the real estate investment institute: Deliberate Deception By Government Fiat / What They Don't Tell You
- 05/16/08 12:18 PM
I read a recent well intentioned blog advising that you should not select a lender or loan based on the rate! That's great advice! Rate in itself is only one side of a coin! The other side of the coin is cost! Origination and discount cost! Loan costs come in two forms the origination fees that are determined by the Loan Originator based on market and the anticipated work involve. Origination cost have nothing to do with the rate you receive. The other cost are loan discount cost, which is a misnomer in that the discount can be a charge or … (7 comments)
It is certainly true in our current real estate crisis. We are experiencing real tragedy, ironic tragedy, being upside down on a mortgage, the loss of value in some homes. We have comedy, in the form of advising potential home buyers to put at least 20% to protect themselves from the dreaded upside down experience. This role is being presented by fools, comedians, and serious players alike. You can catch these mini-plays on TV from 5 to 9 AM every morning, from noon to 1 PM, at … (10 comments)
the real estate investment institute: Are You Knocked-up, Yet?
- 05/07/08 10:44 AM
Strange question, in this foram. Isn't it? But, that's what happens when you don't know what you're doing and promiscuously fool around anyway! "Don't lecture us! It's our right! We're entitle It's our right! We're entitled! We're entitled! We're entitled! It's our right!"
You're right! It's your right! Don't blame us in the know! Don't blame us if lives are changed. Don't blame us if families are hurt! Don't blame us if opportunities are lost! Don't blame us if you've been knocked around. Don't blame us if you get screwed! Just because things can be done, just because the … (9 comments)
the real estate investment institute: The Mortgage Consumer Protection Act / My Solution
- 04/15/08 06:37 AM
In order to protect the consumer in mortgage origination the following changes shall be made: 1. The states shall licence all mortgage brokers and their agents. Standards shall be set by the individual states, but records shall be maintained so that the public may be made aware of individual complaints. Agents fired for cause shall not be re-licenced without review. Agents may only work for one broker at a time. 2. Brokers, and corporate owners (et. al.) controlling 10% or more of the voting interest, shall be joint and severally libel for the actions of the brokerage and their agents. Agents shall be … (11 comments)
the real estate investment institute: You Want To Buy A Bargain / Talking To A REALTOR®
- 04/12/08 08:39 AM
You want to buy a bargain! You know all about the real estate crises, you watch the TV news. Maybe you even took a ride on the "Foreclosure Express" bus where the REALTOR® on the loud speaker pointed out a nice looking house with brown grass, and told you, "it sold for a Billion Five, 3 years ago, but you could buy it today for $163,535.00!" (They don't tell you what today's comparables are selling for!) You watch the REALTOR® adds, you know that it's a buyer's market! The remaining (The news would have you believe these vile institutions all failed.) lender's adds … (10 comments)
the real estate investment institute: Real Estate Markets Retail and Wholesale Or Yesterday Today and Tomorrow
- 03/29/08 07:49 PM
Bryan Tutus writes about Trying to sell retail listings in a wholesale market!!! About home owners competing with REO's, real estate owned by banks. My question is are there really two markets? When lower price listings are marketed to the public, are they not truly being retailed? If they were offered to investors in groups, lots, batches, subdivisions (?), communities that might be wholesale, but individual houses available to the first buyer with the money, that's retail! The idea of wholesaling real estate comes from flippers using the term when discounting fixer-uppers and letting other investor finish the work and share in … (10 comments)
the real estate investment institute: Who's Side Is The Fed On?
