Archive for the 'Apartment Building Investing' Category

Fannie Mae Initiates Commercial Loan Modification Program

Fannie Mae is now offering a new program aimed exclusively at commercial real estate owners who are unable to make their monthly mortgage payments. The new program called the Payment Reduction Plan (PRP) comes as welcome relief to many apartment building, office building and shopping center owners who have seen drastic decreases in vacancies over the past twelve months. These vacancies have seriously impeded commercial property owners’ ability to pay their mortgages. PRP allows commercial owners to negotiate with their loan servicer for up to a 30% reduction on their commercial mortgage payments.

According to the Fannie Mae website the “The PRP provides a borrower with temporary payment relief while the servicer and borrower work together to find the appropriate permanent foreclosure prevention solution. PRP offers an additional foreclosure prevention solution for borrowers who are ineligible for the Home Affordable Modification Program (HAMP).”

Under the PRP monthly commercial loan payments can be reduced up to 30% off of the total principal and interest only. The program is strictly for non owner occupied and investment properties.

The Fannie Mae website explains that “during the maximum six month period of forbearance, the servicer should work with the borrower to identify the feasibility of, and implement, a more permanent foreclosure prevention alternative. The servicer should evaluate and identify a permanent solution during the first three months of the forbearance period and should implement the alternative by the end of the sixth month.”

Hello Ted,

In your E-course, are there methods of purchasing apartments without credit while using private/hardmoney funds to finance the deal?

Thanks,

Larry

Hello Larry,
The “Buy Your First Apartment Building E-Course” gives you all of the tools, information and knowledge that you need to purchase an apartment building in the United States or Canada. There is a section in the e-course that extensively covers using hard money and private money to buy apartment buildings.

Sincerely,

Ted Karsch

Hi there,
>
>I just wanted to take a minute and share some of the frequently asked
>questions that my inquiring students ask.  Maybe one of them is yours.
>
>Question:
>
>I have looked at the home study courses of real estate gurus like Dave
>Lindahl and Daran Garmin.  These guys are charging over $900.00 for
>their home study courses and around $5,000.00 for seminars.  How is it
>that you are offering similar materials and a better education for only
>$99.95?  What is the catch Ted?
>
>Answer:
>
>There isn’t one.  My educational resources and the software found in my
>e-course give you all of the knowledge and tools to successfully begin
>investing in profitable apartment buildings anywhere in the United
>States.  Those other guys, the real estate investing “gurus” have to
>charge so much more to cover the cost of their marketing.
>
>The real estate gurus also have to spend a lot of their money on web
>designers. I made this website myself. Hey, I know it’s ugly but I
>would rather spend my time improving my e-course. I spend almost
>nothing on marketing.  Most of my students find my e-course by word of
>mouth or from reading one of my articles somewhere.  My e-course is not
>my full time job either.  I do very well for myself with my own
>investments so I don’t have to charge a lot of money.
>
>Question:
>
>Is the information in your e-course up to date?
>
>Answer:
>
>Absolutely.  My e-course is updated with new and relevant information
>every month.  In today’s real estate market this is a necessity.
>
>Question:
>
>Can I make money just by studying your E-Course?
>
>Answer:
>
>No way! Investing in apartment buildings requires a lot of hard work
>and effort. Anybody that tells you that any different is just trying to
>sell you his “guru” system or seminar. My e-course does make the work a
>lot easier and if you follow the principals and systems you should be
>well on your way making successful apartment building investments.
>
>***Visit my website right now so that you can begin your apartment
>building investment education today.
>
>http://clicks.aweber.com/y/ct/?l=I1DT_&m=1mBcA2Mp_8ME9z&b=BKanYRkqAtICb
>KzpKseM2w
>
>
>PS. Here’s a question for you:
>
>Wouldn’t it be great to have steady income coming in every month from a
>strategic apartment building investment?
>
>If you answered yes, then get started today.
>
>The risk is all mine.
>
>If you don’t like the E-Course then simply return it for free and the
>education was free.
Ted Karsch, Creator of the “Buy Your First Apartment Building
>E-Course”

