Showing posts with label California short sales. Show all posts
Showing posts with label California short sales. Show all posts

Friday, August 19, 2011

Rick Solis and Andrea Esplin Join Bruce Norris on the Real Estate Radio Show #239

This week Bruce is joined once again by Rick Solis and Andrea Esplin, both investors in Southern California.  Bruce, Andrea, and Rick discuss when they noticed the market going down and how it affected their business strategies, how things have changed in the real estate business, the status of rental properties for the time, the status of their inventories, and much more on this week's real estate radio show and podcast.

Play Now

Friday, March 11, 2011

Sean O'Toole with PropertyRadar #216

Bruce Norris is joined again this week by CEO of Foreclosure Radar, Sean O'Toole. Sean and Bruce discuss what Sean sees for the future of REOs in 2011; current legislation looking to do away with HAMP, NSP, and other government-funded programs; new short sale tools for Realtors and homeowners on ForeclosureRadar.com; and much more this week on the podcast.

Play Now

Friday, September 17, 2010

Ivan Choi Joins Bruce Norris on the Real Estate Radio Show #192

This week Bruce is joined by current president of REOMac, Ivan Choi. Ivan discusses the difference between a mortgage banker and a mortgage broker, the ease of obtaining funds in the current market, the current state of foreclosure inventory, shadow inventory, fear in the servicing market, and much more.

Play Now

Friday, September 10, 2010

Mike Novak-Smith Joins Bruce Norris on the Real Estate Radio Show #191

This week Bruce is joined by Mike Novak-Smith. Mike has been a household name in the REO business since the 90s. He has gained national recognition for his work in the REO industry. Mike and Bruce discuss how Mike got in the business, what it takes to stay in the REO business, what's going on in the REO market, and what to look forward to in the future.

Play Now

Friday, January 22, 2010

Greg Norris of The Norris Group #158

Bruce Norris is joined by Greg Norris, Porject manager at The Norris Group in charge of REO and trustee sale acquisitions. Bruce and Greg discuss some of what The Norris Group is doing, how Greg learned the skills necessary to be successful, and what it takes to be a competitive California real estate investor in the current market.

Play Now

Friday, July 3, 2009

Marsha Norris #129

This weekend is the official launch of I Survived Real Estate 2009. We launch the event with special guest, 14 year breast cancer survivor, and inspiration behind the event, Marsha Norris. Aaron Norris also joins the show as organizer of the event.

Marsha discovered that she had breast cancer in 1995. Bruce asks Marsha what emotions she felt when she discovered her cancer. Marsha said that she felt fear, anxiety, and terror. Fortunately, Marsha is not the kind of person who dwells on negative thoughts for very long, so she quickly began to look for help. Bruce and Marsha went to four doctors before they found one that they were comfortable with. Marsha did a lot of personal research and reading on cancer as well. When Bruce and Marsha went to UCLA they felt like they were being treated as people rather than a disease.

Bruce asks Marsha how important she thinks her attitude has been in regards to her ability to survive cancer. Marsha thinks that her attitude has been crucial, because negativity immobilizes you. She had to be her own cheerleader. She kept thinking, “What can I do for myself, and where can I find people that will help me?”

Marsha thinks that it is important to believe in the choices you have made for yourself, rather than just relying on your doctor. Marsha believes in working with traditional medicine as well as complementary therapies. You have to be comfortable with what is happening and not just let the doctors take control of everything. You have to believe in what will work for you.

Bruce asks Marsha if most people who encounter cancer for the first time are very independent. Marsha thinks that most people are so fearful that they just hand their life over to their doctors. Sometimes Bruce and Marsha go to different doctors and they assume that certain things have already occurred. For example, some doctors have automatically assumed that Marsha has done the lymph node test, and when they discovered that Marsha did not do that they were amazed. Now Marsha is being told that in the future doctors will no longer even use the lymph node test, so many of the things that Marsha was stubborn about turned out to be unnecessary. Her instincts have proven to be correct over time.

