The GUERILLA HANDBOOK for MORTGAGE ORIGINATORS

BY NOW YOU MUST BE AS CONFUSED AS THE MAN NEXT DOOR. MAYBE YOU HAVE BEEN DRINKING THIS TEA.

"This Morning when we drove down the road, we saw 7 garages open on to the street each with a new Mortgage Originator or better known as a Bond Originator offering a new service,where do they come from?"...a confused Lena Lefty

When I received this mail I knew we needed to do some explaining.

Firstly, there are 100's of new bond originators on the market and everyday a new one seems to pop up and offer some FABULOUS new deal , but there is a reality out there. There are the guys who founded this industry with years of seriously great experience and there are the OTHERS who feed off the rest.

Then there are the estate agents who have also set up their own deals with banks and of course there are the BANKS themselves who also want a slice of the action - CONFUSED??? I'm not surprised.

So who are the real guys and whose next in line etc?

Well the original guys on the block with most experience all starting around about the same time are Wizard, Mortgage SA, Bettabond, BondChoice, Quantro.

These guys have the savvy know how and service ethics that set the stage for an awesome business platform.

Then came the rest. When they started , who knows , some are great, some pathetic and each one is a out there to offer you something.

Its either, 5% payback, commission back, No registration fees, Free this and free that, discounted attorney fees, blah, blah, blah, blah .

The truth is someone is taking a slice out of the banks commission paid. That means attorneys are receiving "commission" against discounted fees, Estate agents are getting fees, the client is getting fees and the bond originator will probably be bankkrupt after 6 months.

If you want fees and discounts versus great service well thats your call. ME, I want it done, done properly, no pain and having the financing a magical moment in my life.

So whose the plethora of BO's (Thats Bond Originator not Body odour) out there..here are a few names for you

Kredibond, Ubuntu, Mymortgage, Bond Experts, Bond Aid(Hi bob geldof), Bondfocus, Savebond, HomeloanXpress, BondOption, Bondplus, Bondrelax, Cashrefund, Mybond, Yourbond, Ourbond, Webond, Bondi beachHomeys, JamesB, Bestbond, Bondshell, Dimension Homeloans, Equity, Homeforum, The Bond Operation, Mortgage Impact, Givemeyourmoneyquickly and more and more and more

And of course you have SAHomeloans and Now RUDCO hmmm Slightly different kettles of fish!!!

Well many of these guys sub contract or aggregate through the bigger boys and what I hope happens is that the new National Credit Act starts clearing out the shysters so that mr and mrs Joe Public end up getting what they deserve......

JUST DARN GOOD SERVICE - something we South Africans are permanently looking for!!!!!

Home Loan Referrals! 0.35% Commission!

Wizard Midrand are starting a new online HOME LOAN REFERRAL campaign. With a selection of banners to choose from Wizard Midrand are offering home loan sites and South African property sites the chance to start generating income for themselves.

Wizard Midrand will offer 0.35% commission for any successful bond applications done through their site. If you're an estate agent or run a property site Wizard Midrand offer extremely good commission structures too...

If you think it's sounds pathetic let me give you an example:

You bring in 5 bonds of R 500 000.00.
That's going to make you R8750.00 extra PER MONTH!

Bring in 10 of those averaging R 1 000 000.00 a bond which by South African standards seems to be your average bond will make you R35 000 per month. It's a no brainer people...

If you're interested contact Steven on steveng @ gmail.com

BANNERS ARE AVAILABLE IN THE FOLLOWING SIZES:

120 x 240
120 x 60
120 x 600
125 x 125
250 x 250
350 x 60

Foreign Investors - Buying Property In South Africa

NEWS NEWS NEWS
I LOVE NEWS

Call me weird but I just love picking up the paper and finding a property related article, specifically a property related article that's worth blogging about.

Today's lucky winner is the Pretoria News.

Property in South Africa still open to foreign buyers

There's been alot of talk about adding restrictions on the foreign ownership of property in South Africa. According to the Pretoria News the reason there's been such escalations in the price of property is because of the foreign investmentors that have been pouring into S.A. over the last 5 years.