How to Pursue a Commercial Loan Modification

A commercial loan modification is when the bank or commercial lender agrees to alter or modify the conditions of your commercial loan to make the monthly payments more affordable. This is done through the lower of the interest rate, extending the life of the loan, lowering the amount of principal owed or temporarily accepting interest-only payments. Commercial loan workouts are designed to be a permanent solution opposed to a temporary fix, only delaying the inevitable. For that reason, in order to be approved for a commercial loan modification, your bank or commercial lender needs to be confidant you will adhere to the new loan agreement.

The best way to convince your bank or commercial lender to agree to a commercial loan workout is to attack the problem right away. As soon as you realize your business is in serious financial trouble, you need to contact a commercial loan modification professional to look over your loan agreement and contact your lender. It is best to pursue a commercial loan modification before you begin missing payments. A bad payment history will not work in your favor when the lender is considering your commercial loan workout. However, unless your business is already foreclosed on, it is not to late to try a commercial loan modification.

Commercial loan modifications take time to negotiate and work out, not to mention taking the time to make sure you qualify for a commercial loan workout. Although it is not impossible, waiting until you are several months behind in payments to pursue a commercial loan modification will make it harder for your commercial loan modification professional to find a resolution you can afford and the lender will agree to.

The IRS has issued a new rule (IRS Revenue Procedure 2009-45 http://www.irs.gov/pub/irs-drop/rp-09-45.pdf) that eases the restrictions on modifications of commercial mortgages that have been packaged into commercial mortgage backed securities.

This action allows borrowers to open discussions with the loan servicer prior to any default in an attempt to work out the loan. Prior to this new rule only a very small number or loans in a servicing pool could be modified and they must already have been in arrears.

Commercial property owners can get a free consultation at: Commercial Loan Modification Experts

***Below are some questions that Lori McMahon answered from a student who attended last night’s Apartment Building Investing Seminar

Hello Lori,

My name is TA Davis and I was an audience guest on this evening webinar hosted by Ted Karsh from ApartmentBuildingInvestor.com.

First, thank you for sharing your time and expertise on creating Apartment Building Investing Executive Summaries. It was truley very informative!

I am a newbie in commercial investing and see myself really focused on this aspect of the industry. Again, THANK YOU for clearing some of the fog!

Here are the questions that I thought of as I listened this evening:

1. At what point do you begin putting together the Executive Summary? ie before/during/after contract has been submitted?

It’s different every time. Before is fine as long we put that in as the status on the Funding Opportunity Page. Many of clients have wanted to find out if they could get any interest prior to signing the Contract to Purchase. Anytime is good as long as it is directly after you sign the contract because you must understand that in these times, it is taking anywhere from 45 to 90 days for funding…

2. To whom are you giving the Executive Summary? I believe I heard you mention nonconventional lenders.

You can submit the summaries to private investors you network with or funding firms you locate on the internet. If you’d like LJ Commercial Property Services to submit, I would let my partner, J.R. review the property Executive Summary and if he feels we have an investor/firm that would be interested, he would then let you know and we would move forward on your behalf. But, it is important that you, yourself learn to network to get it out yourself in case we don’t have a particular funder/investor for your situation.

3. Do you recommend using a particular software? If so, what is the name?

I don’t use any software creation packages so unfortunately, I cannot help you in this area. Software can’t possibly keep up with the ever-changing market and investors/funding firms criteria can change daily - I’ve seen it - believe me!!

4. Who supplies the information to you about the property?

The client supplies the information regarding the property itself. I put it together in a presentable package. I supply the demographics, property highlights, market highlights and comps. These have to be researched for each and every package I create since those items are in constant change as well.

