Money Management – Civilav Med http://civilavmed.com/ Thu, 22 Apr 2021 11:46:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.1 https://civilavmed.com/wp-content/uploads/2021/04/default-150x150.png Money Management – Civilav Med http://civilavmed.com/ 32 32 LA Galaxy acquires midfielder Carlos Harvey on loan from LA Galaxy II https://civilavmed.com/la-galaxy-acquires-midfielder-carlos-harvey-on-loan-from-la-galaxy-ii/ https://civilavmed.com/la-galaxy-acquires-midfielder-carlos-harvey-on-loan-from-la-galaxy-ii/#respond Tue, 09 Mar 2021 10:56:39 +0000 https://civilavmed.com/la-galaxy-acquires-midfielder-carlos-harvey-on-loan-from-la-galaxy-ii/ LOS ANGELES (Friday June 26, 2020) – LA Galaxy announced today that the club have acquired 20-year-old Panamanian midfielder Carlos Harvey on loan from LA Galaxy II. Harvey, who helped lead the Panamanian U-20 World Cup squad beyond the group stage for the first time in history and also took top honors on the Under-20 […]]]>

LOS ANGELES (Friday June 26, 2020) – LA Galaxy announced today that the club have acquired 20-year-old Panamanian midfielder Carlos Harvey on loan from LA Galaxy II. Harvey, who helped lead the Panamanian U-20 World Cup squad beyond the group stage for the first time in history and also took top honors on the Under-20 list from USL in 2019, is currently on loan from Panamanian club Tauro FC and will be added to the Galaxy roster pending approval of his P-1 visa.

“Carlos is a promising young player who impressed on title loans with the club,” said LA Galaxy general manager Dennis te Kloese. “We believe he can contribute to our next competitions while continuing to develop as a player. We are delighted to add him to our team.

Born in Panama City, Panama, Harvey made his professional debut with Tauro FC in La Liga Panameña de Fútbol in July 2018. He joined LA Galaxy II on loan last season before making 19 appearances – it all begins – and becoming a key part of the Los Dos Midfielder.

Internationally, Harvey won his first senior appeal with the Panama National Team for a friendly against the United States Men’s National Team on January 27, 2019 at State Farm Stadium in Glendale, Arizona. Prior to his senior debut, Harvey made six appearances, five. starts and provided an assist for the Panamanian U-20 national team in the 2018 Concacaf U-20 Championship. Additionally, he started in all three group matches for Panama in the 2019 U-20 World Cup , helping Panama advance to the group stage for the first time in tournament history.

The LA Galaxy will compete in Group F of the MLS tournament is back in Orlando, Florida, which is scheduled to begin July 8. The Galaxy will play group stage games against the Portland Timbers, Houston Dynamo and LAFC, which round out Group F.

Transaction: LA Galaxy acquires midfielder Carlos Harvey on loan from LA Galaxy II.

Last name: Carlos harvey
Position: Midfielder
Height: 5’10 ”
Weight: 165 pounds
Born: February 3, 2000
Age: 20
Last club: Tauro FC
Place of birth: Panama City, Panama
Hometown: Panama City, Panama
Nationality: Panama

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Start-up Discovery Center opens on the south side of Savannah https://civilavmed.com/start-up-discovery-center-opens-on-the-south-side-of-savannah/ https://civilavmed.com/start-up-discovery-center-opens-on-the-south-side-of-savannah/#respond Tue, 09 Mar 2021 10:56:39 +0000 https://civilavmed.com/start-up-discovery-center-opens-on-the-south-side-of-savannah/ Hundreds of local college students will soon gain real-world experiences like running a business, balancing a budget and applying for a loan, thanks to a new collaboration between Junior Achievement of Georgia (JA) and Georgia Southern University (GS), which will bring a new JA Discovery Center to the Armstrong Campus on the south side of […]]]>

Hundreds of local college students will soon gain real-world experiences like running a business, balancing a budget and applying for a loan, thanks to a new collaboration between Junior Achievement of Georgia (JA) and Georgia Southern University (GS), which will bring a new JA Discovery Center to the Armstrong Campus on the south side of Savannah.

JA and GS executives made the announcement on Friday at the monthly JA board meeting, held on the Armstrong campus in the former student recreation center, which will become the new discovery center. .

The Savannah Discovery Center will be the state’s fifth location.

