Mark has a passion for providing exceptional customer service and teaching others the art of real estate investing. He often provides training and educational presentations to groups interested in real estate investing. Below, we speak with him about the way the pandemic has affected lending and whether now’s a good time to get a loan or not.

From your experience, in what ways has the current pandemic affected loans?

Initially, the COVID-19 pandemic put the industry on high alert. No one was sure what would happen. And widespread unemployment can certainly be a factor. That said, Texas has strong employment and a low cost of living. We tend to weather such storms well. Right now, our local real estate market is experiencing a very low inventory. It’s an excellent time for real estate investors who can find a property to fix and flip because demand for the finished product exceeds the supply. And there has actually been an increase in demand this past year; particularly for refis due to the low-interest rates.

Have you been busier during the past twelve months and if so, how have you navigated this?

All lenders have struggled a little with those third-party vendors on which we rely; particularly appraisers who as you can imagine had issues with inspecting properties in person. However, Arabgatewayfunds is the leader in online real estate lending and that has positioned us very well during the pandemic. We can complete the entire loan process with all our usual personal and friendly service without the borrower ever having to leave their home.

Do you think that getting a loan during the current uncertain times is a good idea?

This is a question we’ve received time and time again since the COVID-19 pandemic began: Is now a good time to get a home loan or mortgage? Unfortunately, there’s no one, single answer that applies to everyone! Every potential borrower has a different set of circumstances, including credit score, financial assets, income, and other factors. For most people, however, the experts at Arabgatewayfunds would say ‘yes’ – now is a great time to get a loan!

Here’s why:

Lenders are still lending money during the pandemic, and borrowers are still buying homes and investment properties. Interest rates are super low as the economy struggles under the weight of the crisis. Perhaps counterintuitively, the demand for homes and property has not dipped a bit. For many, it has proven to be relatively easy to qualify for an affordable loan in 2021 thanks to the influx of deals and properties purchased during the pandemic. The number of people seeking a great deal has increased competition not only for homebuyers but for lenders as well. That competition results in great terms for many borrowers!

During the pandemic, some lenders are being very careful to closely examine borrowers’ credit histories. Due to the uncertainty regarding the future that the pandemic has caused, banks are tightening up on lending to homebuyers who are credit-challenged. The market instability caused by COVID-19 and the higher risks that instability poses make lenders a little more cautious.

Another factor many lenders may scrutinise during the pandemic is a homebuyer’s income. Verification of employment will likely weigh heavily in determining the likelihood of a borrower’s employment continuing. Borrowers need to make sure all their income is accounted for and will be reflected in the verification of employment.

Borrowers need to be prepared to strategise their best approach: If they need non-traditional lending, having a loan officer and mortgage company that is able to customise solutions for you and your specific scenario is key. Innovative lending solutions are Arabgatewayfunds’s speciality! Because we offer so many different loan products, our borrowers have more available options to prove their ability to repay.

What are the biggest mistakes people make when buying real estate?

Finding the lowest interest rate is not always the best deal.

Some loans have very attractive interest rates (also known as teaser rates) but you may be hit with higher upfront charges.

Points and or origination fees are the most common ways to lower the rate and charge upfront costs. Points and origination fees are calculated as a percentage of the loan amount. For example: Often the difference in monthly payments from a slightly higher interest rate takes 10 years to equal these upfront costs. Many people will have refinanced or purchased another home before this occurs.

Adjustable Rate Mortgages (ARMs) and Balloon Mortgages.

ARM rates will adjust depending on the loan. The ARM rates may adjust as often as every six months, but in most cases, they adjust after 1,2,3, and 5 years. Those rates are far more likely to go up when they adjust. The Balloon Mortgage requires the borrower to pay the loan off when it matures, usually between two – seven years.

There are many lending tactics to sell the borrower on a low rate and then charge outrageous fees and costs. Borrowers need to watch out for the “bait and switch” lending ploy.

