Dan Steiner

We are steadily selling houses in this market but our great dilemna is in getting a bank that will finance the building process. Financing a construction loan is like expecting your taxes to go down. We stumble through bank after bank until we can convince our customer to use just 2 local banks that will do the construction loan and the end loan. We are putting into our contract that we strongly recommend using these 2 local banks.

Our average time for getting financing through starting with other banks is averaging 3 months, what a way to make our customers happy. Here's the scenario, 1.The customer comes and tells us they have a great banker with whom they have dealt with for years and he tells them he can take care of evrything for them. 2.The customer and our company get them all of the information in about a weeks time. 3.We wait 3 weeks while my wife calls them every 3 days. they say no problems, everything is going good. 4. The banker then says we need more information, they need blood samples and drug tests from our customer and us and our employees or whatever other silly thing they can think of. 5. We resubmit our info and we go into another 3 week circular flight pattern. 6. No problem says the friendly banker "all is good now". No call back after our repeated calls and we know that things smell a little toe-jammy. 7. Finally we reach the bank and they say we can give you a one month construction loan, (not too bad if a modular is showing up on your lot in a week). 8. Sorry we can't do better than that and we will not answer any more phone calls because we look really stupid for telling you we could make it happen.

I know there is some tongue in cheek coughed up here but the reality of that scenario is the rule and not the exception. Take the time to find a couple of banks that can get you approved quickly and within reason of your ability to finance. Find that banker hug em and send every home you wish to actually sell or build straight to them.

In our struggling to come out of this recession there is only one thing customers, realtors and builders should be screaming about and that is to relax the banking regulations that have swung the pendulum way outside the giant gong. The underwriters of the banking industry have shriveled up any real growth in the one industry that would quickly bring us out of the recession, and that is housing. If housing begins to recover everything else will be righted quickly.

As a builder it used to take me 2 weeks to get the banking issues worked out and then I was on to permitting and building. Now we are averaging 2 months and normally switching to 2 or 3 bankers before we can start building. What a nightmare for us who are trying to produce a good product for people who pay their bills and who live solid lives who would never think of not doing the right thing. Here are some things that we have learned through the process:

Steer your people to the right banker. The national banks are not even realistic. They are giving a 60 to 90 day commitment letter, for a realtor that might work or it might not but for a builder that's a joke. If your between 120 to 180 days to build a home then the early commitment is a mute point. The national banks have about 260 new requirements in their underwriting and it's locked up so tight that to get a loan you have to be able to pay for the home in cash.

The local banks who knew who the people were that would pay their bills are way more realistic for a couple of reasons; for one they didn't make high risk loans in the first place and don't have the bad debt out there that the national banks do, for another reason they are more flexible with who they decide to loan money to just as in the old days.

Even if you deal with a local banker you need to find out those that have some flexibility in their decision making. The best way to find that out is to just ask around as to who is willing to make loans to good customers. We have several banks in our area and they have been golden, so much so that we are writing into our contracts that our customers need to use them. This one point is taking 1 and a half to 2 months out of the building process.

When you as a realtor or builder have built a rapport with a few local banks then they give a lot of credit to your customers and to your selection of those you are working with. You cannot over estimate the personal touch that your reputation carries with you. We have faced a few very hard years and personally we would be out of business if it wasn't for our integrity and personal relationships that we earned with some of the local bankers. Now we are blessed to be selling homes and will soon be caught up thanks to our local bankers.

The same thing goes for mortgage brokers. we still use them but we use the ones we have worked with and that know us personally, if you go out and find someone out of the clear blue that doesn't come recommended then you are headed for the same fate as a national banker. We tend to use our mortgage brokers for our lower priced homes where the customer might have to pay pmi and pay a slightly higher interest rate than what might normally occur. We have a couple of mortgage brokers that have proven to be very valuable.

Building growth in Northwest Indiana

Unbridled, unchecked growth in real estate on the 2 coasts and unethical lending started us into this downward spiral that we face but we don't have to stay in this malaise. Northwest Indiana has a lot to promote and solidify in this volatile market. Are things bad? Of course they are but how has America pulled out of messes like this before? People who like to make things happen have stepped up and believed in something bigger and have dreamed of something better for all of us.