Marsha is taking a new treatment now. Cancer takes people on an emotional roller coaster. Coming home from Marsha’s first surgery they went to Claim Jumper for a gigantic lunch. At that point, Bruce was feeling confident that they could handle what they were up against. Two days later, they were told that Marsha needed another surgery. That swing from feeling happy and relieved to feeling downhearted is very tough, and they have dealt with these types of disappointments for 14 years. It can be very emotionally draining.

There has been a new word that has emerged in Marsha’s place for treatment, and it is “remission.” In the past, remission has never been a word that anyone used. It is exciting to hear people say that they are in remission and it is important for people to have hope. Marsha has never taken traditional chemotherapy but she has spoken to people who are in chemotherapy. These people are completely drained, sick, and depressed. Marsha remembers one man who said, “I have nothing left to loose. I have lost my job, my home, and now there is nothing left other than my life.” Every attempt that Marsha has made to get treatment was an attempt to continue living, but many other people suffering from Marsha’s situation are getting treatment to prevent death. She has a much more hopeful outlook.

When Marsha started taking this new treatment she lost some hair, so she decided to shave her hair and get wigs. She took her friend Diana, and Diana almost started crying, but Marsha told Diana, “Don’t do that. I’m choosing to do this.” She told Bruce, “Its just hair, it grows back.” Marsha and Aaron have made fun of her wigs. Aaron named each of her wigs and given each one a personality based on their look.

When people hear that Marsha has cancer, they expect a certain demeanor that they do not receive. They look at her and say, “Well, you do not look sick.” This makes Marsha feel very good. Every day Marsha wakes up and thanks God for giving her another day, and for the little things that she is able to do again now that her right hand is no longer broken.

When Marsha came to the radio show, someone from the radio show approached her and told her that they know someone who has cancer. Bruce asked Marsha how often people approach her and ask her for help with a friend or relative with cancer. This has happened several times with her. She has been able to give advice to people using chemotherapy, and she has offered her time to talk to them should they need it.

Bruce asked Marsha if it is emotionally draining for her to talk to people who need help. Marsha said that it used to be but now she is glad to offer help to anyone who needs it.

Marsha currently has a couple oncologists and ten other physicians/therapists who help her. Bruce asks Marsha how important it is for her to have many different places for her to get help. Marsha thinks that it is very important because you need to treat cancer with multiple tactics. It is not all about medication; you also need nutritional support, massage therapy, acupuncture, and chiropractic help to relieve pain.

It can be overwhelming to watch Marsha’s daily schedule. She spends a large portion of her days taking care of her cancer needs, yet she continues to have a positive outlook. It can get exhausting taking supplements and having to eat a certain way all the time, but it becomes a lifestyle after a while. Every once and a while she has to get a burger.

There have been times where Marsha’s kids will ask if she still has cancer, because they cannot tell based on her attitude and the way she lives. If she feels good and acts good then everyone else feels better as well. Aaron is very proud of the way his mother is handling her cancer. Her strength, persistence, and stubbornness amazes him. There have been many times in which Bruce’s employees have cried in his office because of Marsha’s difficulties and that support is what makes the “I Survived Real Estate” event so important to Aaron. Every event they go to there are always people sending flowers and asking how Marsha is doing.

Bruce asks Aaron how people reacted to the event last year. Aaron said that many people were confused. He gets yelled at by people every month because people are expecting him to do advertising on the radio show. It was difficult to explain to people that The Norris Group and its partners were paying for the event so all TNG needed was for people to donate to or join the walk. This year the panel lineup is a real dream team and Aaron has been surprised by who decided to sign up.

Early in Bruce and Marsha’s marriage, Marsha’s father had lung cancer and he did not have a hopeful attitude. Bruce asked Marsha if her father’s reaction to cancer inspired her to act differently. Marsha said that when she saw him give up, she thought “I can’t believe that he is giving up so easily when he still has two sons to raise. If that ever happens to me, I will not give up like that.”

