Assignment 1: Cliffedge Business Plan

In order to raise capital for the venture, I would first need to determine what funds are available, which ones who be best for the venture, and how I would go about obtaining those funds for the venture. Carter explains that there are two key issues or factors that come into play when determining which kind of capital is the best for a new venture: (a) Usually the search for financing is precipitated by a rejection of an existing bank relationship, and (b) understanding why the company needs capital will determine what type of financing is most appropriate. (Carter, April 2011, pg. 47)

Our investment strategy is to generate current income and excess risk-adjusted returns for our investors by originating or acquiring loans that are primarily secured by first priority mortgages, deeds of trust, or similar instruments on improved or unimproved real properties (the "Loans") located primarily in the Western part of the United States.

Foreclosure is a dangerous issue that has swept our nation in the last few years. Americans are losing their homes due to jobs being lost, home values falling, and banks lending out more money than homeowners can afford. Despite the multitude of issues that arise out of foreclosure, the main problem at hand can be almost solely traced to the economy. The recession has put many people out of work, made taking out loans more difficult, and has caused a nationwide panic. Therefore, to completely solve the foreclosure problem, it is necessary to trace the issue back to its roots, being the economy. This would take fifty pages to discuss, so this paper seeks to solve one aspect of foreclosure. Refinancing is an option that has become

Shorewest’s private and family owned status was an important factor, based on the assumption it would provide a better culture and more opportunities, unfortunately, when conducting a financial analysis of the company based on common measurement criteria, privately owned has drawbacks. Shorewest is not required to generate or share publicly, annual reports, normally where financial and market data is typically available. Without easily assessible financial data, it is hard to measure profitability, however, the data available does demonstrate a track record of home sales and agent recruiting. Growth and resiliency appear to be a strong competency, the company survived the housing crash with diversified service offerings in their mortgage, title and insurance divisions. Creation of their home services division in 2011, designed to coordinate moving and utility transfer activities, shows courage and innovation. This service was discontinued in August, which also demonstrates sound measurement and financial decision making, many companies are slow to cut the cord when a product or service is not performing to plan. Even without specific financial data, there is solid evidence to support adequate financial efficacy and long-range planning.

Foreclosure has become an outbreak affecting the entire United States of America. Realtytrac just reported in the month of April 2011 that one in every 593 housing units received a foreclosure filing. (N1) That statistic is for just one month! Some states such as Arizona, California, Florida, Michigan and Nevada continue to be plagued with an influx of homes falling victim to foreclosure or some other form of default. Each home that is a casualty to a foreclosure, short sale or even bankruptcy was collateral for the lender holding the promissory note. The consequences tend to come at a cost for the lender selling the property but a deal for the buying investor. The costs incurred and the losses experienced by the

Apex Investment Partners was founded in 1987 by James A. Johnson and the First Analysis Corporation. In its eight-year life, the VC had raised three funds. The two first which are already closed had, together, a committed capital of around $70M. There were mainly concentrated in four areas: • • • • Telecommunication, information technology and software. Environmental and industrial productivity-related technologies. Consumer products and specialty retail. Health-care and related technologies.

Foreclosure has become an outbreak affecting an entire nation. Realtytrac just reported in the month of April 2011 that one in every 593 housing units received a foreclosure filing. (N1) That statistic is for just one month! Some states such as Arizona, California, Florida, Michigan and Nevada continue to be plagued with an influx of homes falling victim to foreclosure or some other form of default. Each home that is a casualty to a foreclosure, short sale or even bankruptcy is secured as collateral for the lender holding the promissory note. The consequences tend to come at a cost for the lender selling the property but a deal for the buying investor. The costs incurred and the losses experienced by the affected

During the last fifteen years, the housing market has been through a lot. For many, what appeared to be an investment in their future turned into a ruinous mistake when the housing bubble burst. In 2011, nearly four million homes were foreclosed upon in the United States. Three million, nine hundred twenty thousand, four hundred and eighteen families and individuals lost their homes to foreclosure. Since then, the economy has begun to repair, and foreclosure rates for 2014 are projected to be the lowest they have been since 2007. We are starting to heal, and the people who suffered most are starting to look for a second chance. These “boomerang buyers,” who experienced foreclosure and are looking to buy again are becoming a valuable part

Natasha McCurley currently owns a commercial building, which is being constructed for a day care center and the company intends to acquire a loan in the amount of $45k to renovate and sell this property. Once this property is sold, the money will be used to begin “flipping” residential houses in the surrounding areas.

The mission of T & T Real Estate, LLC is to establish a portfolio of income producing real estate assets over the next 15-20 year that will produce supplemental income for retirement to the two principal owners. The principals of T & T Real Estate, LLC will manage the company in a conservative approach that will allow them to maintain their current full time employment. The company will seek to invest in one to two properties per year. To acquire the capital needed for reinvestment T & T Real Estate, LLC will seek to purchase residential properties that have the potential to generate an immediate return on investment after rehabilitation and will be resold. Those proceeds will then be used to supplement the investment of a second property that be rented as an income producing asset all the while

A generation ago, lenders held onto mortgage loans until they were repaid, and retained a relationship with the borrower and an interest in their financial wellbeing. That changed considerably at the start of the 21st century. The modern, high-risk mortgage market gained its first head of steam in the 1990s, and its origin lies primarily in a string of deregulatory policy decisions over the last three decades. High-risk lending passed through two boom periods, the first one in the late 1990’s as well as the larger, second one in the 2000’s. The first boom was marked by a surge in subprime refinance lending. The second included both subprime home purchase loans and refinance loans and they grew rapidly after 2001 (Marcuse, 2009, p.351). Together a new class of alternative or

It might be helpful for an investor to come back alongside and buy a home earlier than it goes in to foreclosure.

Today’s “boomerang buyers” are a product of the housing market crash that began in 2006 and left millions of homeowners in negative equity situations. Home values nationwide plummeted 25-30% by January 2009 and an estimated 5.3 million people found themselves in a foreclosure or short sale situation between 2007 and 2013. Although current home prices remain 17% below peak 2006 levels, the real estate market is showing signs of recovery as evidenced in the upward trend of prices over the last three years [CoreLogic, 2014]. According to John Burns Real Estate Consulting, boomerang buyers who lost a home to short sale or foreclosure were projected to make up about 10% of all real estate sales in 2014. Returning boomerang buyers may now be faced with difficulty acquiring a loan due to their previous real estate history, damaged credit, or limited capital due to recent financial burdens. Despite the obstacles, there are feasible financing options that will help potential buyers achieve their goal of homeownership.

When you search on the Internet for a loan, you'll see there are many websites devoted to this industry. If you can find one closer to your area, it could serve you better. Some lenders of these loans are restricted to their own areas. There is a bit of controversy surrounding this industry in many places, and some states are trying to shut these resources down.

The practice of borrowing money has long been important to our economy and greatly impacts the everyday lives of individuals and businesses who drive the global economy. However, one only needs to look at the savings and loan crisis of the 1980s and 1990s as well as the financial crisis of 2007-2008 here in America to see the devastating effects on borrowers and lenders of making bad loans. During and after the recessions associated with these crises, traditional banks and mortgage lenders relied heavily on obtaining collateral to secure loans. The typical collateral such as real estate was underwater in value, and the real estate market was so volatile that these traditional lenders were reluctant to make loans for personal use, such