I am a builder in Northwest Indiana and we have had a beehive of new customers lately. I've done a lot of thinking as to why that might be and I don't have time to share all of those things but I will say it is because we are loving what we do and are pushing very hard. We are also working at unconventional ways to be successful. People talking to us sense integrity, immediacy and flat out hard work to be better than what is expected of us. We are blessed but we believe in great intensity behind the blessing. So what should we and our leaders be perpetuating in terms of real growth in Northwest Indiana?

1. Our governor and state pols have eliminated double taxation on our businesses, our state stands in a unique position because of this. The rest of the country is celebrating in our new found socialism but our state leaders have seen the value in the fact that business creates new and real jobs that increase our standard of living for all involved. Most people live very affluently in this country because of the idea that every person who works hard and produces gets to live the American dream.

2. Property taxes have been set at levels well below our neighboring states. Our state pols know that limited government and lower taxes produce growth. I was delighted to see a number of counties vote on eliminating positions that can be done by other govt. entities. To further our growth the pols set property taxes at 1% for residential and slightly higher for business. What a stroke of genius. This means that when companies are looking for states where they can grow then they will obviously consider Indiana.

3. State sales taxes are below neighboring states. If you were to work in Chicago and considering where you where to build a home then it seems apparent that you would look at Northwest Indiana since it is as close to downtown Chicago and taxes are considerably less than living in the land of Lincoln, (which is a misnomer these days).

4. We have a plethora of great safe school systems that believe in quality education but not in spending unlimited amounts of tax dollars on it. In the Chicago area you almost have to pay for a Catholic education to get that kind of quality.

5. Good steady growth that reflects itself in our banks and and many other institutions in Indiana that haven't sold out for the quick dollar which we have seen in the two coasts that brought this whole mess on. I think back to when Greenspan was warning the 2 coasts that they were shipwrecking the country and that they needed to change their ways, (which they didn't). You can lay the blame on President Bush if you like but I heard many national pols say everything was fine and that included many Dem's that were in very influential positions. Greenspan and President Bush both warned of the impending crisis after 6 years of great growth but they were largely ignored by the elite in congress.

6. Big business is spending huge dollars in Northwest Indiana to expand growth. If you take what big business is spending in Northwest Indiana and multiply it times ten then that is the real effect of money that is fueling our growth in the region. This money extends out to everyone that is employed in this region. Let's encourage our leaders to set the standard for growth and leadership in these hard times because there is a silver lining in these gray clouds. Show all items Displaying 1 / 1 All 1 New 1 Sort by: List Order Date Title Author Filter by category: Northwest Indiana can build new and vibrant growth 1 Mark feed as read View feed properties...

I have never sold a pre-sold through a realtor, I have offered very good money for selling a pre-sold but have yet to sell one through a realtor. I offer a very nice package at a very reasonable price and a lot of realtors know that but no one will sell one on their own. Little do they know that when things are good I would give them all of my business which is highly lucrative. Please tell me what I am missing.

I love Northwest Indiana. I am continually told that we are polluters and that it is time to get rid of our major industry in Northwest Indiana. Northwest Indiana produces the best steel in the world bar none. As a builder of new homes,, it drives me crazy to read and hear how horrible we are. BP is putting in a 3.5 billion dollar infrastructure for converting sand oil from Alberta and the papers and Illinois pols tell us how horrible it is. We have very high standards for clean air and water. The people who strive to have great industry live here also, they are your neighbor and I believe in most cases want clean air and water for their children.

The real problem probably lies more with community leaders and pols who are afraid to speak for the voice of reason in our region. I have no apologies for supporting some of the best real production in our country. Our workers and white collar establishment are midwesterners with an attitude of producing the best that is possible. It's time to speak against a small angry voice and against outsiders that would have Northwest Indiana as a vast reserve for pleasant little antique shops. We as a people can be clean and productive.

Our area is so unique in all that it produces. Our housing is affordable, and so fabulous in originality. Even the low income new housing speaks of people who are willing to stretch themselves for a great product. From Tower Acres in Valparaiso to Lake Hills in Saint John you see very desirable housing in all price ranges. Our ability to produce the world's best and to contribute in great ways to this country will be diminished if our local leaders are silent and ignore the continuous drumbeat of silencing the incredible Northwest Indiana.