All Forum Posts by: Account Closed

The problem, like always, is making these realtors submit offers the right way.

For the last 15 yrs, the majority of my advertising and loans have been in PBC, Broward and Dade, so I have my finger on the pulse of the S. FL market and have had to deal with many hundreds of S. FL realtors. 

Rarely do I ever see buyer agents submit offers the way I have my realtor partners submit offers for my Pre-Approved buyer referrals.

Here I am, a Mortgage Broker, and I know how to do their job better than 80% of them...believe it or not!  It's like pulling teeth to get them to submit and negotiate deals the right way and to structure the deals in a way that best benefits the borrower on the loan side. 

They are so scared of requiring borrowers get "Legitimately" pre-approved in advance, by submitting ALL their income and asset docs.  And even more scared to ask them to put up some Good Faith Money in an Attorney's escrow to obtain an Escrow Letter and not just this $1,000  garbage either! 

I see so many realtors that are stuck in their "out dated" ways, cause buyers to lose deal after deal, after deal.   But when you offer some No Brainer advice...OM Gosh, here comes the..."I've been selling real estate in Palm Beach going on 103 yrs, bla, bla, bla!

This is why when I get a lead from my advertisements or from online or a referral from a prior client, I do what I can to give what ever so called "buyer's agent" who is a friend of a friend's uncle, the boot!  Then I bring in my Buyer Agents, who are schooled in how to do their job...by me!

The 800 pound Gorilla in the room is the "Financing."  

Your ability to avoid sinking too much of your capital into Dead Equity by obtaining mortgage loans...without a job, will be key.

Now, if you're one of those who are listening to 1994 Carlton Sheets cassettes, with no money in the bank, bad credit, living with mom and dad, but just a desire to purchase, then stop wasting your time and concentrate on finding a job.

However, if you have 25% to put down with at lease 5% left over after closing in "reserves" and decent credit, you're in business, even without a job.

If this is the case, do as I advise and open an LLC today. BUT make sure you include one or both of these words in the name of the LLC

• Rentals
• Properties

There are some very important reasons and benefits for doing this, so just do it.

Good luck!

Not a good strategy, because if the listing agent is getting the whole 6%, they’ll actually work harder to make you pay the highest price for their Seller in effort to justify such a huge commission.

Dealing only with the Listing Agent or Builder, asking them to lower the price 3% which they would otherwise have had to share with or pay a Buyer’s Agent?

This generally causes the Listing Agent to catch an immediate attitude. Yes, you can possibly fight with them over the 3%, but you take your eye off the much bigger prize and that’s getting the home for much less by using a Buyer’s Agent. A lower price on the home using your own Buyer’s Agent could Dwarf the smaller amount obtained fighting with the Listing agent.

The Listing Agent/Seller’s Agent is just that, the Seller’s Agent.They watch out for the Seller’s interests in the purchase. For a buyer to believe they can get a better overall price by dealing directly with the Seller’s Agent is misconception and outdated strategy.

Also, what about when issues arise after they have your deposit? It’s then the Seller, the Seller’s Agent and the Seller’s Title Agent ALL against the buyer and that’s a pretty strong Trifecta to battle!

My borrower/buyer referrals are pre-approved in advance and these are clean Mortgage Broker to Buyer Agent referrals.

With being set up on MLS notification to receive alerts as well as the many other sites like Trulia/ Zillow, etc., from there we just need a lockbox code and negotiating skills to secure the best price, in addition to the $12,000 Realtor Rebate to borrower at closing.

These are on the sales contracts and on the final CD or Closing Statement.  Just between Seller and Real Estate Commission Rebate can exceed the 3%, 6% or 9% total allowed contributions.

I've been arranging this savings for my pre-approved borrower/buyers since 1999 and have the above in place today.  

But realtors should know and feel safe charging the full 6 points to the sale, because its like pulling teeth to make consumers understand the true gravity of such a Massive "Tax Free" Equity Savings this can be!

QUESTION: if 95% of lenders were charging rates in the 8% range, but a Realtor knows where the buyer can get a 2.750% 30yr fixed rate with no points, would they refer them to that lender?  

ANYONE EVER SEEN SUCH A SAVINGS?

