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COVID-19, SBA Grants and Loans, Mortgage Payment Forbearance and Deferments

Last week was a profound time of change for most businesses. I wanted to share important updates with you that I have shared with my family, friends, clients and colleagues.
As you are working to find a new way of managing your business affairs, please know that I am here as a resource for you and you should feel free to reach out any time to set up a call so that I may help you in any way I can.
For those needing assistance with the SBA disaster relief programs, click http://disasterloan.sba.gov/ela to apply

Also, here is a compilation of small business resources shared by the California State Treasurer, Fiona Ma: https://bit.ly/2xntDpn
California Governor Gavin Newsom has made an irresponsible statement claiming that three of the largest banks will allow their borrowers deferrals on their current mortgage payments up to three months due to COVID-19, however this isn’t the case.
Homeowners that have not been able to work (who have proof of unemployment), have non-essential businesses or are impacted with health issues which currently have mortgages impacted by this pandemic are eligible to file for forbearance with a valid proof of hardship which will allow them not to make payments for the next three months.

However, after the three months expire, homeowners will have to make those payments, either in a lump sum or six or twelve month installments. Currently, there are no other options and while several lenders are considering traditional forbearances (which means that the missed payments will be tacked on to the end of the mortgage) this option is not currently available but what lenders are offering instead are Loan Modifications (formal processed to modify the terms of an existing loan). It is important to keep in mind that each of these options runs the risk of putting homeowners in default or foreclosure situations.

Stay Responsible.
Using this time to get a break from mortgage payments can put the Real Estate industry, Real Estate Market and our nation’s economy in a very similar crisis to 2008 due to the shortage of liquidity. Can you imagine millions of homeowners deferring their payments all at the same time? If you are blessed to currently have a job or funds to make your payment in the next month, this will help our country protect its financial well-being and preserve your economic standing.

Are you in the Real Estate or Mortgage Industry?
If you are, now is the time to educate your clients, family and friends. Shortcuts don’t exist in times like this. Each of us has a responsibility to spread facts and accurate information to help one another navigate our way through this crisis. It is our job to guide society through this crisis when it comes to their financial and economic decisions.

Let’s all do our part as professionals to not only help people get their dream homes and build Real Estate portfolios but to also keep their homes, assets and liabilities intact.

If you’re eligible for a cash payment 

Most individuals earning less than $75,000 can expect a one-time cash payment of $1,200. Married couples would each receive a check and families would get $500 per child. That means a family of four earning less than $150,000 can expect $3,400.

If you or someone you know has lost a job

States will still continue to pay unemployment to people who qualify. This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months. 

If you’re a small business owner

The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses who qualify for the Economic Injury Disaster Loan to cover immediate operating costs,

 

There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books, or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June.

If you’re a freelancer or independent contractor

Typically, self-employed people, freelancers and contractors can’t apply for unemployment. This bill creates a new, temporary Pandemic Unemployment Assistance program that provides unemployment coverage through the end of the year to freelancers and independent contractors and also provides an additional $600 per week for 4 months in addition to regular state benefits.

If you’re a property/homeowner

Borrowers of federally-backed mortgage loans can request a loan forbearance on their payments (without penalties, fees, or interest) for at least 180 days. Please contact your mortgage services and ask for specifics. 
Multi-family borrowers may request a similar forbearance for up to 30 days. In addition, foreclosures on similar mortgage loans are prohibited for at least 60 days and evictions from properties related to several federal programs are also prohibited for a 120 day period

Refinance Today and Lower Your Home Loan Interest

Refinancing Today to lower your monthly payment through Crestico Funding, a Los Angeles Mortgage Broker offering No Fee No Cost Home Loans.

For more information please visit www.crestico.com or call (818) 784-2929

7 Things You Need When Starting a Remodeling Business

No matter if you already have some formal remodeling experience or if you have a passion you want to turn into a source of income, you might want to think about starting your own remodeling business. However, starting this sort of venture is a task that requires money, perseverance and plenty of knowledge. While we can’t help with the first two, we can share some useful tips that will help you start your own remodeling business. 

Acquire the licenses

It all starts with licenses. In order to work legally, you need to have a registered company with all the necessary licenses. In most cases, you’ll need to acquire a DBA certificate (“doing business as”). In some cases, you will also need to have a contractor’s license to make public petitions for remodeling. Consult with your local licensing office and get informed about all the licenses you need. You also need to create a separate bank account with your company’s name on it which will accept payments and allow you to keep your work and private life separate. 

Get insured

It’s best to halt all work until you get insurance. A good general liability insurance deal will cover you in case of any injury at work or any damage to someone else’s property. In fact, in many countries, you’re required by law to be insured, especially when it comes to worker compensation. Practical commercial property insurance can also come in handy in case your equipment or furniture gets damaged or stolen.

2

Get the tools

Depending on the type of remodeling you’re performing, you need to have the right tools for the job. For example, it’s crucial to have different kinds of hammers, nail guns, screwdrivers, tape measures, saws and other smaller tools. If you miss something essential, it can delay your work and cost you a lot of money. 