Marsha has learned a lot about herself through her experiences. She has discovered that she has a lot of inner strength. She does not let doctors push her around. She allows them to give her their opinion but always questions their judgment. Marsha enjoys her current oncologist because she is supportive, and she supports Marsha’s decisions.

Marsha has discovered who her real friends are through her experiences. She has had a lot of support from her family, and she has had a few friends who have not stuck around.

Marsha hopes that her family sees that they have the ability to withstand these difficulties as well.

If someone was recently diagnosed with cancer, the first thing that Marsha would tell them to do would be to relax, and start getting educated on their problems. Research your doctors and choose them wisely. Marsha also insists that people take the non-toxic treatments first, and use the toxic treatments as the last resort. Marsha takes baths with epson salt which helps take the toxins out of your body. There was a time where she was around multiple cancer patients and a doctor, and she suggested that the other patients try epson salt, but the doctor wasn’t supportive of her idea. Two weeks later, one of the ladies that she talked to about epson salt approached her and told her that she was feeling much better.

The event occurring on September 11 will be a formal event. For men, a tux is preferred, but not required. You can get involved by going to the website isurvived2009.com
You can donate to the walk or join the walk and raise the money to attend live for no cost to you while seats remain. If you raise 2000 dollars you can be a gold sponsor, and for 5000 you can be a platinum sponsor. Each seat is valued at $200 dollars so we ask everyone to donate or raise $200. That $200 must be made to our “I Survived Real Estate Walking Team” to count as sponsorship. Visit isurvived2009.com for more information.

Marsha Norris has four children, seven grandchildren, and has been married to Bruce Norris for 39 years. Marsha is a trained massage therapist and loves reading on holistic medicine, different massage techniques, and numerous other topics. She enjoys traveling and looks forward to seeing Alaska this summer.

Play Now

Friday, January 16, 2009

Appraiser and Investor Rick Solis #105

Bruce Norris is joined this week once again by appraiser and investor, Rick Solis.

Bruce and Rick start by talking about market value. Rick says market value is what a ready, willing, able, and knowledgeable buyer is willing to pay for a property. Bruce asks if this definition is being held up with lenders in today’s market. Rick says that lenders are not. Bruce talks about how real estate auctions do not reflect true market value compared to fixed inventory. The majority of the inventory needs fixing and must be sold in a certain time frame.

Rick says the market is very different from the 90s. In the 90s, Rick says that there used to be a box that said “declining market”. If that box was checked, the deal wouldn’t go through. Now, the lenders will do those transactions but lenders require more comparables. It becomes difficult to find similar inventory. The banks will want to see the appraiser adjust for the market. Appraisals used to be good for 6 months. With a declining market, comparables need to be 60 days or less from the day of funding. Lenders want at least 2, preferable 3, comps within 60 days of funding.

Bruce asks how long appraisals are accurate in today’s market. In some areas, Rick says prices continue to drop quickly so not long. Every area is different. Bruce says in the last 60 days, appraisals are becoming more of an issue. Bruce talks about a recent example of an issue with an appraisal on a property with multiple offers. Bruce asks Rick what will happen if lenders don’t change their stance on valuing properties and creating comps that reflect perfect condition.

Bruce heard recently that lenders are considering doing refinances without appraisals because of the price declines which Rick has heard as well. He thinks that’s an interesting way to solve the issue. Rick says they keep throwing whatever they can at the issue. Rick says they did the same type of things during the Great Depression. Bruce talks about similarities with policies from the Great Depression and now.

Bruce asks if before and after pictures on properties are helpful. Rick says videotaping properties before and after would be a great help but if there are too many repairs they may want to see permits. He says to document all multiple offer situations.

Bruce and Rick then start talking about the principle of substitution. Bruce says there’s a short supply of good inventory. There’s a glut of inventory that needs fixing. Bruce feels bad for appraisers who have to fight for real prices and they have to be careful. Banks are only looking at pictures and don’t really understand what’s happening in the area. Rick takes many more pictures than is required to show banks why prices are where they are at.