Currently, there are three active centers serving over 88,000 students per year, the JA Chick-fil-A Foundation Discovery Center in Atlanta, the JA Discovery Center in Gwinnett, and the Mike and Lynn Cottrell JA Discovery Center in North Georgia in Cumming. The fourth facility, in Dalton, is under construction and will open in 2021.

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Buyers may be eligible for employee retention credit even if they are acquiring equity or assets from PPP loan borrowers – Finance and Banking https://civilavmed.com/buyers-may-be-eligible-for-employee-retention-credit-even-if-they-are-acquiring-equity-or-assets-from-ppp-loan-borrowers-finance-and-banking/ https://civilavmed.com/buyers-may-be-eligible-for-employee-retention-credit-even-if-they-are-acquiring-equity-or-assets-from-ppp-loan-borrowers-finance-and-banking/#respond Tue, 09 Mar 2021 10:56:39 +0000 https://civilavmed.com/buyers-may-be-eligible-for-employee-retention-credit-even-if-they-are-acquiring-equity-or-assets-from-ppp-loan-borrowers-finance-and-banking/ United States: Buyers may be eligible for employee retention credit even if they are acquiring equity or assets from PPP loan borrowers November 25, 2020 Lewis rice To print this article, simply register or connect to Mondaq.com. On November 16, 2020, the IRS issued Faq clarify the interaction between Employee Loyalty Credit (“ERC”) and Paycheck […]]]>

United States: Buyers may be eligible for employee retention credit even if they are acquiring equity or assets from PPP loan borrowers

To print this article, simply register or connect to Mondaq.com.

On November 16, 2020, the IRS issued Faq clarify the interaction between Employee Loyalty Credit (“ERC”) and Paycheck Protection Program (“PPP”) loans in M&A transactions. A taxpayer (including all affiliates who are treated as members of the same employer according to the aggregation rules) cannot claim the CER if a member of the aggregate group has taken out a PPP loan. This rule has raised significant concerns in M&A transactions where the target company has taken out a PPP loan and the buyer has claimed the ERC. FAQ 81a specifies that a taxpayer (the “acquiring employer”) who acquires the shares or other equity interests of an entity (the “target employer”) as part of a transaction that causes the target employer to become member of an aggregate group with the acquirer An employer who is treated as a single employer under the aggregation rules (the “aggregate employer group”) can still apply for the EWC. Likewise, FAQ 81b specifies that an acquiring employer who acquires the assets and liabilities of a target employer is always eligible to claim the CRE as long as the acquiring employer does not assume the obligation of the target employer to the PPP loan. While the FAQs cannot be relied on as legal authority, they provide welcome confirmation that the acquiring employer in a merger and acquisition transaction will not have to recover or forgo the ERC.

Taxpayers who receive a PPP loan are generally not eligible to claim the CRE

Under the CARES Act, if a taxpayer has taken out a PPP loan, the taxpayer and all members of the taxpayer’s aggregate employer group are not eligible for CER. Additionally, if a taxpayer uses the CER and subsequently obtains a PPP loan, the taxpayer must collect the CER. These rules have raised significant concerns in M&A transactions, that a buyer or its affiliates acquiring the shares or assets of a target that received a PPP loan would not be eligible for ERC and would be obliged to recover any benefit previously claimed.

Buyer’s eligibility for ERC after purchase of shares or other shares

If, before the transaction closing date, the target employer, in accordance with procedures established by the Small Business Administration (SBA), either (i) fully satisfies the PPP loan, or (ii) submits a request for cancellation of the PPP loan and establishes an interest-bearing escrow account (which will be used to repay the PPP loan), the acquiring employer and members of its aggregate employer group (including the target employer) remain eligible to claim the EWC after the Closing Date. In addition, the acquiring employer and members of its aggregate employer group are not required to recover previously claimed CREs.

If the title loans is not fully satisfied or if the escrow account is not established before the closing date of the transaction, the buyer and their group of aggregate employers will generally still be eligible to claim the ERC. . In addition, any ERC claimed by the buyer or its aggregate group of employers prior to the transaction will not be subject to a clawback. The newly acquired target employer, however, would continue to be ineligible for the EWC with respect to wages paid to its employees before or after the closing date.

Eligibility of buyers for REB after asset acquisitions

If a buyer acquires the assets of a target employer with a PPP loan, the buyer will not be considered to receive a PPP loan for ERC eligibility purposes, provided that the buyer does not assume the obligations of the target employer under the PPP loan. Thus, the buyer will be eligible for the ERC after the closing date and is not required to recover the ERCs that he used before the closing date.

