Creative Financing Options

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By Tod Snodgrass

https://creativetransactionfunding.com

Whether you are an experienced Real Estate Investor (REIer) or are a newbie in this industry, there exist many innovative funding techniques you can use to finance current and future deals. Generally referred to as creative financing, these terms refer to alternative or unconventional approaches that REIers may choose to utilize to acquire investment properties, using OPM: Other People’s Money.

In today’s unpredictable real estate investor landscape, it is very important to have a range of funding options at the ready before you dive into a property investment deal. Let’s face it, to be a successful REIer takes money. It does not necessarily have to be YOUR money, but before you can successfully pull off a deal, chances are SOMEONE’s funds are going to have to be brought to the table. Plan ahead. Line up funds before you need them because they have to come from somewhere.

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Make sure, before you commit to any real estate deal, that you have all your web-footed waterfowl neatly arranged in a linear fashion.

A. Lease Option: You may encounter a situation where you are not ready yet (either experience- or financial-wise) to purchase a property, either for your own personal use or as an investor. That is where the lease option can work best. Doing so provides the opportunity to purchase a property at the conclusion of a pre-arranged leasing-type agreement. This approach allows you to potentially build up equity through monthly rent payments.

The landlord benefits by earning monthly revenue. Typically, and depending on specific contract terms, a portion of the monthly rent payment is credited toward the future down payment on the house. This technique normally works best in a buyer’s market.

B. Down Payment Assistance (DPA). Many REIers are finding themselves caught in a new type of financial squeeze when it comes to the percentage of the purchase price that hard money and private lenders require that they bring to closing, i.e. “Skin-In-The-Game” (SITG) cash.

Until recently, it was possible to secure, say a 90% loan from such lenders, with the borrower required to contribute the other 10% as their SITG capital. And while those terms are still available in some cases, many REIers are waking up to a new reality: They need to bring closer to 20%-30% SITG cash to closing in terms of actual down payment money, with a general average of around 25% DP money currently required.

Upping the SITG percentage is a risk-reduction strategy employed by lenders in response to what they perceive as new uncertainties in the real estate investment marketplace, on a go-forward basis. The reality for REIers caught in this new “liquidity squeeze” is that they now may need to potentially come up with tens of thousands or even hundreds of thousands in new (SITG) investment capital above what was previously required.

Without new SITG capital, the REIer cannot close on the deal. A potential solution to this new dilemma is what we refer to as “Down Payment Assistance (equity) funding”: This is where a third party provides the needed extra SITG/DP cash in return for a modest share of the profits. See below for info about DPA.

C. Seller carryback loan. Plainly speaking, this is simply owner-provided financing. The seller acts as the lender or bank, i.e. he carries a mortgage–usually a second position loan–on the property and collects monthly payments from the buyer. Such an arrangement can be a win-win for both the buyer and the seller. Often the buyer (an REIer in this case) may be willing to pay more than the asking price in trade for advantageous loan terms on a seller carryback mortgage.

Further, the buyer is often willing to pay a higher interest rate on the seller carryback loan than the seller could earn from a CD from their local bank. Also, should the buyer default, the (previous) seller can always initiate foreclosure action and take the house back from the second position. The buyer benefits since they don’t have to go through the arduous and time-consuming chore of trying to get a bank loan; this is especially true if the buyer has a low FICO score or other credit or background issues.

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D. Buying a property “Subject-To”. What this means is that the REIer essentially takes over the seller’s remaining mortgage balance (thereby effectively “assuming the loan”) without making it official with the lender. This is a popular strategy among REIers, especially in an era of rising interest rates, since the loan being assumed probably carries a lower interest rate compared to a new (bank) loan.

Savvy REIers often employ the Subject-To method to take the place of a hard money loan. However, most REIers limit the use of Subject-To loans to relatively short-term time frames, i.e. for a few months until the REIer can either refi the loan or sell the property as part of a fix-flip strategy.

E. Hard Money: A hard money loan refers to asset-based financing where the borrower receives funds that are secured by real property. In most cases, private investors are the biggest suppliers of hard money capital, which are then funneled through hard money brokers.

While the terms (interest rate, points, time frames) of hard money loans may vary, there are several common characteristics: they are usually easier to obtain vs. a conventional bank loan; credit scores and income verification are not as important as the asset value involved; they are usually for shorter time frames (say for 6-24 months); while they charge higher interest rates, the good news is that they often can fund pretty quickly if the deal is right. They usually focus on the ARV (After Repair Value) to determine the loan terms, including important factors such as the rehab blueprints, scope of work, etc. They usually prefer to work with experienced rehabbers who have a clear plan to repay the loan within the specified time frame.

F. Cross collateral loan. This REI method assumes you already own a rental property free and clear. You want to buy another rental property. A cross collateral loan allows you to use the 100% equity in the existing property as leverage to acquire the new property you want to purchase. With cross-collateralization, the lender places a lien on both the new property and your existing property. In this way, the lender receives adequate security should you default on the loan. Basically, cross-collateralization allows you to sidestep the normal down payment requirement and/or having to take out a brand new (bank) loan.

G. Retirement accounts: Use your self-directed IRA, Roth IRA, 401-K, corporate plans as investment capital, where it is legal, prudent and appropriate to do so. Utilizing a self-directed retirement plan can empower a REIer by boosting their retirement savings, one deal at a time. Since we are talking about your retirement money, an extra degree of caution is called for. You need to possess excellent due diligence and underwriting skills in order to properly assess the potential risks involved.

H. Cash-Out Refinance. If your personal residence has a good amount of equity in it, you can unlock that equity via a cash-out refinance by tapping some of that equity. Make sure you fully understand the implications of such a loan should things not go well with your anticipated new investment. A cash-out refi may feature (more) favorable interest rates compared to a hard money loan. Also, the interest you pay is tax deductible. You need to do a risk/benefit analysis before going down this road. Regardless, if a REI deal looks very promising, and you require fast capital to make it happen, a cash-out finance can be a good way to go.

