I'm sure that you've heard the old saying that there are three things that sell a home, "Location, Location, Location." I'm going to let you in on another little secret. It AIN'T SO! Sure, location is a prime factor in the saleability of your house, but even a bad location can be overcome. The following 3 things are the Real secrets to getting your property sold.
PRICE
The price of the property is the single most important aspect of getting your home sold. If the home is priced correctly for the area, the market and it's condition, then it will sell. It's as simple as that. What makes pricing difficult to do correctly is that several factors make it hard to determine sometimes what a person would be willing to pay. For example, you may have a nice 3 bedroom, 2 bath home that compares to others in a nearby neighborhood suggesting a price of, let's say, a $150,000. However, you happen to live on an old side road, next to the newly built county landfill. That's going to affect value, without a doubt, but determining that effect is difficult to do in some cases.
MARKETING
If you have a great house worth $150,000 and you want to sell it for only a $100,000, you'd think that people would be climbing the fences trying to get at it. But, if you don't let anybody know that you're wanting to sell, how will they know about the great house with the even better price? You cannot be a "Secret Seller," especially in a a slow market, like the one were in now. Running ads is a great start to marketing, but there is really more to it than that. Slapping an ad everywhere you can think of is good, but target marketing is MUCH better.
Putting the ads in the correct places where they will get the most exposure is better than the 'spray n pray' method of throwing them out everywhere. The BEST marketing, though, is putting the RIGHT ad in the best locations. Anybody can put a "House 4 Sell. Call XXX-XXX-XXXX." You need to put together a marketing plan with several good ad layouts.
TIME
Time is the final factor in getting a house sold. How much time are you willing to wait in order to sell your home? A property will eventually sell for any price you want...if you're willing to wait on the market to "catch up" to what you're asking for the property. If you have something that could sell for $150,000 today, but you want a cool $1 million for it, you can eventually get. No Really! Of course, you may have to wait 100 years or more, but you CAN eventually get that price.
But if time is a real issue for you, then it's a factor in selling, too. If comps for your house so a reasonable selling price of $150-160,000, with an average time on market of 6 months, then you can expect (assuming that you're marketing!) to sell in that range in the given time, more or less. If you price it at the top end of the range, it will likely take longer to sell, while pricing at the low range, less time to sell.
Again, if you're willing to wait it out and see, price a bit high may work, but if you need to be moving NOW, then you'd want to price it on the low side, or maybe even lower, in order to get the quickest sale possible.
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Thursday, June 18, 2009
Wednesday, June 3, 2009
Mortgage Notes Trust Deeds and how to get a home loan with bad credit
Do you know why getting a loan with bad credit can be so difficult? The main reason is that most banks believe that if you default on your loans or credit card payments once you will do so again in the future. Not keeping up with your payments will damage your credit. However a lot of people have bad credit because of some circumstances outside their control where they had a choice of making their credit card payments for example or feeding their kids.
We all get into financial difficulties leading to a bad credit rating at some time in our lives. This happens for many reasons ranging from unemployment, divorce, serious illness or the death of a spouse. These are just a few of the many reasons why a persons credit score may be low for a short period of time in their lives.
Now at the present time there are a lot of people experiencing financial difficulties due to the economic downturn. They may need a loan to tide them over until the economy improves and jobs become available again. So how do you go about getting a loan with bad credit? It may not be as difficult as you think.
There are many sites online offering loans to people with bad credit. You may be looking to pay medical bills, replace your car or pay school fees. If so then are many bad credit loan resources available to you online. Or you may be looking to consolidate your debts which are also available through online lenders.
Now because there are so many people with bad credit who need finance and deserve a second chance, there are many financial institutions creating programs for people with poor credit. This gives them a chance to get the finance they need and rebuild their credit rating.
One way you can get the loan you need is to apply for a secured loan if you can provide some collateral. There are many lenders and especially credit unions that will offer secured loan with poor credit. These loans are usually secured by you home or some other real estate or collateral you may have available. This is also a good option if you are just looking to do is rebuild your credit score.
However if getting a loan with bad credit is the only option available to you, a secured loan is your best bet. If you have collateral it should be relatively easy to qualify. So getting bad credit loan is not impossible, you just need to your research and apply to the best programs that are available to you.
Mortgage Notes or Trust Deeds are one option. Email us for more information.
We all get into financial difficulties leading to a bad credit rating at some time in our lives. This happens for many reasons ranging from unemployment, divorce, serious illness or the death of a spouse. These are just a few of the many reasons why a persons credit score may be low for a short period of time in their lives.
Now at the present time there are a lot of people experiencing financial difficulties due to the economic downturn. They may need a loan to tide them over until the economy improves and jobs become available again. So how do you go about getting a loan with bad credit? It may not be as difficult as you think.
There are many sites online offering loans to people with bad credit. You may be looking to pay medical bills, replace your car or pay school fees. If so then are many bad credit loan resources available to you online. Or you may be looking to consolidate your debts which are also available through online lenders.
