In a study put out by the Gershwin Group on Monday, investors with investment real estate were found to be utilizing rent to own homes over all other methods of long term holding as the fastest way to cash flow their investment properties.

The study highlighted the three methods of retaining properties for long term capital appreciation and their effectiveness:

- Renting
- Renting via government assistance ( Section 8 )
- Rent to own (lease option)

The study was backed by a 10+ year poll of independent investors that answered questions relating to their success or failure of each methodology.

Overall, renting to own a home lead the pack with 78% of respondents saying that the method was the most successful long-term. The effectiveness of renting to own was clearly beneficial over other methods because in most cases the monthly mortgage and related expenses were entirely covered. Only as few as 12% of the renters ended up actually excising their option to purchase and they were found to pay on average a staggering 17% higher than normal price for the home. To further compound the benefits, investors received larger down payments, $5,625 on average and properties were maintained better by the renters. Much of the improved maintenance stems from the renters hope of future ownership. 14% of tenants were found to improve properties on the order of at least $25,000.

Overall, we see the use of rent to own homes by savvy investors to increase. With foreclosures amplifying, the market for tenants will continue to grow. This is an excellent time to own rental property but smart investors will consider a rent to own option instead.

For sellers interested in renting to own you should see the following nationwide rent to own company, which provides free listings and a wealth of lease option information.

If you need help with refinancing an investment property for superior cash flow or wish to obtain a purchase money mortgage give me a call. 

Jeremy Stayton / Luxury Financier
Luxury Mortgage Group
Office:  (702) 444-0400
Cell: (702) 308-7567
Jeremy@LuxuryMortgageGroup.com

Effective immediately, Luxury Mortgage Group is offering our affluent clients a new mortgage program “Affluent Advantage” which provides qualified borrowers with the opportunity to purchase or refinance luxury properties at interest rates of 4.5% (APR of 4.6 to 4.97%).

This program offers unprecedented interest rates for savvy borrowers that want to borrow money at rates lower than any other commercial or institutional lender can currently offer.

Only a select number of highly qualified borrowers will be admitted into the Affluent Advantage program. All buyers will first need to be pre-qualified by Luxury Mortgage Group and certain restrictions apply. Once approved, those selected for entry into the program will be offered.

Affluent Advantage Program Highlights:

• Financing on high rise condos, condo hotels and luxury home properties.
• Loan-to-value ratios of up to 100% using a blanket loan or by pledged assets. Up to 75% for traditional loans. (See below for an LTV matrix)
• FICO scores can be completely overlooked for this program for high income or high asset borrowers.
• US Citizens, Permanent Resident Aliens and Foreign Nationals all qualify.
• The program is for Non-Owner Occupied properties or Foreign Nationals buying a N/O/O or Second Home ONLY (No owner occupied homes). 
• Total mortgage borrowing ability is capped at five times annual earnings.  (In example: a borrower making $1M/yr is capped at TOTAL mortgage debts of $5M).
• Some Income and Asset documentation will be required (No Stated Income borrowers).
• Interest rates start at 4.3% for up to 30 years is offered.
• All files are manually underwritten and diligently analyzed by committee, therefore expect 30-60 day closing times.
• The program is initially being offered in 10 states (see below).
• Loan amounts from $250,000 up to $50 Million Dollars.

LTV Matrix:

• 100% Financing is available by Pledging Assets or cross-collateralizing multiple properties.
• 75% Financing for loans of $250K up to $2M
• 70% Financing for loans from $2M to $4M
• 65% Financing for loans from $4M to $50M

States Covered:

• California
• Colorado
• Connecticut
• Florida
• Hawaii
• Nevada
• New Jersey
• New York
• Oregon
• Washington State

This program blends common sense underwriting and the analysis of repayment ability with an uncommon source of exceptionally low priced funds.

