Posted by Brent_IL on August 19, 2003 at 19:51:14:
.
MTG. brokers snubbing me. - Posted by Star
Posted by Star on August 18, 2003 at 21:17:36:
Well am I ever fed up with mtg. brokers. I don’t know if it’s just me or is everyone having the same problem. I tried two mtg brokers, one wouldn’t return my call. The secretary said he was out of town but that she’d put it on his desk to call me, which he never did. The second guy wanted to know the details before he even met with me. I faxed some information to him Aug 14/o3 and I never heard from him either. My dilemma: My lease option to purchase time is up for me to make good. It’s been 2 yrs. plus 1yr., now, and the seller naturely is getting anxious as he needs his money. I keep telling the guy, well I’ll call this mtg broker or that one but theres nothing happening. I feel like a real deadbeat dik. I’m looking to finance 90% of the asking price. I can’t go to a bank because I’m a new investor and I have not declared earnings because I had none. I was living off my savings this three yrs. I finally got credability with the seller. I paid up to date and on time. Seller gave me a letter stating this. When and if I can finally get a mtg., I’m selling off this property on a lease to purchase deal. Because I’ve come to realize theres no happiness with this family. Very dysfunctional lot. I have had enough of fingers pointing at me. These people are dragging me down, I am a very quiet, peace loving sort of person. I am broken hearted over this, but Alas, that is another story. Back to the mtg story… I got the house (I’m living in it) at a good price although it needs some work done on it. I don’t want to lose the benefits of all my effort of keeping everything paid up while someone else walks off with a profit which should rightfully be mine. What do I do if I can,t get a mtg? I was going to go to a accountant and speak to her about setting up something that I could take to a bank. I hate those leecherous banks. I’d rather beg in the streets. Those bastads. I know that eventually I will score, but I don’t know if the seller will wait. I’m starting to feel very vunerable, just waiting for the axe to fall. I never thought I would have this trouble. Houses are selling like hot cakes in this part of Canada. Why am I being left behind while everyone else seems to be doing ok. I only have 15k savings left to make my monthly payments for another year. I am also almost sure of employment in a few months time after I finish a course I’m doing at the present time. I don’t really want to work for anyone else but it’s ok to have a plan B. I don’t have enough money to give the seller to sweeten the pot to encourage him to give me more time. I feel so slighted I can’t even think straight any more. I know I have to stand back and look at this dilemma in it’s proper light and it’s probably not as bad as I think it is. But I do feel so helpless. I know this is a long post. Please forgive me for going on and on. Someone out there please help, give me some ideas. Thanks.
Star
hotdealhomes@hotmail.com
heck put 15k in MY account… - Posted by Jorge
Posted by Jorge on August 19, 2003 at 24:15:39:
I have had bad experiences with Mtg brokers as well. In my case they contact me alot until they get my info then they dissapear. And don’t pick up or return my calls… So I have learned to not let them run my credit until I have told then what I don’t want. THat I will pay for the credit report and take it elsewhere if they don’t keep their word.
As far as your situation, I am curious if you are a beginning investor I would think you have been doing it for less than a year? What have you been doing for the 2 yrs prior to that? Have you just been sitting at home doing nothing? Or have you been going to school? I mean you must have known that you were going to have to refinance at some point. And that you were going to need a job to get a loan… ?? I just can’t picture someone having over 15k (I am sure you had over that amt when you bought the place since you have been living off of it for 3 yrs now) in the bank and not doing anything with it to make it grow. You say 15k is enough to make payments for 1 more year. I would have to assume that you had about 45k 3 yrs ago in your savings??? Did you win the lotto? Or was it from working… if it was from working that means that you did something right at one point. Heck I am 30 and barely have 15…dollars in savings, let alone 15k. or 45k for that matter. So I am going to assume that you worked to put that 45k into you account… whatever that work was, I think you should get that same job…and start putting some money back into your account and invest that 15k in some rehabs or something.
I am not trying to sound mean, I am trying to learn here. I mean I am struggling right now because I work a commision job and I am having some bad months, and with now having 2 houses, the lack of money, the fact that I am moving back to Denver and the fact that I now have 3 (one is a duplex)units to rent out in the next 2 weeks and me having to buy a house in Denver with no money is putting a drain on me too. So I feel your pain, I just wish I had 15k in MY saving account…
Moral of the story… someone always has it worse…
GOod LUCK!!
Just learning here,
Jorge
Re: MTG. brokers snubbing me. - Posted by Rob Ricker
Posted by Rob Ricker on August 18, 2003 at 22:12:35:
Let me get this striaght. You have no money and no income. If you were a banker, would you lend money to someone like that?!! Sorry to be so negative, but you have to be realistic about everything. You can’t wait till the last minute and hope things work out. It is important to see things from the other guys point of view, and get yourself in a desirable position based on THEIR PERCEPTION. Your best bet is to find a buyer for the home and QUICK or just let it go back to the original owner.
On a positive note, this will be a learning experience for you.
Re: heck put 15k in MY account… - Posted by phong
Posted by phong on August 19, 2003 at 01:30:32:
I know it’s good to “Jump into” this RE business but isn’t it kind of risky owning properties when you don’t have enough cash in case something goes wrong?
Is it too optimistic of me to assume that a hard and smart working RE investor can reasonably expect to make at least 100k per year in this RE business once he has learned his craft?
