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Archive for the 'OWC Properties' Category

Investor to Investor Owner Carry with Note Sale = 73% ROI

So…

The point I’m trying to make with this video is that real estate investors who focus on wholesaling, and/or buy-and-hold cash flow strategies can greatly benefit from understanding how owner financing (with the subsequent sale of all or part of the real estate note created) can often greatly accelerate profits.

Just wanting to give investors out there a few more options to choose from, and in the process, create more notes I can buy :)   These strategies are not something I’ve talked about before.  They don’t actually reflect the old school version of the note business… new things are evolving in this market.

Diversifying your investment strategies can be an intelligent hedge against unforeseeables in the marketplace.

The complete 23-minute training video is hosted at Owner Financing Club, and will help you evaluate the ROI in various investment situations, with and without the use of owner financing.

 

Spoken by Dawn Rickabaugh | Discussion: 1 Comment »

Buying and Wrapping Real Estate With 0% Financing

My favorite quote from my call with Walter last night:

“Owner financing is a partnership between the lender and the borrower.” 

It’s always wonderful to come away with life-changing “a-ha’s”, especially when you don’t necessarily expect them.  It’s not that I think I have nothing left to learn… quite the contrary, but I’ve spoken to Walter on multiple occasions, so I didn’t expect to be blind-sided by core ideas that could very well change the way I put my next deal together.

After 30 years of investing in real estate from every possible angle, find out why and how Walter will NEVER PAY CASH or hard money rates ever again.  According to him, if you’re paying more than 5% on real estate financing, you need to rethink your game.

Another great quote:

“As investors, we can make back everything we’ve lost in the last 5 years”

He also describes exactly how he does his marketing for both acquiring and disposing of real estate.

CLICK HERE to listen to the recording of this perspective-changing interview.

He also describes how he is making home ownership cheaper than renting for buyers, and giving investors a way to finance properties that will cash flow for them.

Spoken by Dawn Rickabaugh | Discussion: 1 Comment »

Owner Will Carry – Published in the Pasadena Independent, and the Monrovia, Sierra Madre and Arcadia Weeklies

I just got back from Seattle.  A client of mine decided to pay for a ‘platinum’ consultation, my plane ticket, and excellent wine.

Why?

Because, despite the fact that the real estate market in King County is stronger than most, values have fallen for the upper end properties.  It’s hard to move a property that’s listed above $1,000,000.

This is partly due to the limited financing available in the jumbo arena.  Loans above $700K can be a lot harder for even highly qualified buyers to obtain.

So, this seller decided that he wanted to offer seller financing (advertise ‘Owner Will Carry – No Banks Needed‘) to maximize the price he could get for his house.

He also wanted me to interface with local Realtors on his behalf.

A year ago, he could have sold anywhere from $1,200,000 to $1,500,000.  Today’s comparables suggest a list price of $900,000.  He really wants to get at least $1,000,000.

It’s very possible that he will be able to inch toward the million he wants by offering terms.

While I was there, I took 2.5 hours of raw video which I edited into three 10-minute segments.  One was an informal virtual tour to showcase the property in a very personal way.

It portrays the human story behind the impending real estate transaction, which creates emotional appeal and allows a deeper connection between the property and prospective buyers.

Another shows conversations with local Realtors, and the last focuses on conversations with the seller and why he was opting for seller financing.

His struggle represents one I hear from many sellers in his position.

He was counting on the sale of this property to

fund a major portion of his retirement, so the steep decline in market value

really hit him below the belt.

He wants to unplug from the ‘Rat Race’ and live a very simple lifestyle in Spain for the foreseeable future.

Without a substantial wad in the bank, it would be nerve wracking for him to do this.

For this reason, even though he had hired me to set up an owner financing transaction, I grilled him on whether or not seller financing was the way for him to go.  If he only got a small down payment, say $100K, then that’s not much of a life cushion.

Even if he had to take $900K to attract a conventional sale (cash to new loan), he could still pocket at least $250K, which is a much better safety net.

A bird in the hand can be better than two in the bush.

What if he carries the financing and there is a natural disaster? What if Microsoft moves out of the area?  Even with excellent underwriting, these types of events could really jeopardize the extra $100K equity he is trying to preserve by carrying (offering seller financing).

Even after I battered him with tough questions, he maintained that while he needed a decent amount of cash in the bank, he also needed to feel like he got a fair price out of the property, and he was willing to take the risk.

We determined that he would only take terms if he could get at least a 15% down payment.  Depending on the deal, he may even be able to retain a portion of any appreciation that happens between now and the end of the seller financing term.

In our local area, there are many pockets of high end properties that just aren’t moving that well.  Sometimes it’s worth exploring all the alternatives that are available.

SFOS smallBe 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!)

Spoken by Dawn Rickabaugh | Discussion: No Comments »

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