Archive for the 'Thursday Weeklies' Category
When Your Soul is On Fire - the Station Fire, Chantry Flats, Sturtevant Camp and the Big Santa Anita Canyon
September 5th, 2009 categories: Inspirational Notes, Thursday Weeklies
Perhaps our souls are burning along with the forest as we experience the shock, sadness, anger, fear and confusion of watching the mountains, once rich with life, turn desolate moonscape.
In a stupor of smoke, we watch homes evaporate, and wonder if ours might be next. With ravaged hearts, we mourn brave heroes, and imagine the innocents . . . thousands of creatures with nowhere to go, but up in flames.
When I was young, I used to take my Golden Retriever up Santa Anita to Chantry Flats. From there we’d wind our way down to First Water, then Hermit Falls to spend lazy afternoons jumping into the frigid pool and thawing on granite by turns.
Other times I’d hike up to Sturtevant Falls and let the mist moisten my face as well as my sandwich.
In 1994, we formally joined the historic canyon community above Sierra Madre known as the Big Santa Anita Canyon. We bought a cabin when the oldest of our four children was barely out of diapers.
We spent hours upon hours in front of the fireplace, mesmerized by the flames, roasting marshmallows, happy to be warm in the middle of winter. By candle and lamp oil, the children played with wooden blocks and formed clay wonders as we read “The Lorax” and “The Pokey Little Puppy” for the 89th time.
Over the years, it’s been one of those places where we can step out of time. Without TV, XBOX, cell phones or internet, we’re free to experience the pure joy of being together, and the simple pleasures of slow and thoughtful food preparation, chopping wood, talking, laughing and telling stories.
And we can travel from our city life to our ‘real’ life in under an hour. Door to door is usually about 45 minutes, which has been an unparalleled gift to us over the years. Rural, peaceful, turn-of-the-century living within minutes of the madness.
Our small little space is a regenerative refuge by itself, but we’ve also grown to love, adore and belong to the crazy, eccentric, generous and loving community of cabin owners. The canyon has a life of its own, but it’s definitely become increasingly rich and colorful as we’ve built relationships and shared experiences with our friends up there.
If you’ve lived in this area for any length of time, it’s likely you’ve taken the opportunity to experience the beauty of the canyon first hand.
Perhaps you’ve noticed how your cares unwind with each step you take down the road from Chantry to Roberts Camp, where you’ll decide whether to explore Winter Creek, or continue on to the Falls and beyond.
A walk through Nature’s playground is one of the most powerful ways to ground, clear and balance ourselves.
Perhaps you’ve had the good fortune to stumble upon Sturtevant Camp where you can pick up the Mt. Wilson Trail, or head over across Newcombs Pass. If you haven’t, and if by some miracle you ever get the chance to again, you must make a trek there.
Historic Sturtevant Camp was established in 1893, and is the only camp from the Great Hiking Era which is still in operation in the San Gabriel Mountains. Surrounded by the largest virgin stand of Big Cone Spruce trees in the United States, Sturtevant’s setting provides the perfect opportunity to experience the local wilderness.
You’ll be absolutely enchanted by Chris and Joan Kasten, the gentle on-site caretakers. Sturtevant (www.sturtevantcamp.org) is an oasis of generosity where thirst is quenched, the lost are found, and the curious are met with polite helpfulness. Chris . . . he’s the most egoless man I’ve ever met. He’s a unique, Woodstocky blend of Stephen Hawkings, Mr. Rogers and Jesus.
And perhaps you’ve refreshed yourself with an ice cold beer at Adam’s Pack Station after a long, hot assent up the hill, while your kids squeal with delight at the goats, chickens and mules (that are still used as pack animals serving cabin owners up and down the canyon).
By the time this is published, we’ll know if the part of our Collective Soul known as the Big Santa Anita Canyon will remain a haven for local residents and cabin owners . . . . or not.
As of this writing, we are forced to prepare to surrender to forces beyond our control . . . to surrender our way of life for a very, very long time. It’s humbling. We’ll pray and give thanks for assistance both earthly and otherwise.
But perhaps while dead brush accumulated over decades goes up in walls of furious flame, we can invite a fire of renewal to burn away the tired baggage we’ve been dragging along in our souls over the years.
What is it time to let go of? Are we ready to forgive ourselves and each other? Are we ready to receive a renewed sense of gratitude for life and each day that we’re given to live it?
Paul Bowles, near the end of his life said,
“We get to think of life as an inexhaustible well, yet everything happens only a certain number of times, and a very small number, really. How many more times will you remember a certain afternoon of your childhood, some afternoon that’s so deeply a part of your being that you can’t even conceive of your life without it? Perhaps four or five times more, perhaps not even that. How many more times will you watch the full moon rise? Perhaps twenty.”
When we get older, or when we experience events like the Station fire, life takes on a special poignancy precisely because we realize that time is limited. We realize just how fragile life can be.
It becomes more important than ever to spend time with the people we love . . . to create and savor simple, precious moments.
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Help Me Create a Good Commercial Note - Published in the Pasadena Independent, and the Monrovia, Sierra Madre and Arcadia Weeklies
September 3rd, 2009 categories: Seller Financing, Selling Your Note, Thursday Weeklies
Many sellers of commercial properties and high end homes are turning to seller financing in today’s market. The financing just isn’t as available for these properties the way it used to be.
