

Prosperity Bank and Frost Bank are regional lenders offering commercial real estate loans in Texas. They have plenty of research to start analyzing and predicting the damages, but it is still a little too early to tell the full impact that Hurricane Harvey had on the industry in the area. Banks and some lenders are preparing to be more impacted at the beginning due to upfront costs like the loss of overdraft income. They may also choose to waive fees and storm created expenses, which will also reflect a loss in revenue to many banks and lenders.

These factors could actually cause the most negative financial impact from the category 4 storm. Banks and lenders are already seeing a bit of the aftermath from the record-breaking storm, but again, it is still too soon after Hurricane Harvey to just know how their customers have been fully impacted.

It is a struggle to figure out how to evaluate the impact Hurricane Harvey had on commercial real estate loans in Texas

It can be hard to evaluate the damage so soon after a storm and to predict an accurate number of those impacted. But many banks and lenders are trying their best to assess the situation and make for the most accurate forecast model based on damages reported, in addition to claims filed and applications for loans.

The good news is that lenders and banks are helping those with commercial real estate loans in Texas

Those with commercial real estate loans in Texas that have seen damage from Hurricane Harvey are strongly encouraged to work with their banks and lenders to receive support after the storm. Thankfully, the help from these experienced financial institutes will help the recovery process be more manageable for all involved. Some of these banks and lenders are working closely with their customers to help them best they can by offering waived fees and even restructuring plans to make the payments easier.

Technorati Tags: commercial loans,commercial lending,commercial mortgage,commercial lenders

American State Bank Announces Delightful News with the Addition of New Commercial Lending in Texas Officers.

In the wake of the devastating news across southeastern Texas with damaging Hurricane Harvey, American State Bank was eager to announce the addition of experienced professionals as the new Senior Vice Presidents on Commercial Lending in Texas. Todd Tutt and Richard Solomon are being welcomed with open arms in hope that their expertise will strengthen the industry in the Lone Star state after suffering a bad 2^nd quarter and now the damages caused by the storm.

The Business Insider reported that American State Bank’s President, Kelly Sanders, is thrilled to add lenders to the team at this caliber. Mr. Tutt and Mr. Solomon are valuable assets and received nothing but praise from their new boss. Sanders also mentioned that the two new Senior Vice Presidents of Commercial Lending in Texas will bring the service the community banking industry and local businesses are looking for and need to grow and succeed, all with a personal touch.

American State Bank also expects that the new additions to their team will be able to provide swift decisions for local consumers and commercial clients. The bank’s team also offers cash management options along with loan solutions for not only existing loans, but for potential future loans as well. The state of Texas is looking for all the expertise and help they can get to recover.

Todd Tutt brings over 25 years of local banking experience, serving the banking community of the Tyler area his whole career and being a Tyler native. The other new Senior Vice President of Commercial Lending in Texas at American State Bank, Richard Solomon, brings around 30 years of professional banking experience and comes from Dallas, Texas.

American State Bank is eager to serve the community with experienced officers in the commercial lending in Texas industry.

The locally bank has been operating for an impressive 100 years and is a full-service bank to the community of Tyler. They provide all of the community’s banking needs to local businesses and customers. Plus, they add personalized service to all of their customers that they service in the cities of Tyler, Arp and Chapel Hill, all located in Texas. TexasBank is striving to become even better and offer the community even more stellar customer service with professionals highly experienced in the banking and lending field.

The area will see many benefits with more experienced professionals in commercial lending in Texas, especially after Hurricane Harvey hit the state hard

Before Hurricane Harvey rocked the southeastern portion of the state, the industry of commercial lending in Texas was already suffering. The Houston area saw an incline in vacancy spots in the 2^nd quarter of 2017. In fact, they saw the highest percentage of commercial vacancies since the year 1994, with a vacancy rate of just under 20 percent. American State Bank is hoping that these experienced new additions to their team will help the area recover quickly from the real estate slump and now the damages brought on by Hurricane Harvey.

Technorati Tags: commercial loans,commercial lending,commercial mortgage,commercial lenders

TexasBank Announces the Addition of New Vice-President of Commercial Lending in Texas

TexasBank is excited to announce some good news in the wake of all of the devastation brought on by Hurricane Harvey. The bank is pleased by the new addition of successful professional, Donald “Donnie” Ivey, as the new Vice-President of Commercial Lending in Texas at the bank’s Brownwood location. Ivey brings years of experience and gives the state of Texas hope after the southeastern part of the state was damaged by Hurricane Harvey.