Bruce asks about arms-length transactions. Bruce asks about what would happen if The Norris Group carried its own paper and created higher comps. He asks if that would be a conflict because of arms-length transaction rules. Rick discusses the potential issues and uses the example of builders.

Bruce asks what percentage of sales has concessions in the current market. Rick says almost 100% of transactions on properties that are on the market for two weeks or more have concessions although it’s not always easy to figure out what those concessions are. Appraisers don’t always know the concessions.

Bruce asks what percentage is allowed for condition in appraisals. Rick says condition can be about 10%. If you adjust more, it can become and issue. It becomes easy with comparables but more difficult if the data isn’t there to support line item adjustments for over 10%.

If the appraisal comes in wrong in the eyes of the bank, you get blacklisted and there’s a possibility of not getting paid. Rick says review appraisals were not as common when the market was going up. Some did but they were way more lenient. Review appraisers typically do a desk review and never go see the property. They are looking at online information. These review appraisers are typically hired independent contractors.

Bruce asks Rick what he would like to see changed. Rick says not having the lender paying for the appraisal would be better. That way there would be no pressure and more honest appraisals could take place.

Next week is Christopher Thornberg with Beacon Economics.

Play Now

Friday, January 9, 2009

Appraiser and Investor Rick Solis #104

Bruce Norris is joined this week by appraiser and investor, Rick Solis.

Rick has been appraising properties since 1989. Rick says it was a perfect time to start because he got to see both cycles. In 1989, you didn’t even need a license. Education, Rick says, has not improved appraisals. Bruce talks about how he got his appraisers license and why. They both say much of the business is street smarts.

Rick got into the business because he purchased a Dave Delgado seminar. He started buying a lot of houses. He realized he needed to know how to evaluate properties.

Bruce asks if appraisers are under pressure to come in at a certain number. Rick says pressure is coming from several sources including agents, buyers, sellers, and banks. From 2004-2006 the pressure was for the appraisers to come in high. Today, banks put appraiser reports through many more hoops. They are looking for something wrong with it and they have review appraisals done. They also use an automated valuation model (AVM) to check numbers. In a down market, the AVM is not an issue. It’s a real problem in an up market. Everyone is just being much more conservative.

Bruce asks Rick how he compares this downturn from the 90s. Rick says this downturn is much worse. There was a more gradual decline over several years in the 90s. Prices are much more erratic in the current market and it varies from month to month.

Rick says areas with lots of new houses, where there are lots of first-time homebuyer inventory, and far out areas seem to have gotten pummeled. Sometimes 60% of the value disappeared. Rick tries to turn down appraisals for irregular products (dirt roads, manufactured homes, etc). It’s very difficult to find comps and arrive at a number.

Rick says in 2009 he expects to see drops in pricing every month for the Inland Empire. Rick says in his area in LA, sales seem to have dropped by 75%. Prices are still coming down there too. Bruce asks Rick what percentage of sales in Victorville were REO. Bruce says 92% of all sales in the area were REO. Reselling in that area would be very difficult. It would be very difficult to get an appraisal too. When 98% are vacant and need work and almost all sales are REO, it’s very difficult to get comps to substantiate a higher price.

Bruce asks what Rick is running into when working with investors. Rick says too many investors are going off the sales price in the MLS. The numbers are incorrect at times because of bad data entry or concessions. Some of the busy REO agents are having assistants enter in the data and they aren’t being careful.

Rick says he uses the MLS but confirms those prices with public record. He uses Real Quest and Dataquick to make sure his numbers are correct. Luckily, data is getting a little better and more complete.

Rick says listings aren’t so much calculated into his appraisals but he does spend more time on pending sales.
Bruce asks if the goal for appraising properties for an investor is different then doing to for retail buyers. Rick says working with buyers is different because the buyer is dictating the price. It becomes its own comp. The investor purchase is more difficult.