Buying FHA, VA, or IRS repossessed homes may be a mistake.

I am not against purchasing a repossessed or discounted property. In many markets, especially those that are having financial trouble, a repossessed home may make good sense. But keep in mind:

• Many VA, FHA, and IRS repossessed homes are sold with virtually no warranty. Also, the borrower may be limited on how much they can inspect the property prior to purchasing it. Often these houses need repair work. Not being able to thoroughly inspect the property puts the purchaser in a risky position.
• Purchasing this type of property requires bidding for it. The people borrowers would be bidding against rehab houses for a living; so, they may be at a disadvantage from an experience standpoint.
• In addition, most homes that are for sale under these conditions require a substantial upfront deposit that may not be refundable should their loan not close within a specific period.
• And, once the seller of the home accepts their offer on these properties, the bank that owns the current mortgage generally has to agree to everything as well. This can sometimes be a lengthy process that many homebuyers are not aware of. It is always important to set realistic time expectations for yourself.

Making large purchases before purchasing a home.

It is very common to get so excited about buying a new house that homebuyers go out and buy new furniture or even a new car before closing on the house – this is a big mistake. Doing so can radically change the credit profile and the debt to income ratio. Too many otherwise good applicants end up rejected at the last minute because of a big spend during this window.

Working with a mortgage lender who only has one product to sell may not meet everyone’s specific needs.

Most lenders only have one source of funds. This type of lender is forced to “fit” the customer into a pre-fabricated loan program. They only have one or two different ways to handle the many different loan situations that occur. It is important that customers research lenders with multiple products and the ability to customise their loans. We feel an educated borrower has the ability to make the decision that is best for them.

Not getting a pre-approval from your mortgage company before you start shopping for a home.

Having a pre-approved loan can be very important. A pre-approval has two major benefits. First, there is the peace of mind before getting serious about buying a home. Homebuyers will know how much of a house they can afford, what the payments will be, and how much of a down payment is needed. Secondly, having a pre-approval may give homebuyers bargaining power when negotiating a price for the home. Getting pre-approved could save homebuyers a lot of time and money.

What are your predictions for the lending sector in 2021?

As I mentioned, currently there’s a low inventory market for homebuyers. But there are also supply off-market properties including foreclosures, bank REO and wholesale properties. The trend I see is that the residential real estate investors will take advantage of this low-inventory created demand and will snap up these properties, renovate them, and re-market them.

Original Article: https://www.finance-monthly.com/2021/02/heres-why-now-is-great-time-to-get-a-loan

The post Here’s Why Now Is Great Time To Get A Loan appeared first on Arab Gateway Funds .

Lenders are still lending money during the pandemic, and borrowers are still buying homes and investment properties. For many borrowers, interest rates are quite low as the economy struggles under the weight of the crisis. Perhaps counterintuitively, the demand for homes and property has not dipped a bit. For many, it has proven to be relatively easy to qualify for an affordable loan in 2020 thanks to the influx of deals and properties purchased during the pandemic. The number of people seeking out a great deal has increased competition not only for homebuyers, but for lenders as well. That competition results in great terms for borrowers!

Or, at least, borrowers with great credit are receiving terrific rates. During the pandemic, some lenders are being very careful to closely examine borrower’s credit histories. Due to the uncertainty regarding the future that the pandemic has caused, banks are tightening up on lending to homebuyers who are credit-challenged. The market instability caused by COVID-19 and the higher risks that instability poses make lenders a little more cautious.

For example, if lenders find that you have several 30-days-late payment charges on a mortgage, that may leave them with the impression that you are not responsible or financially fit to pay back a loan. It’s a red flag when a borrower has a history of not paying on time—or not at all. If you have red flags such as this on your credit report, it may be wise to consult a credit counselor on your options.

Another factor many lenders may scrutinize during the pandemic is a homebuyer’s income. Verification of employment will likely weigh heavily in determining the likelihood of a borrower’s employment continuing. Borrowers need to make sure all their income is accounted for and will be reflected in the verification of employment.