I. 203-K Loan: This unique FHA mortgage enables you to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.

1. Pros:

a. Lower credit score allowed
b. Smaller down payment requirements (as low as 3.5%)
c. Can provide temporary housing while a home is being repaired
d. Lower potential interest rates, compared to similar loan types
e. Ability to combine home purchase and renovations into a single loan

f. Low down payment and credit score requirements

2. Cons:

a. FHA mortgage insurance required
b. FHA loan rates may be higher compared to conventional loans
c. Process may require meeting with a 203(k) repair consultant
d. More extensive repairs require more paperwork
e. Potential for the additional cost of architectural assessments
f. Property must be your primary residence
g. You must live in the home for 12 months before selling or renting it out

J. More creative financing methods to consider include:

1. Approach friends, relatives, etc. Options can include debt or equity.

2. Equity investors. The advantage here is that you do not have to make monthly payments because there is no loan. When the deal is done, some sort of profit split is made to compensate the investor(s).

3. Credit card advances. This can be an expensive gambit. It is only to be undertaken when you are very sure of positive, short-term outcomes. The bank may charge several points and up to 29% interest rates, so be very careful with this one.

4. Joint venture: you bring the deal, they bring the money, split the profits at the end. This is a variation on an equity-type investment.

5. Hypothecate (borrow against) a mortgage note you own. Basically, you take out a loan by pledging the note, thereby using it as collateral to secure the loan.

6. Personal asset loans: pawn some jewelry; get a car title loan, etc.

Down Payment Assistance Funding Program

Are you a Real Estate Investor Pro (REI Pro) who has a property you want to buy, with a 70% LTV or better, but you lack some of the Down Payment (DP) money needed to close the deal? You need say, 25% DP, but can only come up with 10% and need 15% more (DP money.

The good news is if your deal meets our standard criteria (70% LTV or better = 30% or more equity in the deal, etc.), CTF can provide the missing 15% in DP funding. By not having to put out all your own capital into DPs–especially if you are low on cash–you’ll be able to do more deals. With your DP source already in place, it will shorten your time for getting positive confirmation from your primary lender, and for getting more deals successfully closed.

For more information about Tod Snodgrass, please visit: https://creativetransactionfunding.com.

Thank you.

Tod Snodgrass, President
Creative Transaction Funding LLC
8322 El Paseo Grande
La Jolla, CA 92037
310 408-7015
https://creativetransactionfunding.com

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4 Reasons to Consider Asset-Based Lending

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By Vista Capital Solutions

There are many situations in which your company may need funding. Maybe you’re looking to expand your business, open up a new location or invest in a new project. Maybe you need new equipment or training for employees. Maybe you’re anticipating a slow season and want to be financially prepared for lower revenue. Whatever the case, asset-based lending can be a great way for you to get the money that you need. There are several reasons why this might be a better option than a traditional loan.

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1. It Can Be Easier to Get

Asset-based lending uses collateral to secure your loan. When you are using collateral, it is less risky for a lender to provide you with funding. Because of this, aspects that might have otherwise kept you from being approved for a loan, such as limited credit history, might not be as important.

2. They May Cost Less Over Time

Because you are providing collateral, some terms of your loan might be more favorable than they would be if you had gotten a traditional loan. With this kind of lending, interest rates are often lower. This means that you will end up spending less to pay back your loan than you would with another kind of funding.

3. The Money Can Be Used Where You Need It

You might think that, when you get a loan, you can spend it however you like, but this isn’t always the case. Depending on the type of funding you get, there might be some restrictions on how you can use it. Asset-based loans are generally more flexible, allowing you to use them in a variety of different ways as long as it is for your business.

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4. You Can Get Funding More Quickly

Applications for traditional loans can often take a while to be approved. There are larger amounts of paperwork and stricter requirements, so the application process can be lengthy. Even if you are approved for a loan, it can still take months to receive the money. An asset-based loan, on the other hand, can be approved much more quickly.

If you are having trouble qualifying for a traditional loan, then asset-based lending is an option you may want to consider. It can be easier to get than other types of funding and comes with additional benefits, like flexibility and lower interest rates. Different lenders will have varying requirements, so look into your options to determine if it is a good fit for your business.

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A 33-to-1 Vacant & Distressed Home-to-Listed Home Ratio

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By Rick Tobin

Why are you just searching for listed properties for sale when the number of distressed, vacant, and “shadow inventory” homes is almost 33 times larger than the national home listing inventory supply?

How is this possible with my 33 number claim? First, upwards of 16 million homes were listed as “vacant” or shadow inventory in the fourth quarter of 2022, as per the U.S. Census Bureau, National Association of Realtors (NAR), and other groups. A vacant home can be defined as a vacation home, unsold new home building inventory (near record levels of new single-family homes and multifamily apartment buildings being built in 2023), distressed or pre-foreclosure properties, or homes held by billion-dollar corporations like BlackRock, Blackstone, or State Street for the long-term that just sit there with no intent to rent it out at present.

Second, there are at least a few million distressed mortgages (FHA loans, especially) currently in forbearance agreements in order to delay the lender’s foreclosure filing actions to bring the total to more than 18.5 million properties. Frankly, I think that the number is closer to 20 million after counting VA, conforming, non-QM, and private money loans, but we’ll just focus on the 18.5 million vacant or distressed home number.

Since 1934, FHA (Federal Housing Administration) has insured more than 40 million loans nationwide. Today, a relatively high percentage of homebuyers still rely upon FHA to purchase their homes partly due to the much lower interest rates and easier loan qualification guidelines such as loan programs which allow FICO credit scores as low as 500, debt-to-income (DTI) ratios up to 50% or higher, and loan-to-value (LTV) options near 96.5% to 100% LTV.

As of March 2023, the national home listing inventory was listed at 562,565 by data provided by the Federal Reserve Economic Data and the NAR. Let’s do the math as follows:

18.5 million distressed or vacant homes / 562,565 listed homes = 32.885 times

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Distressed FHA Loans & Continued Forbearance Extensions

There are three to four times as many delinquent FHA mortgage loans nationwide as compared to the entire national home listing inventory with somewhere near at least a few million distressed FHA loans.

February 8, 2023: Today, the U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge announced that, thanks to Federal Housing Administration (FHA) programs, approximately 2 million homeowners with FHA mortgages were able to stay in their homes from the beginning of the COVID-19 pandemic in March 2020 through December 2022 – when doing so was often a matter of life and death. During this period of time amid the pandemic, FHA borrowers whose ability to make their mortgage payments was impaired by the pandemic were able to obtain either a COVID-19 forbearance or a more permanent solution such as a loan modification that allowed them to avoid foreclosure.
Source: HUD Secretary Announces Major Milestone of Assisting Nearly 2 Million Homeowners Stay in their Homes

With a few million distressed FHA loans that they admit to and is probably undercounted, it’s no wonder why the federal government wants to keep offering FHA forbearance extensions.

