In this issue:

New Name and New Format

FreedomEquityMortgage.com

• Credit Reports
• Hard Money Loans at 10%
• I Want to Become a Mortgage Loan Originator
• Current Rates

Zick Stuff

• LeGrand Kicks Zick out of Trade Show
• Kerry Approves of Calling Mexicans “Cockroaches”

Classifieds

Upcoming Events

NEW NAME. Maybe you didn't notice but our newsletter name was REIT Real Estate Report. We are going back to our old name, REIT Real Estate and Mortgage Report…or the REIT Report for short. I have been publishing a newsletter off and on for about 20 years. There has always been a need for investors to learn about mortgages. It was basically an oversight that I did not put the word mortgage in the title when I started this electronic version of our newsletter. But is very appropriate now, in that we have an additional focus.

NEW FOCUS. A growing number of our students are expressing interest in becoming Mortgage Loan Originators with Freedom Equity Group that represents All Fund Mortgage. I need to teach them a lot about not only the mortgage process and the mortgage business, I need to teach them about mortgages in general. So, I thought you, our readers, might benefit from some of that ride. The new initial section of this publication will now be called the same name as my web site name for All Fund which is FreedomEquityMortgage.com.

It will include an Update, Q&A (mostly pertaining to All Fund), and most importantly, for our general reader, an article aimed to educate. We will teach the Mortgage Business in the trainings we are currently planning and designing, as well as the process. The new focus here will be a little on process and a lot on mortgages. I hope you enjoy this meaty addition to go along with my usual snippy comments and personal insights which now will be housed in the latter half of this publication under the section called ZICK STUFF.
 

FreedomEquityMortgage.com

July’s Mortgage Article:

Credit Reports

Q. How does an individual get a credit report on another individual when they have written agreement to check the credit?

We are selling a small unimproved piece of property with owner-seller financing. The amount of funds is, of course, critical to the buyer, but less than $10,000. In the Seller Financing papers, I, the seller, agreed to get a credit report on the buyer who had said that she had a couple of credit cards. It was an ideal time to work out the problem of "getting credit reports."

In my naivety, I assumed that I could order a credit report from one of the major companies with the written agreement from the buyer from the web.

This does not appear to be the case without becoming a business client of one of the three credit companies. The cost of becoming a business client is large compared to the number of credit checks and amount of financing.

Experian steered me to Allied - 800-491-2580 - who would do a credit check on people who were leasing or renting apartments/homes. Also UD Registry - 800-464-1007 - where I could never break out of a phone menu that required the "number" of the report that I was trying to verify.

The simplest solution is to have the buyer supply a credit report (like asking the fox to guard the hen house).

We are closing without the "credit" check. With the amount of money involved, I have expended more time than is commensurate with the return.

A. The one way you discovered is to have the buyer order the credit report and you look it over. The only way I know for you to avoid fraud is to have him order it on your computer so you get the print out right there. Thank heaven the pages are well numbered and if you get an original, you can tell if anything has been left out. However, with scanners, etc., if they have time alone with it, it may be altered. Most every city I know has credit reports available to the public through some agency. It is for a fee and the proper approvals must be obtained. I assume this is also available online somewhere. As a mortgage broker, I can run them. However, for tenants, I use a tenant checking service and that is part of what I pay for. You also might want to check with your title company. Some can do them for you most can't. However, if you have the buyer order the credit report by mail, assuming there is enough time, he could give you the letter and check to mail and you could have it sent to the title company or even you. Hope this helps.

July's Bonus Article:

Hard Money Loans at 10%

Two people that are students of some other guy that uses my materials to teach the A to Z of Creative Financing asked me where I was getting hard money loans at 10% interest. I get them from students, friends, newsletter readers, etc. Most people would rather get one or two points less in a safe deal with a person they know and that they know will pay them back than try to max out on return alone. So yes, we do borrow $50-300,000 now and then and we offer 10%. Yes, the firms in that business are asking 12% and sometimes much, much more.

The lesson here is that you should develop your own nest of contacts that want a good return on their money. Treat them like priceless relationships because they are. Pay them on time and they will give you money again and again.

Often I am helping people get a better return on ideal cash held in their Self Directed IRA. Some are professionals that just don't have the time to scout out deals. Others are investors that do buy and sell but they have a little cash and they want a yield on that money that’s four times better than the bank. This is just one of the tools you need in your investor tool kit to maximize your success.

July’s Mortgage Q&A:

I Want to Become a Mortgage Loan Originator

Q. I'm interested in being a trainer and looking into signing up as an originator/broker. I can be contacted by email or phone.

M.N.

A. Best I know, I don't have anyone working that market. You could sign up 100 people and retire! The first step is to go to www.zickhomeloans.com or www.freedomequitymortgage.com.  Look under employment opportunities and sign up. It is only $295 and that includes a good training manual and your web site for a year. Call us at 281 360-9598 if you get stuck.