Now because there are so many people with bad credit who need finance and deserve a second chance, there are many financial institutions creating programs for people with poor credit. This gives them a chance to get the finance they need and rebuild their credit rating.
One way you can get the loan you need is to apply for a secured loan if you can provide some collateral. There are many lenders and especially credit unions that will offer secured loan with poor credit. These loans are usually secured by you home or some other real estate or collateral you may have available. This is also a good option if you are just looking to do is rebuild your credit score.
However if getting a loan with bad credit is the only option available to you, a secured loan is your best bet. If you have collateral it should be relatively easy to qualify. So getting bad credit loan is not impossible, you just need to your research and apply to the best programs that are available to you.
Mortgage Notes or Trust Deeds are one option. Email us for more information.
Tuesday, June 2, 2009
Seller Financing Without Slashing The Price
Seller financing can be a great way to get a house sold without slashing the price.
By recognizing the millions of people who can't get traditional financing as potential buyers, resourceful property sellers (and their real estate agents) can minimize their time investment in getting a property sold. Even better, sellers
who offer financing can usually get a higher asking price for their property, even in the slowest markets.
Clearly this is a win-win situation.
Most home sellers never consider financing the buyer directly because they are not aware of the benefits or don't fully understand how creating a note works. Let's take a closer look at the advantages of owner finance.
Three Advantages
Seller financing is very powerful when the market is slow or when there are many similar houses on the market. Just listing the house as "OWC" -
Owner Will Carry - will make the house stand out and attract more buyers. Because many individuals cannot get funding from a bank, offering financing will open the doors to these prospective customers as well, essentially significantly increasing the pool of potential buyers. So, advantage #1 is MORE BUYERS.
Seller financing also brings the property seller another critical advantage . the likelihood of selling for a higher price. Offering to carry back a note will not only greatly increase the number of potential buyers, but also bring a unique demographic of buyers who are willing to pay more for a given property than the general population.
Advantage #2: MORE MONEY.
Additionally, when the property seller finances the buyer, they get to act as "the bank". That means they could structure the deal to collect interest. Over time, if the seller holds on to their note, this can add up to tens of thousands of dollars in additional income.
Advantage #3: LONG TERM PROFIT.
The Seller's Strategy
Even when these benefits to "carryback" lending are made clear, many sellers are still hesitant to offer financing because they are entering unfamiliar territory. It's a natural, human response -- everyone is uncomfortable with new things.
For many property sellers, considering owner financing when they've only dealt with buyers via traditional funding is definitely "thinking outside the box". But once sellers understand the process, they are likely to choose seller financing instead of the unattractive option of cutting the listed price or waiting indefinitely
for the "right buyer".
A seller-financed real estate sale is simply a real estate transaction where the seller acts as "the bank" or lending institution. The seller sets the sales price, determines and accepts a down payment, and then finances the remaining
balance. The final step is the part that may scare some sellers, but in actuality, it can be very simple. Here is an example.
If the sales price is $100,000.00, and the buyer gives the seller $10,000.00 cash (the agent's fee will be deducted from this down payment), the seller will finance the balance of $90,000.00.
The buyer and seller would then agree to the terms, such as the interest rate and the total term, and use an attorney to create the mortgage document and close the deal.
From that point on, the buyer sends the seller monthly payments for the house he/she has just purchased.
Special Circumstances (and a Solution)
The whole process can really be that simple. But, there are some substantial differences between a seller-financed deal and one that relies on traditional bank funding.
First of all, the seller in this example does not receive a large, one-time payment at the time of the sale. In fact, they will only receive the down payment, and in some situations, most of that will go towards paying the real estate agent's fee.
On the other hand, the seller will be receiving monthly payments at a decent
interest rate, but this income stream can't be used as a down payment for a new house.
Since many home sellers are also looking to buy another property, the seller will need to get enough at closing to pay their own down payment.
Without this payment, the seller's hands will be tied when they look to purchase another house and need to have a substantial amount of funds available. There is a common solution to this issue, however.
The Solution
In order to get the money the seller needs from the loan they just created, the seller could sell the monthly note payments to a specialist buyer for a lump sum of cash. If the seller finds someone willing to buy the payments, now they can
"have their cake and eat it too".
In summary.
Step one: Use the seller finance option to find unique customers willing to buy the house at a higher price than would have been possible otherwise and complete the real estate transaction quickly.
Step two: Decide on the terms of the deal and create the note.
Step three: If the property seller needs immediate cash to buy another house or for any other reason, their new incoming payment stream can be resold. The person who buys the future payments from the seller will provide the funding to act as a down payment on a new house, and every party involved in the deal comes out smiling.
email us with any questions you may have or to sell your mortgage note or trust deed.
visit our complete blog
By recognizing the millions of people who can't get traditional financing as potential buyers, resourceful property sellers (and their real estate agents) can minimize their time investment in getting a property sold. Even better, sellers
who offer financing can usually get a higher asking price for their property, even in the slowest markets.
Clearly this is a win-win situation.
Most home sellers never consider financing the buyer directly because they are not aware of the benefits or don't fully understand how creating a note works. Let's take a closer look at the advantages of owner finance.