Is that true, partially, they bring money in, they're willing to pay more so property prices jump up! However, lets think a little about this, NCA being released, new credit laws, interest rate hikes, they're all BIG BIG BIG contributors to the property price escalations. Personally i think it's someone who's blaming foreigners for the average price of a house on the Pam Golding website sitting around the R1 500 000.00 mark :) *duck*

There have been some serious considerations though in terms of putting restrictions up:

- Long Term leasing of property versus outright sale of land
- A possible moratorium on sale of land to foreigners
- Th identification of instances where a prohibition on foreign ownership of land could be justified, such as national key points, water catchment areas, land along border lines and internal borders
- Special ministerial approval in cases where certain categories of land were considered for disposal, such as land earmarked for land reform, restitution or integrated human settlement

There are those that are of the belief that foreign investors are the people that have made this country the financial success story that it is today. BRING EM ON! WE WANT THEIR MONEY DAMMIT. STOP BEING SO ANAL. Let them spend their money in OUR country. In terms of loans and financing, foreign investors are already limited to a 50% loan.

What we should do is only provide loans to foreign investors if the property is over a certain value i.e. R5 000 000.00 and then still only give a 50% mortgage loan. This way half the money needs to be brought into South Africa and the other half can be financed by our banks. Either way don't shut them out, they're the people that bring the spark to SA...

WizardMan Out!

COME TO LUNCH I WANNA BUY YOU!!

I have to laugh, the phone calls from the kiddos on the block to entice us pure mortals (bond originators) who work our butts off to make this industry great as it should be...is getting fast and furious!

Be careful guys! WHOSE PLAYING YOUR TUNE!!

The folks who want a bigger marketshare, without having to work for it are after your slice of the business in the bond origination market...with offers to die for. I already feel like Victor Matfield except my offers are a bit more local but I still feel like a hooker in the scrum(You know what I mean)

Rumour Mongers are trying to JIVE US ALL SO WATCH OUT!!! If the rumours were true I would be standing on the street corner with a new sign:

No Money, No wife, No Bond Origination Work, No NCA assistance. Grass is Greener on the Other Side No Alliance or Mortgage Works available HELP!!

Well Stuff the Bull! July figures are on target, business is great and Mr and Mrs offers of greatness - Go Get A Job - I've got mine!!!!!

Splitters and drop a bombs and parking salaries for BONDEES

Recently I was asked by question from Alex on an earlier article so I thought I would share this as you need to step up your creative juices. It is your money after all. Change your own spots.....be the banker

Yes splitters and bomb drops and parking your salary all end up towards a similar end result.

Either easing your home loan payment load or playing bank yourself and using your home loan account as a kind of savings account. The banks in general prefer to MANAGE your money for you, but of course at a service cost.

The key to all of this is DO YOU HAVE ACCESS TO ANY ADDITIONAL MONEY PAID INTO YOUR BOND ACCOUNT.

SO instead of splitters etc try to stay away from stop orders etc.

Instead turn your bond account into your current account.

Make sure you have Internet access to both your bond account and your current account. If you can link them together even better so.

Then make sure your salaries or income is paid into your bond account on a monthly basis. AT month end transfer the total sum of your accounts, debit orders etc from your bond account to your current account, where your bills are paid from.The balance remains in your bond account.

REMEMBER your bond account accumulates interest on a daily basis. If you have a bond at prime (13%) then you earn interest at 13% DAILY on your full salary plus the balance left over after paying your accounts and the cycle is repeated each month.

YOU WILL FALL ON YOUR BACK AT THE RESULT and best of all

Your monthly costs are reduced i.e. less transactions happening

Your bond is paid in advance always - so you gain interest each month

You build daily interest at your bond rate and reduced your bond term

You increase your available SAVED money without doing anything ever

Its a win win win CHANGE YOUR WAYS SUPERMAN!!!

Forget about splitters etc, keep it simple and be your own banker

If you need anything else let me know email me at wizchris@gmail.com THE MAGE
20/7/07 12:59

INVESTMENT CLUB, SYNDICATION, FRACTIONAL OWNER, SHARE BLOCK UHMMMM!! Time to fly!!!!!

SO where to now! I love this property business and I know there has to be a new way of doing old things. The NCA has me slowing my pace down, but I KNOW I WANT MORE, but I'm being limited. My risk is up there somewhere, I have the bucks and am earning well and will continue to do so, so how do i buy more property. Where do I buy and what is going to give me a decent return on my investment. TIME TO PUT ON YOUR THINKING CAP!

Traditionally, we bought, we fixed and we built - and we were the proud owners of our own little nest!

BUT, we carried the costs, the expense, the risk ALL OF IT!!!

Time has come for us to share the load and their are some very cool ways of doing it;

Investment Clubs

Fractional Ownership

Syndication
Share Block (Uhmmm heard of this many times)

Hell man! there are many ways to go ahead and once again start having property fun. All we need to do is forget the doom and gloom keep our eyes on the pennys and.....

be different and step out of your comfort zone

SO what is it: Lets talk Investment Clubs!

Simply put, the easiest form is where a few of you agree to buy something together. Whether its for personal use, holiday, investment, turn for quick money, its irrelevant.