Re: MTG. brokers snubbing me. - Posted by TeddyB_SC
Posted by TeddyB_SC on August 19, 2003 at 19:02:25:
"I hate those leecherous banks. I’d rather beg in the streets. Those bastads." Yeah, if I hadn’t had a job in 3 years and some bank told me No!, I’d be pised too. Somebody has to bear the blame for your situation.
Re: MTG. brokers snubbing me. - Posted by Michele (OR)
Posted by Michele (OR) on August 18, 2003 at 22:38:21:
Fortunately, you do have money in the bank. Problem is it doesn’t count for a lot when refinancing. I know because I am learning the hard way. Our home has a high interest rate on it and we want to refinance. My husband is employed and I run our rehab business. Only my husbands income counts, they have to count all of the monthly mortgage payments against his income and we have a decent savings account and they do not consider it because we could spend it next week. It feels crazy being our savings has been high for a few years and there is no way we would dare spend it all.
I do agree you need to look at this realistically. You need some sort of income or to sell the house. You mentioned your in a “Hot” market…this might just be the thing to do. Yes, I am sure you would like to keep the house but you also need to be fair to the person you purchased it from. I would probably fix what “needs” done and sell. Take that money and apply to a new house. This way you don’t have give up the equity, your not homeless, and and your being fair to everyone.
Hope that this helps!
Michele (OR)
Re: heck put 15k in MY account… - Posted by Jorge
Posted by Jorge on August 19, 2003 at 10:32:06:
Well, Its just one of those things that Carleton Sheets and other gurus forget to explain to you when you order their course. But nonetheless, I have learned, as usual, the hard way. Exept I haven’t lost my shirt. And as soon as I have all 3 of my units rented out, I will be putting aside reserves. I also have made adjustments to my lifestyle to not spend any unneccessary money so that I cAN pay my bills. I am moving back to Denver where I was making about 33% more money. So I should be ok. One of my houses is only 1 yr old so not a whole lot should go wrong there. The other is the only one I have to worry about. So we’ll see what happens.
Still learning,
Jorge
Re: heck put 15k in MY account… - Posted by Brent_IL
Posted by Brent_IL on August 19, 2003 at 02:10:27:
The seller is the one that bears the brunt of the financial risk. You are legally protected by good documentation prepared by experienced RE attorneys. Ethics and character are another story.
I think there is a novice, apprentice, journeyman, and Master of the Craft progression. The latter two can assuredly make $100,000 a year if that is their goal. A talented apprentice might do it. Most novices are lucky if they don’t lose $100,000 the first time out.
Am I just lucky then? - Posted by Phong
Posted by Phong on August 19, 2003 at 11:51:16:
I’m not sure whether I’m lucky or not but I started studying RE about a year ago. Got my first deal (big rehab) in December of 2003 and made about 18k out of that after the refi and the option payment from the L/O tennant. I’ll have to wait about 2 more years to get another 40k out of the deal when my T/B cashes me out.
During this time I got so lazy that I didn’t do jack except talking to perhaps 5 leads total. One of which agreed to sell me a nasty looking house for 35k. I didn’t do my homework and got too greedy as well. Seller ended up selling the place for 45k to a wholesaler who quickly flipped the property to a rehabber for 111k. Nearly 65k could have been mine within 1 month. Another of the 5 leads talked to my inexperienced so-called partner and wanted to deed the house to my partner for 2k walk-away money. The house was worth around 200k. He owes only 132k and about 3k total in late payments and fees. My partner didn’t bring any doc to sign. The seller ended up selling the place to one of his tenants…
I know the 2 examples above are just missed opportunities and shouldn’t count but I feel for a guy not even close to being half serious, I easily got very close to extremely great deals.
I know that many of us here work extremely hard in this business just to survive. I sincerely feel that a combination of working moderately hard and smart gets you there much faster. How?
- Learn the market to the point where you know pretty well how much a house can sell for without spending a few days doing research. I was able to hook up with an agent and he gave me the password to get into the MLS so that made it very easy. Try to do that if you could?
- Learn how do analyze ?Best-Use? for a property? For example, if you found a piece of junk, would you know whether it?s more beneficial to demolish it or try and salvage it? Would it be better to demolish a house to get the two lots that come with it or find a way to get the other lot while still able to keep the house? Would it be better to rehab a house or flip it immediately for good cash? Why should you need to know this? Wouldn?t it give you more advantage over other investors if you do?
- Study as much as you can on different techniques of getting a house secured. Why? Because all homeowners have different situations. You can?t expect to come in and get every deal signed using one method.
- Get a few contracts and forms in place because you?ll kick yourself in the rear if you don?t
- Get the financing in place. I find it better to get other people to back you up (other investors, banks, credit card companies, relatives (with extreme caution)?) because you?d never know when you?d need that 50k within a few days in order to make that cool 50k within a few weeks
- Learn cheap ways of doing marketing. Don?t do things like mass mailing to thousands of homeowners? It?s too expensive. Start mailing a few (10 to 20) per week to a filtered market such as abandoned properties? Marketing is one of the most important things that you must know how to do? From flyers to post cards to bandit signs to placing ads, you must know how to market cheaply and effectively.
- Know all the costs associated with the purchase and sale of a house (closing costs, holding costs, selling costs?)
- Learn to negotiate (This is something you have to find ways to learn). If you know your market well and know Step 7 above, this should be easier.
I have a lot more advice but I?m not sure whether you guys would find useful or not? Let me know and I?ll provide more. These came from my own experiences?