Pre-arranged and in place for pre-approved borrower/buyer clients

Listing Pays: 3%= $15,000 / Rebate to Buyer: $12,000

1. Closing Cost                         $ 8,000
2. Home Warranty                  $ 500
3. Attorney Representation  $ 700 
4. New Flooring$
5. New Window Treatments$
6. New Windows$
7. New A/C System $
8. New Appliances                   $2,800
9. Hurricane Generator$
10. Other: $_______________________________

                                        $ 12,000 Rebate TO BUYER

And to Mitchell's comments, you are so right. Many new clients, especially Self Employed, who have not obtained a loan since the melt-down are the biggest Know-it-alls.

The ones who start the conversations telling you how experienced they are and that they 'used" to be in the mortgage business or "used" to be a realtor .are the WORST clients!

Prior Mortgage Brokers?   Go Away! I do not even want them to contact me!

Why? Because they all have just enough out dated and irrelevant knowledge from a time that may as well never even have happened, to cause problems from start to finish, but the entire way they remind you that they "used" to be a broker...and how they "used" to do things...Bla...Bla...Bla

Prior Mortgage Brokers, if I do take on their loans, but the few I have, I make darn sure they know that nobody cares or wants to hear how you "used" to things when they were a Broker back in 2004! 

I can do commercial outside of FL, just primary and 2nd homes in FL.

And to Mitchell's comments, you are so right.  Many new clients, especially Self Employed, who have not obtained a loan since the melt-down are the biggest Know-it-alls.

And the ones who start the conversations telling you how experienced they are, and even WORSE, that they 'used" to be in the mortgage business or "used" to be a realtor.

Prior Mortgage Brokers?  I do not even want them to call me! 

Why?  They have just enough out dated and irrelevant knowledge from a time that may as well never even happened, to cause issues from start to finish, but the entire way want to remind you that they "used" to be a broker...and how they "used" to do things...Bla...Bla...Bla   

It works in bigger markets too, its just few realtors make offers the correct way and hate to take good advice from a Mortgage Broker.

If the borrower / buyer is instructed to take the common sense preliminary steps in advance, it can work almost every time.

1.  Get "Legitimately" Pre-Approved and obtain a solid Qualification Letter in advance for HIGHER than the list price.  (DO NOT POOR MOUTH THE OFFER WHEN ASKING FOR SELLER CONCESSIONS)

2.  Deposit a substantial amount of Good Faith money in escrow with a Title Attorney and obtain an Escrow Letter in advance

3.  Do NOT make the initial offer with seller concessions, wait for the counter offer, then restructure the offer with Seller Concessions AND add another $2,000 or more in good faith money with the counter offer.  

4. if the seller is worried about the buyers not having enough money, simply explain to them that they want to have money left over in reserves for repairs and upgrades...or the borrowers don't want to cash in stocks due to penalties  (THIS IS A NO BRAINER EXPLANATION THAT MAKES SENSE)  and/or be ready to send them proof of funds.

I'm telling you, this strategy works like a charm!   But the fight is almost always getting close minded realtors, whose negotiating skills are weaker than circus cool-aide, to think Outside the Box.

My realtor partners, who I refer my pre-approved buyers to, are instructed to do as a advise on my referrals and this strategy WORKS!  

Andre,

If I were you, I'd try to purchase using "other people's money" and avoid sinking too much money into Dead Equity.

So many clients come to me a few months after they purchase, out of money, credit cards run up for repairs and upgrades, with much lower credit scores, wanting to do a cash out loan.

Buy and Hold is the name of the game for the next 5 to 8 yrs.  The appreciation of FL real estate is what investors are looking forward to in this market.

UN-burden yourself by trying to ensure you have a net positive cash flow and buy "desirable" properties.   Don't go slum'n, instead look for the higher end properties, in good, appreciating areas.

As far as the financing, Qualified borrowers can purchase Rental/ Investment Property with as little as 15% down and for my pre-approved "cooperative" borrowers, closing costs are paid for them as part of what I can present to them.

I'm a long time FL Mortgage Broker, Real Estate Investor and landlord who can give you advice that you will never get from 95% of so called "experienced" professionals.