Details of FHA’s COVID-19 Forbearance

Important information about FHA’s COVID-19 Forbearance:

To be eligible for the COVID-19 Forbearance or forbearance extension in the table above, you must request this relief from your servicer on or before May 31, 2023.

You can request a FHA COVID-19 Forbearance for up to 6 months. If needed, an additional 6 month extension may be requested. If you began your initial forbearance on or after October 1, 2021, you are only eligible for the additional 6 months if your initial 6 months forbearance will be exhausted and expires on or before May 31, 2023.

Additional forbearance options may be available to you after May 31, 2023. Your mortgage servicer may provide for a temporary pause or reduce your monthly mortgage payments to allow you time to overcome your financial hardship. An extended forbearance period may be provided to you if you are unemployed and actively seeking employment.

No extra fees, penalties, or interest will be added to your account during the forbearance period.

Source: U.S. Department of Housing and Urban Development (HUD)

There are also a significant number of distressed VA and conforming or conventional loans nationwide which are held by Fannie Mae or Freddie Mac in the secondary market that aren’t really being “officially” counted with the most up to date numbers. FHA and VA mortgage loans have both consistently represented close to 10% each of the annual national funded loan market. As a result, these government-backed or insured loans, which typically average close to 0% to 3.5% down payments for FHA, VA, and conforming, are something to keep a close eye on as the economy continues to soften.

The 40-Year Loan Modification Program for FHA Borrowers

Good news: National mortgage delinquency rates dropped 15% in March 2023 while reaching 2.92%, which was a new all-time record low.

Bad news: Millions of distressed mortgages are not being counted as “delinquent” once they enter forbearance agreements with their lender (FHA loans, especially). The national FHA loan default rate reached 12% in February and will likely continue to rapidly increase. Distressed FHA and VA loan investments are some of the best deals out there because they usually have the lowest mortgage rates that you can take over by way of creative seller-financing techniques.

A forbearance agreement is when the lender or mortgage loan servicing company agrees to postpone or delay their foreclosure actions with the delinquent borrower. Sometimes, these foreclosure postponements may last months or years.

On March 8, 2023, HUD issued their Mortgagee Letter 2023-06 with details described as the “Establishment of the 40-Year Loan Modification Loss Mitigation Option” with a stated purpose noted as “This Mortgagee Letter (ML) establishes the 40-year standalone Loan Modification into FHA COVID-19 Loss Mitigation policies.”

Several mainstream media analysts mistakenly described this new 40-year loan proposal offered by FHA as a purchase loan as well. Yet, this is not correct because it’s only for the refinance of currently distressed 30-year FHA loans into longer 40-year loan terms in order to reduce the monthly payments for borrowers. There is no published word about whether FHA will later consider offering 40-year purchase loans for borrower prospects.

Housing and Family Trends

Real estate is a people business, first and foremost. The #1 most important factor for housing trends is related to population trends and household formations for families especially. Without people, there’s no need for housing regardless of the affordable financing offered.

One of the main reasons why people purchase single-family homes is because they’re trying to either build a growing family or the need to house two or three generations of the family under the same roof. You can’t spell “single-family homes” without family in it.

The U.S. has the highest percentage of one-person households in the entire world. A few years ago, one-person households surpassed all other household formations in Canada.

In 2022, only 24% of U.S. households had at least one child under the age of 18. In 1965, upwards of 42% of households had a child under the age of 18.

The Decline of Family Households

Here are some of the published data numbers from sources such as the U.S. Census Bureau, the National Center for Health Statistics (NCHS), Pew Research, and numerous other data sources in regard to individuals and family structure trends:

  • National overall divorce rate in the USA: 50%+.
  • The California divorce rate is 60%.
  • The Orange County, California divorce rate is 72%.
  • 41% of first marriages nationwide end in divorce.
  • 60% of second marriages end in divorce.
  • 73% of third marriages end in divorce.
  • The average length of a marriage in the U.S. that ends in divorce is 8 years.
  • There is one divorce every 36 seconds in the U.S. on average; 2,400 divorces per day; 16,800 divorces per week; and 800,000 to 900,000 divorces per year.
  • The percentage of American men between the ages of 20 and 39 who are now married has fallen by half (35% of men are married as of 2017) since the early 1970s (70% of men were married).
  • Unmarried parents who live together are more likely to break up than married parents, per the Brookings Institute.
  • Per the CDC in 2016 through at least 2020, U.S. fertility rates were the lowest ever recorded as fewer couples are having children these days. Each consecutive year over the past five or six years reached all-time record lows.
  • 78% of all households in the U.S. contained one married couple in 1950. Today, married households are below 48%.
  • In 2010, the Pew Research Center reported that 44% of Americans polled in the 18-to-29 year old age range believed that “marriage was becoming obsolete.”
  • Divorce rates for people over the age of 50 have doubled between 1990 and 2015, per Pew Research Center.
  • In 1956, roughly 5% of all babies were born to unwed mothers. Between 2008 and 2016, babies born to unwed mothers were closer to the 40% range.
  • Upwards of 50% of children in impoverished regions of the U.S. live in homes without fathers.
  • 46% of children live at home with a mother and father who were in their first marriage together.
  • The average American woman in 1970 had her first child at 21.4 years of age. Today, the woman is near 25.6 years of age.
  • The U.S. has the highest teen pregnancy rate in the industrialized world.
  • More than 50% of children are born to unmarried women under the age of 30.

Saving Equity or Creating Newfound Wealth

What are your options as either a homeowner with an ongoing forbearance agreement in place with your lender, a struggling business owner, a commercial property owner and landlord with incredibly high vacancy rates, or as an investor seeking new opportunities if and when the economy suddenly pivots and we enter a more clearly visible deeper recession? If home values are more likely to be higher today than later this year, is it now a good time to sell? If so, where will be your next destination for a home?

Generally, loss of income is the #1 reason why homeowners lose their homes to lenders or mortgage loan service companies in foreclosure. The #2 reason why homeowners walk away from their home is when the mortgage debt exceeds the current market value and it’s upside-down or underwater. This is when short sale options become more prevalent.