Even if the buyer assumes the target employer’s obligation for the PPP loan, the buyer will not be considered to receive a PPP loan for ERC eligibility purposes. Thus, any ERC claimed before the closing date will not be subject to recovery. However, any salary paid by the Purchaser to employees who were employed by the Target Employer at the Closing Date will not be treated as qualified salary for ERC purposes. As a result, the buyer will not be able to claim the CER for salaries paid to permanent employees of the target employer.

The FAQ does not cover all outstanding questions regarding ERC and PPP loans. The FAQ does not address whether the ERC should be recouped if a buyer with a PPP loan acquires a lens that has used the ERC prior to the trade closing date, nor does the FAQ contemplate any transactions. in which the buyer has a PPP loan. The FAQ also does not explicitly address the treatment of share purchases treated as asset acquisitions under Section 338 or Section 336 (e). In the event of a section 338 (g) election, the new target, rather than the purchaser, will be deemed to have assumed the obligations of the old target for tax purposes. In the event of an election under Section 338 (h) (10), the purchaser will be deemed to have assumed the obligations of the PPP loan for tax purposes, but not for commercial law purposes. In the case of an election under section 336 (e), which can be made without the consent of the purchaser, the purchaser will be considered to have purchased the assets of the target.

Implications for M&A transactions

While FAQs are not legally permitted, they provide welcome confirmation that the acquiring employer in a merger and acquisition transaction will not have to recover or forgo the ERC.

Parties should verify early in the due diligence process whether the buyer, target, or both have claimed the ERC or received a PPP loan. This will allow the parties to develop a transaction structure and strategies to deal with situations where one of the parties to the transaction has claimed the ERC and the other has claimed a PPP loan. It will also be important to determine whether the party that received the PPP loan has paid, or will have paid before closure, sufficient eligible expenses to achieve full cancellation of the PPP loan. Buyers should keep in mind that if they assume PPP loans, the qualifying expenses will not be deductible if the loan is canceled. Our analysis of recent guidelines on the deductibility of expenses paid with the proceeds of PPP loans can be found here. PPP loan issues may also require purchase price adjustments, trust integers, declarations and indemnification provisions in purchase contracts.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought on your particular situation.

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SBA provides insight into latest PPP lending activity https://civilavmed.com/sba-provides-insight-into-latest-ppp-lending-activity/ https://civilavmed.com/sba-provides-insight-into-latest-ppp-lending-activity/#respond Tue, 09 Mar 2021 10:56:39 +0000 https://civilavmed.com/sba-provides-insight-into-latest-ppp-lending-activity/ A press release from the U.S. Small Business Administration on Feb. 22 shared several statistics that the agency said show it is prioritizing “smallest small businesses” with its latest round of program title loans. paycheck protection. The percentage comparisons are with the PPP funding rounds that took place in the spring and summer of 2020. […]]]>

A press release from the U.S. Small Business Administration on Feb. 22 shared several statistics that the agency said show it is prioritizing “smallest small businesses” with its latest round of program title loans. paycheck protection. The percentage comparisons are with the PPP funding rounds that took place in the spring and summer of 2020.

For companies with less than 10 employees, the share of financing is up by almost 60%.

For businesses in rural communities, the share of financing has increased by nearly 30%.

The share of funding distributed by community development finance institutions and minority depositories has increased by over 40%.

“While the data reported shows that we have made real progress in ensuring that these funds reach underserved communities, we believe we can still do better,” said Michael Roth, senior advisor to the SBA, in the statement.

To make these improvements, the SBA announced changes to the PPP application process. It established an exclusive 14-day PPP loan application period for businesses and nonprofits with less than 20 employees that began on February 24. And, starting earlier this month, the agency said it:

  • Allow sole proprietors, independent contractors and independent workers to receive greater financial support by revising the PPP funding formula for these categories of applicants;
  • Remove an exclusionary restriction on access to P3s for small business owners who have previously been convicted of the crime of non-fraud, in line with a bipartisan congressional proposal;
  • Eliminate restrictions on access to P3s for small business owners who have had difficulty making federal student loan repayments by eliminating delinquencies and defaults on federal student loans as preventing participation in P3;
  • Ensure access to non-citizen small business owners who are legal residents of the United States by specifying that they can use their Individual Tax Identification Number (ITIN) to apply for the PPP.

“The SBA is a front-line agency working to create an inclusive economy, focused on women-owned, minority, low- and moderate-income, rural and significantly underserved communities,” said Roth.