You share all the costs, the bond everything that way you minimize your risk to the amount of people in the club.

Recommendations:

Create a bank account - use an attorney and their trust account; that way everyones happy. Later on you can decide where to bank. AT least this an interest bearing account managed and kept in a trustworthy place for you.

Buy an off the shelf cc or company from the SHELF COMPANY WAREHOUSE and if you are an FNB client you are entitled to a 20% discount on the fees Shelf Company Warehouse charges for purchasing a close corporation and private company. Nice!!!!!

Create a spreadsheet with an assumed investment amount i.e R 1 million, split this into the number of people you want, add your costs and add an additional 30% for additional funding over the first 24 months and use this as your invite letter. Even easier you can email THE MAGE for advice and a formula and the process for you to use.

Find a property that you believe in. This means if you had the money yourself, you would buy it and you knew you could sell it and make a fair profit. Whats fair anything between 10% and upwards. Small and humble steps can be the answer. Its not always the big bucks. Its the big catch you want and sometimes you need small bait for the big fish......pazienza!!!!

Use the same formula for each property.

Invite all your best pals, family, associates to join and 20% of the money you need in total must be each person who joins membership fee. Remember this is your seed money for deposits etc i.e R 1mill plus 30%=R1,3/*20% is R 260,000 as your seed divided by 10 members = R 26k each that's the commitment.

Make them sign a commitment form and membership form for the CC / Company and NO DEPOSIT NO DEAL...that's the rule.

When signed up apply for the bond using a solid bond originator . Get a great rate and have all 10 members sign for the bond........and lastly.........start TRADING..............................................and you call the NEW TUNE.

South African Property - June/July Market Summary

BOOM

It's been chaotic and exciting to say the least...

The last month in South Africa has been a shock to the home loans and property barons and I think it's definitely worth a nice little summary. For those of you who missed all the excitement, well, here's your chance to catchup!

To summarise it all, I'd say the 3 major impacts and stories have been the following:

The National Credit Act
Rudco Financial Services
Bank Charges

The National Credit Act

First was the property boom, prices rising, interest rates dropping then, WAM BAM, thank you MAM, here comes the National Credit Act. All of sudden, investors who were purchasing homes by the dozen every month, found out that they could no longer afford (REALLY AFFORD) anymore property. Banks started declining bonds left right and centre because people were hiding money from them and claiming they were earning R60 000 a month when there statements were only showing R20 000 worth of income.

To top it off, the interest rates went up! WHAT THE HELL! Well, it's not all bad. What it means is that the banks and financial institutes can no longer loan money to people who cannot afford it! It's going to curb credit lending which is great for the economy, LESS DEBT, plus all those people who've been hiding money from the TAX MAN, will no longer be able to do it with property unless you buy it cash. Either that or you need to start showing the banks where that money's coming from.

Wizard says, YAY to the National Credit Act!

Rudco

Now here's a story that's been causing a stir. Rudco Financial Services came out this week with a special, "The first 1000 people to sign up with Rudco get their home loans at 6% interest". Talk about a stir. It's had the home loans companies up in arms and it's got people asking ALOT of questions.

Firstly, well done to RUDCO, it's caused such a publicity STIR that I'm pretty sure they've already got their first 1000 deals signed up. The reason Rudco got everyone talking though was due to a couple of "suspect" things that bugged us.

1. Where is there financial backing coming from? Why won't they disclose it?

2. They're not registered as a financial institute!

3. What happens if they go under? What happens to their clients?

4. Offering home loans @6% gives clients the false impression that they can afford that R1 000 000.00 property. If Rudco go under, and the client needs to switch to a bank. Their interest rates are going to jump to 13%. WILL THEY STILL BE ABLE TO AFFORD IT!

All in all though, Wizard do wish Rudco the best of luck. Banks needs competition, maybe it's the first step!

SA Banks and their DAMN Bank Charges!

This is something that just pisses me off! The banks and their bank charges. Now I can understand bank charges. I understand that we have the highest ATM crime rates in Africa (or the world for that matter) and that banks need to replace all the broken ATM's. Let me tell you though that paying R15.00 for every debit order that comes off your FNB cheque account is pathetic! I also believe that paying R20.00 to draw money from an ABSA ATM vs a FNB ATM is absurd!

The banks in this country are not making it easy for people to live! They're not helping South Africans and they're not helping the MAJORITY of South Africans (underprivileged) in making this a country to want to stay in!