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The real risk associated with homes purchased in recent years is related to the relatively low down payment averages for first-time buyers and others that were leveraged between 96.5% and 100% loan-to-value at the close of escrow. Effectively, these homebuyers were upside-down with negative equity at closing when factoring in the potential 6% to 8% closing costs to resell the homes after paying real estate brokerage commissions, title, escrow or attorney’s fees, transfer taxes, third-party inspection reports, and possible seller credits towards the buyer’s closing costs.

In 2022, first-time homebuyers represented 34% of all home purchases across the nation, as per the NAR. During the fourth quarter of 2022, purchase loans comprised 78.6% of all FHA mortgages funded. With a high percentage of FHA borrowers reported as first-time homebuyers, their average down payments were likely close to 3.5% or below. What happens if home values fall 5%, 10%, or more in value over the next year?

If you’re currently in a distressed mortgage situation as a homeowner or investor or are searching for discounted off-market listings as a buyer with very creative and flexible financing solutions, I can show you effective ways to save your equity or create newfound wealth with my mortgage and investment business named Realloans (Real Estate Loans and Creative Sales) and my real estate group linked here: So-Cal Real Estate Investors.

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

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Soft Money Loans Are The Future of Lending

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By Stratton Equities

A soft money loan combines the advantages of a hard money loan with the greater security that a standard loan affords. The term “soft money” is relatively new in the lending industry. While a soft money loan needs more underwriting, it also comes with reduced risks, making it a very alluring alternative for borrowers who like the idea of a hard money loan but not its specifics.

Hard Money Loans

A hard money loan is based on the Loan to Value (LTV) of the investment property and is an asset-based loan. They are bridge loans that typically do not depend on a borrower’s credit score, making them quick loans for borrowers to be approved for. They are therefore considered high-risk loans for real estate investing. Some borrowers may be hesitant to pursue this sort of loan due to the significant risk involved as well as concerns from the housing market meltdown of 2008. This kind of loan also doesn’t raise a borrower’s credit rating, which can make them less desirable to credit-worthy consumers.

Soft Money: What Is It?

The advantages of both hard money loans and more conventional loans are combined in soft money, a creative new method of private money financing. First, a definition of the phrase “soft money”: The term “soft money” in the lending world differs greatly from “soft money” in the political campaigning world. The phrase “soft money” in the context of lending suggests that this kind of loan stands halfway between a hard money loan and a standard loan.

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Soft money loans have lower interest rates and better security because they are subject to more underwriting than hard money loans. It is usually a term loan rather than a bridge loan and is based on both the borrower’s credit score and the property’s LTV. Additionally, real estate investors with credit scores of 650 or higher might benefit from this type of mortgage financing scheme. For many borrowers, especially those looking to invest in long-term rental properties, a soft money loan is a better fit than a hard money loan because of its cheaper rates, bigger LTVs, lack of tax returns, and longer time frame.

For the majority of investment property types, soft money loan rates start at 6.99% percent and can reach 80% LTV.

The Future of Lending is Soft Money

Although it may sound cliche and forced to refer to soft money as “the new hard money,” when given more thought, soft money is actually the way that private money lending will develop in the future.

While hard money loans are still the most common choice for many real estate investment scenarios, soft money loans are becoming more and more popular with first-time buyers, borrowers looking to hold an investment property for a long time, and investors with good credit who want higher LTVs and lower interest rates.

In contrast to conventional investment property loans, which have a maximum LTV of 70%, a NO-DOC Soft Money Loan Program has a maximum LTV of 80% and does not require PMI. As a result, the borrower can make their purchase with a smaller down payment.

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Stratton Equities is able to assist you when you’re ready to invest. With the largest selection of programs, the lowest private money rates (beginning at 6.99%), a qualified team of experienced loan officers, and a speedy loan approval procedure, we are the nation’s top direct hard money and non-QM lender.

Call Stratton Equities at 800-962-6613, send us an email, or fill out an application for loan pre-qualification right away if you have an investment property and would like to talk with one of our Loan Officers.

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How Short-Term Loans Help Companies Do More

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By Vista Capital Solutions

Running a small business can be a rewarding opportunity, but it takes a lot of work. New business owners in the first few years of incorporation may find themselves in a tight spot from time to time. When you’re trying to bring in profit and business suddenly slows, it might be frustrating to find a solution. You still have to pay your employees and keep the electricity on even when no customers are coming through your door. Fortunately, there are some funding methods that help businesses get past tough times.

Ask a Bank

When you’re looking for a solution to get you past a dip in sales, asking a financial professional about short-term loans is a good place to start. Instead of aiming for a large loan, think about getting just enough for your needs. Bankers can help people decide what kinds of financial products will work best for their exact problem. Tell your financial professional everything that you’re wanting to accomplish and in what time frame you must do this. You must demonstrate a purpose for the money before a bank will loan it to you.

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Consider Other Options

Before you sign on the dotted line with a lender, take the time to see what other options are available besides short-term loans. Ask your banker about different types of products and what their terms are. It’s a good idea to educate yourself on what’s out there so you know where you can turn in the future for other funding needs. Compare interest rates, payment terms, and approval requirements for other kinds of loans.

Make an Informed Decision

After you’ve consulted your financial professional and researched other available products, then it’s a good time to make your decision about applying for short-term loans. Some of these products may even be backed by the United States Small Business Administration. The SBA works with banks and other financial institutions to partially guarantee loans for small business owners. Because these products hold a little less risk for the lender, they are sometimes easier to qualify for. the SBA offers both long and short-term products that are designed to fit the needs of smaller enterprises. Choosing one of these kinds of loans may be more favorable.

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Once you’ve put in your time and research, you will find a good loan for your business. Staying informed about finance will help you make wiser decisions down the road.

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How To Become A Mortgage Loan Officer

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Submitted by Stratton Equities

One of the best jobs you can go for these days if you want to work hard, make a lot of money, and change the world around you is to become a mortgage loan officer. There are so many opportunities out there in the real estate world to make a living, but one of the most fulfilling and lucrative is to become a mortgage loan officer for a private money lending firm.

But what are the steps you will have to take to even become a loan officer?

Like most careers that deal with highly valuable assets and specified levels of management and service, to become a loan officer, you need to get your license. The NMLS, or Nationwide Mortgage Licensing System, offers a variety of mortgage licenses but the one in particular that applies to loan officers most is the Mortgage Loan Originator (MLO) license.

