Banker says one thing realtor another - Posted by philip

import · July 15, 2003, 5:33pm

Posted by Philip on July 18, 2003 at 22:01:03:

maybe I didn’t know what I could learn…or whatever. But it sounds profitable to do so!
I will have more questions!
Philip

import · July 15, 2003, 5:33pm

Posted by philip on July 15, 2003 at 17:33:17:

Next Tuesday I close on a little piece of land.
I am borrowing the land money, interest only, from the bank; and the development money from family.

I called the banker and told him that the realtor gave me a closing date and he snapped, “Well, I need title insurance so we can close this up on this end!”

I called the realtor and she said, “Well…that’s ridiculous, I have NEVER had anyone want title insurance ahead of time! That is what you get at closing!”

I thought like she did, but haven’t done much of this…anybody like to explain this to me?

Philip

import · July 18, 2003, 5:38pm

I’d like to help you out but… - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on July 18, 2003 at 17:38:31:

…I generally don’t use either bankers or brokers. If you want cheap back talk just get married.

Seriously though I had to think a bit on this one. If I were banker I would NEVER release funds until after I had a title policy. What if the escrow officer makes a mistake and closes without the title policy and there turns out to be some serious defect in the title.

Title defects are extremely common. I buy lots of them simply because I can get a discount far far out of proportion to the cost to cure the defects. Its kind of like the legal counterpart to buying rehab properties but with NO, I REPEAT NO, competition.

Hello, anybody listening who can’t find enough good rehab deals in this hot market? I mean deals where you can EASILY make UPWARDS of 75% profit. Legal rehabs??? I like the sound of that.

I get lots of profitable deals by thinking up new niches with nobody in them to compete with me. I have been getting some interesting deals lately by buying fractional interests after probate is complete. Actually I am trading tax-sale lots for the fractional interests in most cases. Many times there are 4, 5, 6 or more siblings, and darn few of them can get along with each other. Had some even give me their interests for a little as 1 dollar, just to spite their brothers and sisters, really. I did my first deal like this but it took me over 25 years to figure out that I could make a profitable niche market in this way. Its possible to get nice quality free and clear houses for as little as 5-10 cents on the dollar at times. Yes really! I’ve never paid more that 25% of the value for any fractional interests. MILLIONS of them available and NO takers, except me. Anyone awake?

Regards, doc

import · July 16, 2003, 10:18am

Re: Banker says one thing realtor another - Posted by Don Dion

Posted by Don Dion on July 16, 2003 at 10:18:30:

Someone missed the mark here. The title issue is neither the banker or the realtor in this case since it is a purchase. The title is brought down by the seller/sellers attorney and has to be reviewed by the underwritter at the bank before a final approval and closing docs are drawn. If there is a delay your laying the blame on the wrong two people. Have the realtor contact the sellers attorney and get him moving for you.

import · July 16, 2003, 9:55am

Re: Banker says one thing realtor another - Posted by GG(Ga)

Posted by GG(Ga) on July 16, 2003 at 09:55:19:

I see you still have Banker troubles. If its not one thing its another with them. Well, at least it shouldn’t be too many years of you jumping through their hoops, They’ll be begging you in no time, and jumping through YOUR hoops!

Gail

import · July 15, 2003, 9:30pm

Re: Banker says one thing realtor another - Posted by Lyal

Posted by Lyal on July 15, 2003 at 21:30:17:

Phil,
A little of both here. You need to have the title search done and title insurance arranged for and it will be paid for out of funds at closing.
Sounds like the banker is asserting his “alpha” status in this transaction. This is YOUR deal and he is a part of it only. You are giving him the opportunity to invest the bank’s money in a secure, profitable vehicle.
At some point (after the transaction) I’d ask him (gently but with authority) what the problem was that he took that tone with you and try to “re-balance” the relationship.
Lyal

import · July 22, 2003, 3:48pm

Re: I’d like to help you out but… - Posted by Mack OK

Posted by Mack OK on July 22, 2003 at 15:48:37:

Doc, would you mind elaborating on this particular niche of yours? I’ll fax you a big Mack if you do.

Mack

import · July 18, 2003, 6:18pm

Re: I’d like to help you out but… - Posted by philip

Posted by philip on July 18, 2003 at 18:18:55:

It was actually beneficial at this point for me to get a “interest only” loan from my bank for this little land loan.
The banker did finally quit snapping and explain to me why he was snapping. Turns out he was just snapping because the realtor had changed title companies in mid-stream.
At some point I will let my irritation show with being snapped at…but right now I am using this source of funds to my advantage.

