Archive for April, 2008
Seller Financing Explodes as More Owners Become Willing to Carry Paper
April 30th, 2008 categories: Seller Financing
As the housing market continues to “evolve” with tight credit, increasing foreclosures and downward pressure on prices, sellers are turning to owner financing in order to get their price and close escrow. And with things far from resolved, I am getting more and more sellers asking how they can carry paper safely.
“This is worse than the S&L crisis,” said Jim Rogers in an interview with Bloomberg recently. “This is the worst credit bubble we’ve ever had in American history. Never in American history have people been able to buy a house with no money down — never.
“That’s never happened anytime in the world. So we have the worst credit bubble. It’s going to take a long time to work its way out. You don’t cure a bubble in five or six months… It takes five or six years.”
So it might take a while for the market to normalize. What can we do in the meantime? Sellers can hang on for the next 10 years, or they can continue to become more flexible. They can offer the financing that a lot of buyers can’t, or won’t get right now.
The more sellers become aware of seller financing, the more they will use it, whether they want monthly income, or want to sell the note and walk away with cash at closing. Of course, this technique works best when the seller has a substantial amount of equity.
I am getting more and more questions about seller financing. People are getting wind of the idea, but they’re really not sure where to start. Most people need some direction, so that’s why I’ve developed a menu of services to help people through the process.
The first step is to email me, or some other real estate note professional. I help sellers evaluate their individual situations and develop a plan of action. When you need an attorney, an accountant or some other professional service, I’ll let you know.
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Alhambra Short Sales, Foreclosures and REOs - April 2008
April 25th, 2008 categories: Seller Financing
Are short sales and REOs a great way to pick up cheap property? Sometimes, but not the way most people generally think.
There are 76 properties for sale in Alhambra currently reported as “active.” Of those 76, there are a few that have been coded as “short sale” and “real estate owned.” The following properties may not be the ONLY short sales and REOs in Alhambra right now. The accuracy of the data is dependent upon the agent inputting the listing.
Short Sale & Foreclosure properties:
REO properties:
When an REO has been on the market for a while, there may be some incentive for the lender to accept a reduced offer, but I have seen them simply pull a property off the market if it doesn’t sell for the price they want. From there, I’m guessing that they might sell it at an auction, or lump it with a few other properties and sell it in bulk at 65 cents on the dollar to an investor able to buy $10,000,000 worth of property at a time.
Short sales can really be a ride. For a great article on short sales, read Jay, the Phoenix Real Estate Guy.
If you want to start making offers on short sales and REOs, then email me or give me a call and I’ll help you navigate the complex territory of today’s foreclosure market.
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March 2008 - Temple City Real Estate Market Report - 91780 Homes Sold
April 24th, 2008 categories: Seller Financing
As you can see from the above market statistics, home sales have not changed much since March of last year. The number of closings is the same, and days on market is also very similar.
Prices are holding fairly well in Temple City, reasonable sellers getting an average of 95% of their asking price. In fact, prices appear to be up substantially over last year, but the numbers are affected by a couple of very large and expensive homes that sold last month.
60 days on market isn’t bad, considering that the national numbers are showing 10 months of inventory (meaning, the average time it takes to sell a home is 10 months).
Besides staging and making your property attractive physically, another way to make sure you get as much as possible for your property is to offer terms, if you can. There will always be more buyers for your property if you advertise: OWNER WILL CARRY.
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