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How to get licensed as a Mortgage Loan Officer/Originator

Getting an NMLS license will certify that as a loan officer, you are now able to legally serve as a mortgage loan originator. Additionally, it informs your prospective clients and employers, that you are knowledgeable of all the laws and regulations that come with mortgage lending.

More specifically, obtaining an NMLS license means that you have completed a class that teaches you all the requirements for serving as a mortgage loan officer, and that you have passed the SAFE Mortgage Loan Originator Test.

You must complete both tasks to be properly qualified to apply for the NMLS license. Once you have your NMLS license, you can easily apply for most private lending and conventional mortgage lender positions.

Although the Nationwide Mortgage Licensing System (NMLS) License covers across the country, you will still need to apply for an individual license per state you are looking to lend in.

Applying to Become a Mortgage Loan Officer with a Private Lender

Believe it or not, the next step in becoming a mortgage loan officer is finding a position at a private lending firm that suits your needs and interests. The NMLS license qualifies loan officers for all private lending and conventional lending mortgage companies. This will allow you to apply for all loan officer positions, however, you will still need the individual license per state.

After applying at your desired location, the interview process shouldn’t be too surprising or different from any other high-level interview process as they will mainly ask you questions and test you on your skillset, knowledge, and ambitions.

Once you’ve secured the position, the best private lending firms will provide thorough training, management, and support.

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Working at a Private Lending Mortgage Company

Through training new loan officers, a private lender prepares their sales team to help guide them to mastering some of the nuances required as a loan officer, that cannot be taught purely through an academic mindset.

You must be ready and focused as a loan officer and this level of training throughout the first few months of the job will help get you to that point.

As important as it is to get certified by the NMLS, there is only so much you can learn by studying laws, memorizing loan options, and practicing unique scenarios. The real test of grit is to see how well you work in a real-world setting.

To be successful as a loan officer you need to be sharp-minded at all hours, diligent in the details, dedicated to working hard, and affirmative in your tone, actions, and decisions. Furthermore, be intuitive enough to understand what is a good deal and how to thread the needle if plans don’t go as expected.

The work will be hard but the rewards are great. On average a mortgage loan officer at a private lending mortgage company can make an average of $150,000-$250,000 a year.

Securing Your Position as a Mortgage Loan Officer

To secure your career as a successful loan officer at a private lending institution, there are a couple more things you can do to ensure your success.

Firstly, there is the option to get certified by the Mortgage Bankers Association (MBA) and/or the American Bankers Association (ABA). This step is optional and not required for the position of loan officer, but getting this certificate can help boost your credentials, entice more clients to come your way, acquire yourself more deals and negotiations from borrowers, and specialize your skill set such that you are even more knowledgeable and prepared as a loan officer.

Lastly, you must renew your NMLS license every year. This is to ensure that whoever is still practicing they are aware of certain changes in the law, whether it be on the nationwide level or statewide. Additionally, renewing your license frequently keeps you fresh and sharp-minded as you are regularly checked on how well and how prepared you are at the job.

These are all the principal steps one takes when seeking to become a loan officer. The process is fairly intuitive for this type of position while also being thoroughly detailed in ensuring that only the best and most prepared are the ones handling multi-million dollar real estate investment deals.

Become a Mortgage Loan Officer/Originator with Stratton Equities! We’re Hiring!

If you are a licensed Mortgage Loan Originator that is new to the industry and is having a difficult time finding business, we have the solution.

Stratton Equities provides our loan officers with daily direct organic leads, that are from people that call into or apply to our offices looking for a mortgage. Not the other way around. We have a time-tested model that includes a state-of-the-art CRM and lead generation, amazing hands-on training, and the widest range of mortgage loan programs in the industry.

We have niche products that specialize in different types of loans such as Hard Money, No-DOC Loans, Soft Money Loan Programs, Non-QM Loans, Conventional, Fix & Flip, Commercial and more.

Benefits of working with Stratton Equities:

Direct Organic Leads
Hands-on Training & Support
Largest library of niche loan products – say “YES!” more!

Pay: $158,086.00 – $294,677.00 per year
Benefits: 401(k), Dental insurance, Health insurance, Vision insurance

For more information on how to get started as a loan officer, visit Stratton Equities today. We offer the largest variety of loan options that can all be directly accessed by our borrowers. Our starting interest rate is the lowest out of any private money lender, and you can get your loan approved in as little as 24-48 hours.

Additionally, our average time frame in closing loans for our new loan officers is 4-6 weeks after training.

Apply Now at https://www.loanofficerscareers.com and email us at [email protected]

4 Tips for Qualifying for Commercial Real Estate Loans

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By Vista Capital Solutions

Commercial and residential real estate have quite different requirements and qualifications for loan applications. Here are four tips for qualifying for commercial real estate loans.

1. Have Proof of Income Available

The lender will need to know about your income sources and income level before you can be considered for commercial real estate loan approval. This is because the lender needs to be sure your monthly income will be able to cover both your regular expenses and your monthly loan payments. If this is your first time applying for a loan, have your tax forms available, for example, a W-2 form. If you already own or manage properties, bring your portfolio so the lender can review your global cash flow.

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2. Know Your Credit Score

Your credit score won’t hold quite as much weight when you seek a commercial real estate loan as it would for a residential real estate loan, but that doesn’t mean it’s not still an important piece of information. You should make sure your credit score is at least higher than 500. Ideally, however, it should be above 600. If your score falls below 500, you’ll have a much harder time trying to qualify for a loan.

3. Know Your Net Worth

Your net worth will be a much more important factor than your credit score. Net worth is the difference between someone’s liabilities and his or her assets. It will likely be the first thing your potential lender will want to review. Lenders want to make sure your net worth is greater than or equal to the amount of money you’re asking for as a loan, for similar reasons as making sure you have sufficient income.

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4. Inform the Lender of Management or Ownership Experience

Crucially for commercial real estate, you need to inform the lender about your experience in managing or owning properties. Let the lender know whether you have prior experience in these areas or not. If you don’t you may need to explain why you’re seeking to enter the market now. If you do, then you need to be able to show the lender what kinds of properties you’ve owned or managed and how your skills and experience translate to the new property or resources you’re seeking a loan to finance.

