Fluent Essays

The purpose of this proposal is to provide you with an opportunity to create a finance proposal for either the property chosen in Week Three or a newly selected property.Prepare a four- to five-page paper (not including title and reference pages) that addresses the following:Identify your property by using loopnet.com and contact the listing broker for the presentation package. Please provide a brief description of the property, including use of the property as well as its location and size.Create a finance proposal using the format presented in Chapter 13.Title PageTable of ContentsBody of Proposal (see page 169-170 for a sample)Appendices as neededLocate three appropriate lenders that you would be able to send this package to and include their contact information in the appendix as well as background information about the lender.This paper should be prepared using APA style as outlined in the Ashford Writing Center. Students must use two outside scholarly sources (other than text) with proper citation.Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment. examination_of_homeowner_relief_programs.docx commercial_real_estate.docx Unformatted Attachment Preview Examination of Homeowner Relief Programs Alonzo Jackson RES334- Real Estate Finance Professor Brown May 5th, 2020 1 Mortgage relief programs available to homeowners As a result of the mortgage crisis that began in 2006, various mortgage relief programs have been available to homeowners. Sincerely, mortgage applications are time-consuming and tiresome; most of them are rarely successful. examples of these relief programs include the (HAFA) Home Affordable Foreclosure Alternatives Program and the Fannie Mae Flex Modification Program. The Home Affordable Foreclosure Alternatives Program was developed to assist homeowners who, even though they were eligible for the Home Affordable Modification Program (HAMP) to sell out their homes as a quick sale in a bid to settle their mortgage debt. This occurred whenever a homeowner owed a large debt that was more than the worth of his or her house, and this enabled a homeowner to settle their debt without the need of going through a foreclosure. It also ensured that the short sale would ensure that the homeowner is clear of any other charges and liabilities on the mortgage. Furthermore, HAFA provided financial incentives to the homeowner to aid in relocation and the costs associated with it, such as processing and administration costs. HAFA, however, failed to accept new applications in early September and also closed pending files in the same year (Campbell, J. Y et al., 2011) The Fannie Mae Flex Program replaced the Home Affordable Program that ended in December 2016. Under the modification option the home owner and the mortgage company change the previously existing terms of the mortgage. Existing terms of the mortgage that can be changes include the payment amount, length of the loan, interest rate and more (Fannie Mae, 2019). The purpose of this program is that it can reduce the monthly payment so it is more affordable for the home owner. Home owners that can consider the Fannie Mae Flex program as an option are as follows; if they are ineligible to refinance, they are facing long term hardship, they are behind on mortgage payments or likely to fall behind (Fannie Mae, 2019). Some benefits of this program is it resolves delinquency status with the mortgage company, it can reduce monetary payments to a more affordable amount, it can help give a new start by changing the terms of the mortgage, it causes less damage to the homeowners credit score than foreclosure would, and lastly, the homeowner gets to stay in their house and avoid foreclosure (Fannie May, 2019). 2 Impacts of HAFA on customary foreclosure, short sale, or deed in lieu proceedings The HAFA program had affected the deed-in-lieu by allowing the borrower to have a disposition option (DIL) before the sale marketing phase, which was time-limited expired. The time frames, however, depended majorly on the investor. There were few conditions stipulated if the period expired without the home being sold out. They instructed the borrower to vacate within a month; the owner must also ensure that the property does not change in terms of condition. Additionally, as the owner leaves, he must ensure that he leaves the property clean (Affordable, M. H.). The potential for lasting impacts from relief programs on borrowers, lenders, and the economy as a whole Despite initiatives made by presidents such as Barack Obama to avoid foreclosures, most of them were criticized as being ineffective. There were challenges of what board was in charge of making mortgage amendments and whether homeowners with modified loans might default again in the future (Campbell, J. Y et al., 2011). Mortgage relief programs may harm homeowners, if they, for instance, get a foreclosure. They can get damages on their credits and experience difficulties in finding new places to live. Research has shown that homeowners who have lost a home due to foreclosure have resulted in negative impacts on their stake in the community, schools, and behavioral outcomes from their children. Continuous foreclosures can have an effect also on the lenders who may experience undercapitalization and the lack of enough finances to safeguard the agencies in the process, and this could, in turn, lead to the closure of agencies. The community may experience crime and bad home ethics. It is important to note that an increase in foreclosure could lead to housing agents being unstable and undercapitalized, leading to the economy collapsing. The government can lose property tax income as a result forcing them to step in (Goodman, 2017). 3 Therefore, in conclusion, mortgage relief programs such as The Fannie Mae Modification program and the HAFA can be life-saving for many homeowners with desperate financial crises despite a tiresome procedure. They, however, may have negative impacts on the lender, the borrower, and the economy at large. 4 References Affordable, M. H. Home Affordable Foreclosure Alternatives Program: Overview. Campbell, J. Y., Giglio, S., & Pathak, P. (2011). Forced sales and house prices. American Economic Review, 101(5), 2108-31. Fannie Mae. (2019). Modification. Retrieved from Know Your Options: https://www.knowyouroptions.com/modify/modification (Links to an external site. Foohey, P., Jiménez, D., & Odinet, C. K. (2020). The Folly of Credit As Pandemic Relief. Goodman, L. S. (2017). Quantifying the tightness of mortgage credit and assessing policy actions. BCJL & Soc. Just., 37, 235. Making Home Affordable. (2019). Making Home Affordable Program. Retrieved from https://www.makinghomeaffordable.gov/pages/default.aspx (Links to an external site.) National Association of Realtors®. (2019). Short Sales & Foreclosures https://www.nar.realtor/short-sales-foreclosure 5 Commercial Real Estate Investment Commercial Real Estate Investment Alonzo Jackson Ashford University RES431 – Commercial Real Estate Investment Professor Hamuika 5/18/20 Commercial Real Estate Investment Commercial Real Estate Investment Specifics of property Commercial real estate is considered property that is used for business purposes. It includes retail shops or stores, industrial, office buildings, large apartment buildings, and commercial real estate. Investing in commercial real estate can be a great investment and is recommended. Many investors are taking a risk to invest in real estate because, in the future, the value will appreciate hence making much profit. For