Respectable Market Gains This Week - How Will This Help You? - 11/30/07 05:01 AM
If you're a buyer it will possibly boost your confidence. If you're a negative minded person you'll pupu the thought that it just may mean something positive. If you're a seller it may make you hold out for a better offer. If you're a mortgage person it may mean there are a few more dollars available to lend. If you are in real estate sales it may mean an extra sale. If you are a builder it may mean your bank may extend your funding just a but longer. If you're a news reporter it means you'll either have to make … (7 comments)

Once Again Reviewing LLC's, Listed Properties, Title Seasoning and Refinancing - 11/29/07 08:44 AM
Since it happened again this week - twice - I thought I would review it for AR and others. If you plan on refinancing a property at a value higher than 80% or if you are still a self-employed stated income borrower (thank God we still have those in Georgia and Florida) it is advisable that you neither title your property in an LLC nor list the property for sale. Either of these actions could, and probably will, start a clock ticking that will need to tick down for 90 days.
It is true that only a few short months ago one … (3 comments)

Andrew Lietzow Called Me Ignorant - Let's Watch Him Prove It - 11/28/07 10:03 PM
has decided that I am ignorant. All I am doing is waiting for him to prove it. As a typical left-wing driveler he has proclaimed my ignorance and, of course, if any of you disagree he has other labels for you. So Andrew the RE/MAX agent, prove me ignorant. Based on the statements I made here or anywhere else prove me ignorant.
Andrew is a symbol of misguidance. His offense at me is that I took offense at Barrack Obama's ignorant statements about mortgage brokers which fall in line with Barney Frank and Hillary Clinton who truly believe mortgage brokers have this … (8 comments)

Get Your Rump Off The Hump, Put Your Feet To The Street And Offer TODAY! - 11/27/07 03:08 PM
As a buyer/investor the CNN crew has done you a tremendous favor where value is concerned. Now is likely one of the best times to find a legitimate deal in almost any market in the nation and here are a few powerful reasons for you to get your rump off the hump, put your feet in the street and make an offer TODAY.
1) There are thousands of stable markets all across the nation. Even in declining markets there are pockets untouched and are still demonstrating equity growth. These areas already have proven they are market resilient and worthy of investment grade … (0 comments)

Finally! As An Industry We Are Stopping Cash Back At Closing on Purchase - 11/27/07 01:48 PM
I have shouted for years about the fraud of cash back at closing on purchase and huge third party payouts to "bird dogs", "locators" and "consultants". Finally, INTERTHINX, a fraud detection and deterrence investigations company I am glad to call "my friend".
You may have read my exchange with a certain real estate agent from Corpus Christi last year. He was rude, absurd and threatened me. I sent him my home address, my home phone number, a picture of my house and a Google Map to my driveway. That was June 2006 - I'm still waiting Carlos!
Anyway, I digress.
Here is what I … (4 comments)

The Truth About Instant Equity - 11/27/07 09:51 AM
It usually isn't. Instant or equity. Once upon a time in a village near you there was a great and wealthy king. The king would build many homes and the people loved the king so they would quickly buy his new homes and sell their old ones for more than they owed on them. All the while the evil sorcerer lurked around whispering bad news on the cable news networks about how the wealthy king and the generous money makers were taking advantage of the little people.
One day while the good king and the generous money makers were asleep on their … (3 comments)

Caulk, Weatherstrip and CO (Carbon Monoxide) Poisoning - 11/26/07 11:56 PM
Keep the cold out, keep the heat in. The older the home the greater the battle and the more dangerous it can be. None of us want that cold breeze flowing in through closed windows and doors. We don't want the cold air and we do not want the increased utility bills. 
There is another side of that coin. We also don't want to be dead from carbon monoxide poisoning.
There are CO gas detectors. I have three in the big house and have them in my rental properties. These need to be checked and maintained per the instructions included with your unit.
IF … (8 comments)

Five Statements/Questions That Can Change Your Results Forever - 11/26/07 11:07 PM
From The Sub-chapter:"Let Me Listen To You" And Other Things You Can Say To Learn 'Stuff'
Likely it is that everyone reading this has been to at least one motivational speech or read at least one motivational book. One or two of you may have heard me speak. Bless you, the effects will were off eventually. Sales training and motivational sales workshops can yield great nuggets of power. It is those nuggets that we hold on to and use for the foundation for the formulation of our own approach. Here are a few of mine:
1. Sometimes when I have asked my … (8 comments)

