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Utilize Private Funds In Your Real Estate Today!
We as the general public have been spoiled by the low bank rates being offered to date. Many investors become so enticed by low interest rates that they do not even consider the option of using private funding when they are declined by the bank, and as result, they turn away from a purchase or refinance that could have generated great profit for them. First of all, why are more and more people getting declined by the bank? Today the banks have become very difficult to work with. This is because they have imposed extremely strict requirements for approvals and if you do not meet their exact credentials, you are declined and your buying power has been diminished. I am sure many have experienced such frustrations on the new and improved banking protocol, specifically business owners and contract workers who may have difficulty verifying income. Being in the mortgage industry for almost 2 decades now,I have witnessed vast changes in the approval process for both residential and commercial lending. Just a short time ago it was possible to purchase a residential property, single family up to 4 units, with only 5-10% down. Today you would need a minimum down payment of 20% of your purchase price. You must be able to show that you have the funds to support this purchase and if you cannot verify your income as declared on your tax returns, then there is a very high probability that you will be declined. How many individuals have fallen into this category because of being self-employed? Majority of these individuals are the ones that are seeking alternative investments such as real estate for long term stability because of a lack of post retirement pensions and government support. Iwant to inform all of you investors that we cannot let the banks criteria stop our real estateendeavours! We have access to private money where these strict rules do not apply. The approval processfor private funding is based on commonsenseapproach. A common sense approach entails analyzing a deal objectively and all-encompassing. A feasibility analysis would be conducted along with an appraisal of the property, and any relevant documentation would be requested on deal specific basis. Although the interest rates are higher, with private funding there is significantly more flexibility with closing times (mortgages can close within a matter of days!), income confirmation, loan to values, and conditions on a mortgage offer. A higher interest rate is far worth the ability to purchase real estate that could produce great future value and profit that otherwise may not even be a possibility. Since private money can fund quickly, why not use this funding source tonegotiate a better deal for a quick closing, and offset the additional interest rates? I personally am self-employed and I am an avid real estate investor whom uses this technique all the time. I pay the going rates and still have a great success from real estate! Example of how using private money worked for one of our clients: Purchased a power of sale vacant property: $550,000 Used private funding to close Used private funding for a renovation loan Renovated and leased the vacant space Appraised the property after the work was completed: New value $1,100,000 Refinanced with the bank Removed private money: now they have a beautiful property that is cash flowing and their initial investment has been returned. Please note, first mortgage rates for a private loan average from 7-10% annually, second mortgage rates average from 10-15% annually. We can obtain up to 90% of the value of the property on approved credit. On average this is on higher side, however has been funded. Lender fee and broker fee will also apply. Private money will fund land, gas stations, vacant properties, distressed properties, construction, and developmentamongst many others. If you are looking to buy a property and are hitting a wall with your funding, contact email@example.com and we can perform an assessment on your deal today!
Employment fell by more than one million in March
Employment fell by more than one million in March (-1,011,000 or -5.3%). The employment rateor the proportion of people aged 15 and older who were employedfell 3.3 percentage points to 58.5%, the lowest rate since April 1997. Of those who were employed in March, the number who did not work any hours during the reference week (March 15 to 21) increased by 1.3 million, while the number who worked less than half of their usual hours increased by 800,000. These increases in absences from work can be attributed to COVID-19 and bring the total number of Canadians who were affected by either job loss or reduced hours to 3.1 million. The unemployment rate increased by 2.2 percentage points to 7.8%, the largest one-month increase since comparable data became available in 1976. Unemployment increased by 413,000 (+36.4%), largely due to temporary layoffs. In addition, the number of Canadians who had worked recently and wanted to work, but did not meet the official definition of unemployed, increased by 193,000.
Forecast Update: Economies Shutting Down
Rapidly evolving developments necessitate an update to the forecasts we published just last Friday. Additional quarantine or shut-down measures have been put in place in a number of countries in the last few days. As a result, we now anticipate global GDP growth to be 0% in 2020, followed by a sizeable rebound in activity in 2021 given our view that economic activity will rebound quickly once the virus is no longer a serious threat to public health. At present, we believe activity will begin to return to normal in the third quarter, except in countries where containment measures were aggressively deployed in the first quarter (essentially the Asian economies), where activity resumes in the second quarter. In Canada, the closure of non-essential business in Quebec and Ontario announced earlier this week will have large economic consequences. At present, we believe Canadian economic activity will fall by 28% in Q2 as these measures are felt. If other provinces follow, the fall in Q2 economic activity would be in the 35% range. We now assume that economic activity resumes by the start of the third quarter and that growth rebounds sharply at that time. However, the 20% drop in US economic activity in the second quarter will restrain the rebound in Canadian activity in the third quarter owing to the usual lags between US and Canadian economic outcomes. Under these assumptions, Canadian GDP would fall by slightly more than 4% in 2020 and rebound by 5.1% in 2021. Though we have not included any additional measures in this update beyond those already announced, we believe a substantial ramping up of fiscal support measures in Canada is forthcoming. There is a chance that aggressive virus management measures are required beyond Q2 to ensure the virus is truly well-contained. Evidence in Asia this week suggests that even in countries where aggressive management measures have been put in place, COVID-19 can come back quite quickly. If measures in Canada are not lifted by the end of Q2, growth would fall again in Q3, and GDP would fall by 6.3% in 2020 instead of the 4.1% we currently expect. A key question for forecasters is the length of the virus-related restrictions on firms and households. As noted above, a shift of one quarter in the resumption of normal operating conditions can have a large impact on growth outcomes. Since we do not have a good handle on the ultimate length of the interruptions, we consider it more informative to assign probabilities to the time at which virus containment measures end. At this time, we believe there is a 75% chance that activity resumes by Q3 and a 25% chance that activity returns to more normal levels by Q4. How officials manage virus containment internationally, as well as the evolution of the virus, will inform our assessment of probabilities going forward. Source: Scotiabank Economics