Gene Mundt

If you're an investor, or work with those in the investment and commercial arena, you've probably felt quite limited in financing opportunities as of late. To say that lending institutions have "clamped down" on the availability and opportunity for this type of lending, is an understatement to say the least. Finding and obtaining an old-fashioned strict investment loan is near impossible for many in or thinking of entering this market.

For those that have found the above true and find that their banks or lending institution will not finance or refinance a property they hold due to its latest/lower property appraisal, present inadequate income, credit shortcomings, or etc., there may be a solution. There is a newer Asset-Based Loan product that might provide the assistance they desperately seek.

This Asset-Based product also addresses the problems of the borrower that holds significant assets, but suffers from declining income status. Those borrowers that are looking to create cash-flow from equities, while not wanting to sell or liquidate the securities they hold, should investigate and consider this loan, as well.

This loan product has many attractive and beneficial features for investors. But, just what are the finer points of this Asset-Based loan?

Consider the following:

• No real estate is involved. Therefore, there are no appraisal concerns.
• For qualification purposes, there are no credit or income considerations.
• The collateral for this loan is securities owned and pledged by the borrower.
• The definition of an "Eligible Security" is: All publicly traded stocks, bonds, certain mutual funds, unit investment trusts, and real estate investment trusts.
• The Maximum Loan-to-Values are: 35% to 80%, depending on the liquidity and activity of the security.
• The interest rates and terms are attractive with Fixed Rates ranging from 3% to 5.5%, interest only payments, paid quarterly.
• This loan is Non-Recourse, meaning that the lender cannot sue for any other personal or real estate assets of the borrower in the event that they default.

With present market conditions presenting increased lending challenges, these Asset-Based Loans can provide the financial flexibility and options that many investors are presently lacking.

For more complete information regarding this product, and for an analysis of your individual scenario, please contact me. Together we will discover whether this product can provide the financial muscle and opportunities for your investments that you need.

Gene Mundt, Professional Mortgage Banker www.genemundt.com Chicago Bancorp

Getting pre-qualified for your home purchase is very much like sticking your toe in the pool's water to see how warm or cold it is. Things move slowly and tentatively at first, but get positive feedback on your credit and finances from your lender ... and you want to get in the water the rest of the way!

Now, just as there are differences in the style of entry into water, there are different styles of entry into the real estate market too. Some people slowly and conservatively ease themselves into the "water" trying to acclimate themselves to the changes in its' temperature and depth, (ala a townhome, fixer-upper, or smaller home). Others jump right in, cannonballing and hurling themselves, creating a big splash, wanting the maximum home they can possibly afford.

Those more conservative in nature will wish for a safer and less stressful buying experience. Others more daring will try the more advanced methods. As mentioned in a previous blog, I recommend a progression of choices during a search for a home. Just as I would recommend starting in the shallow waters of the pool while learning to swim, I also recommend that a home search be made in the safest, easiest real estate pool possible. The progression of my recommendations are:

• Relocation Companies (Putting your tanning lotion on)
• "Estate"-owned Properties (Reading the Swimming Instruction Manual)
• Private Investors (Flips) (Donning Swimmies)
• Reasonable Sellers (with equity) (Getting your face wet)
• HUD-owned Properties (FHA Foreclosures) (Learning to float)
• Bank-owned Properties in REO Departments (Practicing the arm strokes)
• Short Sales (Needs Bank/Lender Approvals) (Getting on the diving board at the deep end)

Right now, we are heading into the warmest part of the year, not only in temperature, but in real estate. Spring and Summer are typically the "hottest" times for real estate activity. With a rebound of home sales being hinted at in areas across the nation, the temperature of the water within the pool of available homes on the market is close to perfect for an entry, especially if you're a novice buyer/swimmer. (For first-time buyers, they're even paying for the swim lessons, coach, and gear! See the First-Time Home Buyer's Tax Credit contained within the stimulus package.)

No one (particularly first-timers) should ever try to enter the water on their own without a professional licensed lifeguard or swimming instructor to guide and protect them. Purchasing a home should be no different. A mortgage lender should serve as the swimming coach that will assist a potential buyer through the sometimes hazardous waters of a home purchase. They should instruct and protect a buyer until they can float and swim in their own financial waters. And, if they are truly professionals, they'll be there to throw their client a life preserver should they need it, "spotting" them with their continuing mortgage planning services whenever they re-enter the waters to swim in the future.

On a hot summer day, nothing seems more pleasant and relaxing then a swim. Coming home to a home that is yours is an even bigger pleasure. When the temperature or weather does not permit a dip, your home will calm and refresh you. Your home will provide you peace and tranquility of the spirit at the end of a long day. It has the ability to heal, nurture, and make you feel safe and warm.

With the proper guidance and assistance by real estate professionals, the timing is right for more buyers to enjoy these "waters" again. Buyers can find a qualified swimming coach and get the counseling, advice, and assistance necessary to obtain a successful pre-qualification and home purchase.