- 03/19/08 09:20 AM
1% off the discount in the last week sounds great! But, does it offset the extortion of the equity of the stock holders of Bear Stearns? Not long ago Bear Stearns stock was selling over $100.00 two years ago over $170.00 so how does it drop to $2.00 overnight? Most people would say it was the bad loans! Yet, the Fed guaranteed the bad loans, before the forced sale, which should have made the stock worth the $170.00 like before the crises started! Maybe even more. I've read that Bear Stearns equity in their office building was worth more that the purchase … (10 comments)
the real estate investment institute: Savings Money / Free Money / Peace of Mind
- 03/10/08 07:21 AM
Back in September 2006 I wrote Wake Up And Smell The Smoke About over sleeping, a cat, Brenda, lunch, McDonald's, a siren, a fire truck, several yard sales, smoke, a friend, a student's investment houses, a fire, and under-insurance. Today things have changed, a lot! Today you're a lot more likely to be over insured than under insured. What could you do with an extra $25 to $75 each month? If you're an investor could you use that much more from each of your properties? $50 to $150? $75 to $225? $100 to $300? $125 to $375? Depending on how many proprties … (4 comments)
the real estate investment institute: Beat The Sharks / Pod-Cast
- 03/08/08 08:05 AM
A friend came across a title of mine that should have lead to an earlier attempt at pod-casting,it didn't. So he ask about it. It's considerably more important today than it was when I wrote it in 2006. Here is the link: http://realestatesage.info/2008/03/08/httpwwwflippingforfunandprofitinfo.aspx "Beat The Sharks" is simply the most unique opportunity investing program! It just happens to be mine. If you were to read it at Beat The Sharks You would have seen what our friend Brian Brady said about it: "Now this is a very sophisticated way to profit." "Your downside is that you get paid as a junior lien holder." "It's REALLY taking control … (2 comments)
the real estate investment institute: My Experiment In Pod-Casting.
- 03/06/08 09:57 AM
My experiment in Pod-casting. I've been playing with Pod-casting for several months now and I think I've got it working. I've been recording and editing with a share ware program called "Aduacity" and publishing to my "Go-Daddy" "blogcast" account http://www.realestatesage.info I'd like feed back on how it comes across Here is the link: 3/5/2008 4:44 AM/ Thank You, Bill William J Archambault Jr The Real Estate Investment Institute … (50 comments)
the real estate investment institute: 5, 10, 15, 20, 25, 30, 35, 40, 45, 50, Three Score And Seven
- 02/22/08 03:32 AM
How long? How long should you finance your home for?Should you worry about amortizing (systemically paying off the principal) your mortgage? A few days ago my friend Rich Kruse commenting onHow Much Should I Put Down / Equity Is No Protection / Liquidly Is Wrote: "I'd like to hear a post about interest only loans. Like 0 Down, they are not for everyone but can work for many if worked right." Then today someone commented on: A 70 Year Loan? I'll Be 110 By The Time I Finish Paying It Off...a uniquely personal post on long term financing by Mirela "m&m" Monte. Commenting … (4 comments)
the real estate investment institute: But I Don't Have A Down Payment
- 02/20/08 10:22 AM
If you were sitting across from me and said "I don't have a down payment," I'd have flippantly said "So What! What kind of a house do you need?" Thanks to the TV Real Estate Gurus, we all know everyone can buy with "no down payment!" What those TV pitchmen say is almost true. Many people can buy with "no money down." The problem is not what they say the problem is what you hear! There are many programs that allow you to buy with "no money down," but very few that require no money! These show people and their writers are … (16 comments)
the real estate investment institute: How Much Should I Put Down / Equity Is No Protection / Liquidly Is
- 02/17/08 03:39 PM
I recently tried to displace the myth that real estate and mortgage professionals could determine what you can afford. See: How Much Can I Afford / A Stupid Question, for most of you what you can afford is going to be less, sometimes considerably less than you can qualify for. Now that you've determined what payment you can comfortably afford, it's time to consider how much you should put down on your new home. For most of the last forty years my next question would have been, "how much do you have?" That's still where we need to start, for we can't normally … (18 comments)
the real estate investment institute: How Much Can I Afford / A Stupid Question
- 02/16/08 02:33 AM