For more information, visit sba.gov/ppp and Treasury.gov/cares.

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Soaring mortgage rates dampen loan application activity with one exception https://civilavmed.com/soaring-mortgage-rates-dampen-loan-application-activity-with-one-exception/ https://civilavmed.com/soaring-mortgage-rates-dampen-loan-application-activity-with-one-exception/#respond Tue, 09 Mar 2021 10:56:39 +0000 https://civilavmed.com/soaring-mortgage-rates-dampen-loan-application-activity-with-one-exception/ The recent rising mortgage rates At a level not seen since last summer, app activity generally stagnated last week, except for a slight increase in the buying market. The total number of claims edged up 0.5% from the previous week, according to the Mortgage Bankers Association. Applications withdrawn for refinancing rose only 0.1%, and seasonally […]]]>

The recent rising mortgage rates At a level not seen since last summer, app activity generally stagnated last week, except for a slight increase in the buying market.

The total number of claims edged up 0.5% from the previous week, according to the Mortgage Bankers Association. Applications withdrawn for refinancing rose only 0.1%, and seasonally adjusted buy applications jumped 2% in the week ending February 26.

The slight increase in buy apps may reflect a recent increase in yields on indicative 10-year Treasury bills. The 10-year started at around 0.9% in 2021 but rose, and last week peaked at around 1.5% before slumping. At the end of the day on Tuesday, the 10yr was just above 1.4%

“There has been a step forward in the past 10 years,” said Michael Franco, CEO of SitusAMC. “It could come back down, but given the additional stimulus that is expected to come out, infrastructure bills and concerns in the bond market about it, I think it might be a little stickier now.

Sometimes refinancing is actually improved when rates increase because it prompts some borrowers to act out of fear of further increases, but in the long run, an increase in rates usually leads to a decrease in activity. The market share of refi fell to 67.5% from 68.5% in the week ending February 19.

Homebuyers tend to increase as a share of the market when rates go up, and they’ve seen a seasonal rise last week as well.

“Purchase requests have increased, with an increase in government requests – real first-time buyers – reducing the average loan amount for the first time in six weeks,” said Joel Kan, associate vice president of the MBA in charge. economic and sector forecasts. A press release.

Overall, the share of loans in the government market increased as follows: Federal Housing Administration title loans increased from 11.2% to 12.1%, products guaranteed by the Department of Veterans Affairs increased by 11.9% to 12.3% and mortgages from the United States Department of Agriculture edged up. at 0.4% of 0.3%

The average overall loan amount was $ 336,200, up from $ 344,800 the week before. The average purchase loan amount was $ 412,300 and the average refinance loan amount was $ 299,600, up from $ 418,000 and $ 311,100 the week before, respectively.

The average government loan amount was $ 262,100, which almost matches the previous week’s $ 262,300.

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RI charter schools face an ethical dilemma: Should they keep millions in federal loans that traditional districts cannot get? https://civilavmed.com/ri-charter-schools-face-an-ethical-dilemma-should-they-keep-millions-in-federal-loans-that-traditional-districts-cannot-get/ https://civilavmed.com/ri-charter-schools-face-an-ethical-dilemma-should-they-keep-millions-in-federal-loans-that-traditional-districts-cannot-get/#respond Tue, 09 Mar 2021 10:56:39 +0000 https://civilavmed.com/ri-charter-schools-face-an-ethical-dilemma-should-they-keep-millions-in-federal-loans-that-traditional-districts-cannot-get/ On the other hand, traditional public schools are not eligible for loans under the Small Business Administration’s Paycheck Protection Program, and accepting the money would open the charters to common criticism that they obey. different rules. The board ultimately voted to pay off his loan, but other charter schools in Rhode Island – and across […]]]>

On the other hand, traditional public schools are not eligible for loans under the Small Business Administration’s Paycheck Protection Program, and accepting the money would open the charters to common criticism that they obey. different rules.

The board ultimately voted to pay off his loan, but other charter schools in Rhode Island – and across the country – chose to keep the money. With all eyes on the coronavirus, the normally tight-knit charter school community has been quietly debating the issue for more than a month, and officials are divided over the right approach.

“It was painful,” said Hillary Salmons, a prominent nonprofit executive who sits on The Learning Community’s board of directors, after a 90-minute debate.

Small businesses and nonprofits have received hundreds of billions of dollars in low-interest loans since Congress approved the paycheck protection program in March. Businesses with 500 or fewer employees are eligible for 1% interest loans, which can be canceled if the proceeds are used to retain or rehire workers.