Both Barrels? Hmm, Should I or Not? If The Business Is So Bad ... - 11/26/07 10:36 AM
I told Broker Bryant and Renee Burrows I am going to try and always be nice and supportive and a motivator so I'm going to be at least one of those three right now. Every day I get spam from someone in the industry telling me how they are leaving the industry (real estate/mortgage) and have found this great new opportunity. Here is where I am supportive, encouraging and motivating:
GET OUT NOW - please don't suffer through another day
All of you who can't get over how bad the industry is, get out. You act like this is the first time the … (6 comments)

Housing Inventory Data for Atlanta, Georgia - 11/25/07 06:41 PM
Numbers often vary from source to source and are often hard to track. Entering 2008 it pays to have both eyes open and a head full of knowledge. So here for your enjoyment are the results of some very quick research in raw data overview format:
There are 56,290 homes listed in Atlanta with a median price of $204,990 which is down 1.4% in the last month.
Data from http://www.housingtracker.net - Chart by Ken Cook (I do not account for the spike and drop - they were in the data)
Fulton County has one of every 76 homes in foreclosure, DeKalb, one in 92; … (2 comments)

Pick Number One for Good Investment Areas in 2008 - 11/25/07 04:52 PM
Right on the top of the list in my home state of Georgia is the Newnan/Lagrange area. With the construction of a new Kia plant in West Point, Georgia over 5,000 new jobs will be added to the area as a direct result of the opening of the plant. The plant will begin test runs in mid-2008 and reach the full production of tens of thousands of vehicles by 2009. The plant will employ about 2,800 and five shops creating the parts needed for the factory, also in the complex, will employ an addition 2,600.
These people will need doctors, clothing, electronics, … (3 comments)

Ten Quotes for Today - 11/25/07 12:55 AM
I read alot. A lot of what is questionable but I read. Here are ten quotes I have read recently that are worth remembering:
William Allen White said: "Liberty is the only thing you cannot have unless you are willing to give it to others."
Audre Lord said: "When I dare to be powerful, to use my strength in the service of my vision, then it becomes less and less important whether I am afraid."
Frederick Douglass said: "Where justice is denied, where poverty is enforced, where ignorance prevails, and where any one class is made to feel that society is an organized … (6 comments)

You Will Hire Whom Your Government Tells You To - 11/23/07 12:41 PM
So long as there are people called Politicians your business will be under attack. If you want to come under attack yourself just write the truth. This is not a "pro-Republican" or "pro-Libertarian" posting. This is an anti-frivolous government action article. Yes I realize there are Democrats who are Active Rain members and readers who have already formulated their opinion that I am attacking them personally - not true.
The Employment Non-Discrimination Act of 2007 H.R. 3685 was sponsored by Barney Frank (imagine that) and cosponsored by a list of 9 others including 3 Republicans. Why am I so totally again H.R. … (5 comments)

Game of the Day Recap - Stats for The Blame Game - 11/22/07 11:48 PM
I enjoyed football today - not as much as Brenda's greens or Aunt Janice's cranberry stuff or Myra's sweet potato casserole - YUM!
First we watched Green Bay serve up Deteriorate at home. Doesn't Detroit have enough problems?
Then we watched Dallas strip New York. Who'd have guessed?
To put it all to an end we watched Indy dress and stuff the Falcons. Argh - why would you invite them into your house on T-day?
But there is a bigger game that has been going on for months. You are a participant, willing or not. You, my friend, are playing in a Bowl Game - … (4 comments)

The Borrower Must Have The Ability To Repay - 11/22/07 10:35 PM
We all know if people start spending they can't stop. As a real estate professional or mortgage professional what will you do if you have a buyer you think won't make the payments even though they qualify on paper, what will you do?
Oh, you didn't know HR 3915 included that little rule?
According to the bill  "no creditor may make a residential mortgage loan unless the creditor makes a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated, the consumer has a reasonable ability to repay the loan, according to its terms, … (4 comments)

What Are You, A Real Estate Agent or a Loan Officer? - 11/21/07 11:51 PM
Here I go - so thankful that I know my identity. What happens to people who try and stretch it and more important what are the ramifications. I would love to be a fly on the wall ...
Agent: There you go Mr. and Mrs. Prospect. Your offer is written and will be submitted. I'll just need you to complete and sign this mortgage application before I submit it.
Buyers: Oh, we already have a mortgage pre-approval from Ken at Novation. We've worked with him for years.
Agent: Well that's all just fine and dandy but whatever he quoted I can beat it.
Buyers: Wait, … (9 comments)

