Yesterday I went with a friend of mine to looks at an office space. The place was too big for me and I knew that he runs his own business. So I offered more than half of the space in building to him so we can purchase the building together. Anyway he starts to ask for impossible things, like if we can run a restaurant from an office building.
Since I knew he was in building business, I realized that there is something wrong with the picture. We sat down in my car and talk about the fixer upper home he bought. He told me that he find a loan consultant! Where? In San Diego! 500 miles away! To do what? Get a loan from! What is the rate? 8.5%?
Wow! I thought. He knows that I am a Real Estate Broker, still he goes and deal with somebody miles away, who even does not have a license! He actually comes to my free classes to get his own license! I could not believe my ears! But what can you tell your close friend?
Anyway the loan consultant told him do not worry about high rates, I will refinance you in three months! (Greedy bastard) when the prices are higher and get you a neg-am loan?
Loan consultants are lucky that they do not have a Real Estate License. If we Real Estate Brokers do such a thing and promise the client that his property goes up 10% in three months, we will loose our license in no time!
I told him it is start of summer and if he wait too much he might get stuck with the fixer upper a year or so and that would not be beneficial for his finances.
I am not very pushy when it comes to my clients or friends. I still do not know if I was able to change his mind about two back-to-back refinancing! But I know something for sure now. We brokers intend to overestimate peoples ability to make right decision.
I meet my friends a few days ago and he did not mention refinancing issue, not a single word!
The moral of the story is that sometimes clients and friends might think that we talk about real estate too much. I think we have to talk to them even more about real estate until they learn to talk about it to us. So we have to talk and talk and talk, so we protect them from stupid things that they do otherwise to themselves.
I personally advice any broker and real estates agents to warn their clients to deal with loan consultants, cause if the guy was somebody, taking a real estate license takes a few weeks, he is probably a high school drop out who use the money he makes to fool around. Deal only with somebody who has something to lose if he does not treat you well. A loan consultant has no Real Estate License to loose and that's why it is risky to deal with them. You get normally ripped off really bad if you do and it is the job of Real estate agents and broker to prevent our clients to harm themselves or isnt IT?
Best Regards
Broker in charge of American Dream Realty
HR Dadgar Broker in charge of Amreican Dream Realty
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