Beth Forbes Your 24/7 loan officer

Hal stood at the kitchen window looking out over the back yard. In three years this was perhaps the first time he had stood here. The kitchen was Kerry's domain. He ruled the small garage and the yard, Kerry the kitchen and Lisa the living room that was always cluttered with her toys. As he stood there he thought of the day they had moved in. Kerry had been six months pregnant and unable to lift anything heavy. She had glowed as she ordered him around. This was their dream. To move out of the cramped apartment, buy a place with a yard, get a dog, raise their daughter. Kerry said it was one of the best days of her life. He had thought so too.

Hal heard Kerry walked behind him but he didn't turn to her. She cleared her throat as though she were going to speak but she said nothing. Perhaps, he thought, she had nothing left to say. As the kitchen door closed behind Kerry, Lisa came running in. She had none of her mothers reservations. She threw her little arms around Hal's leg. "Daddy, going to Nana's now?" she asked. "Yeah, sugar. I'll see you at Nana's a little later. I got something I got to do first" he replied. Kerry came back into the kitchen. "Well, that's everything I guess" she said. Hal didn't answer, he couldn't. She stared at him, willing him to speak but it was Lisa who broke the silence. "Buddy going to Nana's?" she asked. Hal turned to Kerry, helplessly. "Come on Pumpkin, Buddy's goin' with Daddy. We gotta get moving." Kerry said to Lisa. Sensing something was very wrong, Lisa started to cry. Kerry picked her up and with one last look over her shoulder, walked out of the house.

Hal stood at the kitchen window looking over the back yard. His big black dog was running around chasing leaves. He couldn't understand how it had gotten to this point. He felt paralyzed. Empty. Ashamed. He forced himself away from the window and slowly walked out the door. He turned to lock it but thought what the hell for. He opened the door to his truck and called to Buddy who came running and happily jumped in. Hal was numb as he drove. His mind just circling around, trying to figure out how it had all gone so wrong. Him and Kerry, they hadn't wanted much. Just a little place to call their own. They knew it would be tight for awhile but it always was when you're staring out. They'd figured he get into the union and get better hours and maybe a raise to help out. When the plant laid off a bunch of the guys he knew it was going to be bad so he started to look for more work. It hadn't worked out. Then Lisa got sick and Kerry had to cut her hours to take care of the baby. Then the loan payment went up. Gas prices went up. They just couldn't keep up. The bank had tried to help but in the end it wasn't enough. They had nothing left, maybe not even each other.

He pulled up in front of the grey, cement building. Just sat in the truck with his arm around Buddy. His last failure. Kerry's mom was allergic and they wouldn't have enough room for him in the basement anyway. Buddy licked his face, wondering why they weren't getting out. He had called ahead. Made the arrangements. So he got out and Buddy followed. He took his leash and walked through the door. Handed the leash and papers to the boy behind the counter and tried to shut his ears to the sounds of all the other dogs.

~~~~~~~~~~~~

Shannon was out for her daily run. Even though the day was overcast and damp she couldn't keep the smile from her face. It was a good day. No, a great day! She was three miles into her run but had never felt better. The graduation had been wonderful. Her dad had been so happy that even a week later she could feel the warmth of his hug as he whispered "A nurse. Your Momma would have been so proud". She had worked so hard for the degree that sometimes, late at night she wondered if it was all going to be worth it.

Shethought, as she ran, about the call from Brad last night. His cousin worked at the bank and knew of a property that was perfect for them and hadn't even gone on the market. Brad said that it had belonged to a young couple who just couldn't keep up with the payments. They'd kept it up real nice but the bank had to take it back. Brad's cousin said the family was moving out in the morning and if they were quick they might get a good deal if the bank didn't have to pay realtors and such. Brad said it wasn't nothing special, just a little house with a big back yard. Then he said "you know if we had a back yard you could get that dog you're always after me for". She'd gotten so excited that they had driven past it last night even though the folks hadn't moved out yet.

The minute as Shannon saw the house she knew it would be perfect. She was thinking of paint colors as she cut across the parking lot of the Humane Society. She stopped for a minute to stretch and her eye was drawn to the only car in the lot. A big man sat in the cab of his truck, hunched over the wheel, shoulders heaving. It was such a sad sight she almost forgot about the house, the dog, everything. She wanted to go over and ask if there was anything she could do to help but he seemed locked in his own private world of sorrow and she didn't want to intrude. Her cell phone rang as she was thinking on what to do. It was Brad, calling to tell her that his cousin had gone to his boss and the boss was willing to sell them the house at the price they'd been thinking of. While they were talking the truck pulled out of the lot. She told Brad she'd be home soon so they could get started on the paperwork and take a look at the inside just to make sure.

Asshe started to run her thoughts turned back to the man in the truck. She couldn't help him, she thought but she sure as hell could help a dog. She knew exactly the kind of dog she wanted. A big black dog, one who could keep her company on her runs and one who would really appreciate the big back yard. As she passed the grey, concrete Humane Society building she thought "I'll be back tomorrow and spring one of you". Her landlord wouldn't mind if it was only for a little while...