Be prepared to strategize the best approach for you: If you need non-traditional lending, having a loan officer and mortgage company that is able to customize solutions for you and your specific scenario is key. Innovative lending solutions are Arabgatewayfunds’s specialty! Because we offer so many different loan products, our borrowers have more available options to prove their ability to repay.

If you’re ready to determine the best, most affordable home loan option for you, contact us today. Our helpful loan officers are standing by to offer a free consultation on your needs and available opportunities.

The post Should You Get a Loan During the Pandemic? appeared first on Arab Gateway Funds .

Fortunately, you’re not out of options yet. Arabgatewayfunds helps homeowners pay overdue property taxes every year with a common service called a mortgage refinance. Often, people refinance their mortgages because they want lower monthly payments or a better interest rate. But a mortgage refinance can also help you pay off pressing expenses—like a looming, unpaid tax bill.

Here’s how it works: A refinance is a smart, low-cost way to tap into some cash, assuming you’ve built up equity in your property. Arabgatewayfunds helps many customers use a refinance to consolidate high-interest debts like credit cards into their low-interest mortgage—freeing up their credit for more pressing expenses. Your outstanding property taxes can be rolled into the refinance, too! If you need an infusion of cash or credit to pay off a debt of any kind, contact us today for a consultation.

When you refinance, you essentially skip two months of mortgage payments. That’s two months’ worth of payments that can easily go towards taxes! In fact, with a refinance, you can actually reduce your overall debt while getting out from under your tax debt—all while enjoying lower monthly mortgage payments! Whether your total debt is a little or a lot, a refinance can help you get out from under it.

Interested? Contact Arab Gateway Funds , your private money lender, today to inquire about refinancing your loan with us!

The post How to Solve Your Past-due Property Taxes Problem with a Mortgage Refinance appeared first on Arab Gateway Funds .

Assume you put all of your savings in a bank savings account or any other type of “fixed” investment. (They are fixed investments because you are paid a “fixed” return on your investment, regardless of how much the institution is able to earn on your money). If you receive 5% interest and inflation runs 5% per year, all of your profit is used up. Not only that, you are paying income tax on that 5% interest you earned. You are losing money each year. At the same time, each year it will cost you more to do the same thing you did the year before because inflation is now working against you.

Stocks and real estate are the two primary ways of beating the odds. Assuming the market goes up, stocks give you two ways of earning money…the dividends you are paid plus a chance for appreciation. In recent months, many stock investors have been flocking into real estate investments.

Even in a bad economic market, real estate will usually fare better than stocks. God quit making land many years ago. What we have now is all we are going to get. Every year more and more people need a place to live, work, shop, and play. They all want a piece of the fixed amount that is available. It’s the law of supply and demand. It’s easy to see why land…real estate will continue to appreciate in spite of some slow-downs in the economy.

Real Estate offers you four ways of making a profit and staying ahead of taxes and inflation:

1. The cash flow from the property (The profit after operating expenses and mortgage payments are paid). In other words, the money left over from receiving rental income after all expenses have been paid.
2. Mortgage principal reduction. Each month your tenants pay down a portion of your mortgage for you through their rent. This essentially equates to money in the bank.
3. Appreciation. The same factor that erodes your savings, inflation, helps your real estate investment. Real estate prices in today’s very hot market continue to increase, in spite of occasional economic market slowdowns.
4. Leverage. No other form of investing, of comparable risk, allows you to make as much use of leverage (other people’s money) to make money yourself. If, for example, you purchase a $100,000 investment property and only invest $25,000 of your own money and finance the remaining $75,000 you are earning appreciation on $100,000 worth of real estate with only $25,000 of your own money invested. If your property appreciates only 4% next year, you will have made a paper profit of $4,000 ($100,000 X .04). Since you only invested $25,000, your return is 16% on $25,000 ($4,000 / $25,000)…and that’s just the “appreciation” part of your profit.