Tune in next week as the conversation continue.

Rick is the senior appraiser at Ace Appraisals. Rick has been a full time real estate appraiser since 1989 and a HUD approved appraiser since 1993. He has extensive investor and appraisal experience in residential real estate in the Los Angeles, San Bernardino, Riverside, and Orange County areas.

Play Now

Saturday, January 3, 2009

Craig Hill with The Norris Group #103

Bruce Norris is joined once again by Craig Hill (hard money loan officer at The Norris Group) and Greg Norris (full-time property buyer for The Norris Group.

Bruce asks Craig about calls from first time investors purchasing homes with structural damage and mold. Craig says he steers newer investors with no construction background away from heavy fixer uppers. Houses don’t have to be a complete disaster. You don’t want their first house to be a bad experience.

Bruce asks Greg what he is doing differently from one year ago to buy and sell properties. Greg says he hasn’t changed that much but has gotten more efficient. At the very beginning he was doing cheaper repairs but now there’s a little more upgrades. Instead of linoleum we use tile in some areas and instead of tile on counters he puts in granite. We need to be the best on the market.

Realtors that deal with buyers are saying great things. One in particular isn’t wasting any more of her time on REOs and has decided to only show our homes because of the quality.

Greg says price and condition are really important in this market. Greg says the higher end listings have disappeared and TNG is typically the highest. Inventory is very low. Even though The Norris Group is the highest, the homes still sell. Consumers don’t want to deal with the fixers and want a nice home.

Appraisals are a bit of a problem. Greg says he’s having to set a top level. Buyers are wanting to see a top payment to be $1200-$1400 per month which is similar to rent if not a little less. Greg talks about the staging of the homes and how it helps with presentation. It helps online showings.

Bruce and Craig talk about the hold ups with selling. Craig says financing and appraisers are the biggest issues. There seems to be willing buyers for fixed homes. Craig says homes are being fixed better than they were in the 90s. More is being spent.

Craig is having to tell people not to chase the market and get very realistic on price. He often calls clients if a loan has been going more than five months. He wants to make sure the investor gets to the finish line. It’s difficult when prices are declining.

Bruce asks Greg about appraisal issues. Greg says the last 30 days has been much more difficult. Banks are so scared they are overcompensating. Appraisals over one month are considered old. Three months is considered too old.

Bruce asks about FHA transactions and the 180 day rule. Greg says he’s never been asked for a second appraisal. Bruce thinks maybe the review appraisal is the second appraisal. Bruce says that some of these appraisers are sitting 500 miles away.

Bruce asks Craig about loans that can’t seem to close. Craig says there is willingness on the side of the buyer but it’s the financing piece that’s causing problems for California real estate transactions. The checks and re-checks of the buyers stall closings.

Bruce asks Craig about the many new trust deed investors The Norris Group has had come on in the last 90 days and what makes them feel secure about doing investments. Craig says perceived safety is key. Craig makes small loans amounts, the investor is a special borrower, and typically the worst case would be the money lender ends up with a property.

Bruce brings up the fact The Norris Group was very conservative over the past few years so some of TNG’s main money investors placed their money elsewhere. Bruce asks about some of the uh-oh stories Craig has heard about. Craig says money investors are attracted to the return and sometimes forget there’s risk, especially if they had been working with TNG who has a very good record.. He told some to be patient and that TNG would be busy again soon. Some of these investors didn’t wait, went elsewhere, and now have a small portfolio of non-paying loans.

Bruce asks Greg what the secrets are to keep good contractors interested in doing our work. Greg says that it’s important to be easy to deal with. We don’t stand in their way and we have work. Consistent work is a big deal.

Bruce asks if there’s red flags when dealing with contractors. Greg says when contractors ask for money before work is done it’s a red flag. Greg typically pays every two weeks. The Norris Group pays for the parts. TNG knows what parts we want installed and we’re really just contracting labor. Greg says contractors resisted his method of buying all the parts at first but later said they liked the system. It allows them to have less money out of pocket and actually take on more jobs. Home Depot was difficult to work with at first but now after dealing with them for a year, it’s really easy and everything happens over email.