Read this article that STORM posted, read it carefully and you tell me what the hell the banks in this country are thinking!!!!!

http://sa-property.blogspot.com/2007/07/are-banks-charging-you-more-than-they.html

But ladies and gentlemen. Apart from that, we love this country!
You cannot say that this isn't an exciting country and an exiting time in South Africa.

Thanks again to all the readers and the input everyone has had on our BLOG over the last 3 months.

WizardMan OUT!
I'm OFF TO DULLSTROOM!

Rudco - Home Loans @ 6% - WATCH OUT!

What is Securitization and where did it originate from?

Happy Friday to all you readers out there. It's been a long a busy week for home loan and mortgage originators with all the HOOHAA of the National Credit Act. It does however look like the banks are slowly starting to get things under control again. Just to let you all know. Bank Submissions are now taking 10 - 14 days. It's no longer the 5 day turn around time we've all become accustomed to.



Anyway back to the topic of the day. RUDCO Finance Company.

Let me tell you these RUDCO boys are causing quite a stir at the moment. Take a look at the article on MoneyWeb's site: http://www.moneyweb.co.za/mw/view/mw/en/page38?oid=145005&sn=Detail&ccs_clear_cache=1#CMT_ANCHOR.

Apparently you can get your home loan now @ 6% interest. Be careful people, when a company (Rudco) claims to have financing from a external source and they're not backed by the banks or registered as a registered financial institution, those blinkers should start flapping.

Firstly: Who does Rudco get their financing from, and why are they not disclosing it.

Secondly: Rudco claim to be using the World Bank's interest rate of 5.7% (or something there about) which sounds to me like their money is coming from an international source.

Thirdly: If they go under and you have to transfer your home loan to another bank, you're going to be liable from transfer duties.

And another one: When you're qualified for a bond @ 6%, Rudco goes insolvent, you have to transfer your bond to ABSA and you're now paying interest @ 13% (HOW WILL AFFORD IT)

So my personal opinion, WATCH OUT PEOPLE!

Update:

I've been reading quite a couple of articles relating to these Rudco guys and I'm going to list them here cause I think it's something that people need to just watch out for before they switch their bonds. Consider your costs and consider the fact that Rudco Finance is not a "Fincially Registered Institution". I had a chat with the Rudco personal and they do not provide Financial advice either.

The whole point of going with someone to do your home loan is to get GOOD SOLID financial advice. This once again kind of defeats the purpose, plus you're paying RUDCO for this service. WHAT FOR?

See Car Today Rudco Discussion
See My Broadband Rudco Discussion

Wizard Home Loans sponsor White Lions!

Wizard home loans - White Lions Sponsors

I'm pleased to say that Wizard Home Loans are now PROUD PROUD SPONSORS of the White Lions Re-introduction program. Currently there a handful of White Lions living in the Timbavati Game Park. This is the only White Lion wildlife reserve on the planet and is where the first White Lion was born in the wild...

Wizard Midrand having actively been involved with helping re-introduce the White Lions back into the wild, have now taken a new turn in the sponsorship of this amazing achievement in the world of African Wildlife programs.

Every month 10 people whose home loans have been registered through Wizard Home Loans will automatically become proud members of the White Lions Africa Project. This is of no extra cost to the clients but Wizard will take a percentage of the profits made from those 10 bonds and donate this to the White Lions of Timbavati.

Those 10 lucky people will also receive the following:
1. An opportunity to visit the White Lions and participate in the founding stages of setting up a Heritage Site...
2. Receive a stunning set of White Lions prints

So, if you're looking for a home loan and wildlife is what you're after, Wizard Midrand is your TEAM of experts!

White Lion History

More elusive than the African leopard, rarer than the legendary snow leopard of the Himalayas, and as white as the polar bear of the Alaska, rumours of the existence of pure White Lions have lived in the African Oral Tradition for centuries. But there is only one place on earth were they have materialised – the Timbavati region, bordering the Kruger National Park of South Africa.

Timbavati, the only region on our globe where White Lions have been born in the wild, was recognised as a sacred site by African kings long before President Kruger declared the region a 'national game park'.
The first White Lion sighting by a European witness, was in the Peru area of Timbavati in the early 1940s by Joyce Mostert, whose family owned large tracks of land in Timbavati, and were associates of President Kruger.

If this is just up your alley, read here... White Lions Official Site

Are banks charging you more than they need to with bank charges?

DID YOU KNOW?

Bank charges make up 40 % or more of the banks revenues!

Where else in the world does an entry level employee pay more in bank charges than he does in tax?

An average person earning R2800.00 per month will pay 4 % of his income in bank charges per month. Can banks even explain what we are paying for. No explanation? Nobody I've have spoken to knows exactly what they're paying for in bank transactions because of the way banks reflect their charges and the way they structure their packages. Over and above this, are there hidden costs that we are not aware of?

