Posted by James Strange on January 02, 2003 at 21:31:20:
As investors we all need to understand financing. But most of us do not have the time or resources to keep up with the changing trends, find deals, market and keep a day job. So we have to concentrate on areas that give us a pay check.
I decided to learn more about the finance side about a year and a half ago. I was moving to a new state. I needed a house (wife said no buy house no move) but did not have time to market for one. So I was working with an agent she wanted to pre approve me with a broker. The broker did not know about stated loans and since I was changing jobs etc. they approved me for a very small loan. I told the agent that I could get more than that.
So I went out and found my own financing. I found a house and got it under contract, one she did not think that it would go. The agent was blown away and even introduced me to her broker.
So some time goes by and when things slowed down at the new job I wanted to find out how I could make money doing loans. I found out the laws and went to a pre licensing class. I took a home study course and read rate sheets and lending guidelines like crazy.
So I have an idea about what lenders are looking for. And yes I like to share that information. If an investor will do the right financing they can make a lot more money.