COMMERCIAL PROPERTY ACQUISITION

 No Qualifying, No Income Verifications!

Transaction Costs

Applicants must be agreeable to a higher cost in connection with acquiring their commercial property. Some costs exist even within the framework of a commercial mortgage loan. Yet others are specific to this program:

The analysis fee is charged to locate and place the transaction with a private investor. It serves no other purpose. It is paid directly to the program at the same time the application is submitted. It is refundable only in the event that the application is not approved or if the transaction cannot be completed on account of the assigned investor.

The appraisal fee is contingent on the willingness of the seller to carry this expense. If payable, it is paid directly to the appraiser.

The cash consideration represents the amount of money that the applicant must provide to complete the transaction. These funds must be in the form of cash. Equity in any property may not substitute for cash consideration. Lastly, funds located in title escrow must first be released in order to be applied as cash consideration.

The net investor fee is what the investor charges to perform on a non-qualifying transaction. It is a small price to pay for an enormous individual commitment on the part of the assigned investor. The exact amount of the investor fee is determined by the transaction size and the amount the investor is agreeable to. It is not possible to determine in advance of submitting an application where the investor fee will precisely come in. Therefore, applicants should base their decision to apply on the maximum investor fee of 15% or 15K, whichever is greater. The investor fee is not paid out-of-pocket. It is rolled in.

The closing costs incurred by the assigned investor in connection with purchasing the property applied for is passed on to the applicant. It is not possible to itemize the exact costs in advance, though they will be detailed prior to completion of the transaction.

Commercial transactions are underwritten through the use of a realtor and are subject to a 3% realtor fee not listed in the chart above. Applicants should apply for a program approval only if they are agreeable to the fees involved, some of which are known prior to the submission of an application.

APPROVAL REQUIREMENTS

It is sometimes difficult to adjust to the idea that an applicant will be approved regardless of credit, income or job status verification. This however, is definitely the case, as this is not a loan and money is not being borrowed. The program does not evaluate the applicant beyond personal character references. Instead, the property and appraised value are the central focus. As long as minimal requirements are met, the application will usually be approved:

--Required cash consideration. Typically just 35%.

--Normal property structure not remotely located.

--3 character references.

--Stated income indicating that the applicant can afford reasonable monthly trust payments.

--Analysis fee submitted with application.

For each application resulting in an approval, an approval letter will be provided. Approvals expire one (1) year from the date they are issued.

If a property on a pending application is withdrawn for any reason, a new property may be submitted as a replacement during the approval period of one year. In this case a new analysis fee is not required.

Commercial investment properties are compatible with this program, but may at the discretion of the assigned investor, require a greater level of consideration payment (lower TTV).

CONSIDERATION REQUIREMENTS

The commercial property cash consideration requirement is not treated like a fee. The amount is generally set at 20% and is calculated on the property sales price plus investor fee. It is credited to the transaction in a similar way that a down payment is credited on a real estate purchase. Exceptions to the amount required are detailed in the following chart:

The total out-of-pocket expense is limited to the consultant fee, analysis fee, cash consideration and less than $5000 of the closing costs.

Properties needing advance funds for construction require double cash consideration.

Investment properties often may be approved under the same cash consideration guidelines as non-investment properties, but then only at the discretion of the assigned investor. Applications for investment properties may be submitted only if the applicant is prepared to come up with up to twice the amount of cash consideration as required in connection with a non-investment property.

APPLICATION PROCESSING

The following steps take place in connection with the processing of a commercial property acquisition application:

--Application and analysis fee is received by the program.

--Applicant references are verified.

--Formal approval is issued.

--Approval letter is provided.

--Investor is assigned to the applicant file.

--Consideration is submitted.

--Important applicant disclosures are presented and executed.

--Appraisal is ordered and issued in the name of the assigned investor.

--Investor secures an investor loan for the property.

--Closing is scheduled.

--At closing, the assigned investor closes on the conventional loan. The applicant closes on the trust agreement. The trust is executed.

--The applicant receives the keys to the property.

While the assigned investor in fact purchases the property and the property is titled to the investor, the actual property is placed in the intervivos trust with the applicant receiving first option on the trust.

The term of the trust is 7 years. The applicant may choose to cash out of the trust any time prior to then. After 7 years, the trust must be settled or reinitiated.

ANALYSIS FEE REFUND POLICY

In the event that applicant's application is not approved, the associated analysis fee is refundable, providing the applicant signs a general cancellation form release, Equally, if the assigned investor is unwilling or unable to complete the transaction, the analysis fee is also refundable.

The analysis fee is non-refundable in the event that the application is approved and the assigned investor is able and willing to complete the transaction.

The refund policy may not be superseded by a third party or verbal representation of any kind by any party. In the event that the program grants a discretionary exception to this refund policy, a 25% cancellation charge may apply.

SUMMARY

When carefully examined, this program is seamless and easy to convey. In fact, the processing of an application and closing is by far speedier and less complex than financing via a commercial mortgage loan.

This program is not exclusively suitable for individuals with poor credit. The difference in cost between this program and a commercial mortgage loan is often not noticeably different. Click Here For Instructions & Application

Be Sure To Read The Following:

Program Overview

Instructions & Application