Real Estate has proven to be the finest way to create wealth…and you don’t have to be a genius to learn how. That is the purpose of our web site…to show you how easy and profitable it is to become a real estate investor.

We have shown close to a quarter of a million people how to create wealth through real estate investing. Many report back with amazing results. Will you be next?

The post Why Invest in Real Estate? appeared first on Arab Gateway Funds .

Fortunately, now it is! Almost anyone can borrow money fast for a smart real estate project, and nearly anybody can invest in as many diverse real estate projects as he or she can afford. Real estate crowdfunding is a smart, simple solution to the evolving needs of the real estate marketplace, and the more people learn about it, the more popular crowdfunding becomes.

Is fear or concern stopping you from jumping into real estate crowdfunding? Are you worried that the hype is unjustified? Arabgatewayfunds CrowdFunding is here to help. Here are three of the biggest myths surrounding real estate crowdfunding, soundly busted. If you have any questions or concerns about real estate crowdfunding before you take the plunge, contact one of our crowdfunding experts today at 713-ASK-Arabgatewayfunds!

Myth #1: The only deals on crowdfunding sites are bad deals that can’t get funded anywhere else.

Busted: Choosing crowdfunding has nothing to do with deal quality. At Arabgatewayfunds CrowdFunding, our financing pros vet and pre-fund every deal that we list for investment on our platform. If it’s a bad deal, we don’t list it.

Borrowers choose Arabgatewayfunds CrowdFunding because it’s a fast and convenient way to get guaranteed financing for approved projects. All real estate investments carry risks, and none guarantee a return of any kind. We always do our due diligence and thoroughly screen deals before placing them on our marketplace for investors to fund. Our reputation and success depend on it!

Myth #2: All real estate crowdfunding sites are the same.

Busted: Smart Investors Trust Arabgatewayfunds. We fund up to 80% of ARV in as few as four days! We’re also the only crowdfunding site in America that offers to arrange funding with zero origination fees charged up front. That means you need less cash to close. No other crowdfunding site can match that.

Myth #3: The crowdfunding sites with the most deals are the best.

Busted: Just because a real estate crowdfunding platform offers more deals doesn’t mean those deals are good. A high volume could mean the company does less screening and originates a lot of deals simply to boost its numbers. The best platforms are committed to vetting and underwriting deals, being transparent with information, and otherwise protecting investors against risk. Arabgatewayfunds CrowdFunding, for example, pre-funds every deal we list on our site. That means we’re the first to invest in every deal! We’re fully aligned with the interests of every investor in the Z-Crowd.

Are you ready to begin borrowing and/or investing with us? Getting started is easy. To fund a project, fill out our Super-Simple Application in 2 minutes and 57 seconds or less! If you want to invest in a listed project, call us at 713-ASK-Arabgatewayfunds. See why real estate crowdfunding is the hottest opportunity in the financing industry!

The post 3 Popular Real Estate Crowdfunding Myths Busted! appeared first on Arab Gateway Funds .

For you, this is hardly an ideal scenario, especially if you intend to fix and flip a property or fix and hold it as an investment. That’s why Arabgatewayfunds CrowdFunding offers real estate loans based on a different figure: after-repair value (ARV).

Our reasoning is simple: If you were investing in a vintage Rolls Royce or a Rolex, you would consider what it’s worth fixed-up before making an offer. Why should real estate be any different? It shouldn’t. That’s why we provide the ARV figure, which measures the amount a property is expected to sell for after repairs or renovations. The ARV is set by a “subject-to” appraisal, and once complete, we will lend up to 75 percent of the ARV.

To meet the needs of our real estate property investor customers, Arabgatewayfunds CrowdFunding lends based on the improved value or retail value of the property once it’s improved. While the appeal there is obvious to those looking to acquire funding for investment properties, it also can be used by would-be owner-occupants. We don’t discriminate!