If you’re looking to apply for a real estate loan, you should understand both what information is necessary for you to qualify and how the processes differ between commercial and residential real estate industries.

Short-Term Rentals and DSCR Loans

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By Rick Tobin

Over the past several years, most short-term and long-term rental property owners created the bulk of their wealth from the annual equity gains related to buying and holding their properties as values increased anywhere between 10% to 40% per year. In California alone back in 2021, it was reported that the average home statewide increased in value $11,000 per month or $132,000 for the entire year. If so, I doubt that many Airbnb or VRBO hosts collected more than $132,000 in gross or net rent profits.

Image from Pixabay

Did you know that San Diego, California was ranked as the #1 for having the highest gross revenues of any Airbnb region in the world in 2021? Please see the complete Top 10 list of the highest grossing rentals in the world later in this article.

Let’s look next at just some of the short-term rental listing companies which assist vacation rental property owners with the leasing of their properties:

  • Airbnb
  • VRBO (Vacation Rental By Owner)
  • Booking.com
  • TripAdvisor
  • Expedia
  • HomeToGo
  • Tripping
  • Homestay.com
  • Atraveo
  • OneFineStay

The prominent travel booking company named Expedia purchased VRBO back in December 2015. As a result, Expedia continues to be one of the most dominant short-term rental companies in the world.

As per published Airbnb data, here are the Top 10 states for average annual host or property owners earnings for 2021:

  1. Hawaii: $73,247
  2. Tennessee: $67,510
  3. Arizona: $60,448
  4. Colorado: $58,108
  5. California: $54,461
  6. Florida: $53,209
  7. South Carolina: $49,641
  8. Utah: $48,568
  9. Oregon: $42,964
  10. Alabama: $41,937

Image from Pixabay

If a rental property owner confides in you that he or she collected $50,000+ in gross income from Airbnb last year, this number may only represent a small percentage of their overall total revenue collected from both short-term and long-term tenants (30 days+) because they may have multiple income stream options by way of VRBO, Booking.com, or other companies that help supply them with consistent tenants. This is especially true when the property is located in a populous metropolitan region or a prime vacation getaway area like those found in San Diego, Santa Barbara, or Miami.

No Income Verification Loans for Rentals

Most real estate investors usually need third-party mortgage financing to purchase one or more rental properties even if they are very wealthy themselves. Many years ago, it was quite challenging to qualify for a rental property because you were asked to provide two years’ worth of tax returns, a detailed profit-and-loss statement, and the mortgage underwriters would only give you credit for 75% of your gross monthly rents when attempting to qualify or deny your loan request. This 75% number was due to the fact that lenders assumed that you had property management fees, vacancy rates above 0% throughout the year, and operating expenses for repairs.

As a result, that $2,000 gross rent turned into just $1,500 (75%) and many investors were later denied because few lenders wanted to lend on a rental property with negative monthly cash flow if the proposed monthly mortgage payment (principal, interest, property taxes, insurance, and homeowners association fees, if applicable) was $1,501 or higher.

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Today, many investors are qualifying to purchase short-term and long-term rentals by way of non-QM or DSCR (Debt Service Coverage Ratio) programs which don’t require borrower applicants’ tax returns, W-2s, or other formal income documents to qualify. Now, some lending programs take the closest look at the subject property before determining if the rental property can at least break-even at a 1.0 DSCR number where 100% of the gross monthly rents are at least equal to the proposed mortgage payment. In these underwriting scenarios, 100% of the gross rents are used to qualify instead of just 75% like was more the norm in years past.

For a DSCR loan, it allows borrower applicants to use the market rent (actual or future, in some cases) of the property to qualify rather than the borrower’s business income. This is especially beneficial for self-employed business owners or investors who have a lot of tax write-offs and minimal net income shown on their tax returns.

Some of these DSCR program highlights include:

  • 640+ FICO
  • Up to 80% LTV
  • Available on investment properties only
  • Finance up to 20 properties
  • Loan amounts up to $2M per property

Some of my other lender programs allow negative cash-flow for rental properties up to 70% LTV for cash-out or purchase transactions while not requiring any additional income from the borrower applicant.

Airbnb Statistic

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Because Airbnb is the biggest name in the short-term rental business sector, let’s review some of these shocking numbers that confirm how successful this investment property model has been for Airbnb corporate and for individual hosts or property owners.

Airbnb History

  • An average of six guests every single second check into an Airbnb listing.
  • Airbnb listings represent 19% of the total demand for lodging in the US.
  • Over 150 million people have booked over one billion nightly stays.
  • The average US Airbnb occupancy rate is 48%.
  • The average stay is 4.3 nights.

2021 Data

  • The global Average Daily Rate (ADR) was $137 per night in 2021 as compared to $110/night in 2020.
  • California properties had a much higher nightly average of $258 per night.
  • In December 2021, there were 12.7 million listings worldwide.
  • There were 2,249,434 listings in the US in 2021.
  • 356.9 million nights were booked on Airbnb in 2021.

Highest Gross Revenues Worldwide for Airbnb Properties

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Surprisingly, these populous metropolitan regions such as Los Angeles, San Francisco, New York City, Paris, London, or Hong Kong weren’t ranked #1 for being the most profitable Airbnb region in the world with the highest gross revenues. No, the honor for the most profitable Airbnb region in the world in 2021 was San Diego, California.

In 2020, seven of the Top 10 highest gross revenues for Airbnb properties were all in the US. One region that stands out is Big Bear, California, which is the best-known mountain resort community in Southern California. Listed below are the 2020 gross revenue numbers for the Top 10 regions in the world:

Compounding Wealth With Equity Gains

There are many individual or family investors across the nation who have acquired 5, 10, 15, or 20+ short-term rental properties. The bulk of their family’s net worth doesn’t usually come from the net annual rental income. No, the family’s net worth is compounding each year with double-digit appreciation rates like we’ve all seen for several years now.

To better understand how the acquisition of multiple rental properties is more likely to create the bulk of your net worth, let’s take a look at a fictional California property owner who saw each of his rental homes appreciate $11,000 per month or $132,000 for the entire year in 2021:

Investors can apply any excess net rental income each year to paying off their mortgage faster. With consistent annual rents, a 30-year mortgage or a shorter-term 5-year or 7-year interest-only mortgage with much lower monthly payments than the best 30-year fully amortizing rates can be paid off much faster as more principal is paid off with extra payments.

