Archive for September, 2008
I Have a Note for Sale – What Will You Pay?
September 29th, 2008 categories: Selling Your Note
This is a recent email I received:
“I have a note for sale, the details are as follows:
1) Note is in Detroit Michigan
2) It is a single family home
3) note is 37,000
4) on time payer but credit score is 575
5) looking for 24,000
6) this is a first position note
7) down payment of 500.00 at purchasePlease get back to me with offer or to request more information. Thank you and have a great day.”
This is a great start, but doesn’t really give me what I need.
The best way for me to get you the most accurate quote on your note is to have these documents in front of me:
- the note
- the deed or mortgage
- escrow instructions and/or
- escrow closing statement
My fax # is: (626)451-0454
These documents help me understand exactly what you have for sale. Many people have a hard time filling out the note summary accurately, so it’s very important for me to see the documents. But if you feel capable, by all means, fill it out and email or fax it to me.
Just know that if you inadvertently misrepresent the information, or fail to provide any information requested, the final “real” quote is likely to change at the closing table.
Now, just for fun, let’s look at the surface of this note. What are the main challenges?
- low down payment ($500 – is that 1% down? 10% is usually minimum)
- poor credit score (575 . . . ouch; we usually need to see 620+)
I doubt very much that anyone can pay $24,000 for this note with the two challenges combined. If someone has poor credit, but put down a large down payment, that helps. If someone put down a small down payment, but has great credit, we can still work with that, generally.
For more information on selling a note and how notes are discounted, read:
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Ego Strokes – We All Succomb Sometimes . . .
September 25th, 2008 categories: Seller Financing
When you’re having a bit of a melt down, like a mini personal subprime meltdown, emails like this really make a difference in your day:
Hi, Dawn.
Sure love reading your website. I come here for real estate “encouragement” but get so much more. Your humor, the around-town tidbits and community profiles. And then there are your creative real estate techniques! All with good humor and the human touch. You apparently love what you do and it shows! Quite inspiring!
Just wanted to let you know.
Armando
Thanks, Armando . . . maybe I’ll turn this site into a blog again some day 
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Pasadena Discovers the Secrets of Seller Financing
September 17th, 2008 categories: Seller Financing
It’s my privilege to speak to the agents at Keller Williams in Pasadena this Friday. The management is very supportive of every possible strategy to help their agents earn more commissions. KW is one of the most supportive and progressive real estate companies I’ve seen so far.
Let’s face it . . . the Real Estate “Warrior” of today needs more tools to get transactions closed. Having an open mind, some flexibility, and learning a little about seller financing and real estate notes can get your escrows closed, and give your seller what they need most.
- Do you have a seller stuck on price?
- What if you could show them how to get their price by offering terms?
- Is your listing getting ready to expire?
- What if you knew how to approach your seller about carrying paper?
- Do you know people who won’t sell because “the market’s not good?”
- What if you could show them that the installment sale can get them the benefits they’re looking for?
- Do you know people who worry about capital gains?
- What if you could show them how to defer capital gains without an exchange?
- Do you know sellers who just need someone to take over their payments?
- What if you could get your clients out from under their payments without a short sale or foreclosure?
- Do you have a buyer who can’t qualify?
- What if you knew how to sell them a home anyway?
- Have a property that’s non-conforming?
- What if you didn’t worry about a potential buyer to be able to qualify for bank financing?
- Is your deal falling apart?
- What if there was a way to keep it together?
So, there are the key points I’ll be addressing. I am approached by people every day by phone or email who are hungry for this information, and I’m increasingly needing to find other real estate professionals who know about seller financing, or are at least interested in learning. There are lots of clients to help.
- Real estate brokers, close more transactions!
- How to offer owner financing when there’s a mortgage in place
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