All Forum Posts by: Rich Rifkin

One of the most unique aspects of today's RE market is class distinction between the experienced an inexperienced due to the fact that the market has turned downward and caused margins to thin. I think the question on everybody's mind is, "how did you become successful."

I hate to see anybody lose money. The reality is that the RE industry has become an intangible Las Vegas - ambition for riches overcoming logic and good sense. So to all you successful gamblers out there - anybody who has a success story - please share it here. Please keep your stories factful, brief and define the pitfalls you overcame.

LET'S HEAR YOUR STORIES ...

Hi guys,

I'm glad to provide the form. It is definately comprehensive and yes, I encourage our estimators to use it. There are many other forms out there but this one is for professional communication. Everybody has their own style and mine has adapted over the years as I've been involved with more and more projects.

The main thing here is communication and an investor should be able to communicate on the contractor's level, which is why I provided a "contractor" form. I have many others and you are welcome to contact me directly to discuss your needs.

I am available Sunday through Friday (never on Saturday for religious reasons).

Regards,

Rich

I noticed immediately the Calyx Point generated form. Most of these numbers are imported from a boilerplate but all fields are customizable.

This is a $67,500 loan - what are they doing charging you a $2,500 broker fee(line 808)? Also, the Processing fee of $485 on line 810 is to the broker. In other words, the broker is making 4.44% on your loan.

That's rediculous. You aren't paying anything to the lender to buydown the rate otherwise it would be disclosed on the GFE.

I've been doing this for 18 years and there are times where I charge more. Only accept this if you are out of time and absolutely have to close or if by some miracle this is the only broker in the universe (or at least in your phone book) that is capable of getting you this loan.

The rate is competitive for a full-doc, low loan amount AAA (FNMA/FHLMC/FHA/VA) loan. But I suggest you negotiate the fee to at least half. Plenty of brokers, banks and/or lenders will do this loan for you for 1-2 points (1%-2%).

What state are you in? Perhaps I can refer you to somebody.

I've been teaching this for 18 years and many have asked that give a brief explanation.

Banks, Mortgage Brokers and Lenders have the same rates and programs everywhere in the United States. An advertised special in print, radio, television or internet is no different than what Bob the bedroom broker can offer.

The Industry Heirarchy
1- Consumer (you, the public)
2- Broker, Bank, Lender
3- Correspondent Lender (a broker with a line of credit)
4- Wholesale Lender (can be a bank or instititional investor)
5- Portfolio and Servicing Investor
6- Securitizer (basically a broker who creates, buys and sells pools of loans between Wall Street and Investors)
7- Wall Street (where the money comes from)

Now I really don't suggest going to a "bedroom" broker (one who works from their house) although their nearly non-existent overhead sometimes translates to lower rates and junk fees. But still, stay away from them if you can. Your best bet is a broker or correspondent lender with a medium size officet that is approved with many lenders/investors.

Just because you walk into a bank to get a mortgage doesn't mean they are actually the lender. For example, Wells Fargo Bank is licensed very differently than Wells Fargo Mortgage, although the parent company (Wells Fargo) gives each license to use the name/logo. The heirarchy above still applies.

A retail lender must sell their loan within 120 days. Often there is an assignment at closing so you don't realize that the originating company is not actually the lender because they have the same name (albeit different license #).

Moreover, if a loan officer is pressuring you to go with them before their "special" expires it is a pressure ploy and call their bluff. They may still be a good resource but make sure you let them know you're not to be taken advantage of.

LOCK YOUR LOAN ASAP! Even if you think the rates are still going to go down, don't take the chance. Get the lock in writing from the loan officer but make sure it is also in writing that if the rates go down then you get the lower rate. It's called a "FREE Float Down" and you should demand this feature.

I have owned a mortgage company for 18 years and each credit repair company that has solicited us to send them business has started off strong but eventually end up taking some poor customer's money without results or customer service response.

I'd like to refer literally hundreds of my customers to a reliable and fast credit repair service (I won't charge my customer, just give them a reliable referral).

Can anybody provide such a referral?

I wish to share a comprehensive bid form broken down by construction division. I created it years ago and it has evolved many times. The form calculates costs per division (eg. Electrical broken down into subcategories in order to compare subcontractor bids).

This form can be used by builders, contractors and developers. I've found that sharing this form with customers demonstrates accuracy, and RE investors who are rehabbing can use it for comparing contractors/subs.

It is in EXCEL format and rows in any division can be added/subtrated. I've included the most common ones for my geographical region.

Hi All,

I am happy to provide you with a contractor's bid form. The one I'm attaching is by construction division and quite comprehensive.

I wish to warn any person who uses this form that the intention here is knowledge and communication. I do NOT recommend going with the lowest bidder. The lowest bidder doesn't have the insurance or cash reserves to fix problems or generate solutions WHEN (not "if") problems in construction arise.

Here it is:

You touched on a very important subject for me - brokers who are "too" independent. When I first became licensed in Florida in 1990 I was proud to have passed a very difficult test and had a full background check (fingerprints, etc). In Florida back then to be a broker was much more regulated and prestigeous than to be a correspondent lender because they are exempt from reporting yield spread and service release premiums, plus they were exempt from Chapter 494 of the DBF.

When I opened offices in Colorado, however, there was no licensing for brokers so to be a lender was much more reputable. Colorado was one of 7 states that didn't require licensing at the time. I began public speaking on this matter and became a co-Chair of the Regulatory and Ethics committee. The example I used was that a person who was convicted of fraud, theft or dishonest dealings could start, run and operate a mortgage company from prison. That is the ultimat example of a "bedroom" broker.

I agree with you in blaming the gov't for non-regulation but then again, I don't want the gov't to over-regulate. The problem is, well, the government. The only reward for individuals who make decisions of this type is paid for in fundraising and other contributing compaigns. Ugh, it makes me sick.

Hello,

I have bought/sold/redeveloped about 90 projects (ie. 1 project may be a 43 unit condo, etc) so I have a lot of experience with this. Secondly, I have started my own contracting company and now own an Architect/engineering firm as well as a mortgage company. So I know what you're going through.

I can email you some forms that I have created/customized over the years. I'm not selling you anything - it doesn't cost me to send you an Excel spreadsheet.

Regards,

Rich

At 72 yrs old, my father owns 6 developments in South Florida. He has seen a 30% drop in home prices and is just getting slaughtered by this economy.

Does anybody know where I can get a hold of state-by-state statistics of market trends (more recently speaking, "downtrends")?

Thanks.