SAN DIEGO, CA (June 22, 2011) — CalCon Mutual Mortgage Corporation (“CalCon”) announced Thursday the expansion of its preferred lending and builder division into international markets, including, the Caribbean, Mexico and a few select resort destinations worldwide.
Joshua Erskine, President of CalCon, on Thursday, June 16, 2011 explained the timing and reasoning for the expansion:
“CalCon has experienced extraordinary growth in the last two years as a result of the knowledge, creativity, and overall dedication to structure proper financing platforms which is a vital part of the successes of new sales and conversion of existing contracts where units were pre-sold several years back. CalCon believes that the experience gained from many of the financing platforms we have structured for projects in the U.S., as well as some prior work done internationally, creates an opportune time in the market to help struggling projects come up with financing solutions in order to sell real estate are in place.”
In a time when many believe that unit prices are the most important element in the success and closing of real estate, CalCon has continually seen the opposite. “Without proper financing and a plan which is executable from the first through the last unit in a development, prices have not shown to stabilize until they reach a price which has been well below what one would call market. In fact, CalCon experienced numerous times two very comparable projects, one with readily available financing options available to purchasers, while the second, without, have pricing disparity of nearly 20%,” Erskine stated.
Erskine later added, “You can reduce prices significantly below market, depending on the characteristics of the project itself and buyer pool that does not necessarily solve the issue and move units or create momentum. Without solving the financing piece, you often times can continue to drop and drop and still not gain much more momentum. The momentum tends to be a few quick sales and then flat line again until another marginal decrease with the same pattern happening time after time. Buyers want hassle free financing and want to know there is a plan when they see the willingness of institutions to lend on the units, even at a loan to purchase price which requires a significant down payment.”
CalCon has proven successful in structuring such platforms for developments from five units to hundreds of units on a national basis from New York to Hawaii, as well as, dealings in Mexico and the Caribbean in both distressed and performing assets. CalCon’s recent work includes structuring and implementing purchaser financing platforms at Trump SoHo ™ (New York, NY), The Martin (Las Vegas, NV), Palms Place (Las Vegas, NV), and Trump International Hotel & Residences ® Waikiki Beach Walk ® (Waikiki Beach, HI). The platforms that CalCon structures starts with identifying the buyer profile and using current and historical data based on the profile of the likely buyers to ensure a financing solution is built around the buyer, not trying to force buyers into financing programs that do not meet the goals of the particular buyer profile. The financing programs take into account characteristics of the purchaser’s credit, income qualification and verification, nationality, and purpose for purchasing unit, as well as many others.
Joshua Erskine ended with, “CalCon is extremely excited about the ability to bring a service to the international market with an already proven platform. CalCon’s experience with high end homes, condo hotel, as well as, fractional and vacation ownership, makes any resort location an ideal candidate for CalCon’s platform. We have complete confidence that this will help many developments in these resort locations outside the U.S. recreate momentum in currently stalled or slow unit sales. The big banks and institutional investors have proven to be far too “in the box.” CalCon is dedicated to using its experience and working to identify a game plan that does this. The earlier we start in a development the better, however, it is never too late to make changes and review this aspect for a development.”
CalCon Mutual Mortgage Corporation is nationwide mortgage banker and servicer. For additional information inquire at Info(at)CalConMutual(dot)com, or call 888-488-3807.
SOURCE: CalCon Mutual Mortgage Corporation