Here is a recent email I received:
“Dear Dawn,
My name is John, and I believe what I am attempting to do is over my head. I have a potential buyer for my commercial property, and they seem genuinely interested. They are a church group.
I want to structure a note that will attract a note buyer such as you. They are asking me what interest rate I would charge for a 30 year mortgage. I don’t have a clear answer. I do know from my experience commercial mortgages are usually 25 years. I don’t want to blow this deal, by giving an unrealistic answer.
I have the property listed for $995,000 selling price is $920,000 with 20% down. Currently I owe $105,000 on the property. I want to be able to live off the income from this property, I also want the option to sell the note, that is why I feel it is so important to have the note structured so it will sell.
My thoughts are, amortized over 25 years due in 10 between 7.5% & 8.25% interest, or 7% interest amortized over 25 due in 5, or a floating rate for 30 years. You may also want to talk to the client and negotiate the loan.
I look forward to our phone consultation,
Sincerely, John.”
When we get on the phone this week, there are a few questions I’ll need to ask him. I’ll need to know how likely it is that he’ll need to sell all or part of his note for cash.
If he’ll need or want a lump sum any time within the next 12-24 months, then we’ll have to be sure to structure 2 notes (a 1st and a 2nd) instead of one.
This deal represents a few challenges:
- It’s commercial paper - discounts are going to be higher to offset the risk. Even though the collateral is a very nice small office building in Buena Park, commercial is considered much riskier than residential paper.
- There’s only a 20% down payment. 35% is a common down payment required for traditional commercial purchases today. A note buyer will feel like the protective equity (the buyer’s skin in the game) is a little thin at 20%, and price accordingly.
- They want a 30 year mortgage, and the note would be a lot more valuable with a 20 year amortization.
- A church group will be occupying the property. Most of the institutional buyers out there won’t even touch it no matter how good the paper or the collateral is. Who wants to foreclose on a church?
That being said, I can still find a buyer for a relatively small 1st trust deed, even a ‘green’ one (without seasoning). So, here’s how the deal might be structured for optimum cash flow, asset preservation and flexibility:
Purchase price: $920,000
Down payment: $184,000
First 40% note: $368,000
Interest: 8%
Amortized over 20 years
Monthly payment: $3,078.10
A local note buyer might pay as much as: $250,000Second 40% note: $368,000
Interest: 8%
Amortized over 30 years
Monthly payment: $2,700.25
This 2nd note would have no value on the secondary market, so he would just keep it for cash flow.
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!)
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Take Over My Payments - Published in the Pasadena Independent, and the Monrovia, Sierra Madre and Arcadia Weeklies
August 27th, 2009 categories: Land Trusts, Seller Financing, Thursday Weeklies
“We just don’t want our property any more . . . it’s too much stress. We’re tired of being soaked by the bank, and we’re not going to send them another dime.”
This frustrated woman and her husband bought a penthouse condo in Pasadena just above Cal Tech for $510,000 2-3 years ago. It’s in a great location and has beautiful views of the San Gabriel mountains, but the mortgage payments are draining the life out of them.
In fact, they’re in the process of getting a divorce.
They bought because their broker promised them that it would be a good investment and definitely be worth over $600K in no time at all.
Whoops . . . that crystal ball thing can be kinda tricky.
In today’s market, it’s probably worth somewhere between $425K - $450K, and they owe about $470,000.
The $408,000 first is a 5.7% fixed, and the $60,000 second is variable but capped at 9%. The payments on both mortgages plus the HOA comes to about $ 3,700 a month (this does not include taxes and insurance).
They didn’t want the hassle of listing the property, but wanted to ask me what they should do. They’d like to preserve their credit if they can (they both have 775+ FICOs), but mostly they just want out.
I advised them that they might have a couple of exit strategies. There may be a buyer out there who can afford the payments, but can’t qualify for a loan for some reason.
This type of buyer may be willing to take over the payments on this slightly over-encumbered property in exchange for ownership (a beneficial interest in a land trust) without having to obtain their own bank financing.
I continued,
“I have already sent out feelers to buyers I know that are looking for some sort of ‘lease-to-own’ scenario, so perhaps I will have a lead for you in the near future.”
“However, as you are likely upside down, you may want to simultaneously get a short sale process started. I have an all cash buyer that is expert at negotiating with the banks.”
“All she would need is your short sale package filled out, and she will take it from there.”
“I don’t think you can lose attacking the disposition of your property from both angles. In either case, you will have the weight of it off of your shoulders in a relatively short period of time.”
“Please feel free to call if you have any questions or concerns. For more information on how the land trust works, visit: http://notequeen.com/trust-transfer-system/“
“Also, even if your credit ends up taking a hit, it won’t necessarily affect your ability to acquire property down the road should your objectives change.”
“The last 2 properties I purchased were closed with seller financing. I make a point of closing most of my transactions without the need for new bank financing.”
If any of you readers out there know of someone who would be interested in taking over the payments on this fully furnished Pasadena penthouse, be sure to contact me as soon as possible.
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: 3 Comments »