Craig says repairs is still a big hurdle but they get used to it. Sometimes Craig forwards them before and after photos and videos of an investor’s work. He’s had money investors turn down a project but then they see before and after videos of an investor’s work and they sign up for several. Once they see what investors do, they feel more comfortable.

Craig talks about holds for repair money. Most houses are needing major repairs so almost all loans have money held for renovation. Red flags for Craig are investors who want money before repairs are finished. Draws are given after things are completed. This protects the money investor and also makes sure the investor stays on track.

Bruce asks Greg how he handles all the showings of the properties since he lists all of the properties for The Norris Group. Greg says he doesn’t show them at all. If interested buyers call, Greg used to tell them to call their local agent after figuring what they were looking for. Greg wants buyers to be pre-qualified and doesn’t have a time deal all of that. He really relies on buyers agents.

Bruce asks Greg how we protect ourselves during escrow. Greg says he does all of his due diligence up front now to make sure he doesn’t go into escrow with someone who can’t close. He wants all buyers to be pre-qualified and not just pre-approved.

Craig Hill has been in the hard money loan business for over 25 years. Greg Norris has been working as the Norris Group's full time property buyer for going on two years. More information about The Norris Group at thenorrisgroup.com and tngproperties.com

Play Now

Friday, December 26, 2008

Craig Hill with The Norris Group #102

Bruce Norris is joined this week by the loan officer for the Norris Group, Craig Hill, and the full-time property buyer for the Norris Group, Greg Norris.

Bruce asks Craig about how long he’s been in the hard money loan business and who the typical borrower was when he first started. Craig talks about buyers he used to work with and how it changed 20 years ago because of rule changes. Craig then talks about how he started working with Bruce and how it made much more sense to lend to investors. Craig says the investor has made not only more sense but are better at making payments.

Bruce then chats with Greg about his past year and a half as a property buyer. Greg talks about his early experience watching trustee sale buyers and what they liked to buy. Greg talks about loans available for investors and how conventional loans are currently at a liit of four.

Bruce asks Craig why lenders are hesitant to lend to investors. Craig says lenders have a false perception that investors are bad to lend to. An investor has more money down and has just as many reason to stay in a home as an owner occupant but lenders don’t want to be involved in that transaction.

Greg talks about how long ago he started making offers straight out of the MLS. Greg says making offers straight out of the MLS was not successful in early 2008 as the lenders wouldn’t budge. In the first six months of 2008, zero deals came out of the MLS, most were coming from auction. Now towards the end of the year, almost all came from the MLS that The Norris Group purchased. Now, The Norris Group is buying about 5% of the offers made.

Craig talks about last minute funding calls and why these investors are in a rush. Craig goes into detail why people with money make these investor loans. Craig says our main target market are seeing loans being made of $85,000 to $120,000 where last year those same homes were being bought for $200,000. There’s been a big change in price. Money sources have become a little nervous.

The perception right now is everyone wants a cookie cutter deal. Everyone wants a $100,000 loan and money sources do not want to be aggressive. Those that want larger loans or are buying in areas out of comfort zone areas will need more in money in the transaction. Money sources in Northern California are wanting to invest in smaller loan amounts and also invest in Southern California where they feel TNG performs best.

Most hard money loans have to have investors put more money into the deals right now. Different sources have gone out the window because of the market.

Bruce asks Greg what he is looking for now as he is making offers on things inside the MLS. Greg says he is looking for anything within a $30,000 range where he thinks he can buy it and make a profit. Sometimes these are short sales and sometimes his offers don’t get accepted for months. Sometimes he gets deals because other investors fall out and he’s the only one left.

