Critical Mistakes for the Investor to Avoid: The Loan
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors
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Many real estate investment mistakes can be avoided all together if the investor simply compares apples to apples when considering different loans.
I know, it sounds obvious, but sometimes I think loan packages are as confusing as buying a mattress. You know, you have seen the news expose on the mattress industry where a manufacturer will produce the exact same mattress and sell it under a different model name to each of its retail distributors so the retail guys can advertise the lowest price on that model...because it only exists in that one store.
And that's the way loans can be spun. The same item can be called so many different things and the pricing can either be in basis points, a percentage or even a flat dollar amount - almost impossible for all but the sharpest of experienced investors to sit down and truly compare loan opportunities.
Now, I am a REALTOR®, I don't pretend to be an expert on mortgages - those guys make enough money putting together loans that they don't need my input any more than I want your lender driving around with us throughout Riverside County or any where else in California, looking at investment real estate. They do their thing and I do mine. Together we form your team - so it is important that you work with a lender that can give it to you straight and if there are variances in any of the products he suggests to you, make him break it down so you are comparing apples to apples and leave the oranges in the trees.
Hoping to make your California Real Estate Investment...
A Pleasant and Profitable Experience,
John Occhi, Hemet CA REALTOR
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Hi John,
I see many clients get taken in by the rate instead the entire package. It is this fixation with the lowest rate that really screws them up after the closing. It is up the realtor to make sure they explain there are many types of loans and not all loans are the same and not all low rates are the best deal. I always tell my clients to shop around and ask the mortgage reps the same questions so they can compare apples to apples. The more educated our consumer the better the client.