They should dive right in ... the market's fine!

Gene Mundt, Professional Mortgage Banker www.genemundt.com Chicago Bancorp

I have seen a real sampling of emotions displayed during my real estate applications and closings. Nothing, it seems, gets most of us worked up like real estate and real estate transactions. It has all the real "pressure points" because it involves money, pride, ego, family, ownership, and more. It has all the trappings that just seem to really get us going.

I can tell you from experience, that for all sides of the deal real estate is an emotional experience. For the buyer, the seller, and professionals assisting in the transaction it can be emotionally uplifting or the pitts of hell.

The range of emotions that can flow through most first-time home buyers can be staggering. You can see everything from confusion to apprehension, and despair to elation flit across their faces during the courses of the transaction. For veteran buyers, it's not much different.

Sellers can ride an even more volatile rollercoaster of emotions. Especially now, selling a family home can leave an owner feeling vulnerable, battered, and bruised. Because of today's seller market, the relief felt by many sellers at a closing is almost physically tangible. You can just hear the collective sighs upon closing completion.

Last weekend my wife and I went for a ride. During that drive we toured some rural areas where there was a farm or two for sale. Having been the product of a multi-generational farm family, my wife commented that most people underestimate the strong emotions involved in being a farmer and the upheaval they subsequently feel upon the sale of the family farm. Even when the sale is needed or entered into voluntarily, it can create heartache and a terrible void. She contends the connection with the land runs through the veins not a deed. She knows of this first hand, as her family's farm now lies under new homes and it's still hard for her to disconnect herself with that ground. She grows very quiet as we grow closer to that land, almost distant. It's easy to see that strong emotions are at play.

Those times always make me contemplate the "American Dream" and how deeply rooted it is in our society. It also makes me ponder our country's penchant for all things new. Rather than fix and repair our real estate buildings of a certain age, we just simply remove them, knock them down. Here in America, we don't protect our real estate heritage very well. It makes me wonder ... will coming generations of Americans share the same connection to our history that many others across the world do if we continue this pattern?

Recently in Illinois, an Appellate Court overturned the Chicago Landmark Property Ordinance. This ordinance protects the 259 individual properties and 50 landmark historic districts from demolition or alteration. It's well documented, maintenance and preservation of a property's historic significance can enhance the value of the property and the area it is in over the long run. The housing and histocial landmarks found within a city can serve to set it apart from others and makes it special.

It also can promote and contribute to economic growth in some cases. Think of the antebellum homes of Natchez, Mississippi, the modernist dwellings of Palm Springs, the Victorian mansions of San Francisco, or the historic structures of West Point in New York or Virginia Military Institute in Lexington, Virginia. They each feed into the economy of the areas in which they are located. Each is piece of the fabric that is our country and it is hard to view these areas and not be moved. Again, real estate spurring emotion within us.

It does make one wonder if the property involved in the transactions of today will be the preserved landmarks of tomorrow. Will they make people feel what we feel towards our beloved historic homes and landmarks? Will they be a representation of our era and present way of life? Maybe, but whether they will be or not, the emotions felt by the new owners, sellers, and professionals within the transaction are strong and real. After all, nothing defines you more clearly than the place you call home and I for one am glad that I contribute daily to the real estate industry.

Through the years I have offered many First-Time Buyer Seminars. I love doing them, as the excitement level of the attendees is high, infectious, and makes the seminar more fun. Normally, the age of the buyer is that of someone younger as well, and as the dad of two sons in there 20's, I really enjoy working with someone around that age.

I served as a coach for my sons basketball and baseball teams when they were younger, and hosting these seminars feels pretty much the same. The participants share the same energy level and eagerness to learn, only now it's about buying a home.

Now I want to expand upon that excitement and energy level and have some fun while doing it too. That is why I'm writing this post. I've honed a pretty good seminar after doing so many, (if I say so myself), but it doesn't mean that I can't improve upon my seminars and become even more successful at hosting one.

I am constantly reminded when reading the posts submitted here that ActiveRain readers and members are a wealth of information and expertise. So, what better place to go to than ActiveRain when I need to ask for help and new ideas? I just hope I can handle the volume!

I ask that if you have hosted a successful First-Time Home Buyer Seminar - or - attended a seminar that you thought exemplary, that you please let me know what made it so successful for the participants and host.

If you were a host ... what preparations did you make towards hosting the event? If you had particular success with your marketing ideas, what were they? How did you increase the number of your attendees? Did you co-host with other professionals? And, if so, whom?

If you were an attendee ... how was the seminar different from most seminars? What did the host do that kept your attention, excited and motivated you to learn more about purchasing a home? What did they do that made you trust their abilities and want to use their services? And so on ... and so on ... and so on.