If you wait, we will be requiring a training program that you'll need to pay for... and if you sign up now, you will get it for free.

BZ

Q. Sounds good...I will sign up 200!

I'm not questioning your advice or integrity, but do you think this is that good of an opportunity and a good company? I know you don't waste time unless it is a good opportunity and I trust your advice…I was wondering if this company is a strong and financially sound for the long run? At $295, it is not much of a risk…just asking.

Thanks again, look forward to working with you and being a California success!

M.N.

A. The mortgage company has been in existence for 12 years. It is licensed in 46 states with no attorney general problems. They are the number one placer of loans for World Savings. Freedom Equity Group is the marketing arm. I have spent 14 days over 7 trips with the President and with the CEO. They are actually Financial Planners with all the securities licenses. They have a 20 year history in the business, building the last one to a $45,000,000 sale to Conseco. They started the new venture about three years ago and are already paying $60,000,000 a year in commissions. Is that strong enough for you? Mind you, this is no seminar guru LLC with $100 capital! This is the real thing. And it is not a lay down and someone will rub you feet deal. There is work, but you will make a lot of money of you work it. Freedom Equity has some people making $30,000 a month doing loans...and more. Get in and I will help you build it.

BZ

July Mortgage Update:

Current Rates

Investor loans tend to require more money down although we do have 90% and even some 95% money.  It all depends on your credit, your income situation and the property.  The interest rate will be a little higher.  We have many different types of loan programs, from interest only to adjustable rate loans that are fixed for 2 or 3 years, then adjust yearly.  Tell us what you need and we’ll try to find it for you.  Better yet, you and a friend sign up and do each other’s loans.

LeGrand Kicks Zick out of Trade Show

It was a bit of a surprise!  Ron and I have known each other for many years.  I first met him when he was an officer in his local Real Estate Investor Group.  He was doing what I was teaching – quick turn deals.  He attended my lectures in the early days, but he had already started investing before we met.  (Do remember my rule; if you ever hear me speak or buy so much as a single tape from me, and then become a success, I will claim you as MY STUDENT!)  With that in mind, Ron is definitely my student!

In fact, our thinking was so close that when he first started speaking he called me to see if he could sell my tape series (now a book), “How to Make $10,000 in 90 Days” until he could get some tapes made.  Some smart advisor told him to make the tapes before he spoke, but we did discuss the deal.

Later, when he tried to go public with SDI, he was building a marketing machine.  He has studied so much from Dan Kennedy, marketing genius, that Ron could give Dan’s lectures.  Anyway, he was so busy that he did not have time or the desire to write boot camps on some of the subjects he wanted taught.  So I wrote one on Business Entities, one on Asset Management and one on Negotiating that ran for several years.

Now that he is free of SDI, he is building his crowds again.  I got a flier from him asking me if I wanted a booth at his big “prior student” event in Florida around the fourth of July.  I bought it, signed the contract and started laying out the effort.  You know, custom banners for the show, airline tickets for staff and my family, etc.

We were about to step foot on the plane when Greg, my advance man, said Ron himself had closed down the booth!  It had only been open five minutes!  I asked why and, true to form, it was all business.  (Ron is all about being all business…a buck is a buck for Ron.)

Anyway, to make a long story short, Ron had cut some kind of deal on All Fund with "Gregg Whats-his-name" and my booth was also there just to sign people up for All Fund and our Mortgage Business Boot Camp.  Oh well.  What could I do but write off the $4,000 (yes, Ron gave me my check back) and the opportunity to meet with the many, many students we have in common that were at the event.

(Time will tell; I may have signed up more people that way!)

Later in the event Ron asked to meet with me to make sure there were no hard feelings.  There are none.  I know Ron, have for years, and business is his first and last concern and I was competition.  Because of the overrides you get in All Fund, I you sign up with me Ron does not get an override and visa versa.  He also said that he was sorry he did not ask me to speak at the event, it was an over site.  I can see that too.  I usually am not available and there are so many brand new speakers dying to get in front of an audience that I am sure he was swamped with requests from speakers.

So for those of you that were there, that is what happened.  For those of you that thought we are all one big happy family and it is all for one and one for all at All Fund, you are wrong.

I can be competitive too.  I will be coming out with the best cutting edge training you can imagine for Mortgage Loan Originators.  Wait and see!

Just when you thought you might like the guy.

Classifieds

Office Space Available

Paul King has multiple office spaces available in a building in Oakland, CA at Piedmont and Macarthur.  Lease an office for as little as $400, everything included!  Offices range from 400 square feet to as large as 1000 square feet.  For more information call Paul at 510-658-6916 today.