Home : There May Be Too Many Fingers in The Pie...

There May Be Too Many Fingers in The Pie...

Posted by Brett Carman on 7/1/2008 at 6:50 PM
Posted in Real Estate

Today I am wanting to discuss the topic of too much real estate finance competition in the lending industry causing consumers to have paralysis of analysis. We are inundated with advertisers trying to get us to use their financing. Everyone from our insurance agent, realty agent, bank teller, home builder, accountant, lawyer, financial planner, tax preparer, accounting software company, newspaper and magazine subscription and web search engines are trying to sell us a mortgage. I apologize to any bartender or golf pro who I may have omitted from my list.

The fact remains that with so many of our current trusted advisors and vendors soliciting us, who do we trust to get us a fair deal and do so with competency, efficiency and full disclosure? Prior to about 10 years ago, you had mortgage bankers and mortgage brokers. All they did were loans and they did them well. They belonged to their local trade associations and participated in their communities. They weren’t in India or in a call center in California with a name you couldn’t pronounce or a number that could only dial out if they needed something from you. They didn’t push product that would be to your detriment like “negative-amortization” because they knew it probably was a bad long term program for you.

I think I liked it better the old way in real estate investing because in our search to have bragging rights to the lowest rate, we have sacrificed customer service, product knowledge and experience. Your next loan for an investment property could be processed by someone with little or no experience and with all that is riding on an on-time closing that needs to be hassle-free and be structured to your advantage, why leave it up to chance? There are just too many ways to screw it up to have an amateur working on your loan. Am I right?

Brett Carman is a seasoned veteran in the real estate industry for over 17 years. He holds active licenses in real estate, mortgage finance, and property & casualty insurance. Offering a one-stop shop for his residential and commercial clients, he strives to not only educate, but streamline the real estate acquisition process. With a long and proven track record of success, he is uniquely qualified and has a passion for helping people achieve their goals in real estate.

Please log in or join to comment.

5 Comments

Posted by Business 2000 Foundation.com on 07/02/2008 3:39 AM

We agree that there are too many brokers in the lending business. However, it can bring an opportunity to get more more lending money. At a much higher interest rate....LOL

The lending industry changed. Even if you have great credit and a SOLID lender it is very difficult to get the loans. The lenders changed. Why? Lousy financing deals...by sleezy brokers.

Build a solid relationship with a solid bank. And turn profits into your next deal.

Posted by member1818703 on 07/02/2008 6:51 PM

There are many very good Mortgage Professionals out there and yes the industry has grown and like everything else you get those bad apples and inexperienced people not knowing what they're doing and give the industry a bad name. Also, there is a decline in the sales of Residential and Commercial Real Estate which has slowed down due to the economy and Subprime lending problems. Many lenders are staying away from those creative and questionable deals, and many of them will only entertain those perfect or near perfect deals!!! In the commercial real estate industry, I talk to many commercial real estate investors, developers, and buyers, they just can't get the financing as easily as they did in past, and this a major frustration! But as I explain to them, it's not always the Mortgage Professionals and traditional financing is not always the answer. They have been over looking the other alternative Commercial Real Estate financing options, for instance, Real Estate Investment Trust(REITs); Bond Offerings; Real Estate Hedge Funds; and Private Hard Money Investors that can finance deals that banks and traditional lenders won’t in this present market.

PS,
Joe
Commercial R.E. Financing
www.bvgfin.com

Posted by Cheryle on 07/03/2008 5:47 AM

This reminds me of an old business question..."Does a zebra change its stripes?"
The answer is no.
And a mortgage lender who has been in business for twenty years probably doesn't lose all of his/her professional contacts, customer base or updated knowledge about the business.

Mortgage lending is nothing new. The fact that so many people are racing for the "pie-in-the-sky-super-deal-of-the-month," lets me know this business is thriving. And why shouldn't it be?

Mobility, wealth creation, global interaction, are only a few factors that are shaping future agreements.
Pick your business associates like you would a friend. Surround yourself with the kind of people you would be happy to recommend to others. Zebras stick together. They don't mate with lions, tigers or bears. If it doesn't look, act or smell like a Zebra, it probably isn't a Zebra.

Can you tell the difference between a Zebra and a fox? A pig? A chicken? A worm?
If not, you shouldn't be signing legal contracts because you don't know what the hell you're doing.
Hire someone who does. And if you don't have the money to protect your interests, don't cry after the fact when you find out you didn't get the best deal. The truth is people only get away with what you allow them to get away with. Do your homework before you mistake a goat for a horse.

Nature is a great teacher!

Posted by member1554929 on 07/07/2008 10:36 AM

Dear Brett Carmen,

Where are all those House-flippers now that we (the Economy) really needs them?
They were so Gung-ho when they thought that because they knew a Realtor, they could really "dog" some innocent, unsuspecting, first-time home buyer. Now that the market has cooled where are these upstarts that we need them for those who got ripped off due to unscrupulous ARM's & other unsavory practices as you alluded to in the article. That's all I want to know! Where are these house-flippers now that we need them to repair the damage their "Cronies" have done? {Who can blame someone for being upset about losing their home?}

Posted by Rachael Sutton #1253595 on 12/29/2008 3:07 PM

Mr. Carman, my biggest concern with this is in where these people handling the money and information originate. Are they people of character? What are their cultural ethics? When we used to have well established institutions with track records, they also had reputations, mostly built on performance, and reliable systems. These institutions were American and had American ethics and ideals. While an occassional unethical employee obsconded with money or information, the risk was more limited than it is on a global level.

Yet, on the other hand, competition is supposed to make you stronger and sharper - right? I do appreciate the best rate I can get.

Please log in or join to comment.

Newer

Older

Home

Why do you need a personal real estate coach? * To find profitable real estate investments * To negotiate deals like a pro * To close deasl and make money. Get Started Now!

Get the Feed

Subscribe in reader

Subscribe by email