Archive for the 'Land Trusts' Category
High End Luxury Homes Falling in Value, Agents Looking for Creative Solutions
June 7th, 2010 categories: Land Trusts, Real Estate News
Diana Olick over at CNBC puts out a lot of relevant data. Jumbos are really making the news these days. (You saw my last related post, right?)
“It seems that while the middle and lower end of the market was seeing real price recovery this Spring, the high end, which was pretty flat all fall, started to really tank from March through May.
Not surprisingly, the inventory of high end homes surged in January, just before that price drop and is continuing to climb.”
One real estate broker I’m working with in the Calabasas area is tweaking her business to increasingly implement alternative strategies for her high end clients. One of her listings isn’t moving because the sellers are insisting on $1,100,000, when the market only wants to pay $900K – $950K. (If they wait too much longer, the market might only want to pay $800K!)
If she can get this listing sold, then they’ll buy this other $2mil home they’ve got their eye on, so getting the listing sold for asking price is worth $3mil in business. We’re working on it . . . if we can get them to offer terms, then there’s a good chance they can get their price.
There’s not much help for many high end homeowners who are already far under water and have unattractive short term financing in place, but there are a few we can help who still have equity and happen to have great long term financing . . . but they’d better not sit around! Those trends above don’t look especially promising.
When banks say NO, I say YES!
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California Jumbo Loans at a Standstill Highlighting Opportunity for Title Holding Trusts and Owner Financing
June 4th, 2010 categories: Land Trusts, Real Estate News, Seller Financing
This post explains why, if you own a high-end home, you shouldn’t necessarily “wait for the economy to recover” so you can get your price, unless you’re prepared to wait a very long time.
Keith Jurow over at the Real Estate Channel recently wrote a compelling article that relates specifically to everything I’ve been talking about for a while now. Make sure you read the full article.
As jumbo mortgage defaults have skyrocketed in the last two years, banks have raised down payment requirements for new loans and sharply curtailed the total number of jumbo originations. According to Lender Processing Services . . .
66,000 jumbo loans were originated nationwide in March 2007. In March 2010, a mere 13,000 were closed.
The drying up of jumbo mortgage money has made it extremely difficult to sell almost any California home which is encumbered with a jumbo mortgage. That has put tremendous downward pressure on prices for these homes.
If you want to sell a high-end home and preserve what equity you still have, then
- sell sooner than later,
- be flexible and willing to offer terms in one way or another, and (unless money is not an issue)
- don’t get yourself in a negative cash flow situation by leasing your property out instead of selling it . . . not a good idea heading into uncertain economic times
If you’re a buyer that can afford a luxury home, then just know that there are many opportunities for you to buy without getting a new bank loan if the existing financing is reasonably attractive.
When banks say NO, I say YES!
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Note Queen Owner Financing Jump Start Mentoring Experiment
May 22nd, 2010 categories: Events, Land Trusts, Seller Financing, The Note Business
Watch the video, and if you think this opportunity is for you, then email me with your bid, and be sure to tell me about who you are, what you’re most passionate about, and what results you’re be looking for.
I want people who are especially interested in:
- high-end residential
- commercial
- small businesses
Good luck out there!
When banks say NO, I say YES!
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