In many states, charter schools have applied for and have been approved for loans, but critics have accused them of taking advantage of a program that claims to be designed for small businesses with few employees, such as restaurants. . Charter schools are publicly funded, so they still have revenue streams from state and local governments that other small businesses lack.

In Rhode Island, charter schools are 501 (c) 3 nonprofit organizations, which are eligible for PPP loans. By comparison, most charter schools in Massachusetts are considered government entities and are not eligible for the program, according to a spokeswoman for the Massachusetts Charter Public School Association.

But Rhode Island leaders have repeatedly said they are considering all options to close a massive budget deficit next year, and Administration Director Brett Smiley confirmed this week that this could include a significant reduction in $ 1.3 billion Governor Gina Raimondo offered to spend on schools in January.

This uncertainty about future funding has therefore led some state charter schools to apply for federal loans.

Board members at Blackstone Valley Prep, which operates several charter schools, voted this week to keep a $ 4 million P3 loan the school had previously received, even though several city leaders who sit on the board prompted the council to return the money. .

At a Zoom board meeting on Monday night, Lincoln City Administrator T. Joseph Almond said he didn’t think the loan money was going to charter schools. Cumberland Mayor Jeff Mutter argued the school does not need the money as it continues to receive per-pupil funding from the districts as required by state law.

“Has a sending district not made payment to BVP?” The answer is no, ”says Mutter.

But Michael Magee, board member and CEO of Chiefs for Change, a national nonprofit that trains reformist heads of state and principals of local schools, said it was clear Rhode Island had enough questions about future education funding to justify continuing the loan.

“Substantively alone, is there still significant tax uncertainty that could force us to lay off employees?” Magee said. “I would say the answer is clearly yes.”

The council ultimately voted to keep the money, but Central Falls Mayor James Diossa, who is president of Blackstone Valley Prep, said if the school did not face state budget cuts, it should then return the money.

Other charter schools in the state have been divided over whether or not to accept the money. Achievement First, a mayor’s academy that primarily serves students in Providence, retained a $ 2.5 million loan because “we are very concerned about public and private funding for next year,” according to Elizabeth Winangun, director of the organization’s external relations.

The uncertainty goes both ways. Lawyers at different charter schools have offered different interpretations of the loan eligibility rules, while lobbyists privately warned their clients that accepting the money could expose them to criticism from teachers’ unions and lawmakers who have already a negative view of charter schools.

Marc Greenfield, an attorney who chairs The Learning Community’s board of directors, said the concept and vision of the PPP program “has continued to be redefined since its inception,” which has left the board in a state of turmoil. precarious situation.

“We have come to believe that PPP loans are intended for a more distinct or traditional nonprofit organization, and although we are technically a nonprofit organization, our core identity, mission and value is that of a public school, ”he said.

Keith Oliveira, executive director of the League of Charter Schools of Rhode Island, said at least nine of its 18 member schools have received a P3 loan or are considering applying for one. While the learning community and Kingston Hill Academy refused their loans, Nowell Leadership Academy decided to keep the $ 407,000 it had received.

“We have had extensive discussions with our member schools and concluded that the decision to apply for such loans should be made by each school,” Oliveira said in a statement. “Each school must decide for itself what is in the best interest of its school.”

Jonathan E. Collins, assistant professor of education and political science at Brown University, said charter schools could not be criticized for taking advantage of their tax status, but he suggested that accepting the money undermines the argument that charters follow the same rules. as traditional public schools.

The federal CARES law that was approved for coronavirus relief includes billions of dollars in the Primary and Secondary Education Relief Fund, but Collins said the use of PPP loans raises the question of whether traditional districts will be eligible for more support from the federal government. the government is moving forward.

“The scariest part of this is I don’t know the answer,” Collins said.


Dan McGowan can be reached at dan.mcgowan@globe.com. Follow him on Twitter at @danmcgowan.

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How Can Real Estate Investors Use HUD 223F Loan? https://civilavmed.com/how-can-real-estate-investors-use-hud-223f-loan/ https://civilavmed.com/how-can-real-estate-investors-use-hud-223f-loan/#respond Tue, 09 Mar 2021 10:56:39 +0000 https://civilavmed.com/how-can-real-estate-investors-use-hud-223f-loan/ As real estate investors, we are always looking for opportunities unique and creative means of financing our transactions. Sometimes government programs encourage certain types of real estate investments, and the HUD 223 (f) loan is just that. So how can real estate investors to use HUD 223 (f) loan? In short, this program allows investors […]]]>

As real estate investors, we are always looking for opportunities unique and creative means of financing our transactions. Sometimes government programs encourage certain types of real estate investments, and the HUD 223 (f) loan is just that.