“Traditional lenders aren’t as interested in lending to super jumbo borrowers because they’ve experienced huge losses on many of the mortgage loans originated in the past few years. The whole sub-prime mess has pushed banks and large lenders away from being able to help luxury borrowers. After four months of dialogue, negotiations and diligence our backers have given us their blessing for this offering,” said Jason Fox, President of Luxury Mortgage Group. “Our clientele expects us to provide them with rates and terms that no one else can provide. By creating this new Affluent Advantage program, our clients now truly do have options that no one else in the world can offer. We will continue to expand our market share all throughout 2008 while we see other lenders struggle to offer mortgage loans at all.”

“This is an amazing opportunity for borrowers looking to refinance or buyers of luxury high rise condos and luxury homes,” says Linda Wilson, VP / Director of Operations at Luxury Mortgage Group. “Our Affluent Advantage mortgage program offers interest rates lower than what Fannie Mae / Freddy Mac conventional conforming programs currently offer borrowers. Jumbo and super jumbo mortgage programs have traditionally cost a half of a percent over conforming conventional rates and luxury borrowers have been penalized for obtaining larger dollar amount loans. This new Affluent Advantage product makes a wonderful addition to our exemplary commitment to the finest level of super jumbo mortgage services that our clientele has come to expect. As the only direct lender to specifically focus on the financing of high rise condos, condotels and luxury homes, we are proud to shape the luxury finance market in America,” Wilson said.

Luxury Mortgage Group, Founded by Luxury Financier, Jason Fox, is the only direct lender with a core niche focus of financing high rise condos, condo hotels and the most noble of luxury homes. Recognized by national press, media and peers alike as the leader in luxury finance, Luxury Mortgage Group continues to serve as the most exclusive financier in the world. While others diversify, Luxury Mortgage Group remains committed to what’s best.

To get started with Luxury Mortgage Group please submit a request using our Luxury client intake form, Dial (702) 444-0400 x1 or e-mail us here.

You can also view our other luxury websites:

 Luxury Mortgage Group was seen last night on the local evening news, Las Vegas Channel 8.  The story discussed a list put out by a Florida portfolio lender, Bank United.  The list contains names of Las Vegas high rise condominium projects that Bank United will not loan upon due to “high investor concentrations.”  Luxury Mortgage Group was featured in the segment and was labeled the only boutique lender in Nevada.  We are happy to see the local media recognizing our success and continued commitment to providing superior luxury financing services. An abridged transcript of the interview follows:

“My reaction was one of surprise,” said Jason Fox, president of Luxury Mortgage Group. “If other banks are willing to do the financing, there’s absolutely no harm in being on that list. If other banks follow suit and also add particular projects to their lists, there could be huge repercussions.

“Bank United was concerned about “high investor concentration” with the projects on their ban list. Fox says banks that understand our market better see the sustainability of these condos.

“The ones that do get it will not place many of those properties into their own ban list,” Fox said.

We continue to monitor all lenders blacklists and factor in their decisions with our own lending decisions.  Many of the projects that are on Bank United’s list should not be on there because they are viable and sustainable projects.  In example, Regency Towers, a high-rise project built in the mid-1970s should not be on any lenders ban list for reasons of investor saturation.  In effect, being on the list is a banks way of saying they don’t feel a project is viable.  When putting that up to Regency Towers, it just doesn’t make sense.  How can you say a project built in the mid 1970s isn’t viable and downright a huge success?  The project has sustained itself and in fact has appreciated substantially since it’s inception over thirty years ago.In time, Bank United’s list will be seen as a bump in the road for owners in projects on the their blacklist. 

Few, if any, lenders that understand our strong high rise condo market will follow suit and financing will continue to be available for the savvy buyers in these projects.

Shanda Sumpter, Executive Vice President / Investor Relations of Coldwell Banker Premier Realty in Las Vegas, giving great praise to Jason Fox and the entire team at Luxury Mortgage Group.

Shanda Sumpter is best known as an international liaison between foreign investor groups and high and mid rise developers in Las Vegas, NV.  She spends a great deal of time in Europe and other foreign markets and has brought hundreds of investors to Las Vegas to showcase the opportunities currently at hand in this real estate market.  She is a specialist in assembling bulk buy purchases from tens to hundreds of units and is an avid deal maker.