a good investment, commercial property is highly recommended. The property chosen for a good investment purpose is an office place located in California from LoopNet. The property will be used for conducting business activities and earn profit or revenues. The office building is located on 11th street on 5th Avenue. The price of the property is approximately $10,800,000, and its size is 7,450 square feet. The price per square feet of the building is $1449.66. The building was constructed in 1985. The building should be modified to a new structure model to attract more people (De Roos, 2010). There are 15 floors in the building, and the property type in the real estate market is office. Moreover, a single owner owns the building, and it is categorized among the modern class building. The Lot size of the building is 0.11 AC, and the owner is offering a lease agreement for the sale of the building property. There are some specifications of the building, which include that the building is fireproof and it is 260 west of the Second Avenue in California. The front of the building is 35 ft. Long and the ground floor is of 5000 square feet. The bus and the metro service are available near the building, and thus, traveling is very easy. The common destinations like airports, rails, subways, stores are not more than 20 minutes away from the building. The building is best for the business purpose, and the most important Commercial Real Estate Investment specification of the property is that it is located near all the necessary facilities like public transportation and the stores (Geltner, Miller, Clayton & Eichholtz, 2001). It is also best suited because of the large size and a good value for the property. Property from an Investment Prospective When viewing the property from an investment perspective is beneficial. The location of the property will pay the most. The size of the area of the building is also important when it comes to profits. The larger building gives more profit to the owners. However, the building chosen for the business is old but located at the prime location. The buildings basis is strong and needs some renovation and modern interior to make it attractive (Lieser & Groh, 2014). It is a wise investment because a space of 7,450 square feet is available at a reasonable price. More so, the property is its Lot size and the number of floors. The property condition is not good and needs some renovation, but the buildings basis is strong and has good construction. The floors are well classified, and the ground floor is very spacious and advantageous for the business. There are many advantages and disadvantages of investing in commercial property. The advantage of investing in this office is that it will boost the owners income and help establish good professional relationships (De Roos, 2010). The office hours are limited, and it is also an advantage for the business. More so, there is a favorable working condition. This attracts many of the investors to invest more with the property. Additionally, the lease agreements also provide flexibility in the terms and conditions compared to other deals. The disadvantage of this deal is that the building is old, and there are more risks when investing in an old building. More time commitment is needed when there is a Commercial Real Estate Investment responsibility of a commercial building and more tenants in it. A layperson needs to take professional help when making these investment decisions. Comparing Investment LoopNet provides many opportunities for commercial investment and the real estate market. The property chosen for the investment is based on the location and price of the building. The condition and the category of the building were not considered while finalizing the deal. In the previous years, another property was considered for the sale purpose, which was located in the 20th Street, California, and the size of the building was 9,600 square feet. The price of the building was $12,500,000 and was constructed in 1975 and has only eight stories. The building was only available for investment purpose and but the building that is finalized for the deal is available for investment and business purposes (Geltner, Miller, Clayton & Eichholtz, 2001). This is the main reason for choosing 7,450 square feet. Advantages and Disadvantages Every investor who intends to invest in a real estate he or she should involve some risks. There are advantages and some disadvantages of investing in residential or commercial real estate. In the real estate market, a parcel is a size of a lot of a real property that is owned by some owner. The community in the real estate comprises the number of properties that the couple owns and acquires them from their marriage (Lieser & Groh, 2014). The community properties belong to both husband and wife. The advantages of the parcel and community are that these properties provide a chance for high returns, and there is a possibility if best use. It comes from direct ownership and always requires less maintenance. The costs implemented in these properties are also very low. They are more affordable and economical than other residential and commercial properties. The Commercial Real Estate Investment disadvantages of the parcel and community are that these properties provide very less and few tax advantages to the owners. The cash flow is also not in the right way, and a lot of legal papers and approvals are required. Current Economic Enviroment Economic condition controls the way and the region where investors should invest their resources to ensure that their businesses are well-performing. Commercial real estate management is focused mainly on the success of the businesses as it involves investment for the creation of business opportunities, especially in locating commercial real estate. The GDP per capita of the United States has been increasing for the past years. This shows that the United States economy is in good condition. The unemployment rate of the economy has also decreased, and there is an increase observed in the retail sales for the United States. Considering the current economic conditions of the United States, the investment will be beneficial, and there will be some revenues as the prices of the properties are also increasing. Financial planning and business planning are effective and efficient in the country and are the main causes of the commercial real estate investment business (De Roos, 2010). Other factors contributing to the success of the commercial real estate business in the area are the political stability that is enjoyed in the country and, therefore, a cool environment for the real estate business operations. Furthermore, the choice of investment is made while considering the economic conditions, which are good and positive for the business. The most important factor affecting my choice is industrial production, which has increased in the last few years (Lieser & Groh, 2014). It will also have a positive and good impact on the business. Commercial Real Estate Investment References De Roos, D. (2010). Commercial Real Estate Investing: A Creative Guide to Succesfully Making Money. John Wiley & Sons. Geltner, D., Miller, N. G., Clayton, J., & Eichholtz, P. (2001). Commercial real estate analysis and investments (Vol. 1). Cincinnati, OH: South-western. Lieser, K., & Groh, A. P. (2014). The determinants of international commercial real estate investment. The Journal of Real Estate Finance and Economics, 48(4), 611-659. ... Purchase answer to see full attachment