So how can real estate investors to use HUD 223 (f) loan? In short, this program allows investors to acquire or refinance a multi-family property using a non-recourse loan, higher leverage, low interest rate and a lenient DSCR loan.

Here is an overview of HUD 223 (f) for real estate investors, the pros and cons of this loan product, and whether real estate investors should try to get in on the action.

HUD 223F Multifamily Loan: An Overview

Implemented in 1975, this HUD financing product was designed to help encourage the development and renovation of multi-family assets, particularly for affordable housing. This loan has a reputation for being reserved for non-profit, low-income and affordable housing projects. It’s a common misconception, and it’s why many real estate investors miss it.

While the application process may take a little longer, the 223 (f) Multifamily Loan has extended terms and amortization at lower rates than typical loan products. Since this is a government loan, the loan submission requirements are onerous.

The HUD 223 (f) loan is also fully assumable. It also gives investors a exit strategy later if they want to liquidate, as potential buyers can take on the desirable terms (see below) of this loan product.

This loan is available for all multi-family assets, and while it takes a bit longer to close than traditional loan products, it has some key positive features that should be noted:

  • Fixed loan term of 35 years with amortization, but not exceeding 75% of the remaining economic life of the property.
  • The loan can be taken over.
  • Interest rates are competitive, but borrowers pay a mortgage insurance premium (PMI).
  • Properties must be at least three years old.
  • Units must have funding or replacement reserves.
  • An annual audit of operations.
  • Fixed interest rate determined by market conditions.
  • 85% LTV or 80% in the event of cash-out refinancing.
  • DSCR: 1.18x for market rate properties and 1.15x for affordable housing.

The PMI consists of a one-time fee of 1% of the loan amount, due at closing, and an annual fee of 0.60% of the loan amount for non-affordable housing, or 0.45% for property considered to be affordable projects.

The 35-year term and low fixed interest rates eliminate some key risks for investors. First, there is no associated long-term refinancing risk, and the prospect of rising interest rates is mitigated by freezing rates at a fixed rate. In addition, personal liability is minimized as it is a non-recourse loan.

Here are some of the downsides of the HUD 223 (f) loan that real estate investors should note:

  • The application process can take four to seven months.
  • Much more paperwork and submission requirements.
  • Need for higher cash reserves (approximately $ 1,000 per unit).
  • High administrative fees.
  • MIP requirement.
  • CPA annual audit requirement.

In March 2020, the HUD approval process was also updated to reduce the minimum building age from three years to 30 days.

Multifamily 223 (f) Acquisition and Refinancing Checklist

According to HUD, there are a number of application requirements for this type of mortgage in order to ensure the success of the application. These include, but are not limited to, the following:

  • FHA Application Fee (0.3% of mortgage amount / $ 3.00 per $ 1,000.00)
  • Completed Firm Application Checklist.
  • Lender’s subscription story.
  • Resumes for people submitting third party reports.
  • Description of the condition of the property, list of repairs and improvements carried out over the past two years and their estimated cost.
  • Legal description.
  • List of necessary repairs.
  • Evaluation report.
  • Phase I Environmental Site Assessment (ESA) [Phase1].
  • Operation and maintenance plan.
  • Preliminary title report.
  • Verification of zoning and code deviations.
  • Proof of public and municipal services (copies of monthly bills).
  • Historical occupancy rates.
  • Operating budget (12 months, including census composition and occupancy data).
  • Initial rental budget.
  • Articles of incorporation and by-laws of the company.

The borrower can find all of the section 223 (f) Multi-Family Acquisition and Refinancing Checklist instructions on the HUD website.

How can real estate investors use the HUD 223 (f) loan?

Because the HUD 223 (f) loan has better terms, longer amortization, and lower interest rates than traditional loan products, even those from Fannie Mae and Freddie Mac, this loan can be used in a number of ways. by knowledgeable real estate investors.

New acquisitions: Investors can simply take advantage of this loan to make a new resale acquisition as long as the loan conditions are met. Since this application process can be time consuming, a longer due diligence period may be required before the multi-family borrower enters into a transaction. Also, you may want to consider running parallel traditional apartment loan options if the HUD 223 (f) loan does not work.