In the US, it is so easy to open a bank account, and even better there are no charges involved. You receive FREE atm withdrawals, limited number of cheques, electronic funds-transfer payments, and Internet banking. Amazing!

In South Africa the average individual pays +/- R1800 on charges per annum on a normal current account. Take penalty fees for example, why are these so high? If you have an unpaid on your account due to whatever reason, you end up paying astronomical fees for this, e.g +/- R130,00. This is ridiculous as you go even further into debt. I think that these fees should be cut and rated on how well you conduct your account.

If for example you run a very good account and then suddenly have an unpaid, there should be a good reason for this and you should not be penalised. But if you have constant unpaids then they should look into this and charge you accordingly.

Lets look at Pensioners and students. These fees are beyond ridiculous, they earn peanuts as it is, why take their few pennies? I think that the banks should if they need to charge a fee for these clients, why not charge them a flat fee.

Banks claim to beware of these problems, but are they really?

Here are a few packages offered by the 4 major banks!




Silver Package:

Gross annual income (R60 000 / R120 000) - Monthly cost R99 for 25 transactions - thereafter R10 per transaction.

Gold Package:

Gross annual income (R120 000 / R300 000) - Monthly cost R139 for 35 transactions - thereafter R10 per transaction.

These packages include cash withdrawals, account payments, debit orders, electronic fund transfers etc, and only apply to Absa ATM's.

For more info you can contact your nearest Absa branch.





Silver Package: Monthly income of R60 000 or more
Gold Package: Monthly income of R140 000 or more
Platinum Package: Monthly income of R350 000 or more

Fee Manager option:

Option 1: R45 for up to 6 transactions, thereafter R9 per transaction.
Option 2: R85 for up to 12 transactions, thereafter R8 per transaction.
Option 3: R135 for up to 20 transactions, thereafter R7 per transaction.

These cover all standard transactions such as debit orders, cheques etc. and excluding mini statements, penalty fees or transactions done within the branch.

Electronic Service option:

Mandatory monthly fee of R10- plus charges capped at R75 a month.

This includes transactions as such balance inquires(electronic) prepaid purchases(electronic)etc.

Fees are capped at R75, total monthly charge for electronic transactions will be the lesser of the fees for transactions or R75.
This option does not include withdrawals from other banks only FNB, penalty fees, payments(cheques, branches, bank cheque) etc.

For more info contact your nearest FNB branch.





Everyday Account

Gross annual income R36 000 or more

Cost : R85,00 or R55,00 (if client has a Nedbank credit card and home loan paid by debit order)

This include the following: Annual cheque and garage card fees, debit orders, all statements, cheque books etc.

One free cash deposit a month, (ATM / Branch) thereafter R1,10 per R100,00 or part thereof.
One free cash withdrawal a month, (Branch) thereafter R1,10 per R100,00 or part thereof, minimum R16,00.
Four free Nedbank ATM withdrawals a month, then R7,00 a withdrawal.

This option does not include transactions from other banks, cheques issued, penalty fees.






Everyday Account

Same option as above except that this package will cost you R42 000 annually.

For more info you can contact your nearest Nedbank or Old Mutual branch.





Achiever

Gross annual income R36 000 or more

Cost: R110

Includes: 10 cheques, 8 Std bank cash withdrawals, 3 branch withdrawals, 2 ATM cash deposits, 20 electronic transactions (debit orders, stop orders, electronic inter-account transfers, account payments) 20 Mastercard cheque card purchases, unlimited balance inquires, mini statements and prepaid top-ups via electronic channels. Annual cheque card fee and Internet banking subscription fee.

This excludes any transactions from other banks and all other fees not listed above.

For more info contact your nearest Standard bank branch.

As the country's major banks announce their revised bank charges for the new year, it is a good time to re-evaluate how much you pay in on bank charges per month and where you can get the most value for your money, and of course the best service.

The key to choosing the best option for yourself lies in whether you will exceed the set number of transactions and, if so what the cost of the additional transactions will be and whether you will need to do other transactions that are not available in the specific package and what the additional cost will be thereafter.

Also remember that if a package fee includes you having a home loan with that specific bank you need to weigh up the pros and con's of saving a few rand on the packages they offer you or taking up another banks package, spending a bit more on bank charges, but saving more on your home loan.

So Remember it is up to you to make your money work for you.

TOWARDS A FREE AND EQUAL ECONOMY FOR ALL!

Some Good reference sites for this artcile are:

Bankmonitor South Africa
Bank Comparison Site