Dear Investor,
We have a lot to discuss! I would like to share my thoughts on the effects of the stimulus plan on housing, the new regulatory lending requirements in California, the economic effects to our borrowers and the navigational strategies of Quest.
Let’s start with the stimulus plan. The best part of the stimulus plan for Quest is the $8,000 first-time homebuyer tax credit. With this new incentive, more buyers are showing up at the entry-level market. Quest views this market as being able to provide security, growth and opportunity. This is why we have decided to focus our lending in this area. The first-time homebuyer is going to be coming out in need of financing which leads us into the requirements that all borrowers will need to meet.
State regulatory requirements have been significantly changed by California legislators. The primary focus of these changes is to prevent future sub-prime lending from occurring by disallowing unqualified loans. This is not an issue for Quest as we have always believed in traditional guidelines. New pricing requirements for owner-occupied residential loans will be going into place on October 1, 2009. The types of loans that are exempt from these regulations include investor-property loans, bridge or swing loans and construction loans. Quest Lending will focus only on these loans.
The credit crisis is bringing some very attractive lending opportunities. Quest has started taking advantage of these opportunities with two First Trust Deeds. The loan to value on these loans are 35%. While the rate of return is less for these loans (the rates we charged on the two loans mentioned are 10.99% and 11.99%, respectively), I believe the risk-rewards-return is terrific.
The economy, and particularly the job market, has negatively affected some of our borrowers. Some have lost their jobs and we are working to help keep them in housing, as it is not the objective of Quest to take the homes of our borrowers. We have been active in making loan modifications, in some cases lowing interest rates from 14 .99% to 12.99%. As a Quest investor, you can expect our rate of return to come down from 12% to a return of 8-10% due to these changes and to the number of First Trust Deeds that we are now making. I am sure you agree that these rates of return are still very good given the current economic climate.
Currently, I have $485,000 invested in Quest and I am adding an additional $90,000. I plan on adding more over time, but it is difficult to do that now given the losses suffered in the stock market.
In conclusion, I want to say that the future for Quest is extremely bright. We are successfully navigating the most treacherous waters that the real estate market has seen since the Great Depression! If you have any questions please feel free to call or email us at
Mark Prather
President
Quest Funding Inc.
877-957-8378
mprather@questfi.com
We have a lot to discuss! I would like to share my thoughts on the effects of the stimulus plan on housing, the new regulatory lending requirements in California, the economic effects to our borrowers and the navigational strategies of Quest.
Let’s start with the stimulus plan. The best part of the stimulus plan for Quest is the $8,000 first-time homebuyer tax credit. With this new incentive, more buyers are showing up at the entry-level market. Quest views this market as being able to provide security, growth and opportunity. This is why we have decided to focus our lending in this area. The first-time homebuyer is going to be coming out in need of financing which leads us into the requirements that all borrowers will need to meet.
State regulatory requirements have been significantly changed by California legislators. The primary focus of these changes is to prevent future sub-prime lending from occurring by disallowing unqualified loans. This is not an issue for Quest as we have always believed in traditional guidelines. New pricing requirements for owner-occupied residential loans will be going into place on October 1, 2009. The types of loans that are exempt from these regulations include investor-property loans, bridge or swing loans and construction loans. Quest Lending will focus only on these loans.
The credit crisis is bringing some very attractive lending opportunities. Quest has started taking advantage of these opportunities with two First Trust Deeds. The loan to value on these loans are 35%. While the rate of return is less for these loans (the rates we charged on the two loans mentioned are 10.99% and 11.99%, respectively), I believe the risk-rewards-return is terrific.
The economy, and particularly the job market, has negatively affected some of our borrowers. Some have lost their jobs and we are working to help keep them in housing, as it is not the objective of Quest to take the homes of our borrowers. We have been active in making loan modifications, in some cases lowing interest rates from 14 .99% to 12.99%. As a Quest investor, you can expect our rate of return to come down from 12% to a return of 8-10% due to these changes and to the number of First Trust Deeds that we are now making. I am sure you agree that these rates of return are still very good given the current economic climate.
Currently, I have $485,000 invested in Quest and I am adding an additional $90,000. I plan on adding more over time, but it is difficult to do that now given the losses suffered in the stock market.
In conclusion, I want to say that the future for Quest is extremely bright. We are successfully navigating the most treacherous waters that the real estate market has seen since the Great Depression! If you have any questions please feel free to call or email us at
Mark Prather
President
Quest Funding Inc.
877-957-8378
mprather@questfi.com
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