Three Advantages
Seller financing is very powerful when the market is slow or when there are many similar houses on the market. Just listing the house as "OWC" -
Owner Will Carry - will make the house stand out and attract more buyers. Because many individuals cannot get funding from a bank, offering financing will open the doors to these prospective customers as well, essentially significantly increasing the pool of potential buyers. So, advantage #1 is MORE BUYERS.
Seller financing also brings the property seller another critical advantage . the likelihood of selling for a higher price. Offering to carry back a note will not only greatly increase the number of potential buyers, but also bring a unique demographic of buyers who are willing to pay more for a given property than the general population.
Advantage #2: MORE MONEY.
Additionally, when the property seller finances the buyer, they get to act as "the bank". That means they could structure the deal to collect interest. Over time, if the seller holds on to their note, this can add up to tens of thousands of dollars in additional income.
Advantage #3: LONG TERM PROFIT.
The Seller's Strategy
Even when these benefits to "carryback" lending are made clear, many sellers are still hesitant to offer financing because they are entering unfamiliar territory. It's a natural, human response -- everyone is uncomfortable with new things.
For many property sellers, considering owner financing when they've only dealt with buyers via traditional funding is definitely "thinking outside the box". But once sellers understand the process, they are likely to choose seller financing instead of the unattractive option of cutting the listed price or waiting indefinitely
for the "right buyer".
A seller-financed real estate sale is simply a real estate transaction where the seller acts as "the bank" or lending institution. The seller sets the sales price, determines and accepts a down payment, and then finances the remaining
balance. The final step is the part that may scare some sellers, but in actuality, it can be very simple. Here is an example.
If the sales price is $100,000.00, and the buyer gives the seller $10,000.00 cash (the agent's fee will be deducted from this down payment), the seller will finance the balance of $90,000.00.
The buyer and seller would then agree to the terms, such as the interest rate and the total term, and use an attorney to create the mortgage document and close the deal.
From that point on, the buyer sends the seller monthly payments for the house he/she has just purchased.
Special Circumstances (and a Solution)
The whole process can really be that simple. But, there are some substantial differences between a seller-financed deal and one that relies on traditional bank funding.
First of all, the seller in this example does not receive a large, one-time payment at the time of the sale. In fact, they will only receive the down payment, and in some situations, most of that will go towards paying the real estate agent's fee.
On the other hand, the seller will be receiving monthly payments at a decent
interest rate, but this income stream can't be used as a down payment for a new house.
Since many home sellers are also looking to buy another property, the seller will need to get enough at closing to pay their own down payment.
Without this payment, the seller's hands will be tied when they look to purchase another house and need to have a substantial amount of funds available. There is a common solution to this issue, however.
The Solution
In order to get the money the seller needs from the loan they just created, the seller could sell the monthly note payments to a specialist buyer for a lump sum of cash. If the seller finds someone willing to buy the payments, now they can
"have their cake and eat it too".
In summary.
Step one: Use the seller finance option to find unique customers willing to buy the house at a higher price than would have been possible otherwise and complete the real estate transaction quickly.
Step two: Decide on the terms of the deal and create the note.
Step three: If the property seller needs immediate cash to buy another house or for any other reason, their new incoming payment stream can be resold. The person who buys the future payments from the seller will provide the funding to act as a down payment on a new house, and every party involved in the deal comes out smiling.
email us with any questions you may have or to sell your mortgage note or trust deed.
visit our complete blog
Monday, June 1, 2009
Why Investing Near Universities is Your Best Bet!
I've always been bullish on real estate for long term investment, portfolios, retirement. But the real estate I love the most was where I first started buying, next to a big, growing, sprawling university.
I still believe these areas are what I call "Real Estate to Die For." Universities, colleges and schools of higher learning are all pillars in our communities. They are here in perpetuity, during our lifetimes, our children's and their children's lifetimes. They contribute greatly to the local economies, and hopefully, will grow in size as more Americans and foreign students want to be educated.
Look in areas within a short distance to the school of your choice. The closer the proximity, the less time it takes for your tenants to get to school. They can stay at school longer, too, without having to be pressured to leave campus and have a long commute home.
There are tons of opportunities to rent to students and many colleges have off-campus housing offices to help students find landlords and vice versa. Make sure you get parents co-signed on the lease, even if you need a local attorney to draw up paperwork for you. It might cost a little at the beginning, but will more than pay off if there's a problem with collecting rents down the road.
What's the difference between a student to living in the college-owned dormitory or your off-campus housing? Lots of differences. First of all, students prefer the privacy of living in their own room/space and not having to share a room with another student or two! They are adults for the first time in their lives and the last thing they want is the loss of privacy that comes with sharing a dorm room. Next, they are much more independent out of the dormitory, sharing a condo or town home with another student or more.
Properties do not have to be hi-end or include crazy upgrades. It's enough that they are clean, spacious, comfortable and near school.
We can help you finance your property if you have a mortgage note or trust deed to sell. email for more information.
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