Invest in a truck

Every successful remodeling business needs a truck. Of course, you don’t need anything huge, but a medium-sized vehicle with make things so much easier, especially when it comes to moving lumber, bricks, furniture and appliances. And if you’re worried about the price, don’t be. You can always find a respectable dealership with many new or used trucks for sale at affordable prices. Even if you choose a used vehicle, you’ll still have many models at your disposal. And if you ever decide to quit your business, your truck will be easy to sell and get some money back. 

Create a good network

The people around you can make a huge difference between a successful and unsuccessful business. If you can be sure your materials will arrive on time and your contractors will finish everything according to your instructions, you can expect plenty of satisfied customers. After all, the finished product will have your name on it, so you want to be associated with only the reliable business partners.

3

Promote your business

Today, there’s no business without promotion. Many remodeling experts today rely on referrals, so you want to collect as many satisfied customers as you can get. One way to promote your business is to create a referral program. Every customer who recommends you to a friend or family member can get discounts and special gifts. Also, contact your local radio stations and blogs and offer promotional deals to customers. Creating a flat fee for specific projects your business offers is a smart idea that will attract many people. 

Prepare for slower periods

Remodeling business closely depends on the real estate market and your local economy, so you can prepare for some not-so-great times. If you’re located in an area with separate seasons, prepare to have slower winters and more active and productive summers. While remodelers working in Australia or California might not notice this phenomenon, places with cold winters with plenty of snow certainly feel the difference. Winters are not so suitable for remodeling and people usually spend a lot of money on vacations and presents. However, in order to push through slower periods with minimal losses, you can advise your budget customers to postpone their old house remodels until winter. If you offer better prices, you can expect to have plenty of work during this period of the year. 

In order to become the owner of a successful business, you need to make a profit, but make sure to conduct your work without cutting too many corners. As long as you provide your customers with cost-effective, reliable and safe services, you can expect to have plenty of work and a load of satisfied clients ready to recommend your products to all their friends and family.

Selling Home With a Fireplace: Savvy Tricks For The Maximum Profit

Putting your home up for sale isn’t an easy task since it requires a certain degree of planning and preparation. And when your home comes with an additional feature, such as a fireplace, things can get even more complicated. However, many buyers love the idea of having a fireplace, so that can be your advantage. So, if you’re planning to sell your home with a fireplace soon, here are some tricks that will help you make that happen.

Don’t hide or neglect the fireplace

This happens quite often, mostly among homeowners who haven’t used their fireplace for some time. But, even though it seems like the easiest option, it can actually decrease the value of your home. Why? Well, in order to make your home sellable, it needs to look like it’s easy to maintain and having an old and unkempt fireplace is a sure sign that your home’s been neglected. Nobody wants to buy a property and then spend time dealing with matters that should’ve been taken care of by previous owners. Therefore, rather than neglecting or hiding the fireplace, try to find a way to make it look good, as that will certainly help you sell your home for a much better price.

Make the fireplace your main selling feature

This one is the most suitable way to sell your home with a fireplace for the maximum profit, mainly because, by making the fireplace stand out, you’ll attract the right type of clients who’ll be ready to pay for the feature they find attractive and prestigious. So, be sure to clean your fireplace, and if possible, hire a professional cleaning team to do it properly. And since you’ll probably showcase your home on your realtor’s website, then it’s essential to create high-quality photos that can show the beauty of having the fireplace indoors.

Your fireplace should evoke certain emotions

As mentioned before, making the fireplace your main selling point can be done, but as long as you do it the right way. According to some studies, a fireplace can increase your home’s value, but only among people who are willing to pay. Therefore, it wouldn’t be bad to significantly upgrade or even replace your existing fireplace, especially if it’s already showing signs of wear. So, if you’re looking to change your fireplace for the new one, it’s essential to opt for something current and simple. Nowadays, you can find gas double side fireplaces that are easy to install and can keep the room warm during the chilly winter months. Besides, many families prefer spending a cozy Christmas day sitting by the fire, eating and enjoying some peace and quiet, so that could be a great way to make the potential customers feel more sentimental, and subsequently, opt for buying a home with a fireplace.

Be honest with potential buyers

In case you are unable or unwilling to get rid of the fireplace, and replacing it is also out of question, then you should definitely be honest with potential buyers, mainly if the fireplace is currently broken or tends to break quite often. They deserve to know the truth, so make sure to answer all of their questions in a patient and caring manner. If there’s something wrong with the fireplace, it’s essential to let them know, so they’ll be able to decide whether they want to fix it or replace it with a new one. Also, if you’re worried that your malfunctioning fireplace might lower the value of your home, it’s crucial to talk to your real estate agent and find the right solution before you decide to put your home on the market.

Selling your home with an extra feature is a great way to get some extra profit, but in order to do it, you should make sure that your home is in top condition. Aside from that, being straightforward when talking to buyers can help you sell your home much faster, so keep that in mind when you show your home to prospective buyers.

Purchasing a home or need to refinance?

Are you looking for the right bank and the right loan that fits your needs?

Navigating the real estate and financial world alone can be difficult.

At Crestico, we will be there to help you each step of the way.

All you have to do is relax while we work to make your dreams a reality.

For more information please visit www.crestico.com or call (818) 784-2929