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RealVestFunding.com
Web
Site Launched
As we mentioned last
month, I have been working for some time on
integrating the work I do in larger commercial and
investment properties (as a loan broker, syndicator
and joint venture participant) to what I do with
you, our readers and students. Most of you are
totally into single family homes. I have done deals
with apartments, developments, etc., all along in my
30 year career.
Our new Web site is
www.realvestfunding.com. It does not yet
have all the whistles and bells it will have when it
is complete, but it is up and running right now. It
represents a lot of what several associates and I
have been doing in the background for many years.
Since Karen is a Branch Manager for All Fund
Mortgage we also added a link to her site. She does
the 1-4 family investor loans. (She loves to have a
simple refinance on an owner occupied home, but that
is rare for her.)
We have a whole new system coming for Hard Money
loans for residential investors. It was not ready at
time of this printing. I expect it will be done in a
few weeks.
The main point of Realvest Funding is commercial
and investment property loans. We do the
conventional loans, but we also do multi-million
dollar hard money loans, bridge loans, and arrange
equity participation.
Take a look at the site and watch as it grows. In
the meantime, I’ll outline two ways you can make
some money NOW besides having to refinance your
currently owned apartment or office building.
Could You Use $5,000,000?
Should I Pay You for Sending Realvest Funding
Business?
Here is a wining idea
for you. As a real estate investor, as you move
through your circles, I am sure many of you come
across larger Commercial and Investment deals. I
know Karen’s residential loan officers do. But even
if you want to help the participants, where do you
turn? And it sure would be nice to get paid for
referring loan business.
I am working on a “Commercial and Investment Funding
Referral Network.” If this sounds like something
you’d be interested in, let me know. Friends and
students have been brainstorming this with me and I
still need more input. So if you have ideas, let’s
talk. Legality aside (see below), I have several
concerns. Time is valuable and I may be foolish
opening this up to everyone since some of you are
totally new to real estate investing. I need to
figure out how to screen inquiries.
One of our current policies will help. If you are in
our system as a student (attended a boot camp,
purchased courses, etc.) we always give you time.
Right now, I have email screened and part of the
process is to look your name up and see if you are
one of “ours.” If not, then the screener has a lot
of discretion. They can answer you, just tell you
“can’t do it” or pass it on to someone in my company
or network for further evaluation. (We do have an
excellent course on valuing income properties and if
you have that I know you are sharper than the
average person out there.)
We already have other CCIMs, loan originators and
Mortgage Brokers moving to the top of the pile, but
if you have any other ideas, let me know. We are
also working on a variable pay system that could
take some of this in to account.
Mind you, we are not looking for people to do a
“package” for us, or really, any work. The borrower
should have that already. We are looking for a way
to pay you a simple referral fee, based on what we
make, and we will do the work.
What is the legality of this? It is illegal in every
state to pay referral fees to unlicensed folks for
sending loan business. However, it is only illegal
in several states to do it for Commercial and
Investment loans. RESPA is the main law governing
the one to four residential business and it is FULL
of rules. The regulations for the rest of the real
estate lending world have fewer rules. Why? Because
law makers figure that if you are big enough and
smart enough to be doing a $10,000,000 deal then you
are either smart enough to protect yourself or have
enough money to pay for legal help.
So if this is something you have done, are
interested in doing, or you just enjoy tearing into
a challenging problem, send me an email or set up a
time to talk. You’ll be in my “I owe this person a
favor” pile and I bet if you are interested in this,
you would rather I do it YOUR way!
ZickHomeLoans.com
Why Does it Take So Long to Close a Loan?
So often in business we
are using “apple rules to measure a banana.” You
hear that single family home loans can be closed in
three weeks. We have done that. (In fact, one
of our processors boasts one closing in 16 days.)
The reality is that it doesn't happen very often.
The time it takes to close a loan is dependant on
many things. One of the most important is the
purpose for the loan. Lenders have 101 “cookie
cutters” for owner occupied loans. The foreclosure
rates on these loans are about ten times better than
investor loans. So investor loans just take longer.
How long will it take? Our experience has been (and
loan brokers we have talked with) figure on six
weeks. However, if you change the deal midstream,
turn down one plan and tell us to look for another,
then you need to add a few days for each of these
modifications.
What does this mean? Plan ahead when you are going
for investor loans. We sometimes get lucky and close
them quickly but you don’t want to tell the seller
or anyone else involved something that makes you
look bad when you really can’t control the outcome.
Set realistic expectations.
Did You Know You Paid a “G-fee?”
Critics of Fannie Mae
and Freddie Mac have found something to investigate.
It seems that they both have an insurance fee,
called a “G-fee” that borrowers don’t see, tucked
into their loans. This money goes in to a pool to
help cover losses from loans that don’t pay as
scheduled.
So what is the complaint? It seems that what was
first designed as a cost item, insurance, has turned
in to a profit item. Back in the 1995-1997 eras, the
fees collected were (at the low point) 4.4 times the
losses. Okay. There is administration and overhead,
seems fair. But now the collections are 33 times the
losses! Critics don’t mind the cost but are
concerned about what is presented as a cost is
really a hidden profit center.
This would not come up in many business situations
but in the highly regulated one to four family loan
field, it is an issue. And if you think this could
not affect you, think again. First, banks that make
loans they know will be sold to Freddie or Fannie
build the G-fee in to what they charge. Over the
life of a typical $250,000 home loan, according to
John R. Wilke of the Wall Street Journal, that can
add up to $11,350 over the life of the loan with
about $500 per year in the early years.
