Jim FL
03-07-2008, 09:28 PM
Hey Folks,
So, Who's out there still buying?
I am, just not at the same volume, admittedly.s
Which frankly, has nothing to do with the market, it's more my attitude............I've been enjoying being 'less busy'.
Anyway, I wanted to remind folks who may have read this, or know it previously, and alert those who may not know yet..........
Portfolio lenders are your friends.
These are the local folks who make home loans, and keep them.
The actual decision maker can be seen face to face, and most times, they answer their phones.
Some are national chains, like Equity one, Beneficial, American General, etc.
Others, might just be local shops.
The thing is, I used to remain in contact with these folks on a regular basis, and buy deals thru them.
Some reo's, and mostly, barrowers who wanted to deed back to the lender, and instead, deeded to me.
I frankly, just quit following up with these lenders, as part of my slow down.
However, today, I spoke with one again, and it reminded me, I'm neglecting a GREAT source of easy deals.
Example:
We recently took title to a home, where the loan was in default by 3 months.
The numbers were verified over recent days, etc.
It's a new deal.
Thing is, as we were determing lender info, reinstatement, etc, we learned that the loan was sold to a local portfolio lender. (Actually, from one to another)
We were directed to send the reinstatement amount due, to the new lender.
I held off, wanting to speak with the new lender first, and make sure things were done correctly, etc.
Well, today, we spoke.
The outcome was this..........
By JUST ASKING, we arranged the following.
The lender, after getting a faxed copy of my deed, showing we hold title, agreed to take 100% of the arrears and place them on the back of the loan.
They also agreed to begin payments in April, giving me a couple weeks to get that to them. (no problem, the payments are LOW)
The lender told me they had recently bought a bunch of paper from this other lender, and just about every account was a mess.
The new lender rep stated he could not really make heads or tails of the whole mess, hence the openess to working with me.
We basically left the balance the same, just set a balloon payment on the end (in 22 years), for the unpaid payments.
Not a big deal, but, it has tenants moving in this weekend.
Cost me nothing, when I had planned to send the lender the 3 payments, from the option money we are collecting.
Further, because I pay attention, I asked the lender about other properties?
I said, "you said there are barrowers in this new batch of loans you bought who want to deed back in lieu? What are your plans with those properties?"
He said, "We don't want them, and would like to work something out with the barrowers, and might just be able to with a few. However, I do have 5 that I know of now, where the barrowers moved out and don't want to stay."
My response was, 'if the numbers make sense on my end to buy these places, will you work with me to modify the loan terms some, like we just did on the other?"
The lender rep said, "I'd love to, what's your email?"
He sent them in email already.
So, I might just be buying a few houses.
I've already made some calls to the sellers on these places, with numbers passed on from the lender.
Two are willing to meet tommorrow to sign deeds, the others, we will meet and go from there.
Bottom line, this lender now has my number, and will call me, when he has something.
The beginning of a new relationship that can and will benefit us both.
Shoulda never quit calling these places in the first place.
I'm taking the lender rep to lunch next week, and he's bringing files along.
Guess we'd better meet somewhere with wifi and take the laptop.
So folks, if you are an investor with cash, or the ability to do creative deals, don't rule out local lenders as sources.
Get out your phone book, and make some calls.
Lenders of all sizes and shapes are in pain...........and you WILL be pleasantly surprised if you just ASK about opportunities to help them.
I have a feeling my rental portfolio is about to grow again.
Yours should too.
Take care,
Jim FL
So, Who's out there still buying?
I am, just not at the same volume, admittedly.s
Which frankly, has nothing to do with the market, it's more my attitude............I've been enjoying being 'less busy'.
Anyway, I wanted to remind folks who may have read this, or know it previously, and alert those who may not know yet..........
Portfolio lenders are your friends.
These are the local folks who make home loans, and keep them.
The actual decision maker can be seen face to face, and most times, they answer their phones.
Some are national chains, like Equity one, Beneficial, American General, etc.
Others, might just be local shops.
The thing is, I used to remain in contact with these folks on a regular basis, and buy deals thru them.
Some reo's, and mostly, barrowers who wanted to deed back to the lender, and instead, deeded to me.
I frankly, just quit following up with these lenders, as part of my slow down.
However, today, I spoke with one again, and it reminded me, I'm neglecting a GREAT source of easy deals.
Example:
We recently took title to a home, where the loan was in default by 3 months.
The numbers were verified over recent days, etc.
It's a new deal.
Thing is, as we were determing lender info, reinstatement, etc, we learned that the loan was sold to a local portfolio lender. (Actually, from one to another)
We were directed to send the reinstatement amount due, to the new lender.
I held off, wanting to speak with the new lender first, and make sure things were done correctly, etc.
Well, today, we spoke.
The outcome was this..........
By JUST ASKING, we arranged the following.
The lender, after getting a faxed copy of my deed, showing we hold title, agreed to take 100% of the arrears and place them on the back of the loan.
They also agreed to begin payments in April, giving me a couple weeks to get that to them. (no problem, the payments are LOW)
The lender told me they had recently bought a bunch of paper from this other lender, and just about every account was a mess.
The new lender rep stated he could not really make heads or tails of the whole mess, hence the openess to working with me.
We basically left the balance the same, just set a balloon payment on the end (in 22 years), for the unpaid payments.
Not a big deal, but, it has tenants moving in this weekend.
Cost me nothing, when I had planned to send the lender the 3 payments, from the option money we are collecting.
Further, because I pay attention, I asked the lender about other properties?
I said, "you said there are barrowers in this new batch of loans you bought who want to deed back in lieu? What are your plans with those properties?"
He said, "We don't want them, and would like to work something out with the barrowers, and might just be able to with a few. However, I do have 5 that I know of now, where the barrowers moved out and don't want to stay."
My response was, 'if the numbers make sense on my end to buy these places, will you work with me to modify the loan terms some, like we just did on the other?"
The lender rep said, "I'd love to, what's your email?"
He sent them in email already.
So, I might just be buying a few houses.
I've already made some calls to the sellers on these places, with numbers passed on from the lender.
Two are willing to meet tommorrow to sign deeds, the others, we will meet and go from there.
Bottom line, this lender now has my number, and will call me, when he has something.
The beginning of a new relationship that can and will benefit us both.
Shoulda never quit calling these places in the first place.
I'm taking the lender rep to lunch next week, and he's bringing files along.
Guess we'd better meet somewhere with wifi and take the laptop.
So folks, if you are an investor with cash, or the ability to do creative deals, don't rule out local lenders as sources.
Get out your phone book, and make some calls.
Lenders of all sizes and shapes are in pain...........and you WILL be pleasantly surprised if you just ASK about opportunities to help them.
I have a feeling my rental portfolio is about to grow again.
Yours should too.
Take care,
Jim FL