Archive for June, 2011
0% Owner Financing and Buying Notes with your Self-Directed IRA
June 30th, 2011 categories: Seller Financing, The Note Business
I’m not sure how many investments these days can offer the safety, return and low risk profile of discounted notes when purchased properly. Buying properties with below market terms from sellers and then reselling with higher and better terms is also a way to create positive and almost effortless cash flow.
Next Thursday, July 7th, I will be interviewing Walter for the next meeting of Owner Financing Club (a virtual investment club focused on owner financing and notes).
Walter has done a lot of investing in his time, and right now, he is really “crushing it” buying and selling real estate with seller financing. Sometimes he subsequently sells the note(s) created to really top off his profits.
He also happens to be an expert at investing with and through self-directed IRAs, which is a strategy that I believe more and more people will see is the only chance at preserving any measure of their wealth as the economy collapses around us.
If you’d like to listen in on the call and have a chance to ask questions and brainstorm over your deals (or listen to the recording afterwards) be sure to…
FYI, I also added the videos of the live owner financing class I taught last month to the arsenal of information available to club members.
And I’m always looking for investing partners for both property and paper deals that come across my desk, so if you’ve got some capital, and you’re tired of making 0-1%, and watching inflation blow it away, then let’s have a chat.
My best,
Dawn
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Even Sellers of Ultra High-End Properties are Offering Terms – Owner Financing
June 8th, 2011 categories: Seller Financing
When I ask high-end Realtors if they ever see owner financing used in putting their transactions together, often I’ll get some sort of offended scoff, because no… of course not… their clientele has all cash and can easily get financing if they need it.
Well, Inman News recently reported:
“Trump ended up taking $95 million for his Palm Beach home in 2008, but the Wall Street Journal reported that half of the price was seller financed.”
Even if the buyer could have come up with all cash, it’s likely that they preferred to leverage to keep cash available for other investments. And I’m sure it helped get Trump his reduced price of $95 mil. (I think he started at $125 mil).
I recently spoke with an agent who had a listing in the $4 mil range, and the seller, who owned free and clear, was offering to carry at 3% to a buyer who came in with a 50% down payment.
3%…???
That’s not even keeping up with inflation. If you were a savvy buyer, and you could make better than 3% on your money in other investments, it would be foolish to pay all cash for that property.
Owner financing helps sellers get a price that’s stuck in their heads… that makes them feel like they did OK in the market… got their price, made a good deal and “didn’t just give the property away”.
Buyers who understand this can often pay top dollar for a piece of property, but get it with such powerful below-market terms that it becomes an even a better deal than getting the property at a reduced price.
This won’t often leave the seller with a note they can sell without a steep discount, but getting a certain dollar amount on the sale is, many times, the most important thing for sellers in this market, and they’ll never sell the note… unless they get desperate for cash for some reason.
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