Archive for September, 2006
I can mark my calendar. In fact, I can almost set my watch. Every time there is a big investor seminar or other function here in Atlanta I’m going to get the phone calls. Dozens of new investors wanting to use an FHA 203k loan to acquire an investment property.
Let me cut straight to the point: Investors cannot use the FHA 203k loan to acquire and rehab investment properties UNLESS they intend to occupy the property for at least one year … preferably two … or they are a government or non-profit agency. Read the rest of this entry »
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In recent months I have seen a large number of property assemblages listed by agents from “the big names” in the business as well as some local players. As an investor I may look at this differently than the average person but obviously assemblages are meant for buyers like me and not homeowners. Investors also need to know how to finance raw land or get a loan on a commercial real estate purchase. Read the rest of this entry »
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I’m still miffed over that comment in the September 11th cover article in Business Week entitled “Nightmare Mortgages” which said, “Banks tapped an army of unregulated mortgage brokers to do what needed to be done to keep the money flowing, even if it meant putting dangerous loans in the hands of people who couldn’t handle or didn’t understand the risk.” Read the rest of this entry »
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It’s wonderful to be in the position to site around both campfires. I mean be in on meetings for both loan originators and real estate agents. There is a good deal of enlightenment from this opportunity.
One thing that never ceases to amaze me is the lack of realization that this is much more a 50/50 team work opportunity than either “side” would like to concede. At times agents feel that the loan originator just takes the application and says “yes” or “no” failing to have the slightest bit of understanding that the loan originator may spend as many as 10 hours or more just looking for the right home for a specific borrower. Obviously the better qualified the borrower AND property the less investment of time needed. Read the rest of this entry »
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On Friday I received a call from Ralph Roberts (FlippingFrenzy.com) inviting me to comment on postings on that website from people questioning the reality of cash back at closing being an actual criminal activity. It seems there are professional doubters.
Let me make this simple statement: ANY cash paid TO THE BORROWER (the person who’s credit is used for you “credit partner” folks) without having been fully disclosed on the 1003 (Uniform Residential Loan Application – URLA) is mortgage fraud and a criminal activity in all 50 states. Read the rest of this entry »
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You don’t need to be in a real estate related field for very long until someone screams at you. My first screamer was an agent from a company that rhymes with beeswax. He wanted to “whoop my wife’s a$$” because our client demanded to close at their own closing attorney (a right of law in Georgia) and not at the agents preferred closing attorney. He called my wife and asked for directions to our office. They didn’t tell me about this.
Fortunately you had to go past the reception desk and my office to get to my wife’s office and he started screaming when he walked in the door. I don’t think he expected 225 pounds of 6 foot crewcut and goatee to step into his path. I did physically remove this pleasant gentlemen from the office while the receptionist was trying to find the number for 911. He showed me his IQ through the window when he walked by and just for fun I ran for the door as if to chase him! I didn’t get to see him run but the girls said it was hilarious. Read the rest of this entry »
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Ouch! It happens and it even happens in-house from time to time. Recently we met a prospect at a trade show who attended on of my weekday seminars. He then began to work with one of my Team Leaders on the mortgage side to get qualified. He indeed was well qualified and was then introduced to the real estate side and the broker referred him to a specific agent who took him out looking at homes.
She was not a new agent but was new to our company and so may have misunderstood some basic principals. The first property she showed was a bingo and the client made an offer which was accepted – provided the client use the seller’s mortgage broker. Read the rest of this entry »
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Three questions:
(1) How much money can the seller rebate to the buyer that is not disclosed on the HUD-1 before it’s considered mortgage fraud? Read the rest of this entry »
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I was shocked. Really, I was. I picked up a publication from a very large investor’s association and began to peruse the schedule. Only a few short lines into the speaker’s line-up there it was, another one of my clients scheduled to do a seminar. Actually put it together and speak. Fee for the seminar? Only $199. He would have his CD and book available for $499. Wow! I sent a representative from my team who had originated a couple of loans for the guy just in case he needed a little help. She said it was embarrassing and hopeless but people STILL SPENT THE $499!!! Oh my lord.
Hmmm…. Read the rest of this entry »
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Rapid acquisition is familiar to all of us in the investor niche. It’s something a lot of Loan Officers who don’t regularly deal with investors could run into with your clients like a brick wall. Here’s what you need to know as a Real Estate Agent about Rapid Acquisition:
If your client has purchased 2 properties in the last 6 months or 4 properties in the last 24 months there may be a rapid acquisition issue. Some lenders who are using the rapid acquisition condition will allow a ONE UNIT exception provided the borrower has a credit score above their normal guidelines and at least 24 months of experience as a real estate investor. Read the rest of this entry »
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