This may sound selfish on my part, but I'm tired of hosting the same ol' same ol' seminar. After 30 years in the business, I'm looking to host a seminar that is fresh and novel in its concept and approach. I want to make my next seminar something different and fun for the participants and myself. No more typical!! No more mundane!! I'm ready to hear and consider some really exciting brainstorming ideas!! New ways to present the valuable information a first-timer needs. A new seminar for a new market! No ideas will be overlooked or wasted!!

I'm not saying that the "tried and true" ways or methods of other seminars are wrong. They are not. I'm just ready to mix it up a bit and try something different. I'm hoping that all of us can gain from the exchange of ideas presented here, whether host or participant. And ... that seminar participants will come to understand that there is truly a difference in lending and real estate service professionals. That the true professionals never stop learning and searching for better ways to advise and serve their customers.

I thank all of my fellow "Rainers" that submit ideas ahead of time ... as I'm hoping there are so many great responses that I won't be able to write thank-yous fast enough to keep up! As always, please let me know if I can ever be of service to you.

Looking forward to reading your comments and ideas soon!

Gene Mundt, Professional Mortgage Banker www.genemundt.com Chicago Bancorp

In the course of doing business in the first quarter of 2009, I have been pleasantly surprised by the amount of buying interest I have experienced. While it's true the path to borrowing money is a little more tricky to navigate and lending programs are more restrictive than in the past, there is still an abundance of lending monies available for purchases and more than just a few buyers able to qualify for those funds. It's also true though, that having seasoned advocates and knowledgeable real estate and mortgage professionals at your side while trying to navigate that path has never been more crucial.

Much has taken place within our financial markets over the last year, but buying a home is still possible. With just "fair to average" credit and a down payment of 3.5%, you can qualify for a home loan thanks to FHA. And from now until November 2009, you can receive a tax credit of up to $8,000 for buying that home, if you meet certain perameters. Add the present low interest rates to the mix and it sounds like a fantastic time to buy. (How does a fixed rate for 30 years in the 5% to 5.5% range sound?)

Now I know you are saying ... "Okay, okay, I get your drift! But, what do I buy? How do I go about finding my dream home at my dream price? What professionals will prove to be of assistance to me?"

Probably my biggest suggestion to buyers is this ... now, more so than ever before, you need to know who the SELLER of the property is. Why? Because the difficulty level of buying a home will be dictated by whom the seller is. Yes, you want a great deal, but remember ... it's only a great deal if you actually close! Otherwise, it's a waste of your time, emotions, and dollars.

What do i mean? Even if you are a well-qualified buyer, certain properties (and the transactions required to buy them) can increase the odds of your failure to close. I've seen many deals, (offers, contracts, etc.) fall apart because BANKS and LAW FIRMS representing those banks have become sellers of properties (short sales). This can cause great frustration for a potential buyer.

Time delays can occur while banks and law firms make final determination as to whether they will allow the seller to enter a sales transaction owing more than the agreed-upon price. With the inventory and many great deals available in the present market, why would you possibly want to face the frustrations associated with these transactions or wait months for a bank's decision? The stress and disappointment that can ultimately be connected to these deals can be excruciating for would-be buyers.

My suggestion? Pass on these properties and continue your home search. If a listing identifies the property as a "short sale" or "pre-foreclosure" ... move on. Find a property already foreclosed upon, actually owned by the lender, and being disposed of by their REO (Real Estate Owned) Department. That department's sole purpose is to "unload" properties, so they're going to make sure transactions and closings are successfully completed. These are the "best" deals out there as far as price is concerned, as these departments have the ability to negotiate a deal and get it closed! They are motivated to close because they wish to "limit additional expenses" for themselves.

As a lender, I naturally monitor the real estate markets. I am in constant contact with buyers, sellers, Bank/REO Departments, and other real estate-related professionals. More importantly, I work on all types of transactions from start to finish, and know what makes for a smooth and successful one. Garnered from those experiences, I have compiled a list of my observations for home buyers to be aware of. To accomplish your successful purchase and closing, I suggest that you try to find property sellers in this order of preference:

1. Relocation Companies
2. "Estate"-owned Properties
3. Private Investors (Flips)
4. Reasonable Sellers (with equity)
5. HUD-owned Properties (FHA Foreclosures)
6. Bank-owned Properties in REO Departments
7. Short Sales (Needs Bank/Lender Approvals)

If you want to obtain a great deal, face the least amount of stress, and close ... consider the sellers of the property you are looking at. Avoid the situations found at the bottom of the list above, unless you have the time and the patience to wait. And remember, by utilizing trained, licensed real estate and mortgage banking professionals, you will avoid homes that present these obstacles and be assisted through the processing of your loan to a smooth and successful closing.

If I can answer any questions you have on any type of transaction, please contact me. I will be more than happy to assist you in whatever manner I can! Best of luck to you in your home search ...

Gene Mundt, Professional Mortgage Banker www.genemundt.com Chicago Bancorp