Jay Beckingham

Okay when I logged on today we had 160,841 members. My first thought was I wonder how many of the members are Realtors. My next thought was I wonder how many of these Realtors have ever helped a Veteran use their VA entitlement to purchase a home. And while I am not a negative person I wondered how many have not.

Not ever? WHY?

I could go on with a long dissertation as to how the Veterans of our country have earned our respect and deserve our help. But that's so obvious, or should be, that I'll spare you all.

So in a market that has lost many/most 100% financing options, why are we not seeing more VA buyers. The numbers for RD/USDA loans are way up, which leads me to believe that people still want/need 100% financing to purchase a home, particuarly those purchasing their first homes.

I used to hear the excuse that VA appraisers were too tough. Well that's gone, because all appraisals are tough these days. Lenders might add, well we can't select the appraiser on a VA transaction. Well, we can't select the appraiser on a conventional transaction either.

Don't miss this point;

This is a great program!!! made available by the US Government for those who have EARNED it!

These Veterans are your brothers and sisters, literally, your next door neighbors, your best friends, your acquaintances, and the guy/gal that you were laughing with this morning at the checkout line at the grocery store, or the couple you were praying with this morning in church.

Why would you not want to help them?

They may want to buy a home and this may be the only tool that will allow them to do so.

Did I mention that they have earned this benefit?

Oh ya, I did. How about the fact that some earned this benefit while in combat.

And we're not helping them?

I challenge every real estate broker, and every lender to put a sign in their window.

Veterans Welcome!!!

We consider it a privilege to assist a Veteran in purchasing a home!

Then the answer to the question;

Who's taking care of our Veterans?

Will be;

YOU!

ps; enough said, let's get to it.

Mr. President,

We need your help! Please make this a priority. We need you to get legislation passed which will ban cash buyers, unless of course no one else wants to buy the property.

Think about it;

First, you're telling everyone how bad things are and here's all these investors running around, with all this cash, buying real estate. Personally, I think this is bad for your image, and you know it's never too soon to think about your reelection. That alone should be reason enough to get started on the ban.

Also, your neighborhood revitalization programs, where cities and other governmental organizations can buy properties, is being impeded by these d-- investors, who swoop in and snatch up this real estate, once again using cash. Why it's UnAmerican. You have to prevent them from ruining your attempts to reallocate and give away money.

And the first time homebuyers are getting frustrated as they are continually being beat out by investors with cash. You've just got to do something. I'm sure you can persuade the Congress to pass such a ban, and if not maybe they could just attach it as a rider to an extremely popular bill.

I know you can do this, but if somehow the ban doesn't pass, maybe you could just tax the investors to death, and help finance some of the programs that we've borrowed so much money to implement. No rate would be considered to high. It's like, their civic duty to pay the tax and help out.

Well, I know that you'll do the best you can, you always do.

Thanks,

Jay Beckingham

I keep reading about the perpetuation of DOOM & GLOOM, so I gotta tell you I've got a BIG problem! You see I'm a mortgage loan officer in the Cape Coral area and there's just toooooo many CASH buyers coming into the area.

Let me make this perfectly clear!

Tooooo much $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

I was speaking with one of my favorite Realtors at a closing the other day. I asked him about how I could earn a greater portion of his business. He told me that out of 70 sides this year 63 were $$$$$. There it is again. Just too much $$$$$.

We have many well qualified first time buyers who become frustrated in their property search due to multiple offers on each property. Many or most which are sold to, you got it;

CASH BUYERS!!!

You knew the answer, because you've been paying attention, right?

So, when I scout the morning news on the net and I see all the doom & gloom I have to wonder why there are not any articles about this phenomenon, because if you're involved in this market, and don't have your head buried in the sand, you can't miss it.

Let me point out that these are not the type of investors who destroyed our markets. Those were actually speculators, kinda like in the gold rush days, looking for the quick killing. Our new and improved investors are, in most cases, strong financially, with deep pockets.

Now the obvious. They must be seeing something they like, BIG TIME!

Might that be a recovery?

I'd say YES to that.

So, if you want to have some fun in Southwest Florida, I'd suggest that you and your wallet get down here, like now, actually yesterday. Because in rememberance to Flip Wilson;

Here comes the cash, Here comes the Cash, Here comes the Cash!

As a mortgage loan officer I'd like to say;

Now cut that out!

There's just TOOOO much CASH here already!

ps; boy are the snowbirds gonna be in for a surprise!

Reminds me of John Lennon; "Power to the People," I can hear the music and John singing in my head. For some of you, you are just not old enough to remember John singing this. At that time, it was a protest type song.

Well in today's world Active Rain has given the power to the people and well, you all are using it quite nicely.

Stop for just one minute and think about what we've got here.

The WE that I'm talking about is all 160,289 members. That's today's count and you know that, without fail, tomorrow there'll be more of us. Are we all tied to the Real Estate industry. Pretty much, yup.

Is there power in numbers? You betcha!!!

I clicked on groups.

It showed a total; 5946 groups!!!!! Get outa here!

So, what is it that you'd like to know about that's not here? I say absolutely nothing! And for those who would like to scour through the 5946 goups to prove me wrong. If/when you find something you feel isn't covered I have a simple solution. Start a new group!

I'll go out on a limb and state that the knowledge and experience of the Rainmakers and their fearless leaders is unparrelled anywhere in this industry!

Okay let's hear it for us.

The founders developed a concept and shared it with our industry, and we ran with it.

People working together for the greater good can be extremely powerful.

The Power of the People;

It's AWESOME, just AWESOME!

ps; John would be proud of us.

When I first started in the mortgage lending business there was no such thing as a stated income program. The self employed and commission income clients had to live and die on the merits of what their tax returns stated. Quite frankly, I do believe that the underwriters back then did a much better job, than today's underwriters, in interpreting tax returns because they were used to dealing with them on a regular basis.

I believe it was Citicorp who rolled out the first "stated income" product and the guidelines made a lot more sense when we started with the program, than when we finished. When the program was initially offered you had to be self employed and a strong borrower, when it died you only need to have a pulse.

So here's my ProttypeII for a stated income product, and why I believe that it will make a comeback.

The borrower must be self employed (if not just fork over your w2's and paystubs)

A minimum downpayment of 25% is required (30% if in a declining market)

A minimum credit score of 740, with no lates for the last 24 months

Primary Residence/Second Homes only (if it is a second home you may not own any other property, other than your primary)

6 months PITI cash reserves with 3 months seasoning

A 4506 will be require to assure tax returns are being filed. (if the stated income is questionable the underwriter will take the adjusted gross, add back depreciation, and multiply the results by 125%)

Fixed rates only, and the rate will be 1% higher than the standard 30 year offering.

This sounds kinda restrictive you might say.

Exactly Right!!!

This program would only be for the cream of the self employed borrowers. That was the original intention.

Those who have earned it!

There will be NO EXCEPTIONS to the guidelines.

You fit or you don't.

For those of you who were around when the stated programs were first brought into the marketplace, these guidelines may sound vaguely familar. And initially these programs were a success, and can be again.

Okay, all you loan officers at Chase, Citicorp, Wells, etc. get these guidelines to your secondary market leaders. Let them have a good laugh at first, right up until they realize that the market is crying out for this program, and it can/will be extremely profitable. Especially for whomever gets started first.

So are stated income programs dead forever?

I don't think so, they're

Just Snoozin!