[NotCranky]

“lender approved report”
I didn’t say “lender approved” I said “lender preferred”, as in the format. I know what the loan originator and the underwriter have to do with a credit report, more or less.
It would be silly for me to assume you would package a loan based on a hand carried report from a client. BTW the orgiginators I have spoken face to face with are willing to explain programs and quote rate on a report I provide and even a guestimate and verbal statement of house hold finances, and if they won’t too bad for them. I have been around enough to know some brokers keep clients hostage, as best they can, by various means including the multiple credit check threat.

[NotCranky]

Your portfolio has cash flow positive that is what I would look at, not one property. Sure it is risky, but it isn’t like your approach lacks reasoning.

The math is very basic, applying it to your investment strategy a little complicated but it makes sense. The return on equity and “cash on cash” calculation just looks like a component of ROI to me,a substituion for takign the investmetn capital from somewhere else in your net worth. In fact it might prove to have been better just to take the down payment from your liquid assets, depending on what your returns are.Of course, you could always pay off the HELOC if rates go up.

Maybe I am seeing something wrong and you could say why using a very small portion of your liquid assets for the DP isn’t just as good?

[NotCranky]

Your portfolio has cash flow positive that is what I would look at, not one property. Sure it is risky, but it isn’t like your approach lacks reasoning.

The math is very basic, applying it to your investment strategy a little complicated but it makes sense. The return on equity and “cash on cash” calculation just looks like a component of ROI to me,a substituion for takign the investmetn capital from somewhere else in your net worth. In fact it might prove to have been better just to take the down payment from your liquid assets, depending on what your returns are.Of course, you could always pay off the HELOC if rates go up.

Maybe I am seeing something wrong and you could say why using a very small portion of your liquid assets for the DP isn’t just as good?

[NotCranky]

Your portfolio has cash flow positive that is what I would look at, not one property. Sure it is risky, but it isn’t like your approach lacks reasoning.

The math is very basic, applying it to your investment strategy a little complicated but it makes sense. The return on equity and “cash on cash” calculation just looks like a component of ROI to me,a substituion for takign the investmetn capital from somewhere else in your net worth. In fact it might prove to have been better just to take the down payment from your liquid assets, depending on what your returns are.Of course, you could always pay off the HELOC if rates go up.

Maybe I am seeing something wrong and you could say why using a very small portion of your liquid assets for the DP isn’t just as good?

[NotCranky]

Your portfolio has cash flow positive that is what I would look at, not one property. Sure it is risky, but it isn’t like your approach lacks reasoning.

The math is very basic, applying it to your investment strategy a little complicated but it makes sense. The return on equity and “cash on cash” calculation just looks like a component of ROI to me,a substituion for takign the investmetn capital from somewhere else in your net worth. In fact it might prove to have been better just to take the down payment from your liquid assets, depending on what your returns are.Of course, you could always pay off the HELOC if rates go up.

Maybe I am seeing something wrong and you could say why using a very small portion of your liquid assets for the DP isn’t just as good?

[NotCranky]

Your portfolio has cash flow positive that is what I would look at, not one property. Sure it is risky, but it isn’t like your approach lacks reasoning.

The math is very basic, applying it to your investment strategy a little complicated but it makes sense. The return on equity and “cash on cash” calculation just looks like a component of ROI to me,a substituion for takign the investmetn capital from somewhere else in your net worth. In fact it might prove to have been better just to take the down payment from your liquid assets, depending on what your returns are.Of course, you could always pay off the HELOC if rates go up.

Maybe I am seeing something wrong and you could say why using a very small portion of your liquid assets for the DP isn’t just as good?

[NotCranky]

Thanks HLS,
I am mostly trying to get more fluent with the topic, I am a little in the stone age. Seems like there might be others on the board, or lurkers who would have questions too.

Some of the sites I have studied claimed to give a lender preferred report. haven’t tested it yet.

Regardless of the weaknesses in my approach, I did feel more empowered going to wamu and not allowing the loan originator to pull my credit. As for my clients, I avoid the risk of having them possibly perceive that I am steering them to a mortgage broker. In fact I have no desire to do steering of any kind. I explain options and give referrals if they ask. I know good brokers with different personalities and I generally refer where I think there will be a good match on that basis.

Anyway, Being able to talk fluently on this topic will be helpful in advocating for my clients.

[NotCranky]

Thanks HLS,
I am mostly trying to get more fluent with the topic, I am a little in the stone age. Seems like there might be others on the board, or lurkers who would have questions too.

Some of the sites I have studied claimed to give a lender preferred report. haven’t tested it yet.

Regardless of the weaknesses in my approach, I did feel more empowered going to wamu and not allowing the loan originator to pull my credit. As for my clients, I avoid the risk of having them possibly perceive that I am steering them to a mortgage broker. In fact I have no desire to do steering of any kind. I explain options and give referrals if they ask. I know good brokers with different personalities and I generally refer where I think there will be a good match on that basis.

