What is wrong with these people?

Question

I hate to make my first post a rant, but I am frustrated by the level (read that: lack of) service I am getting from mortgage companies. I have reached out to a few companies to apply for investor loans, only to have them ignore me after they receive my info! I mean, they don't even say, "sorry, we can't fund you". Emails, phone calls, in office visits-no response at all. Perhaps I am too small fry (looking for sub 100K loans), don't make enough money, have a personal odor, I don't know and they won't tell me! It's like they are not interested in doing business at all. Is anyone else having a problem getting through to these people?

Don Konipol · Answer

When applying for a personal loan, you are a customer or consumer, the same as someone who walks into Wal Mart to make a purchase.

When applying for a business or investment loan, you are a potential business partner, asking if another business is interested in partnering with you on an investment.  I recieve 50 emails a day unsolicited from people wanting me to purchase, lend or invest in a particular real estate deal.  Most are from unsophisticated investors without the capital, knowledge or experience to pull the deal together.

The lenders you approach can be polite and take the time to respond.  However, in business courtesy has gone by the wayside the same as employer - employee loyalty, defined benefit pension plans and a "worry free" retirement.

I am afraid investment lenders do not exist to provide "service" to you as if you are a customer; in truth you are not a customer but a potential business "partner".  you just have to reorient your thinking to the realities of the marketplace.

Angelo Russo · Answer

Unfortunately, common curtesy has disappeared.  Typical lenders, even if they tell you they can do it, really cannot.  I think they have a quota of applications to justify their job (joke).

I have had luck with some of my clients by sending them to small credit unions.  There is one around here that gave a $50k line of credit based on credit score and stated income.  YES, I know it's hard to believe, but it closed about 6 months ago.  I would contact smaller credit unions, they are more friendly and by keeping their porfolio, more likely to do things others would not.

Good luck

Rob Gillespie · Answer

HI Jane,
I know it is frustrating, I can tell you when I am sellin a house on rent to own, I get so many applications, I only talk to the ones that are close to my qualifications. It is just tough to talk or respond to everyone. I would look more into private capital, you are gonna pay a little more, but you will get a response! Good luck! I am sure you will find funding sooner than later! :mrgreen:

Mitch Kronowit · Answer

The banks are too busy charging elderly war widows and crippled orphans overdraft fees to worry about shoring up the real estate market by extending capital to investors.

What is wrong with these people?

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