Property investment for resale has been glorified in shows like "Flip that House", in the ultimate sellers market a few years ago people with very little experience were making big bucks doing this.

Things have changed a little since the days when you could buy a house, throw some paint on it and sell it for a big profit. The good news is that with all the bank owned properties and short sales on the market, good deals are everywhere. Now the investor is taking advantage of the market form the buying end of the transaction rather than the selling end.

Here are 10 tips for the new property investor or even the seasoned investor to consider:

10) Get bids on the work you will need to do. Even if you have done this sort of thing for a long time, it is always a good idea to talk to your subs before you make an offer rather than after you have purchased the property. Costs are rising in all areas and a job that might have cost one price a year ago may have a completely different price tag today.

9) Figure out your acquisition money. If you will need to obtain financing for the purchase of the property or any part of the repairs it is good to know what types of financing are available before you get to involved in the project. Typically, the mortgage requirements are much stricter for investment properties. Better credit and higher down payments are normally required. Closing costs may also be higher and all of these considerations affect your total capital out lay. The good news is that there are loans for investors that will allow you to finance a portion of your construction costs and this can be a big help with the cash flow of the project.

8) Talk to a Home Staging Consultant. Selling vacant properties is a challenge. A good Home Staging Consultant will have some ideas for how to stage the home so it seems welcoming and appealing. This can definitely give your property a marketing edge and it is a good idea to budget for it.

7) Have a "heart to heart" with your Realtor. The worst mistake many investors make is doing the wrong improvements. Your Realtor can help guide you make choices for improvements that will increase the value of your property without over improving it. The other thing you need to carefully consider with your Realtor is the marketing time after you finish the project. What can you realistically list the property for, what marketing time can you expect at different price points and what will your carrying costs be during that time.

6) Have a contingency reserve. Something will go wrong. It always does. Plan for it by having a percentage of your overall budget set aside for when it does.

5) Find out what type of financing your property qualifies for. Your property may be located in an area that has special financing available for buyers. Many urban areas have community development loans that help buyers purchase homes in those neighborhoods. Rural areas may qualify for USDA 100% financing. If your property is in an area that has special financing available use that information to help market your project.

4) Get an appraisal. This may seem like a needless expense since your Realtor is advising you on market value but it can give you and your potential buyers additional peace of mind. There is also another reason and this has to do with #5 and # 3 so pay attention.

3) Make sure the improvements meet FHA requirements and bring the property up to FHA standards. Not every property qualifies for FHA, multi family homes or homes at the higher end of the price scale may not qualify (please talk to your mortgage professional about this) but a large number of buyers in the current market are using FHA insured funds. Your property will stand a much better chance of finding a qualified borrower if it meets these standards. A certified FHA appraiser will be your best source for this.

2) Keep all your recipts. There are a number of reasons to do this. Of course you want to keep track of exactly how much you have put into the project for your own records but increasingly, mortgage lenders for the buyers want to know as well. If you keep these organized and in one place, if the buyers lender want to see them it will be painless to get them copies. This is even more important if you have more than one project going on.

1) TAKE PICTURES! They say a picture is worth a thousand words and when it comes to modern day underwriting this is proving to be true. Pictures taken before you start can often help tremendously in explaining increases in value. Typical underwriting says that the value of a property is only what the most recent purchase price plus the actual cost of improvements total if the property has been owned by it;s current owner less than 12-24 months. You can have all the augments you want about sales price vs. value but a picture of a trash filled, dirty, damaged property will go a long way to helping you win that argument.

If you have any questions about financing for investment properties please feel free to contact me any time.

I woke up and felt a nameless fear. I stared around my bedroom in the early morning gloom and all seemed as it should be. Partner already up, I could smell the coffee, dogs still in sleeping, I could hear them snoring, no ill effects from my long run the day before, I flexed and all parts seemed to be operational.

I stumble out to the kitchen. The Business section of the morning paper was next to my steaming cup of coffee. Bail outs, crashing markets, massive layoffs, blah, blah. Same old, same old. My sleep addled brain couldn't put a name on the feeling of dread lingering in the back of my mind but it was there. A cold finger caressing my spine, causing me to look over my shoulder and wonder what is coming?

Shake it off, shake it off. Nothing a second cup of coffee and a hot shower can't banish. Off I go. Shower is steaming, coffee is precariously perched next to curling iron, all is well and then I see it. Hanging innocently from the back of my closet door, the suit. The grey one. But all my suits are grey (or black) This however is the suit, the one that that gets trotted out for interviews, none of those scheduled, the one I wear to closings, unfortunately none of those schedule either, and the one I wear when I cold call.

AAHHHHHHGG! COLD CALLING! Realization poured down on me like being caught in a storm. I nervously checked my schedule. Yup. Today I had scheduled myself for 3 hours of cold calling. 3 hours of driving around, showing up without an appointment, trying to get past the dragon lady at the desk to meet with Realtors.