5. I understood that one does NOT have to be located in the same state as the property to do an Executive Summary. How then are you able to know if the information that is gathered is accurate?

I only work off current market reports and use demographics from several areas as well as my own internet search to be sure all information is current. I don’t copy and paste from one summary to another - I start each one brand new because, it is! The property information is the client’s responsibility to get for me - unit mix, income & expenses, etc.

6. How much time (in general) does it take for a decision to be made once a summary is submitted?

Some LOI’s are received within a few days…others can take a month! It all depends on too many factors so this question is too open-ended for me.

7. Do you shop the summary to more than 1 lender (at the same time/upon rejection) or is this NOT receommended ?

The Executive Summaries that I actually submit on behalf of the client are submitted at approx. 5 to 6 per day until an acceptable LOI is issued or it is determined that funding will have to be found elsewhere.

I hope I am not going too crazy with questions but I am REALLY interested in becoming a SUCCESS story (thru commercial real estate) of overcoming adversities, fears, and making positive change in my life.

Hi Ted,

I have actually purchased your e-course and have read it. There is some good informative information in it that will be useful. I am also doing additional reading on apartment building investments and hope to have enough knowledge to be able to purchase a building soon. The challenge is in finding a good investment and being able to come up with the down payment. This is something that I am very serious about and will succeed in, and your course will help in achieving my goals.

Sincerely,
Jag

Hello Jag,

Thank you for your kind words. I am glad that you found my E-Course to be very helpful. Please contact me at anytime if you run into any roadblocks.

Sincerely,
Ted Karsch, Creator the “Buy Your First Apartment Building E-Course”

—–Original Message—–
From: apartmentcourse@aweber.com [mailto:apartmentcourse@aweber.com] On Behalf Of Ted Karsch
Sent: Monday, June 08, 2009 2:29 PM
To: Jag
Subject: I know that my website is ugly…

Hi there,

I noticed that you are reading my mini courses and that you visited my landing page a few times.

Many of the real estate investment “gurus” out there spend a lot of time and MONEY building fancy websites with super graphics.
(One guy even has a video of himself driving a Ferrari.)

I’m not one of those “Gurus”. Frankly, I’m too busy working as a commercial finance consultant and investor to care about making my web pages pretty.
But, I do care about offering the best EDUCATION to every one of my students. That’s why I added these bonuses to the course:

1) The Cash Flow Factory: (a $49.95 value)

– Cash Flow Factory SOFTWARE does all of the math for you
– It figures out Debt Service Coverage Ratio for you
– Automatically computes your net profits for the next FIVE YEARS

2) The Profit Booster: (a $39.95 value)

– User friendly models to raise rents, cut costs and SUPER CHARGE
your Net Income

3) The Money Bag: (a $79.95 value)

– Money is everywhere! You just have to know where to look.
The Money Bag has done the long and painstaking work for you.
Sit back and relax.
– Hard Money, Owner Financing, No Money Down, Bank Loans,
Insurance Company Loans, Cash Back At Closing, Owner Notes
….Plus A Lot More.

My E-Course is constantly being improved. Real estate markets are changing quickly and the same methods that worked last year probably won’t have the same success this year.

I don’t believe in any “magic” systems or formulas. My E-Course doesn’t teach them either. Mostly because they don’t work. Over time I have figured out that there really is only one formula for success in any investment
undertaking:

Education + Effort = Success.

My E-Course provides you with all of the information and education that you will ever need to locate, buy and manage highly profitable and successful apartment building investments. The effort part is up to you.

The Chinese have a saying; “the journey of a thousand miles begins with the first step”. I invite you to take a journey with me. One that begins with a first class education in apartment building investments and ends with a profitable real estate portfolio.

I understand that the freedom of monthly cash flow may seem like an unattainable goal in your life right now but my E-Course will show you, every step of the way, how to get there.

So, put your doubts behind you. Don’t judge my E-Course by its ugly cover.
Once inside you may discover yourself on a journey that changes your life.

