CHARLES G. HENNEBEUL

It is inaccurate when media says there is no money...most hard money comes from private money, not Wall Street.

One of my lenders received a $50,000,000 credit line from a publicly traded bankt hat has beena round since the 1800s.

I have a lender that is working on my customer's request for $15 million to build homes, mixed use and commercial. This lendr is calling me to schedule the conference call. Media says businesses aren't receiving calls back...that is true but for commercial real estate..that is not the case.

Wall Street did not go crazy with regards to commercial. Sure some did..but most didn't. Most want 20% or more for downpayment with the exception of construction after value. Commercial properties have less risk when more than one tenant exist. On the residential side for a single family unit all the risk is in the wage earner or reliance on a self employed statement of income.

Real Estate is still the leading cause of millionaires across the country!

Charles Hennebeul

Owner

American Cash Solutions Inc

http://www.mybuildingfunds.com

631-368-2219

The implications of not creating a solution to the mortgage problem is so serious and it is shocking that they did not pass SOME solution on a bipartisan level.

The failure to solve this banking crisis will lead to massive job losses, failure of banks, and quite possibly a severe recession.

Small business owners must call there elected leaders and DEMAND a solution.

The global implications will unfold in a violent and destructive manner that the markets have not seen for over two decades.

That is all I can say as the Perfect Storm looms over our weary souls.

So what about those banks that didn't do bad loans? They did right by their customers and what do they get?

More business? The chance to take business from banks and investment banks that went belly up? That seems like the case but they don't get a check from the government.

I am just wondering, maybe more acknowledgement should be given to the banks that did not do so many pay option arms. Maybe those banks that we don't hear about as having bad loans deserve our business because they did not cost taxpayers $700 billion and di NOT watch families go into foreclosure.

I heard some lady is living out of her station wagon and her friend lets her come to her house to shower once a day.

Ironically when we get double digit interest rates in the next 5 years, particulary after election day is over, having an adjustable at 16% will be good because the rate will adjust downward.

For now, it makes sense to have a fixed rate or a 5 or 10 year fixed rate depending on your situation.

Charles Hennebeul

Owner

American Cash Solutions Inc

http://www.mybuildingfunds.com (corporate website)

First:It is common for sellers to accept good credit buyers with larger downpayments..maybe a 20% downpayment..but the extensive underwriting, the 30 to 60 day appraisal process and close scrutiny of the debt service coverage may lead to a declination.

If that happens, then the bad credit buyer may have been a better bet. A Buyer using hard money has to put down 30 to 35% down payment. Debt Service Ratio will be calculated and must make sense next to a look at the last two years tax returns of the buyer by the hard money lender. Some hard money lenders will close in 14 business days and will not require an appraisal(as is the case for one of my lenders whose minimum loan amount is $1 million). One of my lenders does require an appraisal and may even require a toxic report.

In terms of getting the deal done quickly, if a buyer wants to us hard money and wants the property REALLY bad and the seller NEEDS to sell "like yesterday", a bad credit buyer using hard money may be the better bet. This is especially true if their have been very few "bites" by the buyers and your seller is getting nervous. If the property is not in the middle of a heavily populated town/city and is located in a small town where word of mouth has not been doing a good job, that one buyer may be your best bet...and in retrospect, may turn out to be your only buyer!

Hard money lenders may have high interest rates but some of our lenders have no prepayment penalties allowing the loan to to be a bridge to a better loan a year or so after the loan closes. Most commercial property owners refinance after their initial purchase loan so the buyer wins in this case because they get the property, commercial credit history and are not surprised that a refinance will be in order in the next few years (as opposed to refinancing and being put into a loan whose terms will force a refinance.

Call Charles Hennebeul, Owner of American Cash Solutions Inc at 631-368-2219. Fax the rent roll yield to date, last two years of the Hotel or Motel tax returns, real estate agents, attorneys involved to 631-270-3935. We will take an application over the phone and obtain a rate quote from our hard money lenders. More paperwork may be needed but these documents are a good way to give me a better view of the deal.

This blog wa reposted by the Owner of American Cash Solutions Inc from www.mybuildingfunds.com with full permission from the corporation.

The FDIC premiums charged to banks are going to go up significantally and will be passed on to consumers.

Massive Job layoffs in different sectors will be a question of when, and it is not just a fear factor. The losses caused by massive amounts of bad mortgage paper are NOT eliminated by mergers, and receiverships by the federal government.

I don't even know how much money the sharholders of AIG have lost, as well as Freddie Mac, Fannie Mae, Lehman Brothers, Bear Stearns and prior companies like New Century etc. But I do know its in the BILLIONS and we are talking about small business and consumers retirement money!

I wonder how bad the retail industry will be hit this winter holiday season.

I just had a lender tell me they are going to issue a loan approval on a motel loan tomorrow. so that IS good news. I have heard that Lehman Brothers was to loose --on the residential AND the commercial side. In one of my blogs I had warned that those lenders that became to creative, don't require a downpayment of 20% or more on the commercial side and have rates terms that disregard the payment shock experienced by small business owners will pay a price. It seems that the bad paper Lehman had was enough to discourage some potential buyers...I could be wrong but it seems that was the case.

If I ever become a commercial lender I will NOT permit my bank to become a "lender gone wild".

Small businesses must prepare for tighter lending rules, less credit where credit scores are under 680, and larger amounts of equity required in properties for refinances AND purchases.....and of course higher interest rates comparable to that of the 1980s.