I hate this. Truly, honestly hate it. I prefer to schedule appointments with people at a time that is convenient to them. I prefer to give an out line of what we will talk about, what value I can provide. I don't like people dropping in on me and I hate to do it to other people.

As I dried my hair and desperately looked for a pair of hose without a run I made every excuse my newly caffeinated brain could think of, old school way of marketing, rude and intrusive, ineffective use of time, no one actually goes to the office anyway, if they thought I could be of service they would have returned my calls. I had myself just about talked out of it. The dread was receding with the thought that I wouldn't have to do this when I remembered the sales trainings I used to give. Telling people to step out of their comfort zone, that nothing replaces face to face meetings, that persistence coupled with a valuable service will equal success.

Time to buckle up your chin strap Girlie, you're going in. I didn't walk out of any office with a handful of leads, I didn't expect to. I did make a few contacts and had several nice conversations, even with the dragon ladies. This is what it's all about.

When you wake up with that feeling of dread, knowing you will be stepping out of your comfort, take heart. I'll bet it won't be as bad as you think!

Many people have told me recently that I'm crazy but I think I have finally come to my senses. It's been a long year with lots of ups and downs.

This time last year I was made an offer I couldn't refuse. I was offered a position as the Eastern and Southern Region Sales and Operations Manager for a wholesale lender. I was honored to be offered this chance when jobs were scarce, especially in the mortgage industry. This job gave me the opportunity to work in a different segment of the industry, behind the scenes if you will. It offered me the chance to work on a national level and enhanced my knowledge of secondary markets. I remain grateful for the faith that was placed in me and for the wonderful education I received. One of the things I loved about this position was being able to talk to mortgage brokers and lenders all over the country. These are my brothers in arms, their stories are mine.As much as I enjoyed the camaraderie, I felt like something was missing.

I posted my first blog entry on Active Rain in April of this year. I became addicted to the community. I am not always as Active as I would like to be but I'm trying. What do I love about this community? I love signing on in the morning, looking at the dashboard and knowing that I am connected to people just like me. I love reading the stories of good closings and the challenging ones, hearing your horror stories and your triumphs. I love seeing the advice given and the advice asked for, seeing the community help each other and heck, I love the occasional squabble.

The more Active I became the more I realized how removed I was from what I really love, how far I really was from being in the thick of things, how long it had been since I had qualified a borrower or attended a settlement. I missed all of that so much but I was apprehensive to make another change. As we all well know, this is a tumultuous time to be in the real estate industry and any change is nerve wracking. If it ain't broke, don't fix it.

Sometimes ya just have to jump. With the support I have received from the Active Rain community (those who knew I was making a change and encouraged me, those who have never heard of me but who's stories inspired me) I jumped. I resigned my prestigious (and salaried) position to become, once again, your 24/7 loan officer.

I'm taking this show on the road, I'm takin' it to the streets. If you are a member in the Lehigh Valley, expect a call from me. Heck, if you live in the Lehigh Valley and I happen to catch your eye in the grocery store expect to be handed my card. If you are one of my many on line social networking associates, don't forget I do mortgage loans for a living, I'm very good at what I do and I'm available to discuss your needs or those of your clients.

I may be crazy but I've never been happier!

Now that's the 85 dollar question, isn't it? There are many wonderful resources that explain the information lenders need to pre-qualify and pre-approve you for a mortgage loan. Call me if you have any questions about this or need to be preapproved. Your mortgage lender reviews and verifies the information you give them and then they determine a payment amount that you qualify for. They will give you an idea of the loan amount and purchase price range you should be looking in.

This payment amount that you qualify for is your total payment amount. This amount includes your repayment of principle, your interest payment and your payments for real estate taxes, homeowners insurance and mortgage insurance as required. This is very important to understand since unless you have a specific property in mind, have already gotten the tax information from your Realtor and a quote from your insurance agent this can impact the amount of loan you qualify for. Huh???? Your lender already told you the payment you qualify for so why would the loan amount and consequently the purchase price change?? I'll let you in a little secret, unless the lender knows the exact tax and insurance payments we (gulp) guess. Please work closely with your Realtor so you are targeting neighborhoods where the combination of price and tax amounts will fit in with what you qualify for.

Now you know what you qualify for it's time to think about what you can afford. These are often two very different amounts. Your lender knows what your debts are but they may not know that you pay hundreds of dollars a year so your daughter can be a cheerleader or that you have an expensive gardening habit. Sit down and write out your monthly and yearly expenditures, build in regular savings as well as an emergency savings and add what your lender tells you that you qualify for in a housing payment amount. You might be shocked to find yourself left with a negative number when you subtract that number from your take home income. When you are figuring out what you can afford be honest with your self. Don't figure out what you can afford based on a raise or promotion you haven't gotten yet, don't discount your "fun" money and most importantly don't short your savings amount.

I will leave you with this, only you know what you can afford. Unless you think you can afford more than you qualify for. Don't be pressured by your lender, realtor, cousin, pastor or anyone to spend more than you can afford. Don't buy with your heart, buy with your head!