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ZickHomeLoans.com
Down
Payments that Work and Those that Don’t
One of the many great things that have come from
teaching the Mortgage Business Builders Boot Camp is
the constant reminder of the creative things you can
do with a conventional loan and still get the cash.
One that will not work is to borrow the money on
your credit cards. Why? It is considered
borrowed funds. One of the things a lender is
concerned about is the loan to value ratio and this
is just more of the money coming from loans.
However, it will work if you “create a note."
Let me explain. Let’s say you own a rental
house worth $150,000. It has a loan of $75,000
which would leave an equal equity. The seller
has a duplex that has been torn up and will sell it
at a discounted price of $200,000. The seller agreed
to let you take subject to the $150,000. However, it
is a high interest rate loan and you want to get it
paid. A new loan is in order. The seller will take a
note for $50,000 for the down payment and is not
particular about the security. Your rental house
will do just fine.
Believe it or not, the mortgage company will give
you credit for having a $50,000 down payment when
you apply for a new $150,000 (or more) loan.
Why is this okay? Because the lender looks at
this as a TRANSFER of equity. This is just like you
are transferring money from your bank account. It
also fits with accounting.
Another creative down payment, according to David
Teper, who runs a loan processing center, is for the
seller to be willing to carry back a note and then
later, paying that note off at a discount. I
personally would follow a few rules doing that which
I mentioned to Dave and he agreed. On this and all
other transactions, never go for financing over real
value. This is not just a fair business
practice; purposefully inflating value in any way in
any kind of market is fraud. Secondly, we are not
talking about “just tearing up the note at the
close.” The note has to be for real and it has to be
recorded. However, it would not be out of line if
you got a prepayment discount at some point in time
after the closing.
David surprised me with this idea in that I always
thought it would be a transaction that at a minimum
would be frowned upon. But he said if the
price was at or below the real appraised value, all
is fine. So there is room for creativity, even
if you are getting a conventional loan.
EARN MONEY REFERRING COMMERCIAL LOANS
Stand by for a New Opportunity Concerning Commercial
Loans...
Four years ago I set out on a new plan. My plan is
to build a mortgage business that provides services
to the students and investors I deal with every day.
We spent three years in research and have been
rolling out stage one of the plan this year. Next
year is stage two...
Stage one was the residential loan business. Karen’s
residential one-to-four family loan business is
booming. We have doubled our number of Loan
Originators every three months and there is no
stopping.
Next year, stage two, is the commercial, investment
and hard money year. It has taken a year to get the
pieces in place but we are ready to launch.
Why is this important to you? We will be rolling out
a very strong system of paying for referrals. If you
have a loan now, let us know. But for everyone else,
look for further details in January.
THE GOALS OF THE NEW COMPANY…
Realvest Funding was founded on the principle of
providing full-service mortgage banking for real
estate owners whose projects may be overlooked by
ordinary institutional lenders. We provide a full
array of financing options, including first and
second lien mortgages, mezzanine, and equity
capital. Realvest Funding utilizes a broad base of
both institutional and non-institutional investors
to bring committed, personalized service to every
transaction.
Furthermore, in addition to traditional acquisition
and construction/development loans, Realvest
Funding, LLC offers customized capital for
renovation projects, land/lot acquisitions and
development, and bridge loans. These can take the
form of traditional mortgages or, where appropriate,
mezzanine, and equity positions. While we specialize
in smaller, more difficult transactions ranging from
$250,000-$5,000,000, we also have the ability to
complete transactions of $50 million and up.
Realvest Funding is dedicated to providing each
client a personalized solution for their
contemporary real estate financing needs.
Realvest Funding, LLC provides Commercial Real
Estate financing for both “opportunistic”,
value-added transactions and long-term, permanent
financing. This is not a stand alone effort. We are
joint venturing with several firms and as a group we
strive to fill the needs of borrowers for whom
conventional financing is inappropriate or
undesired, for various reasons. Utilizing both
private and institutional investors, as well as
being a Direct Correspondent, we provide financing
programs that best suit the project and the client,
including debt, mezzanine and equity.
My
involvement in this facet of the business is a
continuation of my 30 years of investment real
estate during which I have built apartments and
condominiums as well as sold and brokered every kind
of commercial and investment real estate possible. I
have re-activated my CCIM (Certified Commercial
Investment Member of the National Association of
Realtors) and will be assisting students, brokers
and developers with structuring the financing for
their transactions.
Don McClain
We
are very proud of our association with Don McClain,
our primary joint venture participant and daily
working “partner” (although we are using other
entities rather than a true partnership to do
business.) Don is known as an expert in providing
commercial mortgage banking services to both large
and small clients on a nationwide level.
Representing both private and institutional capital,
Mr. McClain and his staff can provide customized
capital solutions for his clients. Mr. McClain
personally oversees the marketing, origination,
processing, underwriting and closing of each
transaction to insure personalized, hands-on
service. His broad and diverse background includes
representing both institutional and private sources
of capital. He has successfully placed over
$600,000,000 in transactions, including, debt,
mezzanine and equity, and strives to service each
clients needs.
Zick Stuff
What is Important?
Contributed by
Ron Bloomingkemper
We are all sales people --
Underwriters, processors, receptionists, docs, etc.
LITTLE THINGS MEAN A LOT!
When you consider the real factors in becoming a
great sales professional, it really comes down to
one thing, gaining people's trust. A
prospect's trust is built through a series of events
that should be carefully planned and followed.
All of these events center on "little things" that
become "big things." Here is a simple
checklist to make sure you are following all of the
steps to success.
·
Are you returning telephone calls
within the customer's expected timeframe?
·
Are you under promising and over
delivering?
