Ed, holding mortgage question... - Posted by Liliana

Posted by Liliana on July 01, 2003 at 10:49:13:

I live in Spring City, its close to King of Prussia are. My Zip is 19475. I’m suppose to pick up some papers today from the broker’s office, I’ll see if he cancels and if he does, I’ll talk to my husband and will call Neal. I want the deals, I’ve found out that I rather do Real Estate than my unchallenging job.


Ed, holding mortgage question… - Posted by Liliana

Posted by Liliana on July 01, 2003 at 08:18:06:

Hi Ed,

I am in the process of buying 3 rental properties. I’m buying each at a time and my current mortgage broker is having the seller hold the mortgage for the first one and in a week or two I’ll fefinance it, giving me $$ back because it will appraise more than what he is selling it for. My question is, how long would this kind of deal take? I talked to my mortgage broker about this since January, I’m refinancing my triplex and he told me that we should 1st do the refinance and then the 3 properties. We were encountered w/replacing our septic system so the refinance is taking way longer than expected (before it was him taking his time on getting back to me because supposedly they were swamped) anyhow…Its been about 4 weeks now that he is saying “we gotta get the 3 properties first because they will give you cash and that will be good for you” but we still don’t do the deal.

Last year one of my units went vacant and I wanted to repair a couple of things, first my husband was going to do it, then there was no time, then came January and I thought I should inquire about refinancing w/203K so that we could repair it and get more $$ in rents…It was going to happen but its not done and I’ve lost about $4000.00 since my unit became vacant till now. I have thought about looking for another broker but I’m affraid of loosing time finding someone who knows creative financing and doing all the applications and re-reading our credit, etc. What do you think I should do? I’m desperate! I thought deals like the one we are trying to do w/the 3 properties shouldn’t take long, this is why investors make money, or so I thought.

The refinance is just another story, in my mind we were being neglected, he obiously had more important deals to take care of. He is very creative but what good is that when he makes me loose time and $$…Time is the most valuabel thing we have!

Hope you can give me some advice.


Re: Ed, holding mortgage question… - Posted by Ed Garcia

Posted by Ed Garcia on July 01, 2003 at 09:52:09:


Surly a broker who takes 6 months don?t sound very creative to me.

You started with him in January and today is July 1st.

I think your Mortgage Broker is having problems in performing and so he?s stalling you.

If he stalls you another 6 months, you?ll have enough seasoning to go to any broker in town.

Also as you say, he changed his story. At first he wanted to do the re-fi on the triplex and then he changed his mind and wanted to do the 3 purchases.

Liliana, you don?t tell us what state that you?re in but there is no doubt that you need to get a backup.

You should have gotten a second opinion or have had another broker working the deal or part of the deal simultaneously.

I think that it?s wonderful when a customer is loyal to a broker because they have preformed and have proven themselves in the past, however when that broker fails to perform then that leaves you no alternative then to shop the deal.

You have given the broker enough rope to hang himself and that?s exactly what he has done in my opinion.

A creative broker who doesn?t perform is not as good as an uncreative broker who does.

Ed Garcia

Re: Ed, holding mortgage question… - Posted by Liliana

Posted by Liliana on July 01, 2003 at 10:00:42:

In your opinion, its worth it to go to someone else even now just in case he still doesn’t perform? I live in Southeastern PA. I’m pretty dissapointed w/him even when we got our 1st property which is the triplex but with my lack of time & help its tough to go hear and there for opinions/otions, I know this should not be an excuse though. He says I have exchellent credit and so does my husband (after hard work of me cleaning it up) so I guess it shouldn’t be hard to make the deal elsewhere.


Re: Ed, holding mortgage question… - Posted by Ed Garcia

Posted by Ed Garcia on July 01, 2003 at 10:32:51:


I think the first thing for you to do is to go to another broker I know some brokers in Harrisburg who seem to know what they are doing. I don?t know exactly where you are in Pa., but they might be able to help you.

Who knows Liliana, if your broker see you going to another broker it might get him off of his duff. At this point and time, you have to do what is right for you and not worry about the broker who has put you into this position.

Liliana, if you like, you can call Neal Johnson at (909) 944-0199 at my office. We can do Pa. however Neal will want to make sure that you are done with your existing broker.

Neal doesn?t like to waste time and he?ll tell you up front that if you come to him and he agrees to do your financing, he wants you to pull the deal from the other broker.

He?ll tell you that he don?t need the practice.

No matter what you do, you need to take some action and not stay in your holding pattern or you?re going to lose your deals.

Ed Garcia