100% Financing On Jumbo & Super Jumbo Loans With No PMI - Here's how!

Introducing our Pledged Asset Loan Program!

Let's say for example that you have an investment porfolio earning a pretty hefty rate-of-return for you. Now a rate-of-return simply put, is the gain or the loss of an investment over a specified period of time and it's usually expressed as a percentage increase on the initial cost of the investment (your cost-basis). So in our example, let's say that your investment portfolio is earning you a modest 12 - 14%. That's a pretty good rate-of-return; well that's more a matter of perspective based on one's wants and needs. But for the sake of argument, let's agree that it's pretty good.

Question: are you going to want to liquidate your investment portfolio to buy that piece of property valued at $3.5 million?

Answer: NOT if your mortgage payment is going to be 7 - 8%. You're better off maintaining your investment portfolio and letting it generate that 12 - 14% cash flow. If you liquidate it to tie it into the property, you're sitting on a bank and the rich know that creating wealth is more about making your money work for you. Let's remember, money makes money!

In short, this program is excellent for clients who wish to defer capital gains or losses while maintaining their current investment strategy!

How The Program Works:
Certain eligible investment assets may be used/pledged in lieu of a down payment.

For Example: You have a purchase price of $3.5 Million
You'll have to pledge cash and other cash-equivalents equal to the top 45% of the purchase loan amount; that's $1,575,000. However, if you're pledging against stocks and bonds, you'll have to gross this figure up 143% to $2,252,250.

Once these accounts are verified, you'll qualify for 100% financing but will be required to maintain your investment position; in other words your investment assets will remain in their current position and the investing instution will monitor that you have not liquidated such assets until your pledge is removed. (For further information on this program and how a pledge is removed, you can reach me directly at 323.810.2175.)

Again, this program is excellent for those high net worth clients interested in defering capital gains while maintaining their investment strategy.

Features:
• There is no rate increase or points charged for 100% financing
• No down payment is required
• Avoid Private Mortgage Insurance (PMI)
• Maintain your long-term investment strategy
• Maximize tax deductible interest
• No need to move your investment accounts
• You can assist a friend or family member in purchasing their home by pledging eligible assets on their behalf

Wilshire Financial, Inc. and I (Ricardo Bueno) believe that Residential Real Estate Financing is more like a science and Commercial Real Estate Financing is more of an art. So we're combining science and art through a collaborative process involving Financial Planners, Accountants and Attorneys to help realize the goals of every one of our clients.

Going Commercial

William Shakespeare said,
When we mean to build,
We first survey the plot, then draw the model,
And when we see the figure of the house,
Then must we rate the cost of erection,
Which if we find outweighs ability,
What do we then but draw anew the model
In fewer offices, or at least desist
To build at all? -- William Shakespeare

Moving from investing in small residential complexes to investing in complex multi-unit or mixed-use commercial complexes is the equivalent of moving from Junior High straight into College. Though today's market place allows the investor the same types of financing for their commercial properties as they normally would for residential properties, commercial investments require a whole new level of professional management. And if you're a full-time employee, do you really have the time to manage a 20-unit commercial complex?

I'm not advising against your investment in that 20-unit commercial but I am asking you to take a plan of action into consideration; a Business Plan so-to-speak. How will you finance it? How will you manage it? If your investment goes sour, what's your exit strategy? How Will You Own It?

If you work with your own Financial Advisor & CPA, I'm sure that you've discussed ownership of your investment properties through some form of corporate or partnership structure.

WHY?

Because as a high net-worth individual, you want to insulate your personal wealth from any lawsuits or any other personal liability issues that may arise against you.

Here are some common types of ownership that you might consider:
Sole Proprietorship
Partnership
Limited Partnership
Corporation
Limited Liability Company

Follow the Money:
You always want to finance as much as possible on your property purchase. If of course you have enough for a down payment that means a lower interest rate. But don't place more of a down payment than is necessary. Keeping liquid cash-flow and having it available is always important. In this case your purchase should cash-flow itself but having additional reserves for improvements/repairs never hurts.

Unlike Residential Financing, you'll find that Commercial Financing requires larger down payments, loan products carry shorter terms, and interest rates are generally higher. But don't fret, commercial financing is generally speaking a little more lenient than residential financing. There are still very competitive loan programs available in the market place. It's simply a matter of determining what your immediate needs are and locating appropriate financing terms.

Remember: Provide your lender/loan officer with as much information as you can! Give them a "mini business plan." The more information we have, the better we can structure your deal and locate an appropriate financing package.

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Thank You!

Ricardo Bueno - Residential Commercial Construction Investment Advisor

Teaching you how to Build Wealth through Real Estate!

You can reach me directly at 323.810.2175