For more information on Sumpter, click her name above for her biography.

Here is the text version: 

Luxury Mortgage Group is a direct lender for TRUMP INTERNATIONAL HOTEL AND TOWER LAS VEGAS

LUXURY MORTGAGE GROUP IS THE #1 LUXURY HIGH RISE LENDER IN NEVADA

Luxury Mortgage Group has the expertise, sophistication and superior terms to
make your mortgage financing at Trump Tower a simple and straight forward process.

HERE IS WHAT WE CAN OFFER YOU:
(The following are max loan amounts and max Loan-to-Value ratios)

Foreign Nationals:  ALL UNITS (Studios Included) - Stated Income at 65%:  Up to $6M

Studio Units:  Full Doc at 65% or Stated Income at 65%:  Up to $1M
�
1 or More Bedroom Units (Penthouses Included):

    2nd HOME - FULL DOC: 100% by Pledging,  $1.5M = 80%, $3M = 75%, $4M=70%, $6M=65%
    2nd HOME - STATED:  100% by Pledging, $1.5M = 75%, $2M = 70%, 6M = 65%
    INVESTMENT PROPERTY - FULL DOC: 100% by Pledging, $700K=75%, $1M=70%, $6M=65%
    INVESTMENT PROPERTY - STATED:  Up to $6M = 65%

Please phone one of our Luxury Financiers, listed below, to discuss rates and terms.

   Informative Resources:
High Rise Mortgage Specific Information:  www.HighRiseLoan.com
Apply Online at our Corporate Website:  www.LuxuryMortgageGroup.com
Affluent Finance News:  www.LuxuryMortgageBlog.com <— We highly recommend you visit

Our Luxury Financiers are available 7 days/week to answer your questions:

Don McCorkle  —  Don@LuxuryMortgageGroup.com  —  702-540-7466
Jeremy Stayton  — Jeremy@LuxuryMortgageGroup.com —  702-308-7567
Timothy Hartman — Timothy@LuxuryMortgageGroup.com — 702-370-0105
Sammy Biscoe — Sammy@LuxuryMortgageGroup.com — 702-882-8788
Scot Rockafellow — Scot@LuxuryMortgageGroup.com — 702-290-5742

Luxury Mortgage Group, LLC  Phone (702) 444-0400  ∙  Fax (702) 444-0200
101 Convention Center Drive, 10th Floor, Suite 1004, Las Vegas, NV 89109

The price of goods and services are only applicable as long as people believe that whatever they are buying is worth what they are paying.  The laws of supply and demand certainly apply and when people perceive money to be on sale, as when the Fed cut rates from 2001 until 2004, they began the herd euphoria of “Mr. Market” as Buffet so aptly describes it.  This in turn drove up the price of real estate and just about everything else as people suddenly came upon piles of equity that were created from thin air.  By the time the Fed realized that they may have gone too far (as Alan Greenspan stated in his recent book “The Age of Turbulence”) they immediately increased the Federal Funds Rate.  The Fed then increased the Federal Funds Rate 17 times in row and in affect has helped push the country into recession. 

This is where fear comes in. 

The central bankers at the Fed understand the market mentality and the corresponding euphoria and panic that can go along with it; which may be the reason they stated in the New York Times this past November that we are NOT heading into a recession.  The markets tend to place more credence in the words of the Fed and the analysis of the delivery of those words than just about any other market indicator out there.  The Fed understands that emotion and perception have as much to do with the markets as anything. The current Fed chairman, Ben Bernanke, and his predecessor, Alan Greenspan, both like to use the term “resiliency of the market” to describe their strong belief in our economy.  This term is used whenever people express fears that our country is in a financial tailspin.  Greenspan made the point that the markets were hardly affected after 9/11 and recovered brilliantly after the tech fiasco in the early part of the decade.  Some of this can be directly attributed to Greenspan’s actions and the other can be attributed to the way the business world reacted to his statements as though he were a fortune teller. 