As far as title defects, you can probably cure them because you are an attorney. I don’t have any idea how.

I am glad you are doing well, and posting again, doc.
Philip(with a new web address)

import · July 18, 2003, 5:50pm

Some of us are taking our first baby steps… - Posted by Dave - WA

Posted by Dave - WA on July 18, 2003 at 17:50:08:

and not yet ready to run a marathon.

With the help of all the fine folks here we will learn to walk and then jog and then run with the big docs. I mean big dogs.

import · July 16, 2003, 1:13pm

Re: Banker says one thing realtor another - Posted by Philip

Posted by Philip on July 16, 2003 at 13:13:27:

Now, see that is the type of thing one of these 2 (realtor, or banker) could have told me!
I wasn’t really trying to lay blame…I was just confused by the fact that the realtor was confused, and the bank was snappy.
My banker knows I like to move along quickly and maybe he thought he was going to get squeezed for time…I dont know.
“It needs to be looked over by the underwriter before we close”…that wouldn’t have been hard to say…huh?
Thanks,
Philip

import · July 16, 2003, 1:08pm

Re: Banker says one thing realtor another - Posted by Philip

Posted by Philip on July 16, 2003 at 13:08:50:

Yeah…I don’t know what the 2 “professionals” are doing.
And it isn’t like it is a risky loan…it is a small land loan that I have the cash to cover in their bank at this very moment!
Who knows.
Philip

import · July 18, 2003, 5:49pm

Alpha status----rebalance the relationship… - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on July 18, 2003 at 17:49:33:

…Lyal, you’ve got more balls than a bowling alley.

Regards, doc

import · July 15, 2003, 10:33pm

Re: Banker says one thing realtor another - Posted by Philip

Posted by Philip on July 15, 2003 at 22:33:00:

So true, Lyal. This is the first time he has used a tone with me. I don’t like a superiority tone! I hate that to a fault! I should let some of it slide in my everyday life! But not from my banker!

I always thought that if the title insurance wasnt’ available, then the loan didn’t take place and the closing also didn’t take place…guess I was wrong.

I will definetly ask the guy to explain himself. I mean for pete’s sake…this is a land loan…what could be safer? I could pay cash for it…with funds from HIS bank!

Oh well…

Thanks, Philip

import · July 18, 2003, 8:17pm

You can learn anything. - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on July 18, 2003 at 20:17:26:

If you can learn real estate investing you can learn to spot the commom and simple to cure defects. Law libraries are free. Lawyers learn by reading the same books. You only have a one subject to study (real estate) they have many. How much educational effort would you be willing to exert to move up the food chain? To make a million a year in fractional interests would only mean working 4-5 hours per week, so don’t give me that “you’re an attorney bit”. You would need no more than $5k to buy your first $75k free and clear houses. Yes I graduated from law school (in the botton 1% of my class) and no I’m not licensed to practice. I need more practice.

The real payoff is in buying fractional interests and doesn’t involve any of law in most cases. Philip, I could train you to do this successfuly in about 10 minutes. Incidentally, that is just about my normal time to consume a Big Mac, hint hint.

Regards, doc

import · July 18, 2003, 9:24pm

Re: Alpha status----rebalance the relationship… - Posted by Lyal

Posted by Lyal on July 18, 2003 at 21:24:03:

Doc,
Curious why you say that? It’s pretty clear that you “control” your territory (and your deals). I don’t think the lender / borrower relationship should be any different. I don’t propose to be domineering but I want them to be aware of the fact that because of the good deals I bring in (tied up with a bow just about) that they are going to make money and stay well within their lending parameters (good safe deal). The growth of my business has accelerated since I found a lender who treats me more like a partner than a bum who is asking for the small change in his well worn purse (my previous lender’s attitude).
In Terry Vaughn’s session at the lender’s seminar, he stresses setting the tone. He tells a story where he went into a lenders office and the lender had his desk on a platform so he would sit higher than anyone else (old negotiation power ploy). He looked around and said something to the effect of “This office sucks! Let’s find a conference room” and walked outside and waited for the lender to follow him. Dramatic to be sure and not something I could pull off, but I totally believe him, and the effect on the balance of the negotiations would be obvious.
Similar to the attitude shift from when you are a novice investor and you are almost begging to buy mobiles and after you become seasoned a bit and you know that it doesn’t matter a wit if you buy this place or not. You morph from “please, please, please” to “Tell me again why I should buy this dump???” (well ok not that arrogant but you know what I mean).
All part of the process I guess.
All the very best to you Craig!
Lyal
PS: How’s that little one?