Archive for September, 2009
This Offer Expires Tonight! Note Brokers, Real Estate Brokers and Investors Need to Be at Noteworthy
September 30th, 2009 categories: Real Estate News, Seller Financing, The Note Business
Here’s a webinar with Lisa Moren Bromma of The Entrust Group and Clint Hinman of NoteWorthy. Clicking the link below will allow you to listen to the recording and follow along with the slideshow part of the presentation.
https://cc.readytalk.com/play?
The current offer of 30% off the normal registration rate for the convention ends tonight, September 30th at 11:59 pm EDT. Taking advantage of this offer also gets you a six-month subscription to NoteWorthy’s online newsletter.*
Visit www.noteworthyconvention.com for registration information. Enter discount code: DAWN2009.
Information regarding the convention agenda, workshop topics and speakers can be found at:
http://www.notetools.com/
The Convention dates are November 10th-12th at the Hilton Mission Valley in San Diego, CA.
This year’s theme is Keys To Mastering Private Financing Markets. We encourage note brokers, realtors, real estate investors, and other cash flow professionals to join us in San Diego to better understand the private financing markets and derive more profits from them.
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We’d Like to Sell Our Real Estate Note – Are You a Note Buyer?
September 25th, 2009 categories: Seller Financing, Selling Your Note
As a mater of fact, I would like to buy your note, or find the best buyer for your note (broker it), depending on where it’s located. This note seller doesn’t happen all that far from me . . .
“Hi Dawn,
I hope this day finds you well. I found your web site by searching how to sell our note. My husband and I are the only note holders to the house we sold. We’ve been kicking around the idea of selling the note, but still not sure. Your web site is very informative, this is something we might be interested in. Looking forward to hearing from you.
Regards,
Jennifer”
So, here I’m talking about the deal:
- Try to sell the entire note for as much as $150,000 (the note balance is $412,000, but the value of the property is $350,000. Anyone who buys this note will expect to eventually have to foreclose, so they need to buy at a price that ensures they can still profit after paying taxes and insurance out of pocket while not receiving any payments on the note. Foreclosure can take up to 18 months if the buyer decides to file BK, and it’s possible that the property could be in poor condition by the time the defaulting parties are out, and that the market will be even softer at that point.
- We can see if my partner, who does traditional loans, can refinance him. If he can get regular financing (meaning, he actually has decent income and credit), then we will finance him for as much as the lender will approve. It could be somewhere in the ballpark of $300,000, but you would walk away with more money on a short refinance than an outright sale of your note.
- You can work out a loan modification directly with the Payor. You can reduce the principal balance and the interest rate and make it as easy as possible for him to continue (or start) paying you. Your return would significantly decrease, but you may be able to avoid massive principal reduction with this technique. You could hire me to help you negotiate this, and you may want to have him put the property in a land trust in exchange, so you eliminate your exposure to foreclosure from here on out.
Thank you for the opportunity of working with you. Let me know which way you are leaning after you have the chance to chew on things this weekend.
Best regards,
Dawn”
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Tsunami of Foreclosures – Will You Be Collecting Shells When It Hits the Beach?
September 12th, 2009 categories: Real Estate News
I’ve never witnessed a tsunami first hand, but I’ve been told that before the devastating wall of water devours everything in it’s path, like a hungry sea beast coming in for a glorious feast, there are a few moments in time that seem quite magical to the innocent and unsuspecting.
The water line temporarily recedes, making it excruciatingly tempting to prance delightedly along the shoreline collecting shells, fish and other treasures that have suddenly become accessible.
And apparently, it can be such a fascinating and engaging activity that you might fail to notice the darkness forming on the horizon as you fill your goodie bag to overflowing. By the time you do . . . well, it’s usually too late.
I recently read the following from John Mulkey:
“If the economy is improving, do we really have millions more foreclosures coming? According to the U.S. Treasury, the answer is yes. In written testimony to Congress, Assistant Secretary for Financial Institutions, Michael Barr said that, regardless of the success of mortgage modification efforts, we should still expect millions more foreclosures.
Mr. Barr’s testimony is certainly not welcome news for those anticipating a significant recovery in the housing market. In fact, it is an indication that significant recovery is still years away.
And there are other factors that confirm the fragile state of both the economy and the housing market. Recent reports have indicated that there are almost 3 million active, interest-only loans with a total value of almost $1 trillion, with loans of about $500 billion set to reset within the next 30 months. Then we have a large group of Option Arm mortgages set to recast during the next 2 years. These loans have a combined value of more than $125 billion.
The rising number of bankruptcies, up 36% in the second quarter over last year, with wealthy families filing at double that rate, creates a ‘perfect storm’ of disastrous consequences for the housing market. With the likely prospect of millions more foreclosures coming, home prices and home sales will remain depressed until the market can achieve stabilization. And achieving stabilization will be a slow and painful process.”
Of course, certain areas of the country will be hit harder than others. Even here in California, (one of the hardest hit together with Florida and Arizona) there are pockets that are devastated, and pockets that seem almost immune.
And I don’t especially care for being a Prophetess of Doom . . . my brand is ‘Note Queen,’ which is rather harmless and mostly silly, really.
It’s just that I feel strongly about helping people triage (can you tell I used to be an RN?) their financial lives carefully. The real estate market may be fine where you are, and it may get even tougher. And if it does, how will your quality of life be affected?
If you’re holding on for ‘just a couple more years’ until the market ‘recovers,’ then stop it. Sell now, especially if you’ve got negative cash flow and your net worth is less than $5 million.
If you’re happy owning your property for the next 12-20 years no matter what happens, then fine. Hold out for your price and terms. But if your emotional and financial well-being depends upon the successful sale of a piece of property in the next 10 years, then quit dawdling.
And if deferring capital gains is important to you, download your free copy of a report I created entitled “How to Avoid Paying One Red Cent to Uncle Sam When You Sell Your Property” at www.AvoidCapitalGains.net.
There are a lot of investors out there picking up pre-foreclosures and REOs like sea shells before a tsunami. Prices seem good now, but they could get even better, despite all the government’s shenanigans in the ‘free’ market.
Be sure to sign up for: Seller Financing on Steroids: Pumping Paper for Power, Peace and Profits (it’s up there at the top of the site!). Defer capital gains & sell fast for top dollar, regardless of market conditions (and have a note that’s worth something!)| Discussion: No Comments »