For the markets, perception is reality.  The Fed not only controls the flow of cash but is magnanimously capable of pushing the mentality of the markets.  Baron Rothschild famously stated “Give me control over a nation’s money supply, and I care not who makes its laws.”  Woodrow Wilson apparently understood all this after he signed the law creating the Fed in 1913 when he stated in his autobiography that his biggest regret was allowing the creation of the Fed.

Most people are unaware that the Federal Reserve is not a government body.  The President appoints the President of the Fed, who is usually (although not necessarily) also the President of the FOMC or Federal Open Market Committee (the body that determines monetary policy in this country).  Technically, the U.S. President’s only job or responsibility under the law is to appoint the President of the Fed.  However, there is to be a separation of the Fed and our government, and be that as it may, the close relationship between the Fed and our government is obvious.

I say all this to make the point that those who control the money supply in our country have a great degree of control over the mentality of the markets and the economic mind of the population.  If people perceive that money can not be borrowed or obtained as easily, or that the price of real estate or stocks are dropping they are less likely to jump into the market.  This of course puts a cap on inflation.  Those who are smart like Warren Buffet love times like this because they consider everything to be on sale.  The United States is a country that is not going to dwindle away to nothing.  More specifically, Las Vegas is a city that is growing at a fevering pace.  We have over $40 billion dollars worth of construction currently in process on the Las Vegas Strip.  This is equal to the total amount of construction that has been spent on the Las Vegas Strip thus far!  Opportunity is abound for those savvy enough to see it.  Rental rates are already on the rise in the valley and renters are increasing due to foreclosures and home buying slowdowns.  All of this provides an opportunity of epic proportions for the affluent few to buy real estate and businesses at historic discounts.

There is a window of time associated with these opportunities that is winding down.  Even with a United State recession likely, Las Vegas will continue to grow in terms of jobs and a housing shortage in 2009 based on our current migratory influx of new residents.  Recession or not, the local economy is poised to boom in 2009 and on.

Many green investors fall into the trap of personally feeling the emotional cycles of the market which often resemble an unstable person in which the cycle flips from exuberant to despair.  Savvy investors instead, logically analyze the market factors, cash flows and profitability of their investments instead of concerning themselves with the feelings of joy or pain the markets bring.  The facts are that real estate values in many parts of the city are offered at 2001 price levels, foreclosed properties are currently experiencing multiple investor offers and rents are appreciating.  These are all exceptional signals for Las Vegas investors to take a look at the market and determine if the time to act is now.

Call or e-mail me with your questions and comments on the real estate market.  As an avid investor myself, I love discussing the opportunities at hand.  You may also leave comments below.

Timothy Hartman / Luxury Financier
Luxury Mortgage Group
Direct: 702-370-0105
Timothy@LuxuryMortgageGroup.com

Or complete our full online mortgage application

“All throughout this project we have carefully selected the highest caliber of vendors and service providers so that we can provide our buyers with a residence of the highest quality possible.  Selecting Luxury Mortgage Group as our preferred lender was the next step in bringing the tower and our future resident’s dreams to life.  We feel that Luxury Mortgage Group’s financing options fit well with our luxury buyers.  The mortgage options available to our US buyers as well as our foreign national buyers is unlike any other lender can offer,” says, Bea Goodwin, VP of Sales and Marketing at International Sales Group. “We feel that Luxury Mortgage Group can assist a much larger spectrum of our people and at terms superior to traditional sources,” Goodwin said.

Allure Las Vegas is located within easy access to the I-15 freeway, the Las Vegas Strip and the North downtown Strip area.  The project features approximately 428 units and 15 unique floor-plans with studios, one, two and three bedroom residences, as well as tower suites and extraordinary two-story penthouses.

“Allure Las Vegas has long term upside potential that we believe will make the current price per square foot a considerable value going forward.  Land prices on the Las Vegas Strip have skyrocketed and the actual construction costs to build a high rise building have outpaced their current price per square foot. If inflation continues to rise, today’s market price will be unavailable in the near future.  Allure Las Vegas owners will greatly benefit from the redevelopment activity and property acquisitions in the area. Allure Las Vegas will soon be surrounded by some of the largest high rise projects in Las Vegas. The project is already a success now and we believe it will be even greater success in the future,” says Jason Fox, President of Luxury Mortgage Group. “We are committed to the buyers in Allure Las Vegas and offer superior terms and unique mortgage programs to suit their new homes in this iconic tower,” Fox said.