At this point, Greg is not being able to talk with people directly often. Right now, banks seem to be dictating to REO agents where before there was much more relationship involved. Greg says he sometimes gets no reaction from REO agents when making offers. Every agent reacts different. Some email when we didn’t get a deal and some do.

Bruce says between 2000-2006 most of our hard money loans came from investors purchasing from people directly. Craig says it’s now changed almost completely where 100% are bought out of the MLS, through auctions, and occasionally from trustee sale and probate. The MLS at this point is creating the most real estate opportunities.

Out of the 40 properties Greg has purchased this year, 30% of the deals were auctions, the rest were from the MLS. Greg is not looking forward to attending auctions. It’s a lot of work for sometimes no results. REDC and Hudson and Marshall have been mixed this year.

Craig says the inventory he is making hard money loans on is different form the 90s. In the 90s there were more 30s and 40s built home located in San Bernardino and Moreno Valley. This time, the investors are being savvier. Investors are buying a little bigger homes and newer homes. The inventory is much better.

Craig talks about why some investors get frustrated because they can’t participate in our money program. Credit issues aren’t the biggest issue. Liquidity is just very important right now. Most people don’t mind hearing “no” because we’re trying to set them up for success. Some investors just don’t understand the process.

Bruce talks about deals Craig turns down and investors coming back later thanking him for now allowing them into the deal. Craig finds that very gratifying. More next week.

Craig Hill has been in the hard money loan business for over 25 years. Greg Norris has been working as the Norris Group's full time property buyer for going on two years. More information about The Norris Group at thenorrisgroup.com and tngproperties.com.

Play Now

Friday, May 2, 2008

Pete Pannes of PMI Mortgage Insurance #66

Bruce Norris is joined this week by Senior Vice President, Field Sales and National Accounts of PMI Mortgage Insurance Co., Pete Pannes. Bruce and Pete discuss the basic business of PMI, when a borrower in a transaction pays for PMI, the range in cost, when PMI is required on a loan, if sellers can pay for the cost of PMI, competitors in mortgage insurance, what would happen if a mortgage insurer went out of business and its effect on the lenders, current stresses on mortgage insurers, how the industry is structured to handle issues in the market, how insurance changes the amount a consumer can borrow, if PMI is only for first trust deeds, if PMI has gotten more popular in recent years, if property value increases reduce insurance costs, at what point PMI is cancelled, what happens if prices go backwards, can PMI be reinstated if loan to value shifts, what price range of loans PMI covers, variances in PMI by state, if PMI can be used for purchases and refinances, how the market got away from paying PMI with 80% first and 20% second, if more traditional underwriting is taking place and if it includes PMI, how PMI was ignored because of run up of appreciation in previous years, reemergence of FHA and how it compares to PMI, how the consumer benefits from PMI, how lenders benefit from PMI, if PMI makes loan more liquid on Wall Street, how PMI assists bank if foreclosure takes place, what is covered in the policy and for how much, the borrower in foreclosure and recourse against borrowers in default, how do consumers prove they are in a 20% equity position, if late payments or rapid market declines can cause the bank to change its policies, do mortgage seconds or home equity line of credit change the PMI situation going forward, will PMI be required for longer amounts of time, pmigroup.com.

Pete Pannes is Senior Vice President, Field Sales and National Accounts, for PMI Mortgage Insurance Co., responsible for ensuring operational excellence with PMI customers nationwide.

Pannes has more than 18 years combined experience in the mortgage and mortgage insurance industry. He joined PMI in 1990 as an Account Representative and was promoted to Account Executive in 1992. He was a key part of the PMI management team that in 1994 formed CMG Mortgage Insurance Company (CMG MI), PMI's joint venture with CUNA Mutual serving the growing credit union market. Pannes held several positions at CMG MI from 1994 to 2001, when he joined CUNA Mutual as Senior Vice President and General Manager of CMG MI. In 2004 he rejoined PMI as Vice President of National Sales-Division Manager, responsible for the management of all field sales and select national accounts for the Eastern U.S.