As a real estate loan originator (we would love to
make you a loan, go to
www.zickhomeloans.com to apply), we are always
watching out for attempts by lenders or middle men
to add fees to the process that make the borrower
end up paying more. Good that someone else is
looking out too. This came up because it is time for
Congress to renew many of the rights of Fannie and
Freddie and “hidden” profit centers is a good item
to put on the agenda.
Zick Stuff
How to Brighten Your Day
Ways to maintain a healthy level of
insanity:
1. At lunch time, sit in your parked
car with sunglasses on and point A Hair Dryer At
Passing Cars. See If They Slow Down.
2. Page Yourself Over The Intercom.
Don't Disguise Your Voice.
3. Every Time Someone Asks You To Do
Something, ask If They Want Fries With That.
4. Put Your Garbage Can On Your Desk
And Label It, "In."
5. Put Decaf In The Coffee Maker For
Three Weeks. Once Everyone Has Gotten Over Their
Caffeine Addictions, Switch To Espresso.
6. In The Memo Field Of All Your
Checks, Write "For Sexual Favors."
7. Finish All Your Sentences, With
"In Accordance With The Prophecy."
8. Don't Use Any Punctuation
9. As Often As Possible, Skip Rather
Than Walk.
10. Ask People What Sex They Are.
Laugh Hysterically After They Answer.
11. Specify That Your Drive-through
Order Is "To Go."
12. Sing Along At The Opera.
13. Go To A Poetry Recital And Ask
Why The Poems Don't Rhyme.
14. Put Mosquito Netting Around Your
Work Area And Play Tropical Sounds All Day.
15. Five Days In Advance, Tell Your
Friends You Can't Attend Their Party, Because You're
Not In The Mood.
16. Have Your Co-Workers Address You
By Your Wrestling Name, "Rock Hard."
17. When The Money Comes Out Of The
ATM, Scream "I Won! I Won!"
18. When Leaving The Zoo, Start
Running Towards The Parking Lot, Yelling "Run For
Your Lives, They're Loose!!"
19. Tell Your Children Over Dinner,
"Due To The Economy, We Are Going To Have To Let One
Of You Go."
And The Final Way To Keep A Healthy
Level Of Insanity...
20. Send This list to Someone to Make
Them Smile -- It’s Called Therapy.
Upcoming Events
JANUARY 29th
in Dallas
John Zarrella, who Barney met as a student long ago,
runs two groups, one in Dallas and one in Ft. Worth.
Barney spoke to his group January 13th
and will present 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 AIREO or call 800-677-3253 or
send
email to Marilyn at our office.
new for 2005! "How to finance any deal!"
February 4th, 5th and 6th
we are presenting new Boot Camp entitled “How To
Finance Any Deal!” Announcing the most
in-depth, intensive three-day Boot Camp you can
imagine on real estate financing designed for people
who are successful, aggressive real estate investors
(or aspire to be someday soon)! Investors know CASH
IS KING and owner financing is the QUEEN!
As
a real estate investor, there is nothing like having
the ability to know what investing approach to use,
know how to structure it, and know how to present it
to the seller and get it closed. Being able to cash
out properties is the “grease for the wheels” of
this cash intensive business. The three roads to
financing will be taught...Lease Options, Owner
Carried Loans and Conventional and Hard Money Loans.
Two new topics will be “Making Money Referring
Commercial and Investment Loans” and “Getting Cash
from Passive Investors – Structuring the Deals.”
You will also get an opportunity to sign up and
receive hands-on training about becoming a loan
originator in order to add another cash flow stream
of income. This Boot Camp just keeps getting better
and better! We may need to go to evening sessions to
get it all in!
SIGN UP TODAY AND PAY ONLY $695 of the $2,195 fee.
The balance will not be due unless you complete a
successful deal from what you have learned! How can
we do this? We strongly believe that you will learn
what you need to know for success and that you will
easily do a profitable deal right after attending!
This way we have more at risk than you. That’s
right; if you don't make money we don't get paid the
balance of the training fee.
The entire program can be self funding! You will
make money from what you learn…paying you back more
than the cost of training. All you have to do is USE
these ideas and we will show you how! At the
three-day “How to Finance ANY Deal” Boot Camp we
will send you out to investigate deals and sign them
up. Then when you come back, we will fine tune your
presentation to make getting more deals easier.
Plan to join us in San Diego on February 4th, 5th &
6th. Go to
www.zick.com to sign up or call 800-677-3253 to
register!
Options Boot Camp in Kansas city on February 12th &
13th
Led by Barney Zick,
one of the most sought after real estate educators
in America, this Boot Camp will take you straight up
the learning curve to show you how to acquire
immediate cash profits, cash flow and control your
future wealth through OPTIONS!
This Boot Camp can potentially make you more money
than any other Boot Camp you have ever had the
chance to attend. It is no secret that fortunes have
been made by those that know how to use real estate
options. Now, details of those financial maneuvers
are explained.
Register Now!
For those of
you who purchased a boot camp as part of your home
study materials, you will have to use your privilege
this year. If you have attended our Options Boot
Camp before, you may come again. The information has
been revised. Of course, the portion of the boot
camp when we work on deals, which takes most of the
second day, is different for each event. It is a
real eye opener for those of you yet to do your
first deal.
February 12th & 13th in Kansas City
Register Now!
Doubletree Hotel
Overland Park-Corporate Woods
10100 College Blvd.
Overland Park, Kansas 66210
913-451-6100
HELP DAYS in Florida
We've pushed out the dates for our visit to Tampa
and Orlando from January to March. We will be
in Orlando on Saturday, March 12th and in
Tampa on Sunday, March 13th. Come learn
the latest techniques in buying properties. Go to
www.zick.com and click on the link on the
home page to enroll. It is free if you show up!
Or, click here to register:
"Financing Your Next Best Deal" Help
Day
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