“This is an amazing opportunity for the buyers of Allure Las Vegas,” says Linda Wilson, VP and Director of Operations of Luxury Mortgage Group. “The partnership with Allure Las Vegas makes a wonderful addition to our commitment to the finest level of super jumbo mortgage options that our clientele has come to expect. We have opened up an unprecedented number of additional opportunities for Allure Las Vegas’ foreign national and US resident buyers at loan terms superior to other lenders.  As the only direct lender to specifically focus on the financing of high rise condos, condotels and luxury homes, we are proud to be a part of this offering.  Even though traditional lenders have implemented constrictions in their residential finance offerings, Luxury Mortgage Group continues to offer generous 100% financing options for our luxury clients,” Wilson said.

Luxury Mortgage Group, founded by Luxury Financier, Jason Fox, is the only direct lender with a core niche focus of financing high rise condos, condo hotels and the most noble of luxury homes in the nation.  Recognized by national press, media and peers alike as the leader in luxury finance, Luxury Mortgage Group continues to serve as the most exclusive financier in the world. While others diversify, Luxury Mortgage Group remains committed to what’s best.

Contact Information:

Sarah Hartman / Director of Developer Relations
Luxury Mortgage Group, LLC.
http://www.HighRiseLoan.com
http://www.LuxuryMortgageGroup.com
(702) 444-0400

A hard money loan is typically defined as a loan that mortgage banks won’t do.  They range from borrowers with low FICO scores all the way up to complex commercial deals invoking blanket or bridge financing.  The lenders offering these funds are typically lesser known pools of funds put together by former mortgage brokers now turned hard money lenders. 

With the recent tightening of institutional financing and the folding up of 200+ lending institutions, these types of hard money pools are gaining popularity with former mortgage brokers faster the any new FHA reform you may hear about. 

These new hard money lenders bring on wealthy investors and pay them a sizeable return of approximately 10-12% for the use of their money.  They then loan the money out and keep the origination fees that they collect from the borrower.  Additionally, they typically charge their pool of investors a 1% fee for servicing all of the borrower’s monthly payments and collections.

In the past, and to some degree still today, hard money loans carry a stigma of ill repute.  This comes from the high fees (points) and exorbitant interest rates that nearly all of these lenders charge.  Interest rates of twelve percent are a normal starting point for these costly loans.  Origination fees are also high, typically ranging from 3-8 points (3-8 percent of the total loan amount borrowed.)

Interestingly enough, for some borrowers, this type of loan is a wonderful thing.  Residential investment mortgage loans have nearly dried up while the number of pennies-on-the-dollar foreclosure homes has gone through the roof.  In many cases, residential home investors are now forced to utilize hard money financing to purchase homes.  Traditional lenders used to allow investors to finance as many homes as they could reasonably afford.  With lenders feeling the pinch from sub-prime losses, they have nearly all restricted the max number of financed properties to four.  With the advent of the hard money lender comes relaxed guidelines and a more common sense approach to lending.

Hard money lenders typically loan at a maximum of 65% of the purchase price of a home or its appraised value on a refinance.  For a hard money lender, this gives a tremendous cushion and a firm reassurance that a borrower will pay their monthly hard money mortgage payment.  After all, if they don’t pay, the hard money lender will foreclose and own the home at a roughly 35% discount. 

There are few other qualifications to a hard money loan besides having “skin in the game” (having the 35% to put down on a purchase or at least 35% remaining equity in a home when refinancing.)  A few newcomers require the borrower to have a FICO score of 620+ but most old timers in the business still loan to anyone with a 65% LTV or lower.

