Investment properties and getting a loan

Clay Johnson:                    Hi, folks. Clay Johnson here with Castle & Cooke Mortgage, and I’m here with Cheryl Knowlton with Dynamite Productions. Wow, you are explosive too.

Cheryl Knowlton:             I was recently told I’m a force to be reckoned with.

Clay Johnson:                    Yes, you are. Yes, you are.

Cheryl Knowlton:             I’m like, oh boy, that’s probably true.

Clay Johnson:                    Yeah, we’ve both been doing this a long time. We both love it. We love this industry, but one of the things is when you’re doing… We’ve talked about investment property, and just continuing along with that, there’s some things to do and some things not to do.

Cheryl Knowlton:             Definitely not to do.

Clay Johnson:                    Yeah, so we want to talk a little bit about some of those not-to-dos, and I know, Cheryl, you’ve had some experiences. I have too. But what are some of the things you’ve seen that are big don’t-dos, do-not-dos?

Cheryl Knowlton:             Yeah, so this might wind up turning into more than one episode. Years ago when I was a mortgage loan officer and I actually had a street office… Remember that?


Cheryl Knowlton:             That was kind of crazy. A gentleman walked in, a very nice-looking guy, and he said, “Hey, here’s my situation. Wondering if you can help me.” He said that he went in to… We can talk about them now because they’re no longer in business, Washington Mutual. Apparently, the loan officer there told him, “If you will move into the property with a cooler and a sleeping bag and stay there for the weekend, I will do it as an owner-occupied property.”

Clay Johnson:                    Oh, my goodness, yeah.

Cheryl Knowlton:             And I nearly had a heart attack, one of those… My intestines did a Cirque du Soleil activity thing, and he said, “Would you be able to do that and match this rate?” He quoted the rate that Washington Mutual had quoted him, and I said, “I am so sorry. No, I will not be able to do that,” and I honestly thought I’d never see him again, because as an investor if somebody else was willing to do something else for him… You know what? He came back. He came back three days later and said, “I love the fact that you had integrity, and even though I know I’m going to pay more, I want somebody who has integrity because I know you’ll have my back.” I was like, confetti should be going off somewhere. This is one of those golden moments that never happens.

Clay Johnson:                    Well, that’s always great when you do the right thing because you know it’s right and you feel good about doing the right thing, but you’re kind of like, I think I’m going to miss out on the business.

Cheryl Knowlton:             Right?

Clay Johnson:                    Then, when you still capture the business-

Cheryl Knowlton:             Yay.

Clay Johnson:                    … which I think happens so often. In our next segment, guys, we’re going to talk about the right way to do it and what you’re saying you will do properly. So, until next time…

Cheryl Knowlton:             We’ll see you then.

Clay Johnson:                    Bye-bye.