Value-added projects: The loan conditions allow the substantial rehabilitation of an existing structure and still benefit from the excellent conditions of HUD 223 (f). The refinancing percentages for value-added projects are based on Criteria from the estimated value of the property after renovations are complete to:

  • 87% for projects with rent assistance of 90% or more.
  • 85% for projects that meet the definition of “affordable housing”.
  • 83.3% for projects at market rate.

Refinancing: Under the terms of the HUD 223 (f) loan, investors can cash-out refinancing. These are authorized when 80% of the value exceeds the existing debt; however, only 50% of the net cash will be released at closing. In this scenario, the remaining 50% is held in receivership until all required renovations are completed.

Affordable housing: Rental aid properties have been built for the HUD (f) loan, as it offers even better terms for houses considered affordable housing. While these HUD loans can be used for properties at market rates, they are designed for affordable property with certain rent control restrictions.

At the end of the line

The HUD loan is a lower interest rate, longer amortization loan available to investors, which is also non-recourse and assumable. This presents many unique opportunities for investors, even with the acquisition of assets that are not considered affordable housing.

While the application process can be a bit longer and more expensive, the advantages of this program certainly outweigh the disadvantages. Real estate investors can use the HUD 223 (f) loan to acquire resale multi-family assets, renovate existing assets, or refinance existing properties in their portfolios.

Make sure to speak with a experienced broker for this type of loan product. As 2021 approaches, this HUD loan is one of the savvy investors that savvy investors should consider using as a fundraising vehicle.

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Chinese company Tianqi Lithium gets one-month reprieve on $ 1.9 billion repayment https://civilavmed.com/chinese-company-tianqi-lithium-gets-one-month-reprieve-on-1-9-billion-repayment/ https://civilavmed.com/chinese-company-tianqi-lithium-gets-one-month-reprieve-on-1-9-billion-repayment/#respond Tue, 09 Mar 2021 10:56:39 +0000 https://civilavmed.com/chinese-company-tianqi-lithium-gets-one-month-reprieve-on-1-9-billion-repayment/ A man works at a lithium battery factory in Huaibei, central China’s Anhui Province, Saturday, November 14, 2020. Feature China | Barcroft Media via Getty Images From China Tianqi Lithium said Monday it signed a letter with a syndicate of banks to extend by one month the due date of $ 1.884 billion in title […]]]>

A man works at a lithium battery factory in Huaibei, central China’s Anhui Province, Saturday, November 14, 2020.

Feature China | Barcroft Media via Getty Images

From China Tianqi Lithium said Monday it signed a letter with a syndicate of banks to extend by one month the due date of $ 1.884 billion in title loans that were due to be repaid at the end of November.

Tianqi, one of the world’s leading producers of lithium chemicals used in electric vehicle batteries, has repeatedly said its operations could be severely affected if it does not return the money, which was used to acquire a 23.8% stake in a Chilean miner. SQM in 2018, on the due date.

The last minute stay gives the company and its lenders, led by China Citic Bank, until Dec. 28 to sign an amended loan agreement, Tianqi said in a filing at the Shenzhen Stock Exchange. Otherwise, Tianqi will have to refund the money on that date.

The two sides are “actively negotiating the key terms” of the amended loan agreement, he said.

If the conditions of the extension letter cannot be met, however, the repayment period will not be extended at all, the filing said, triggering a default. Tianqi also has to repay the unpaid interest on the loans by December 10.

Daiwa Capital Markets said in a note that it sees the extension as a time-saver for Tianqi.

“We expect Tianqi to reveal a solution for the repayment of the annexation loan within a month, potentially a strategic investment or sale of Australian assets amid a rebound in the price of lithium,” he said. -he declares.

Tianqi, alongside Albemarle Corp, jointly operates the Greenbushes lithium mine in Australia, where it also owns the Kwinana processing plant.

China Citic Bank did not immediately respond to an after-hours request for comment.

Tianqi paid $ 4.1 billion for SQM’s stake, taking $ 3.5 billion in debt to fund the acquisition.

But lithium carbonate prices in China have fallen by about 70% since entering into the deal, amid oversupply, leaving Tianqi in the red and unable to repay its loans.