The sooner that your homes are free and clear, the earlier you can retire and live off of the monthly cash flow while not touching your equity gains. A fairly consistent plan of buying and holding short-term and/or long-term rental properties is a prime example of letting your money work hard for you instead of the other way around.

Rick Tobin

Rick Tobin has a diversified background in both the real estate and securities fields for the past 30+ years. He has held seven (7) different real estate and securities brokerage licenses to date, and is a graduate of the University of Southern California. Rick has an extensive background in the financing of residential and commercial properties around the U.S with debt, equity, and mezzanine money. His funding sources have included banks, life insurance companies, REITs (Real Estate Investment Trusts), equity funds, and foreign money sources. You can visit Rick Tobin at RealLoans.com for more details.

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How Much a Home Equity Loan Can be Useful to Pay Off Credit Card Debts?

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By Catherine Burke

You are not alone if you have recently faced financial challenges, such as a loss of employment, significant medical bills, or a tragic incident. The majority of the world’s population is affected by the COVID scenario. Over 57% of American adults, for example, are unable to pay medical costs, which are the leading cause of personal bankruptcy.

Some people may attribute their financial difficulties to illogical spending or bad saving practices. If you’re one of them, and you have a significant outstanding balance on one or even more credit cards, you might be finding it difficult to get out of debt. If you can only afford to make minimum monthly payments, paying off your credit cards might take several years, if not decades.

If you own a home, you might apply for a home equity loan and use the funds to pay off your credit card debt. You might be able to handle high-interest unsecured debts like credit card debt or payday loans using a home equity loan. Let’s look at the best ways to do that through a home equity loan.

But before going further, let’s know a bit more about Home Equity loans.

What is a home equity loan?

A home equity loan helps you borrow against the value of your home that has grown over time. If your home is currently worth $500000, but you owe $200,000 on your home loan, you have $300,000 in equity.

A financial institution, credit union, or other lenders might be willing to give you a home equity loan equivalent to a percentage of your equity, depending on this information. Other criteria, such as your credit score, will influence how much you may borrow and if you can get a loan at all.

Requirements to borrow from home equity

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Analyze your requirements, how they would fit into your finances and style of living before taking out a home equity loan. The criteria differ depending on the lender, but in general, you’ll need:

  • A specific amount of equity in the house (15 percent to 20 percent)
  • Creditworthiness
  • Low debt-to-income ratio (DTI)
  • Having enough income
  • A decent payment history

The balance between the amount you owe on your home loan and the home’s market value is known as equity. Lenders use this number to compute the loan-to-value ratio, or LTV, which determines whether you meet a home equity loan criteria.

How can you qualify for a home equity loan?

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You would be able to qualify for a home equity loan too easily before the COVID-19 issue. It was simple to obtain one if you had a consistent salary, a good credit score, and a home with sufficient equity. It’s now more difficult but not unachievable.

Building on sustained gains since the conclusion of the Great Recession a decade earlier, U.S. homeowners increased their equity share by $590 billion to a record $19.7 trillion during the first qtr of 2020, up 6.5 percent from a year ago.

While lenders’ criteria and risk appetite vary, their authorization processes are based on fundamentally the same factors.

Borrowers must typically maintain 20% ownership interests in their homes after taking out a loan, with few exceptions. Only $60,000 will be accessible for borrowing in the given scenario (if the house value is $200,000, with $100,000 equity).

This minimizes the risks for lending institutions. A borrower who has engaged at least $40,000 in a property is unlikely to abandon it. Homeowners would also be prohibited from renting their property to someone who would damage the property. This $40,000 also protects lenders from losing money if the borrower surrenders the assets during a market slump.

When evaluating applicants with substantial collateral, Lenders have more flexibility, but they still rely significantly on credit ratings when determining the loan’s interest rate. A credit score of less than 600 is considered bad, and obtaining a home equity loan will be challenging.

Are you worried about your credit score? Consider seeking credit counseling from a non-profit credit counseling organization for advice on how to improve your score before applying for the home equity loan.

Information you’ll need to apply for a home equity loan

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Collect all of your financial records and essential papers ahead of time to make the home equity loan application as simple as possible.

The following is the list of information that you may need to submit with your home equity loan application properly:

  • The number given by the Social Security Administration
  • The alimony and child support documents
  • Proof of your previous work experience (at least two years), as well as the contact details for your last employer
  • Proof of your income for the last two years
  • Proof of ownership and house insurance declarations
  • A copy of your most recent pay stub
  • Statement of the current mortgage
  • W-2 statements from the previous two years
  • An appraisal or valuation of your home
  • Existing debts and liens on your home

You’ll also need to produce various signed paperwork that your lender would want. It’s time to approach a lender about filling out a loan application once you’ve gathered all of the necessary information. You’ll be on your way to closing once your banker has submitted your home equity loan application.

This period, however, varies from one homeowner to the next. The money will be yours as soon as all documents are finalized and closed.

How to pay off credit card debt with a home equity loan

To use a home equity loan to pay off credit card debt, you must be first eligible for a home equity loan. A home equity loan, often known as a second mortgage, will allow you to take a lump-sum payment on a portion of your $100,000. You can spend the money as you wish and repay it over up to 30 years.

The long payback period and fixed, lower interest rate can help you get out of debt quickly. Furthermore, if you stop taking new credit card debt, your home equity loan can assist you in making steady progress toward debt elimination.

If you get a home equity loan to pay off your debts, remove your credit cards from your wallet and put them away. This way you won’t be tempted to use them for impulse purchases.

Image from Pixabay

Many experts recommend cutting them up at this point so that they can’t be used. However, you should have at least one in case of an emergency, such as a significant medical expense or home repair or a backup while traveling. However, keep it hidden most of the time to avoid temptation.

The benefits of paying off debt with a home equity loan

The main benefit of getting a home equity loan and repaying high-interest debts such as credit card debt or payday loan is that you’ll typically get a lower interest rate than you would on those debts.

Unsecured personal loans have rates that range from little under 6% to 36%, based on factors like your credit score, yearly income, and debt balances. Consider an interest rate of roughly 20-25 percent if you have an issue in any of these areas. So, getting a personal loan to pay off debts like credit cards or payday loans will be difficult.