If you are looking for a hard money loan on an investment property, a residential refinance or a commercial transaction your first stop should be to visit our friends at Las Vegas Hard Money.  They provide hard money loans strictly based on LTV (Loan-to-Value Ratio.)  They are the only technologically savvy source of hard money with a website that instantly gives you a lending decision.  Their website automatically pulls down the property valuation and divides it by the mortgages requested, thus providing a fully-automated immediate hard money decision.

Luxury Mortgage Group assists in the placement of funds for this pool as well as consults investors with diverse yield requirements from all over the US and abroad.  If you are interested in investing in hard money mortgage backed securities, continue on to our corporate website where you can read about investing in hard money.

If you have additional questions regarding hard money investing or obtaining a hard money loan contact:

Call Jason Fox / President
at (702) 444-0400 x1
Continue on to our 2 minute mortgage pre-approval form.
Or complete our full online mortgage application.

If have questions or are ready to become a client, please contact:

Timothy Hartman / Luxury Financier
Luxury Mortgage Group
Direct: 702-370-0105
Timothy@LuxuryMortgageGroup.com

Or complete our full online mortgage application

       The financial news over the last couple of weeks has raised deep concerns that we are heading for a recession.  Rather than scaring smart investors, many look for increased opportunities in real estate and other investments during these difficult times.  The Fed has taken a major step to try to curtail some of the tailspin by an emergency rate cut of ¾ point to the fed funds rate this week, dropping it to 3.5%.  There is new information today, that the fed may drop the fed funds rate by another ¾ point next week.  What does this mean for you?  Well, it may be a great time to tap into some of the available equity in your home while variable interest rates for products like home equity lines of credit enjoy reduced rates.  You could use this equity to pour into deeply-discounted real estate in the Summerlin area of Las Vegas.  Summerlin, like the rest of the Vegas Valley, has experienced its fair share of foreclosures and short sales over the past year or two, and the situation is expected to continue into 2009, according to many of the top market experts, including Dale Snyder of the Snyder Group at Remax Central on W. Charleston in Summerlin.  Dale has many properties available, and has stated recently that some of the “good buys” have STILL been experiencing multiple offers even in this down market.   Dale has listed a couple of these properties on his Summerlin real estate website.

Drop in Dow Jones creates long-term rate improvements

    Smart investors realize that a down market is the best time to think about purchasing quality real estate in areas of markets that are the most likely to increase their values over the long-term.  Summerlin, Nevada is one of those areas.  Since its inception as the largest master-planned community in America in 1990, Summerlin has experienced record property value increases and has enjoyed a reputation as one of the best areas of Las Vegas to call home.  As a Summerlin resident since 2003, I can attest that the amenities and family atmosphere of Summerlin make it seem like a city within a city and an escape from the bright lights and craziness associated with the strip.  With 10 billion of commercial construction currently happening in Las Vegas and all the expected jobs that it will bring, it is only a matter of time before we start seeing this market turn around, and Summerlin will continue to be one of the most desirable areas of town for the foreseeable future.  If you are looking to re-finance your home or purchase a new home, whether it’s for residential purposes or as an investment property, now may be one of the best times to do it.  One advantage to the decline of the Dow Jones over the past few days has been that investors tend to move their money into bonds.  This influx of money into the bond market means reduced longer-term rates.  For all the doom and gloom that is out there right now, the truth is that long-term rates are STILL at very close levels to where they were at the height of the boom.  As long as you have good credit and can document your income, there are many excellent programs and rates available for you. 

If you’re looking at purchasing an investment property, there is further good news, as many new renters are moving to Vegas and  people in the sub-prime market are finding it difficult to qualify for loans and forced to rent.  As an owner of investment properties myself in the Summerlin area, I have experienced high occupancy rates coupled with increasing rents.  Please contact me for more information on this as I can provide you with Realtor and investment financing information to put you into the perfect program and situation, whether it’s a purchase for yourself, or for your latest real estate investment.   

If have questions or are ready to become a client, please contact:

Timothy Hartman / Luxury Financier
Luxury Mortgage Group
Direct: 702-370-0105
Timothy@LuxuryMortgageGroup.com

Or complete our full online mortgage application