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It?s a well known fact: a skilled broker can help a good business deal secure great financing. Some of the most significant value a broker can bring to the table can be seen in the early stages when a borrower is deciding what type of loan to pursue for a particular business deal. A skilled broker can help sift through the borrower?s circumstances and requirements in order to approach his investment banking partner with a deal that makes good sense for a particular kind of loan.
Collect Information to Provide Educated Guidance
That first phone call with a borrower is full of opportunity to make an initial recommendation on the type of loan a borrower should seek. Brokers should use this as a Q&A session that ultimately provides information to help make this important decision. Questions that should be asked include how quickly the loan needs to close, what percentage of the total budget is going to be borrowed, and details on the property type as well as the condition of the property. With answers to each of these questions, a broker can make an educated recommendation to both the borrower and the lender about the type of loan that will satisfy the borrower?s needs.
June 2nd, 2008 | Posted in Archive,Articles | Read More »
Have you ever had someone call you up looking to purchase a home that needed repairs? Or, maybe they had enough money for a small down payment but the home had a list of things that needed to be done to make it perfect? Well, in the past there were companies that specialized in ?Repair and Remodel Loans?. These were problematic for a variety of reasons. Generally, the person wanting these loans would have to be on title for twelve months before they could assume any equity out of a property.
In order to help revitalize run down areas, a seasoned FHA lender could use a 203k loan to step in and save the day. These were more arduous than the ?Repair and Remodel Loans? and involved fee advisors, engineers, multiple appraisals and inspections. The plan would have to be approved by a HUD reviewer. The process could easily frustrate everyone involved. Many people tried to do 203k?s and it left many vowing to never do it again. But in today?s market, with all of the foreclosed properties coming to market, now is the time to consider using it again.
June 2nd, 2008 | Posted in Articles | Read More »
Why would any one want to invest in a mortgage loan today? Because good loans are made in bad times and bad loans are made in good times. The problem loans the market is currently experiencing were originated in ?good times,? years 2005-early 2007.
Today?s loans are different. They are originated at substantially lower property values (15-40% decrease) and loan amounts are typically no more than 65% loan to value. Borrowers are also expected to have the ability to repay the loan as future value appreciation is no longer considered. These loans are an alternative for the real estate investor faced with projected flat equity returns for the foreseeable future.
The current credit crunch has excluded many borrowers who have substantial equity in their property and the ability to repay the loan. The increased lending standards by the banks have opened an opportunity for private Trust Deed Investors.
June 2nd, 2008 | Posted in Articles | Read More »
This month, The Niche Report would like to introduce you to a hard money lender that sets itself apart from other lenders in the industry by its flexibility, innovation, and outstanding customer service. Perhaps most importantly, Metro Funding Corp. prides itself on operating with the highest level of integrity.
Vice-President of Metro Funding, Jennifer Smith, was kind enough to sit down with us to offer a behind-the- scenes look at the history of the company, the products they offer, and the advantages to utilizing their services in this real estate market.
June 2nd, 2008 | Posted in Archive,Articles,Center Stage | Read More »
You are not selling a unique product; you are selling a unique relationship. You want to create customers from prospects, strangers, acquaintances or cold calls. You are attempting to do this by promoting the same products from the same vendors as thousands of others doing the same thing; trying to make a living. Retention and service should be a focal point of your business plan (do we all have a business plan?). How is this done if you are not offering a unique product or unique services? Offer a unique relationship!
Your current and past clients like you for a reason and will do repeat business with you for a reason; what is that reason? When a person contacts you or if you engage a person with a phone call and they start talking mortgage, the sale is made. The only variable that needs to be determined is if that person will do business with you or someone else. That person is talking about mortgages because they are interested. You do not have to sell a mortgage to that person; they want it! You need to sell a relationship so the customer wants to do business with you. To develop sales relationships successfully, you should consider three questions that will help you understand yourself and determine how to approach potential customers.
June 2nd, 2008 | Posted in Articles | Read More »
The purpose of this article is to provide TNR readers with some incite on the ever changing mortgage lender, broker and loan officer licensing environment. It is not my intent to express an opinion or view at this time. That may come in future articles.
Introduction
With the recent collapse of the mortgage lending industry and the dramatic changes that have occurred over the past year as well as unknown future changes, approximately 10 states are now participating in the new Nationwide Mortgage Licensing System (NMLS). This system will influence mortgage lenders, brokers and loan officers licensed in the participating states.
Creation of a national mortgage licensing database
The NMLS was developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. NMLS was officially launched in January of 2008. The system is an Internet based system designed to allow you to complete one set of standard comprehensive forms. These forms are then forwarded to all the participating states the mortgage broker intends to conduct business activities in. Ultimately, the NMLS paper forms will be replaced by an online version thus reducing paper submissions at the state level as well as within the NMLS system.
June 2nd, 2008 | Posted in Articles | Read More »
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