Dodd-Frank – Snodd-Tank…
Hire an RMLO on a deal by deal basis and get on with it! If the RMLO can’t
explain how he’s going to keep you compliant, fire him and get a new one!
I used to not have closing costs. Now I do. Guess how much it costs? Guess
who gets to pay for it?
You guessed it! …it costs the BUYER…and it costs him more than it costs me!
I made closing costs a profit center!
The RMLO costs me $450 because of my volume. I charge $1, 000 to my buyers
because that’s what the RMLO wanted to charge me BEFORE my volume discount.
I have to pay the $450 up front.
I look at it like a 401k with someone matching me to the tune of 69.25%…
I put in $450 and the buyer pays me back $1, 000 amortized @ 10.5% over 20
years. What a deal! I’d do it every day! 100 times a day if I could!
How’s that for consumer protection? They don’t want to protect the
entrepreneurs who risk it all, move products all over the nation, and
provide affordable housing, but you will protect people that can’t honor
their dinged named? That just Donkey Dukie!
Well I’ve got a news flash.
Yep, consumer protection ALWAYS screws the consumer! – PERIOD! Instead of
screwing just the stupid consumers, the law makers spread the losses out
over all the consumers (so all the buyers get screwed just a little).
In another consumer protection move recently, Legislators, in their
infinite wisdom, passed a law that cut my late fees from 10% to 4%. So, you
think I just swallowed that crap? Nope!
Now I don’t just collect PITI, I now charge PITIE…
ESCROW COLLECTION FEE
Yep! I added $25 to everybody’s payment, whether their late or not!
Turns out, I make way more than the 10%…and I can count on it! The extra
revenue will actually pay for my whole bookkeeping/collections department
in 100 transactions
(Less than 2 years at my volume).
Wealth comes from chaos!
I’m not praying for a recession, in fact it’s quite the opposite, but when
there is another recession…I bet we make a ton of money.
So hone your craft. Get your private lenders lined up.
Establish your system.
Luck happens when preparation meets opportunity.