Hey Deal Maker Nation

 
Jason Palliser here and I wanted to get you caught up after the rapid fire information I hit you with in May for the REI BlackBook private launch.  Let me start by saying that I am super pumped at the responses to our tons of new users of "The Deal Maker Engine."  We already have tons of NEW DEAL MAKERS turning their markets upside down with automation and speed.  I know some of you asked if we will open up the membership again and we will have other opportunities to get in besides our national tour coming up starting next month.  We will keep you informed on that.
 
I have already booked events in 2 of your cities and we are gearing up for the rest of you as well.  Don't forget that when you as a REI BlackBook Market VP help us book a date and do a live city launch at your REIA or real estate event that we will be sharing the event revenue with you.  Some of you are already connecting me with the right people to fill a room and I ready to help the rest.  July is filled already so shoot me an e-mail on who I should connect with in your market and my marketing team and I will do the rest.  Let's get a date on the calendar and I look forward to hanging out with you in your city and connecting the community to you!!
 
As promised and as some of you already know- As a national investment guideline trainer for over 12 years my commitment is to keeping you up to date on the market as it shifts.  I will give you important financing and credit guidelines that are timely and up to the minute so you can run as successful-profitable real estate investment business.
 
Forgive me for taking a breather after the REI BlackBook launch as I am busy finishing up my personal consults for the new users.  I have turned a few of your businesses inside out and put the engine back together and I'm excited to do more.  The ones that I have are probably still wondering what hit them.  it is all about focus and action items.  I just need to make sure the focus is on the right prize to kick-start the engine.  Feel free to e-mail me questions and I will get to them as fast as I can if you did not get a consult.
 
****  Here is your financing tips and credit updates for June 2010  ****
 
Mortgage Minute- Update:
 
1) Be ready for a mountain of change in the loan officer business.  With the passing of the SAFE Act by legislatures the loan officers around the nation now have to be licensed and pass a back ground and credit check to originate your home loans.  Also they have to pass a national mortgage a regulation guideline test with a score of 75% or better to do loans.  That is a "C" average if I remember back to my school days.  Not that tough, but watch as they start falling like dominos.  This has to be adopted and enforced by July 30th 2010.
         Let me paint you a picture about the new licensing laws!!!  This means that in the past there was no real loan officer standards to hold people by and therefore people handling your loans may not be qualified to do so.  You better be making sure that your loan officer is still standing or you may want to get a new guy on your team.  If you give me the CITY and TYPE of deals you are doing I can make suggestions for you to get a specialist on your team!!!  In any event that pretty scary huh!
         Who is out?  
Anyone who has a felony on their record (estimated 20% of current loan officers).
Any loan officer with bad credit (tons of them since they could not get loans done for a year or so with crazy guidelines)
Anyone that does not get a 75% on the national test (which it is estimated that 1 in 3 fail)
        You better do a HARD loan officer INVENTORY check.  Your deals are way too important to not have the part of your POWER TEAM not running on all cylinders.  I've helped match investors with the right loan officer daily since the calendar year started.  Be proactive and not reactionary like most investors.  E-mail for L.O. help at  This e-mail address is being protected from spambots. You need JavaScript enabled to view it
         EVEN BETTER- Loan Officer License Numbers will be attached to every loan done moving forward on July 30th 2010.  What does this mean?  This means that if you do a loan and something goes wrong then it is now not on the bank only it is now on the loan officer so the loan better be perfect or they may LOSE their license to do loans FOREVER!!  Find a good loan officer while they are still taking on new clients because they may become very selective on who they deal with to make sure that their livelihood is protected.  Pushing files that are super iffy will come to a screeching halt!!!
        URGENT ACTION ITEM FOR JULY:  Make sure that you are protected and that you truly have a good loan officer on your team because they are going to become more that worth their weight in gold since the poll will shrink dramatically in 30 days!!! Devote time to cementing this part of your team.  Go back to the old guy who could not get that 1 deal done and mend the fence with them.  If you know they were good, but you were chasing a deal to get it done, then break bread together and fall in love again before they are too busy with their new partnerships.
 
2)  Debt Ratios for loan types: Know what you are up against with each loan program type!  They are not created equal!!
 
-  Fannie Mae is        28/36
-  Freddie Mac is       31/38
-  FHA is                   33/43
- VA is                      41/41
 
The first number represents what the total house payment can go up to in regards to their total monthly income and the second number represent the total allowable debt payments including the house payment to qualify.  There are exceptions to this rule but very rarely.  Ask questions of your buyers to know where they should go!!
 
 
Credit Corner- Update 
 
1)      With the new credit laws in place the old trick of I'll just add someone on an account as an authorized user to raise their score is virtually gone.  This could in the past raise someone's score by 20 to 40 points, but today it may add 2 to 5 points. Update your mental credit file to stay on top of your real estate game.
2)      Paying off a collection to raise your score can actually hurt your score by 30 to 40 points.  The reason is that logically going from a $2,000 collection to a $0 is a good thing, but most collections are older and while they do hold your score do somewhat they typically do not report monthly as bad after 6 months to 12 months.  So when you pay off a collection the debt collector has to "REPORT" to the credit agencies that there is "NEW" activity on a negative account which usually results in a score drop even thought you tried to do something good.  Credit Scoring is NOT human which is what most of us forget.  You are better off taking that $1,000 you used to settle for half and using half of that on credit repair which might end up wiping the whole thing away.  No negative account and or opportunity to report an active negative account anymore.  This is a MUCH bigger victory!!
 
I'm telling you that #2 is my biggest pet peeve when it come to getting real estate business done.  Always try credit repair to handle negative items and collections before you have someone just go and try to pay them off themselves.  Paying off a collection could be the "Self-Inflicted" deal killer that they or you caused which with some good credit repair could have TOTALLY been avoided. 
 
The company I would recommend that you get set up with is Cornerstone Restorations which gets good results and they even let you track the clients progress so you can stay connected instead of feeling in the dark.  Call 800-813-4988 and ask for Brian Klarich This e-mail address is being protected from spambots. You need JavaScript enabled to view it  to get set up with you own credit repair portal to track your clients because a person's credit score is becoming more important by the day.
 
Don't run your real estate business on the fly.  Get your real estate engine running right by implementing the guideline, tips and practices that are necessary to create your financial freedom.
 
 
P.S. As always....  I'm committed to your real estate success and please e-mail me any questions, comments and or tips to help out the real estate community.   This e-mail address is being protected from spambots. You need JavaScript enabled to view it and god bless.