Bringing over 20 years of experience in commercial lending in Texas, Mr. Ivey is also a 1994 graduate from local Texas Tech University. His new position was just announced last month on August 21^st, but CEO and President of TexasBank, Greg Dodds, is already thrilled to add Ivey to his team. Mr Dodds is extremely eager to see what is in store for the company with Ivey on board as a significant leader.

TexasBank is one of the top leaders when it comes to commercial lending in Texas. With Ivey bringing not only experience, but existing relationships among many professionals in the lending and banking industry throughout the community, TexasBank is hoping to use those connections to strengthen and grow across the state. Ivey is a valuable asset that will only help TexasBank expand and assist more customers across the Lone Star state.

The full-service community bank has 8 locations across the state of Texas and they consider themselves a financing institute providing quality service to the communities throughout Texas. The bank is hoping that the addition of Ivey will make them stand out even more to the community.

With commercial lending in Texas on the verge of trouble, this is good news for the state

Before Hurricane Harvey hit, commercial lending in Texas wasn’t quite thriving. The state saw the highest vacancy rate since 1994, with commercial vacancy rate of around 19 percent. The entire banking industry has been working diligently on bouncing back from this and things will become harder now since they also have to deal with the devastating aftermath from Hurricane Harvey, which produced severe flooding across the southeastern portion of the state. Having an experienced lender like Ivey join TexasBank brings some positive vibes and adds optimism to the industry when it comes to their recovering efforts.

Commercial lending in Texas needs to meet high expectations after Hurricane Harvey to help the industry recover quickly

Luckily, many in the lending and banking business expect the economy to recovery quickly for the Houston area that were impacted the hardest by Hurricane Harvey. It won’t be an easy road, but with the help of lenders and banks around the area, the area can hopefully recover faster than some fear. It is advised that local commercial businesses take advantage of the help that these local banks and lenders are offering and feel free to ask questions and seek assistance in any way they need.

Technorati Tags: commercial loans,commercial lending,commercial mortgage,commercial lenders

Sunday, September 10, 2017

The Difference between Bank Commercial Loans and Private Hard Money Lenders

There is a vast difference between commercial loans obtained from banks and those acquired from private hard money lenders. Two of these distinctions are speed and access.

The term “Hard Money Lenders” has led to varying discrepancies regarding this type of loan and who actually funds them. We would like to set the record straight. Hard money loans are neither “hard” to get nor are they funded by “hardened” criminals. What they are: Loans based on collateral, otherwise known as hard asset-based loans. Private hard money lenders are individuals or a group of individuals that have decided to make investments in this type of lending. There are several characteristics that make this type of funding quite unique and very different from commercial loans that are acquired from institutions such as banks.

Banks offer programs that are guided by government agencies such as Fannie Mae, Freddie Mac, FHA, and VA as well as some in-house programs. They are heavily regulated and funding is determined by credit scores and finances including debt-to-income (DTI) ratios. Borrowers must be able to document their income and expenses, making it sometimes difficult for self-employed individuals and small businesses to acquire a loan. Eligible properties include single family homes and some commercial properties.

On the other hand, private hard money lenders are not guided by the regulations and red tape that banks are under. These types of loans are based on collateral and criteria such as loan-to-value (LTV) ratio. These types of lenders are interested in the property and project and often acquire an exit strategy which is how you plan to obtain the needed funds to pay the loan back either through a sale after a renovation, obtaining a traditional loan, or acquiring tenants, to name a few of the many exit strategies. Credit does not play such a dominant role as the property and collateral, making it easier for self-employed individuals, small businesses and those with damaged credit to obtain funding. Private hard money lenders are more apt to make fix and flip loans, bridge loans, construction loans and mixed-use property commercial loans.

How do Individuals and Businesses use Hard Money Loans?

A real estate investor looking to purchase a property in need of rehab may get a hard money commercial loan in order to obtain quick capital for the purchase and renovation funds. Once completed, they may turn to a traditional loan and get funding based on the properties new and improved value, paying off the hard money loan which often has no prepayment penalties attached to it. Home owners may decide to purchase a new property before their old home sells. A hard money bridge loan will offer them a bridge from one asset to another and give them the time they need to sell their home without losing out to another offer on their new home that was not contingent on a sale.