Anyway, Being able to talk fluently on this topic will be helpful in advocating for my clients.

[NotCranky]

Thanks HLS,
I am mostly trying to get more fluent with the topic, I am a little in the stone age. Seems like there might be others on the board, or lurkers who would have questions too.

Some of the sites I have studied claimed to give a lender preferred report. haven’t tested it yet.

Regardless of the weaknesses in my approach, I did feel more empowered going to wamu and not allowing the loan originator to pull my credit. As for my clients, I avoid the risk of having them possibly perceive that I am steering them to a mortgage broker. In fact I have no desire to do steering of any kind. I explain options and give referrals if they ask. I know good brokers with different personalities and I generally refer where I think there will be a good match on that basis.

Anyway, Being able to talk fluently on this topic will be helpful in advocating for my clients.

[NotCranky]

Thanks HLS,
I am mostly trying to get more fluent with the topic, I am a little in the stone age. Seems like there might be others on the board, or lurkers who would have questions too.

Some of the sites I have studied claimed to give a lender preferred report. haven’t tested it yet.

Regardless of the weaknesses in my approach, I did feel more empowered going to wamu and not allowing the loan originator to pull my credit. As for my clients, I avoid the risk of having them possibly perceive that I am steering them to a mortgage broker. In fact I have no desire to do steering of any kind. I explain options and give referrals if they ask. I know good brokers with different personalities and I generally refer where I think there will be a good match on that basis.

Anyway, Being able to talk fluently on this topic will be helpful in advocating for my clients.

[NotCranky]

Thanks HLS,
I am mostly trying to get more fluent with the topic, I am a little in the stone age. Seems like there might be others on the board, or lurkers who would have questions too.

Some of the sites I have studied claimed to give a lender preferred report. haven’t tested it yet.

Regardless of the weaknesses in my approach, I did feel more empowered going to wamu and not allowing the loan originator to pull my credit. As for my clients, I avoid the risk of having them possibly perceive that I am steering them to a mortgage broker. In fact I have no desire to do steering of any kind. I explain options and give referrals if they ask. I know good brokers with different personalities and I generally refer where I think there will be a good match on that basis.

Anyway, Being able to talk fluently on this topic will be helpful in advocating for my clients.

[NotCranky]

This topic is interesting to me because I quit selling RE when the combined median is where it is at currently.Couldn’t muster the “professional bias” to do that. So I am looking at the median and saying, I can sell with the current risk factors both positive and negative. I am sticking with the belief that the inflation thing is more nuanced. Call it professional bias if you want.I think history bears out the potential for inflation to be a mitgating factor. As I said ,not extreme but likely helpful. Besides that everyone I know makes more money than they did even in 2003,except me. I predict the same thing in 2015,except that I will be making more too. Things will be probably be a lot lower before I sell anything or even try very hard, but I am brushing up on things and taking myself off the shelf.Please excuse the self indulgence.

[NotCranky]

This topic is interesting to me because I quit selling RE when the combined median is where it is at currently.Couldn’t muster the “professional bias” to do that. So I am looking at the median and saying, I can sell with the current risk factors both positive and negative. I am sticking with the belief that the inflation thing is more nuanced. Call it professional bias if you want.I think history bears out the potential for inflation to be a mitgating factor. As I said ,not extreme but likely helpful. Besides that everyone I know makes more money than they did even in 2003,except me. I predict the same thing in 2015,except that I will be making more too. Things will be probably be a lot lower before I sell anything or even try very hard, but I am brushing up on things and taking myself off the shelf.Please excuse the self indulgence.

[NotCranky]

This topic is interesting to me because I quit selling RE when the combined median is where it is at currently.Couldn’t muster the “professional bias” to do that. So I am looking at the median and saying, I can sell with the current risk factors both positive and negative. I am sticking with the belief that the inflation thing is more nuanced. Call it professional bias if you want.I think history bears out the potential for inflation to be a mitgating factor. As I said ,not extreme but likely helpful. Besides that everyone I know makes more money than they did even in 2003,except me. I predict the same thing in 2015,except that I will be making more too. Things will be probably be a lot lower before I sell anything or even try very hard, but I am brushing up on things and taking myself off the shelf.Please excuse the self indulgence.

[NotCranky]

This topic is interesting to me because I quit selling RE when the combined median is where it is at currently.Couldn’t muster the “professional bias” to do that. So I am looking at the median and saying, I can sell with the current risk factors both positive and negative. I am sticking with the belief that the inflation thing is more nuanced. Call it professional bias if you want.I think history bears out the potential for inflation to be a mitgating factor. As I said ,not extreme but likely helpful. Besides that everyone I know makes more money than they did even in 2003,except me. I predict the same thing in 2015,except that I will be making more too. Things will be probably be a lot lower before I sell anything or even try very hard, but I am brushing up on things and taking myself off the shelf.Please excuse the self indulgence.

[Author]

Posts