Dealing with Rich But Difficult Buyers

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

I used to work in real estate for a guy that owned somewhere around $50 million in property. I lived in a $400,000 house and my duties were minimal, but he was impossible to work with. Have you ever dealt with buyers who are rich, but who you would rather not deal with because they were difficult people?

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

the richer they are the more they want pampered...you would think they are smart people but it seems when it comes to mortgages they dont usually have a clue but have the attitude that they know everything..yes rich people are hard to deal with

Quixote · Joined: 28 Jan 2005 Posts: 60 Location: Southern California

What blows me away at times is the sense of entitlement that exudes from some of the sub-est of our sub-prime borrowers and their brokers. "WHAT DO YOU MEAN YOU WON'T DO A STATED 100% LOAN FOR MY 500 SCORE BORROWER FORTY FIVE MINUTES OUT OF BK WITH NO ACTIVE TRADELINES, NO JOB, AND SUFFERING FROM THE HEARTBREAK OF PSORIASIS??? ARE YOU CRAZY??? THIS IS A GOOD LOAN!!! OTHER LENDERS ARE LINED UP TO DO IT!!!" I usually say, "Better take them up on it before they sober up."

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

Clue me in...
Sub-prime borrowers refers to the borrowers with the lowest of credentials?

towanda10 · Joined: 28 Jan 2005 Posts: 22

Yes, sub-prime caters to those with 'damaged credit', but it also offers loans outside of the 'conventional' guidelines.
Generally speaking they 'think outside of the box'.
Sub-prime will provide for the following 'unconventional-types of loans':
Dome home
Higher ltvs on rural
Highest ltvs on investment properties (100% vs 80 or less on conventional)
SE <2 yrs
Bank statements same as full doc
No seasoning required on funds to close
95% ltv 1-day out of bankruptcy
Limited or no tradelines
No or private verification of rent (VOR) - for housing history
No reserves required
Ignores collections
Ignores liens not affecting title to property
103-125% cltv (combined loan to value)
Well, you get the idea. Not all sub-prime lenders offer all of these. I've just listed them as an example.
Many times sub-prime lenders can be competitive on price and actually be easier to get a loan closed than a conventional lender.
Interestingly, since interest rates have begun to rise and lenders are competing for business, they have all began to offer more liberal programs, which can benefit the consumer.

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

Thanks. I understand better now.
I will probably have to use one of these programs, because I have been only been in business for 1 year, so do not have 2 years of history. I think it is referred to as a "no doc" loan or something like that.

Professional Mortgage Man · Joined: 30 Jan 2005 Posts: 56 Location: Heartland USA

Becca is partly right....I should know..I have some serious jack......we just like to be respected and deal with people who appear to have their ducks in a row... :D

I like to act like I don't know a lot about something at first to play you and see what you are made of.....then throttle up the big guns of intellectual property..if I need to shut anyone down who thinks they are a player....someone.....who can't make the team,but wants to play with the big boys....Stay as humble as you can with the richies...most of us get a bit out there from your average people...

......I find the more money I make the more I respect the average hardworking Joe....my roots....rags to riches story is mine.....and I want to help these people and give them more respect than the dude with all that and a bag of chips going for him...........but I want to stay aware and real....in touch with the world......

If I want to make that $30,000 commish..like I am on this Hawaii $500,00.00 stated income purchase I am closing tomorrow....well then...I will kiss your little hinny....and ask for more referrals from all your pals to do the same for them....and I bet I get it...... :wink: ka Ching!

Yeah Baby!
Ciao,

Proman 8)

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

Quote: ......I find the more money I make the more I respect the average hardworking Joe....my roots....rags to riches story is mine.....and I want to help these people and give them more respect than the dude with all that and a bag of chips going for him...........but I want to stay aware and real....in touch with the world......

Too bad there are not more people with this attitude. I think the worst ones are the people who never really had it tough, and don't even understand what it means to be a "have not".

Professional Mortgage Man · Joined: 30 Jan 2005 Posts: 56 Location: Heartland USA

I agree David....but it takes a lot of awareness,reading the right things..(No Fox network "I'll scare ya" news or Maxium Mag. for me..egads!..idiots!....I like Utne,Washington Spectator,Hightower report,etc...to keep me in touch with real people's needs and the world as a whole..) I surrounding myself with the best positive intellectual peer group possible to keep me on the correct path.....and Keep the faith..... :lol: ..it is so easy to stray from the trail,pal!

yeah baby!

Ciao,

Proman 8)

a citizen of the world.....think about it........

Cedonulli · Joined: 26 Jan 2005 Posts: 38 Location: Portland OR

I used to be in real estate and mortgages in Monterey and Carmel are of Calif and have worked with many filthy rich people. Never had a single one act like a jerk or be difficult. Maybe its the way they react to certain personalities.

Professional Mortgage Man · Joined: 30 Jan 2005 Posts: 56 Location: Heartland USA

It's just that marvin has Ethos! yeah Baby!

Ciao,

Proman 8)