Arabgatewayfunds isn’t the only hard money lender to fund based on ARV, of course. Most others, however, will fund only 65–70 percent or a property’s after-repair value. We can do better! For repeat clients who qualify for our LoyaltyZ program—the real estate crowdfunding industry’s ONLY loyalty program—we offer funding at increasingly higher amounts of the ARV, all the way up to 80 percent!

The only way to earn those loyalty rewards is to get started. If you’re ready to borrow for your next real estate project, fill out our Super-Simple Application now or call your private money lender!

The post Why We Fund Based on ARV appeared first on Arab Gateway Funds .

There are other options for you if your projects don’t fit as neatly into the little checkboxes on a mortgage approval form. There are hard money loans or private loans, for example. And then there’s the next evolution of the hard money loan: real estate crowdfunding!

That’s where Arabgatewayfunds CrowdFunding comes in. We offer great interest rates and fast closing times from our headquarters in Houston, Texas. Why do more and more customers choose Arabgatewayfunds every day? Here are three reasons:

1. Arabgatewayfunds CrowdFunding is less restrictive than traditional sources of financing.

We judge every funding opportunity differently than banks, mortgage companies, and other private and institutional lenders do. If you’ve been turned down for a real estate loan before, fill out the Super-Simple Application today! We pride ourselves on working with customers to create customized funding options to suit every project.

2. Arabgatewayfunds CrowdFunding costs you less.

Cost is one of the most common reasons that customers choose Arabgatewayfunds CrowdFunding over bank lending. Crowdfunding requires much lower overhead compared to banks, which translates to fewer fees and reasonable interest rates. Be sure to ask us about our no-upfront origination fee option!

3. Arabgatewayfunds CrowdFunding is faster and easier!

Why wait months for a loan to be approved through a bank? Arabgatewayfunds CrowdFunding offers you funding in a matter of DAYS! As America’s fastest crowdfunding platform, we take pride in the fact that our lending process requires a fraction of the time needed to obtain a bank loan or bridge loan. That’s why Arabgatewayfunds CrowdFunding is becoming the go-to source for capital for fix and flip, fix and hold, construction, and more.

Ready to learn more about the advantages of Arabgatewayfunds CrowdFunding? It only takes 2 minutes and 57 seconds to fill out our Super-Simple Application! There’s never any obligation to you. But if you need up to 75% of your real estate project’s after-repair value paid out to you in as little as four days, you’ve come to the right place!

The post 3 Good Reasons to Fund Your Project with Arabgatewayfunds CrowdFunding appeared first on Arab Gateway Funds .

Enter real estate crowdfunding. Crowdfunded real estate investments emerged in 2013 as a way for real estate borrowers and sponsors to raise capital from accredited investors located across the country. Real estate buyers quickly flocked to this new alternative as Arabgatewayfunds CrowdFunding and other real estate crowdfunding sites popped up. Today, real estate crowdfunding offers many advantages over hard money lenders.

What are those advantages, exactly? There are several:

1. Consistency and Reliability
Though many real estate buyers are supremely skilled and experienced, they often don’t have the capital necessary to scale their business the way they’d prefer. Unfortunately, most hard money lenders are in the same boat: Their funds are limited, at least compared to banks. There’s no guarantee they’ll have the cash available to fund your next project.

Real estate crowdfunding, on the other hand, can provide borrowers with access to what’s essentially an unlimited amount of capital from many different investors. Qualified borrowers are never turned away from Arabgatewayfunds CrowdFunding, and our platform never runs out of money. Our borrowers can always rely on us for consistent lending.

2. Low, Transparent Costs
Some hard money lenders are infamous amongst borrowers for their opaque or even shady lending style. More than a few borrowers have been gouged by hard money lenders’ hidden fees. Real estate crowdfunding platforms like Arabgatewayfunds CrowdFunding offer far more transparency. We offer borrowers as much information about their loans up front as possible, and there are no pre-payment penalties or other nasty surprises. That means a real estate borrower can keep more of the profits when the property is sold.