You've reached that point in your life, somewhere between 18 and death, that you want a home of your own. You locate a REALTOR® or better yet a Loan Originator and make your first mistake. You ask "how much can I afford?" This is possibly the second most asked question in real estate, the first is "what's the rate?" How would your REALTOR® or Loan Originator know what you can afford? The Loan Originator can determine what you qualify for, but that has little relevance to what you can afford! As you read about the mortgage crisis keep in mind except for … (38 comments)
the real estate investment institute: How Much Can You Save / A Short Sale Primer
- 02/09/08 08:48 AM
I just read Lenn Hardly's blog: WHAT ARE THE BUZZ WORDS? TRANSPARENCY? CONSUMER'S RIGHT TO KNOW? NONSENSE! People have a major misunderstanding of what they can except purchasing a short sale. Just what sort of discount will a bank to accept? If you're hoping for a number, you can stop reading. If you are hoping to steal the property, you can stop reading. If you're hopping to buy the property for 50% of market value, you can stop reading. If you're hopping to wait and buy the property for less direct from the bank you can stop reading. The first thing you need to … (8 comments)
the real estate investment institute: Explaining Pre-Paid Interest
- 01/30/08 01:38 PM
I read the musings of a brilliant, but young mortgage man that was having trouble explaining pre-paid interest, which is line 901 on the Good Faith Estimate and HUD-1, closing statement. I discuss this in my book "Get The Money / A Consumers Guide To A Successful Mortgage Application" but let me try a different approach here. If you ask the consumer if mortgage interest is paid in advance or in the arrears (after you've used the money) the majority would say in advance and point to the pre-paid interest charge on the Good Faith Estimate or HUD-1. If you asked the … (2 comments)
the real estate investment institute: False Security / False Hope
- 01/30/08 03:47 AM
I've written about the danger of depending upon Home Equity Lines Of Credit, HELOC's, before. I was concerned about depending upon your HELOC for access to cash when making an offer, I'd suggested that even though you have the HELOC available you always make your offers contingent upon the loan, to avoid defaulting on an offer because of some unknown problem with the HELOC. More recently I've warned about the fallacy, and the fales hope of the so called Money Merge accounts. Among the problem with these scrams was the potential danger of depending upon the HELOC for cash reserves, the danger … (9 comments)
the real estate investment institute: Shut- Up And Start Making Money / Every One Is A Salesman
- 01/29/08 05:13 PM
Everyone is a salesman, some are just better than others. I write about real estate investment, but salesmanship is a lesson in life! The only reason most people make, for not investing in real estate, is they don't think they can make the sales necessary to buy and then sell an investment property, they don't think they're salesmen. Everyone is a salesman, new born babies cry and Mom sticks a warm nipple in their mouth, they ask for what they want and they get it, that's sales! Pre-schooler ask for ice cream and then say please, please, please until Dad gives … (6 comments)
the real estate investment institute: A Consumers Guide To Mortgage Brokers And The Evil Yield Spread Premium
- 01/29/08 05:00 PM
Kick backs, hidden cost, back points, HUD (Housing and Urban Development) calls it "Yield Spread Premium" (YSP), money paid by the a lender to mortgage brokers outside of closing. Money paid by the lender to the broker because you got a higher mortgage interest rate. Mortgage brokers are suppose to show this on line 801 of their "Good Faith Estimate" and escrow will show it on the estimated and final closing statements (HUD- I) when closing a loan for a mortgage broker. You'll never see these "points" on a loan from a bank, mortgage banker. Savings and loan, thrift, or credit … (3 comments)
the real estate investment institute: Standing Before The Bar / Why I Hate Applying For A Loan / Nothing Has Changed
- 01/29/08 04:46 PM
I was 21 and out of the Marines just ten days when I went to work for a small loan company, a week later I was making loan decisions affecting peoples lives. Just two weeks more and I was in the field making collection decisions that could literally destroy peoples lives. 14 months later, and not yet 23, I was now a bank loan officer with millions in authority! I sat in a large dark red leather chair, behind a dark cherry desk in an office paneled in rich cherry, with an impressively large 4 inches thick solid door! Two large … (7 comments)
I read a recent well intentioned blog advising that you should not select a lender or loan based on the rate! That's great advice! Rate in itself is only one side of a coin! The other side of the coin is cost! Origination and discount cost!
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