With the Federal Reserve’s 10-year-bond yield hovering around 0.6%, Jan 2022 home equity loans are available starting as low as 4%. The average interest rate on a home equity loan is just 5.96%, whereas the typical credit card is 19%, and the average interest rate on a payday loan is 391%.

When you utilize a home equity loan to pay off several credit cards, you’ll be able to consolidate your multiple credit cards through only one monthly payment on the home equity loan. On the other hand, you may also use that money to settle your credit card bills and pay them off with significant savings. If you similarly deal with your high-interest payday loans, you may get rid of them by choosing the payday loan consolidation method or payday loan settlement option. You can use money taken from your home equity loan in both cases.

But you should remember one important thing. The interest on a home equity loan a borrower paid to the lender was once tax-deductible. But this significant benefit of home equity loans has been stopped until 2026. Interest on home equity loans is now deductible only if a borrower uses the loan to “purchase, build, or substantially renovate” the home, according to the Tax Cuts and Jobs Act of 2017.

Author Bio: Catherine Burke is a financial writer for online payday loan consolidation. She provides information on successful cash loans and payday loan consolidation to help people get over a difficult patch. She lives in Kansas and has earned a frame in the matter of payday loans.

Pros and Cons: Short Term Loans vs. Long Term Loans

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By: Michael Mikhail, CEO Stratton Equities

Real estate investment loans can be tricky and it can be unclear at times which ones are the best. While there are many versions of loans, let’s go to the basics. There’s a time frame that you need to pay for your loan. It can be on the shorter side ranging from months to a couple of years and long-term loans can take more than a decade to pay off. Now, there are pros and cons to each of these and one of them may be a better fit depending on your loan scenario.

Types of Short Term Real Estate Investment Loans:

● Bridge Loans
● Hard Money Loans
● Fix and Flip Loans
● Foreclosure Bailout Loans

Types of Long Term Real Estate Investment Loans:

● Soft Money Loans
● Rental Loans
● NO-DOC Loans
● Stated Income Loans
● No Income Verification Loans

The Differences between Short Term Loans & Long Term Loans

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1) The Approval Process

Generally, short-term loans have a quicker application and approval process. Since they are a shorter commitment, lenders may be more willing to approve a short-term loan than one they would be stuck in for close to a decade. For both types of loans, the lender wants to make sure that the borrower can pay them back but it is less risky when the loan is only for several months. Due to the quick approval process, short-term loans tend to be better if you need money sooner rather than later. Also, thanks to the shorter time commitment, short-term loans tend to require less documentation to prove you will pay the loan back.

While long-term loans require more documentation to prove to the lender they want to be in a long-term agreement with you. Having to look through more documentation and having to do more research into whether you are a responsible borrower will make the approval process take a lot longer.

Finally, short-term real estate investment loans tend to have much higher approval ratings. Since it’s a shorter commitment, people are much more likely to approve a borrower who has a bad credit history or not too much of one. They may instead ask for collateral but regardless the approval process is easier. Conversely, a long-term loan is a longer and harder approval process. The lender tends to really look at all the details and thus has a much lower approval rate.

Image from Pixabay

2) Interest Rates

For a short-term loan, borrowers will be more likely offered high-interest loans. Due to the short application process and the fact that it tends to be more lenient and flexible, private lenders tend to offer short-term loans with significantly higher interest rates. This is why for short-term loans you want to shorten the repayment period as much as possible. You don’t want to spend 2 years repaying a loan with high-interest rates. Think more about paying it off in months rather than years.

With long-term loans, you are more likely to receive a lower interest rate. The lender has done a lot more research on you, they think they know you will pay off the debt so they are more likely to offer you a lower interest rate. However, make sure to calculate the math, you may end up spending a lot more money over many years with a small interest rate than a much higher interest rate over a few months. For long-term loans, the lower interest rate with a much longer repayment timeline can cost you in interest rates as much as your initial loan was. So with interest rates you want to be careful and to do the math.

3) Loan Payment Schedule

Due to the nature of short-term loans, which are over a much shorter time period, payments may be needed much more frequently. If the loan is only for a few months, then the repayment may be biweekly or more frequently. On the other hand, if it’s a long-term loan, you may not be paying monthly but every few months or every quarter. Thus, if you don’t have a steady income at your company, it may not be a good idea to do a short-term loan because you can’t make all the frequent payments.

Image from Pixabay

4) Amount of Money

With a short-term loan, you are more likely to be only able to borrow a smaller amount of money for your loan scenario. Since the real estate investor needs to repay the amount of money in a short period of time, it is unlikely that a lender would be willing to lend a large amount of money. Since a larger amount of money carries a larger risk, a private mortgage lender will be hesitant to offer you more than a smaller amount. While with long-term loans, lenders know more information about you and so would be more likely to increase the risk and lend you more money.

What’s better for your investment property? Long Term Loans or Short Term Loans?

There is so much to know when it comes to loans so it’s important to educate yourself on all the pros and cons before making any decisions. Make sure to be cautious before you agree to anything.

Each loan scenario is different based upon the borrower’s credit score, investment experience, liquid assets, and reserves. The loan will always be structured or calculated based upon those results.

The best way to discover which is better for your investment property is to contact a direct private money lender to assist you with the purchase of your investment property.

Michael Mikhail, CEO Stratton Equities

Michael Mikhail is the Founder and CEO of Stratton Equities, the nation’s leading hard money-lender to national real estate investors, with the largest variety of mortgage loans and programs nationwide.

Having launched Stratton Equities in early 2017, Michael has always been an entrepreneur and innovator in the real estate market, purchasing his first home at 19.

A serial entrepreneur with a foresight for business opportunities, Michael had a slew of small businesses prior to launching Stratton Equities. One of his most prolific ventures was a car wash connected to a gym he was affiliated with in Florida during 2001-2002 while attending college.

It wasn’t until he graduated from Florida State University with a degree in Business, that he officially joined the mortgage industry in 2003 and decided to travel to explore his options globally.

After travelling to 19 countries in 5 years, Michael knew two things; he wanted to start his own business and launch it in the United States. He knew that moving back to the states was the best place he could start something small and grow it into something infinite.

In 2017, Michael noticed how the mortgage industry had transformed after the regulations presented from 2008-2012, and knew it was time to set out something on his own, thus creating Stratton Equities.

Under Michael’s leadership, Stratton Equities has grown into one of the biggest leaders in the Mortgage and Real Estate industry across genres and platforms.