Begin here:
http://www.ApartmentBuildingInvestor.com/ecourse.html

As always, if you decide it’s not for you, I will refund all of your money and the education was free.

Sincerely,

Ted Karsch

Ted:

Five years ago, I borrowed money to take Dave Lindahl’s “One Deal To Retirement” apartment buying course. At that time, the course cost me $500.00 I didn’t have! I really wanted monthly cash flow, so I threw my heart and soul into the course. Somehow I got connected with Dave’s right-hand assistant, and found out that Dave wanted to purchase a building with certain criteria in the Oklahoma area.

I worked hard to meet that criteria, and found a building for which Lindahl signed a purchase agreement. Because I cared to learn the “language” and communication skills necessary, Dave’s assistant thought I had taken one of his $5,000 seminars. When I told the assistant I had not taken the seminar, I learned I could not take an equity position in the building, but could only get a finder’s fee. In this particular instance, it was $40,000.00. This was in 2005. When Lindahl heard I had not gone to a seminar, he immediately “backed out” of the building. He did not want to give me a finder’s fee if I had only purchased his $500.00 course.

The experience ended badly. Dave emailed me and said, “I forgive you since I’m a Christian, but I want nothing more to do with you.” So I was forgiven for finding him a building that met all his criteria. When I called his office and spoke with his office manager, a lovely lady named Jeannie, she was “blown away” that Dave appeared not to wish me to receive the bird-dog fee. Jeannie recalls Dave’s mother being in the office at the time, and her eyes were rolling around. Dave was embarrassed that I was bringing up such a situation in front of his close associates. Jeannie told me this is why he backed out of purchasing the building. In short, if you don’t buy the full $5,000 seminar, you can’t play the game.

I was devastated! But I was wrong! I allowed Lindahl to crush my spirit! I never should have allowed myself to feel defeated! But since then, I am a student of meditation and positive thinking. I want another chance to try again to make my dreams come true through apartment acquisitions, syndications and wholesaling.

Why am I telling you all this, Ted? Because again, I have borrowed money ($3,000.00) to pay the Lance Edward’s group $2,695.00 for his home study course and mentorship.
They don’t have my money yet! I would like to have a small amount of support if I get into a crunch on my journey!

If you are offering all the material I need — why should I spend the money with Lance’s group? They don’t even offer their students cash flow analyzing software When I asked the training coordinator why they didn’t offer this kind of software, the guy stated that it wasn’t necessary (a whole heckuva lot faster and more accurate, though!) they just use a list of due diligence stuff on a piece of paper.

So, sorry Ted, for baring my soul. But I’d like some great training without having to get in bed with a buinch of bucks needlessly. Can I get everything I need from your course for sure? And, when I’m completed, are you reachable for assistance if ever I were to need it?

Warm regards,

Marje

Dear Marje,

I’m sorry to hear that you had such a disappointing experience with the Dave Lindahl apartment building course. Rest assured that if you don’t find any value in my “Buy Your First Apartment Building E-Course” then you can get a no questions asked refund at anytime. Also, I am available to help you anytime by email.

Good luck,

Ted Karsch

Hello Ted,
I hope I get a response back from you.  Your course seems to be the one for me because this is what I really want to do but my credit is shot to hell? I can’t do anything to be honest.  I know you say that I can buy with none of my own money but in this market?—-today’s economy? I guess your course will point me to some people that will lend despite all of that right?  I found a couple of deals with another course all to get shot down which is the only reason why I’m emailing you.

Thanks again,

Raymond

Hello Raymond,

Thank you for the email.  You can definitely find financing for apartment building investments using the list of updated lenders that I include in my “Buy Your First Apartment Building E-Course”. I also explain how to recruit other investors for your apartment building investment using a limited liability corporation.

Good Luck,

Ted Karsch
http://www.ApartmentBuildingInvestor.com