Advertised Rates (a.k.a. Adverliesments) - 11/20/07 11:29 PM
The mortgage industry has taught people a bad thing and people eat it up like free cake and ice cream. Why do you think lenders and banks are so quick to advertise their interest rates? Think about it, seriously, think about why that would be the number one question on your mind and the top form of advertisement for a lender or bank.
Let me go on to say most rate ads are just plain lies. I know this because I used to advertise rates in the Sunday paper and my advertised rates were always about 1.5% higher than everyone else was … (6 comments)

Here We Go ... Round And Round - 11/20/07 10:04 PM
Remember how a few months ago before all this mess really got cranking I wrote that the constant berating from the masses saying banks and lenders were keeping the little man down by not providing mortgages for them? Then the media picked up on it and started hammering the media, stirring up the wasp nest on Capital Hill and the industry capitulated and let the undeserving have a play at it.
Surprise, surprise! People with crappy credit don't pay their bills!
Anyway, here we go again. Pretty much the only loans that have gone away (with a few exceptions) are the loans that … (4 comments)

Ready for Turkey Talk Thursday? "How's Biz? I Hear The Market Crashed ..." - 11/20/07 09:20 PM
Ready to answer those questions? Uncle Joe will ask, so will cousin Mary. You'll likely get to address the sub-groups and the full group at least once.
What will you say?
Now I'm not suggesting you will be facing the Great Inquisition but your family may be looking for some re-assurance and some hope. Better yet your cocky bro-in-law might be looking to outbid you for top performer in the family. Not that any of you are into that stuff.
What will you say?
I wonder how many of us will say, "Oh this industry is just falling apart. I don't know when it will … (7 comments)

Feedback Invited On Appraisal Issue - 11/20/07 02:51 PM
I will admit - I am quite conservative when it comes to value. If you tell me a property is worth $350,000 I do not hesitate to immediately trying to disprove that value. If I cannot disprove that value then I will accept it. Likewise one of our approved appraisers is very conservative and will not be swayed on value. I can rest assured that once he goes out the appraisal will be fully supportable.
HOWEVER -don't you just love the magic eraser power of that word- I take issue with him on three separate occasions over the years where I feel … (2 comments)

What is DSCR (DSR) And How Do You Calculate It? - 11/19/07 12:42 PM
Many investors like to use a figure called "cap rate" - short for Market Capitalization Rate. Lenders, on the other hand, generally prefer the Debt Service Coverage Ratio (DSCR) or Debt Service (DSR) for short. Both are easy to calculate but this article is specific to DSR because your lender is much more likely to ask "what is the debt service" than to ask "what is the cap rate".
To establish the DSR you need to know the gross rental income and the total annual expenses associated with the property. MAKE SURE YOU INCLUDE ALL LOAN PAYMENTS!
Annual expense             $220,000 Divided … (0 comments)

Fast "In Your Head" Caclulations - 11/17/07 07:13 PM
If you are shopping for a property (or anything that uses financing for that matter) calculating interest payments for most purposes is quite simple. If you are using an interest only loan (used more often in commercial loans and private funding) you can calculate your payments very quickly using this simple method.
For each percentage point and each $10,000 the monthly payment is $8.33
So for a $10,000 loan at 10% interest the monthly payment should be $83.33
For a $100,000 loan at 10% interest the monthly payment should be $833.33 
Try it with 12% interest on a $200,000 loan - I would do it … (1 comments)

How To Compare Mortgage Quotes - 11/17/07 12:22 PM
First let me show you how to get burned: 1. Believe the ads you see, hear and read. Especially the "no closing costs" ads or the "it's a racket, it's a rip-off" or "no one else can do what we do" ads. 2. Let someone else such as a real estate agent (use the services of an Active Rain member to help get the most educated and experienced agent to avoid problems like this) or builder set up the loan for you or offer some "special incentive" for using "their lender". 3. Refuse or fail to become educated as most people … (11 comments)

Aren't All Investors Slashing Your Appraisals? - 11/15/07 01:49 PM
Once upon a time in a world not so far gone bye-bye if you had a loan sold off your line it was pretty much done. You submitted your QC'd package and some secondary documents to the investor and waved goodbye to the loan and hello to the money.
Now, in this day of reality shows, I feel like I are one. A reality show that is. 
Why do you, Mr. or Mrs. Reader, care?
Well, if you have ever read anything I have written you know I am going to tell you. 
Here is the example: Our appraiser values the property at $162k. Our … (1 comments)