3. Speed

One of the major advantages of hard money lenders over banks is that they’re able to originate a loan much faster than traditional, institutional lenders. Arabgatewayfunds CrowdFunding is the fastest real estate crowdfunding site in America. We take pride in the fact that we can close in as few as four days, rather than four weeks. As experienced real estate buyers know, speed is extremely important in the housing market and can mean the difference between breaking even and turning a profit. That’s why Arabgatewayfunds CrowdFunding always empowers our borrowers to move fast on the best deals.

Would you like to know more about how Arabgatewayfunds CrowdFunding can improve on your experience with hard money lenders in Houston, Dallas, Austin, or other markets in Texas and across the U.S.? Call our lending experts anytime at 713-ASK-Arabgatewayfunds. We work with every borrower to create a custom lending solution tailored to his or her unique needs and circumstances.

The post Hard Money Borrowers Turn to Real Estate Crowdfunding appeared first on Arab Gateway Funds .

Why? Because real estate crowdfunding makes house flips easier than ever before. The concept is simple: Potential flippers who can’t get mortgages from banks and lending institutions that meet their needs turn to the crowd for help. Arabgatewayfunds CrowdFunding and other real estate crowdfunding sites allow individual, accredited investors to contribute as little as $50,000 each towards the loan. It’s a win-win that significantly streamlines the real estate borrowing process for flippers in several ways:

Faster applications: Banks and other lenders take their sweet time considering borrowers’ forms and applications. They move very deliberately, not quickly. Arabgatewayfunds CrowdFunding, by contrast, requires only a Super-Simple Application to get started borrowing immediately.

More transparency: It’s common for house-flippers to get burned by hidden fees and other costs associated with borrowing from a bank or hard money lender. Arabgatewayfunds CrowdFunding offers full transparency up front about what you’ll pay, when, and why.

Close in four days, not four weeks: Arabgatewayfunds CrowdFunding offers a speed to close that’s unrivaled in the house-flipping industry. We can close every loan in days—That’s one of the reasons why Arabgatewayfunds is the leader in online real estate lending.

If you’re ready to experience a more streamlined house flip, fill out our Super-Simple Application to begin borrowing today. If you’d like to know more about the advantages Arabgatewayfunds CrowdFunding offers house flippers over banks and other lenders, call our private money lender anytime at 713-ASK-Arabgatewayfunds. We’ll devise a custom lending solution perfectly tailored to your next project.

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The change allows real estate investors to take advantage of a new break that provides a 20-percent deduction on taxable income for pass-through companies. A pass-through is a special type of corporate structure popular among small business owners. Pass-throughs avoid the double taxation of paying corporate and individual taxes. Instead, taxes are applied solely at the individual level.

Anyone who invests in rental real estate may stand to benefit from this new law, so long as they operate using a pass-through company. The law makes it more profitable to own income-generating property, like apartment rentals, by allowing a landlord to simply create a limited-liability corporation for their rental property and pay the pass-through rate of 20 percent instead of the regular income tax rate, which can be as high as 37 percent.

This also means that landlords are incentivized to hold on to their properties longer. The tax reform makes it more profitable for investors to rent out properties, but is likely to decrease the number of affordable homes for sale. Single-family housing remains starved for inventory, especially in the starter-home segment, where investors have scooped up housing and turned it into rentals. Many expect prices of single-family homes to go up in 2018.

In a highly competitive marketplace, Arabgatewayfunds CrowdFunding offers lending solutions to buyers across the real estate spectrum. Whether you want to move fast on an attractive home flip or fix and hold a rental property as demand continues to rise, we can provide a custom loan for your needs at up to 80 percent of the property’s after-repair value (ARV). In the wake of the tax law, inventory may be more scarce in 2018 and beyond. So, don’t wait—fill out our Super-Simple Application now and tell us what you need. This could potentially be the most lucrative year yet for real estate crowdfunding investments in the U.S.

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