Pannes holds a Bachelor of Science degree in Business Administration from Arizona State University.

Listen Now

Thursday, March 13, 2008

Nicholas Manfredi of the Short Sale Processor #59

Bruce Norris is joined once again by president of the Short Sales Processor, Nicholas Manfredi. Bruce and Nick talk about what attracted Nick to the world of California real estate investing, his background in data, if sales was important to being an investor, how the Inland Empire Investor’s Forum began, how his Southern California investor club has helped his business and skill set, what choices people have when facing foreclosure, what mistakes California investors are making when approaching people in foreclosure, how different short sale businesses are structuring their business, the ideal time frame to complete the short sale process and have the lender participate, where lenders are currently participating in the foreclosure process, the credit difference between foreclosure and a short sale, what someone facing foreclosure wants to hear when doing a short sale, lenders and their focus on BPOs, building relationships with loss mitigation departments, turnover in the loss mitigation industry, the BPO process, the amount of time per California short sale file, synergy with short sales and REO brokers, Nick’s upcoming short sale seminar, the structure of a successful California short sale business, doing what you’re good at, learning to set up a machine to do the most profitable things, percentage of response for short sale marketing, why education is always less expensive then learning the hard way, how long the short sale business in California will likely last, price adjustments in California, and his website theshortsaleprocessor.com.

Nick Manfredi is a real estate investor, speaker and corporate business owner. He has been featured in Fortune Magazine and The LA Times, and contributed to articles in the news media including CNN Money Magazine, The Press Enterprise, and RISmedia.

In 2002 Nick established one of Southern California’s most respected real estate investment club’s The Inland Empire Investors Forum. Focused on volume, he continues to wholesale 80% of his acquisitions.

Eager to capitalize on California’s changing market Nick co-founded The Short Sale Processor LLC. As CEO of Forum Real Estate Investments Inc

Nick continues buy residential & commercial property in California and Texas. Nick resides in Southern California with his wife Susan and 3 boys Gabriel, Nathan and Jacob.


Listen Now

Friday, March 7, 2008

Nicholas Manfredi of the Short Sale Processor #58

Bruce Norris is joined by short sales expert and President of the Short Sale Processor, Nicholas Manfredi. Bruce and Nick discuss how hard prices have been hit in the Inland Empire, different ways to evaluate homes, why Nick likes Corona as an investment area, what areas of the housing market are safe, inflation and interest rates and their effect on investment decisions, percentage of homes in Corona in a negative equity position, what conversations are like with current sellers, the journey of someone facing potential foreclosure and the option of a short sale, California and a possible depression, rent drops in the Inland Empire, the choices for someone in default, what some home owners have been spending per month on a home payment, the willingness for lenders to really help people to save their home, misconceptions on short sales, Realtors and the misunderstanding of taxation and debt relief, the Debt Relief Act of 2008, if you need to be licensed to do short sales, retail value and short sales, working with a Realtor who understands the process, reasons why lenders decline short sales, the MERS system, lenders position on borrower being behind before short sale consideration, how to attract people to short sales if not through mailers, how the Short Sale Processor works, the money to be made by helping sellers and lenders, how brokers can make just as much money with short sales as they can with a regular transaction, and finally, theshortsaleprocessor.com.

Nick Manfredi is a real estate investor, speaker and corporate business owner. He has been featured in Fortune Magazine and The LA Times, and contributed to articles in the news media including CNN Money Magazine, The Press Enterprise, and RISmedia.

In 2002 Nick established one of Southern California’s most respected real estate investment club’s The Inland Empire Investors Forum. Focused on volume, he continues to wholesale 80% of his acquisitions.

Eager to capitalize on California’s changing market Nick co-founded The Short Sale Processor LLC. As CEO of Forum Real Estate Investments Inc

Nick continues buy residential & commercial property in California and Texas. Nick resides in Southern California with his wife Susan and 3 boys Gabriel, Nathan and Jacob.


Listen Now