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Synchrony to acquire Allegro Credit https://civilavmed.com/synchrony-to-acquire-allegro-credit/ https://civilavmed.com/synchrony-to-acquire-allegro-credit/#respond Tue, 09 Mar 2021 10:56:39 +0000 https://civilavmed.com/synchrony-to-acquire-allegro-credit/ Synchrony (NYSE: SYF) today announced that it has entered into a definitive agreement to acquire Allegro Credit, a leading provider of consumer point-of-sale financing for audiology products, dental services and musical instruments . Allegro Credit’s merchant network and customer base will largely join CareCredit, Synchrony’s health and wellness funding platform. This acquisition advances Synchrony’s growth […]]]>

Synchrony (NYSE: SYF) today announced that it has entered into a definitive agreement to acquire Allegro Credit, a leading provider of consumer point-of-sale financing for audiology products, dental services and musical instruments .

Allegro Credit’s merchant network and customer base will largely join CareCredit, Synchrony’s health and wellness funding platform. This acquisition advances Synchrony’s growth and diversification strategy and accelerates its cutting-edge digital innovation, expanding choice at the point of sale for its suppliers, merchants and customers.

For its core product offering in the booming audiology market, Allegro Credit offers extensive title loans options with flexible point-of-sale payment terms through a network of 3,200 merchants.

“Throughout its history, Allegro Credit has built a reputation for service excellence and innovation,” said Beto Casellas, CEO of CareCredit, a Synchrony solution. “Its healthcare financing products help people live fuller, healthier and happier lives with payment plans that make it easier for our clients to get the care they need and need. need. Our businesses are highly complementary, and this acquisition will enhance the scope of the offering and the depth of CareCredit’s expertise. ”

“It was essential to join a company that shared our cultural values, our growth goals, our spirit of innovation and our commitment to our merchants and customers,” said David Parsons, President and CEO of Allegro Credit . “We see an incredible opportunity to amplify our innovative differentiated offerings through the network, reach and scale of Synchrony and CareCredit. This agreement will help us accelerate the ability to improve people’s lives with the health treatments they need or to capture our customers’ passions with music products.

The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2021. Financial conditions were not disclosed; the transaction is not expected to have a material impact on Synchrony’s financial results.

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Tolerance activity for the first time in weeks https://civilavmed.com/tolerance-activity-for-the-first-time-in-weeks/ https://civilavmed.com/tolerance-activity-for-the-first-time-in-weeks/#respond Tue, 09 Mar 2021 10:56:39 +0000 https://civilavmed.com/tolerance-activity-for-the-first-time-in-weeks/ A weekly association of mortgage bankers (MBA) report which tracks the share of mortgages in active abstention as well as the volumes of calls from managers (because borrowers must call his agent in order to benefit from the extension) showed that the total loans in forbearance increased by 1 basis point compared to the previous […]]]>

A weekly association of mortgage bankers (MBA) report which tracks the share of mortgages in active abstention as well as the volumes of calls from managers (because borrowers must call his agent in order to benefit from the extension) showed that the total loans in forbearance increased by 1 basis point compared to the previous week: from 5.22% to 5.23%.

“A slight increase in new forbearance requests, coupled with a decrease in outflows to match a weak poll, led to an increase in the overall share of forbearance loans for the first time in five weeks,” said Mike Fratantoni , Executive Vice President of MBA and Chief Economist. “The biggest increase in the forbearance share was for portfolio loans and PLS, due to the increase in Ginnie Mae buyouts and other portfolio / PLS loans.”

Fratantoni added, “The winter storm that hit Texas and other states caused temporary disruptions to service call centers, but these centers quickly resumed operations.”

Broken down by investor type—

  • The share of Ginnie Mae loans in forbearance increased from the previous week: from 7.32% to 7.35%.
  • The share of Fannie Mae and Freddie Mac loans in forbearance remained the same from the previous week at 2.97%.
  • The share of other loans (eg portfolio loans and PLS loans) in forbearance increased compared to the previous week: from 8.94% to 9.03%.

By step –

  • 15.6% of total forborne loans are in the initial stage of the forbearance plan
  • 81.9% are in an abstention extension
  • The remaining 2.5% is income from abstention.

Of the cumulative forbearance outflows for the period June 1, 2020 to February 21, 28%, 27.8% were borrowers who continued to make their monthly payments during their forbearance period, 25.9% were successful loan deferral / partial claim, 15.3% resulted in reinstatements, during which overdue amounts are repaid upon exit from forbearance, 13.8% were borrowers who failed to complete all their monthly payments and left forbearance without a loss mitigation plan still in place, 7.8% resulted in a trial loan modification, 7.6% resulted in repaid loans by refinancing or selling the house, and the remaining 1.8% resulted in repayment plans, short sales, deeds of replacement or other reasons.

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