·
When you meet a new prospect, do you
use his or her name often in the conversation?
·
Do you send a hand-written thank you
card after meeting with a new prospect or client?
·
Do you review your goals daily and
set your activities based upon the highest yielding
activities?
·
Do you take a sincere interest in
others?
·
Do you stay in contact with your best
customers?
·
Do you remember birthdays,
anniversaries, and other special dates of clients?
·
Do you collect articles of interest
to send to your customers to show that you care?
·
For each important client, do you
keep a customer profile that has all of his or her
important personal information?
·
Do you do what you say you are going
to do, when you say you are going to do it, and the
way you say you are going to do it?
·
Do you maintain a 24-hour "sense of
urgency?"
·
Do you work hard to remember names
when you meet people for the first time?
·
Do you work hard to get referrals for
your networking partners so that you can receive the
same?
The list could go on, but you should get the point.
One true and important saying in life is,
"Successful people are willing to do the things that
unsuccessful people are not willing to do." If
you make a conscious effort to do all of the little
but important things that truly set you apart from
your competition, then you will be a superstar and
never short on sales.
A SPECIAL DAY
I
recently spoke with an old friend who was angry
about a situation he could not control. The
more he spoke about the situation, the angrier he
became until it seemed like he was possessed.
Even days later he was still complaining and
worrying. As I continued to listen, I began
wondering, "How many people waste their productive
energy being angry or worrying over what they cannot
control?" There is an old Chinese proverb that
says, "If you are patient in one moment of anger,
you will escape a hundred days of sorrow." All
things in life are based upon choices. You
really do choose to be angry. Think for a
moment about this simple and true thought:
being angry toward someone or worrying is like
taking poison and waiting for that person to die!
Countering the effects of anger and worry can pay
dramatic dividends if you have a plan for dealing
with these negative and destructive emotions.
The first step in your plan is the power of
reasoning. If you reason any volatile
situation, you would probably realize the following:
·
Do you have enough information to
determine how you can remedy this situation?
Often, just a little soul searching can lead you to
a more realistic view of your part in the problem.
·
Do you have the ability to control
this situation? If not, let it go and spend
your time in a productive task.
·
What will you gain personally through
worry and anger? You know the answer to that
question...nothing! In fact, you will create
monumental stress in your life.
·
Is there an action you can take now,
this very minute, that will improve the situation?
Usually, talking to the person or source of your
anger in a constructive way can lead to a positive
result.
Always take the high road! People who show
class, character, and dignity never lose. Be
the ultimate professional. My angry friend was
going to abandon the project that made him so angry.
Instead, I convinced him to simply state his case
with the client, reason his expectations with the
client, and ask for alternatives. The company
actually apologized and changed his contract to
reflect his expectations. He suddenly realized
all of that worry and frustration was for nothing.
The writer Thomas Fuller said, "Act nothing in
furious passion. It's like putting to sea in
an angry storm." Here's wishing you calm seas and
smooth sailing! Create your own "Special Day!"
Bloom
Do You Travel on Airlines Often?
As the crowded
airliner is about to take off, a five-year-old boy
picks that moment to throw a temper tantrum shatters
the peace. No matter what his frustrated,
embarrassed mother does to try to calm him down the
boy continues to scream furiously and kick the seats
around him.
Suddenly, from the rear of the plane, a man in a
U.S. Marine Corps uniform is seen slowly walking
forward up the aisle. Stopping the frustrated mother
with a raised hand, the courtly, soft-spoken Marine
leans down and, and motioning toward his chest,
whispers something into the boy's ear. Instantly,
the boy calms down, gently takes his mother's hand,
and quietly fastens his seat belt. All the other
passengers burst into spontaneous applause.
As the Marine slowly makes his way back to his seat,
one of the flight attendants touches his sleeve.
"Excuse me, sir," she asked quietly, "but could I
ask what magic words you used on my little boy?"
The Marine smiles serenely and gently confides, "I
showed him my pilot's wings, service stars, and
battle ribbons, and explained that they entitle me
to throw one passenger out of the plane door, on any
flight I choose, and that I was just about to make
my selection for this flight."
Upcoming Events
Barney
Zick’s Visits Friends – Club Dates
-
Jane Garvey is
a long time friend of Barney’s. She runs a great
group in the West Side of Chicago. He will be
presenting at their December meeting (as close as
they could get to Santa) on December 19th.
Contact Jane’s CIA group for details.
-
John Zarrella,
who Barney met as a student long ago, runs two
groups, one in Dallas and one in Ft. Worth.
Barney is speaking with his group January 13th
with a follow-up one-day event "Financing
Any Deal" on the 29th of January. If
you are interested in attending this one-day
event, contact AEIRO or call 800-677-3253 or send
email to Marilyn at our office at
reitbootcamp@kingwoodcable.net.
HELP DAYS in Florida
Tampa and Orlando are scheduled for the 8th
and 9th respectively in January. Come
learn the latest techniques in buying properties. Go
to
www.zick.com and click on the link to
enroll. It is free if you show up!
JANUARY
14th, 15th & 16th
in SAN DIEGO
Scott Whaley is having a multiple speaker event in
San Diego. The exact information is not available
but mark your calendar and look for details in the
next newsletter.
MORTGAGE BUSINESS
BUILDER BOOT CAMP in SAN DIEGO February
4th, 5th &
6th
February 4th, 5th and 6th
we are tentatively planning a new version of
our Mortgage Boot Camp. Two new topics will be
“Making Money Referring Commercial and Investment
Loans” and “Getting Cash from Passive Investors –
Structuring the Deals.” We don’t have a
location yet but this Boot Camp just keeps getting
better and better. We may need to go to evening
sessions to get it all in! |