Georgia Happenings for the Holidays - 11/10/07 05:18 PM
Georgia has some very cool events around the Holidays and if you are thinking about relocating here to Kennesaw, one of the Good Housekeeping 10 Best Cities In America to live in, or any other place in the state you may want to come check out one of these great happenings.
Warm Springs Annual Candlelight Tour November 16, 17, 23 & 24
Festival In Lights at Callaway Gardens - over EIGHT MILLION LIGHTS!!! November 16 through December 30 
Enchanted Garden of Lights at Rock City -  November 16 to January 5
Remembrance Day at Pickett's Mill -  November 17 and 18, 10AM to 4PM Join … (0 comments)

Facing Foreclosure? Here's What You MUST Know ... - 11/07/07 12:43 PM
Nationwide it is a huge problem right now. If you are affected personally you probably do not concern yourself much with what others are or are not going through. Danger is everywhere, or so it may seem to you. Threatening phone calls and letters from the collector, strange post cards and phone calls from "concerned individuals" who want to help you "save your credit and your good name" by purchasing your home. Perhaps your lender has even offered some solutions directly.
Here are some things you must know about the process you are involved in and some pointers on when to assume … (3 comments)

Live House Proceedings on HR 3915 - Live Video Stream - 11/06/07 12:40 PM
LIVE STREAMING VIDEO HERE
 
I'm not sure if anyone posted this but this is VERY interesting and it also seems to be another war between the left and right about limiting our freedom of choice. The right keeps saying EDUCATE and the left keeps saying LEGISLATE
Who knows what I always say??? EDUCATE NOT LEGISLATE!!! 
You folks in North Carolina have a little challenge to your freedoms by the name of Melvin Watt, don't you?!
So far it doesn't sound like a victorious effort for the freedom of the American homeowner. It does sound like we'll be having licensed loan officers but still … (3 comments)

Small Victory for HR 3915 (Download Your Copy) Thank you all! - 11/05/07 03:38 PM
We have been in committee and on the phone and on the email and on fax all weekend and today. I am sure someone else has posted something about this so forgive the double up but because I have been active in this resolution I haven't had time to get in the rain.
The most notable change is that YSP can stay and can change with loan AMOUNT but not terms of the loan.
Section by section amendments here
Summary of amendments here
Keep in mind these are not the only points that have been addressed nor the only points that need addressed. ALL originators … (4 comments)

Listing Price $300k Offer Price $350k Lender Red Flags, Why? - 11/03/07 10:36 AM
To the seller it's a blessing. To the agents it's more commission. To the lender it smells like the "F" word. Why would the lender flag this for review and what can you do about it? Since I am the one who gets the flagged files I can help you out a bit. This is not an automatic denial and in fact not going to be happening as much as it did a few months ago but it will still happen. As I am typing this there is a file in underwriting at my office very similar to this situation.
If the … (5 comments)

Another Mortgage MLM Opportunity - NMC Nationwide Mortgage "Consulting" - 11/02/07 05:54 PM
The problem, I have maintained for years, inside the mortgage industry is this kind of rubish. Go to the site where you can "Join for FREE!" and where they have a "Complete Online Training Manual". And here is what really gets me, "Get Your Associate ID and Start in MINUTES!!" Right, good move.
Funny, they are based in Florida and claim to be licensed in all 50 states ... not Georgia and not Florida. Not to mention you can't just say "Licensed In All 50 States" - every state requires the licensing information not only to be presented but to be presented … (4 comments)

What is a "Trigger Lead" and Why Should You Care? - 11/02/07 02:51 PM
Within a couple of hours of applying for a loan through my company a client received a half dozen telephone calls from mortgage brokers and lenders offering their services. She had not received a mortgage solicitation in months via the telephone prior to that. She asked what happened ... I explained and she was miffed.
They are called "trigger leads" and they are a hot new item. A hot new item you need to know about and that I am pooling my energy to shut down quickly!
When you call a loan officer to apply for a loan they are going to "pull" … (2 comments)

 
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Ken "Yes You Can" Cook

Marietta, GA

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Ken Cook, Brand Strategist

Address: Marietta, GA, 30062

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