1. Get a home inspection before you sell. It is always better to be proactive and know what if anything is wrong with your home before a buyer does. They will ask you to drastically reduce your asking price.
2. Clean clutter. Nothing turns off a buyer like junk and clutter.
3. Ask 10% lower price than the property is worth. This will bring more buyers and the price will get bid up.
4. Get light into the home. Clean windows and get rid of dark drapes. Nothing sell better than natural light, it makes your rooms look bigger.
5. You do not need to bake cookies. Place a few drops of vanilla on a warm oven door will produce the same results.
6. Replace a worn mailbox. This will enhance the curb appeal.
Please feel free to post your tips.
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Showing posts with label commercial real estate financing. Show all posts
Showing posts with label commercial real estate financing. Show all posts
Wednesday, March 31, 2010
Saturday, January 2, 2010
Tips on Selling Your Property
When it comes to selling real estate, one of the most difficult and
frustrating situations for sellers is when market conditions make it
nearly impossible to sell at the desired price point. A high initial
listing price might be because the seller simply has an unrealistic
idea of how their house stacks up against the competition in the area,
or because the owner needs to sell for a set minimum price in order to
pay off their loan against the property.
With traditional property sales methods, the only way to prevent the
property from sitting on the market indefinitely is to keep dropping
the price. Unfortunately, this technique doesn't always work -
especially if the seller is unwilling to "discount" their house by
much.
In areas flooded with homes for sale, reducing the asking price
slightly will not bring the desired result. In fact, it's common that
the property will continue to sit on the market without offers,
alongside the multitude of other unsold properties with similarly
reduced prices.
Anyone experienced in sales understands that making your product stand
out from the crowd is a critical technique for success. But if there's
too much competition offering the same attributes, the only logical
way to attract the attention of serious buyers is to drop the price so
that your property is a much better value than the competition.
In cases where the seller is too inflexible with their asking price,
this is not a practical solution. Without an alternative strategy, the
seller is forced to keep the house on the market for an extended
period of time with an unrealistic asking price, hoping for the right
buyer to come along. And as you know, that "Mr./Mrs. Right" might
NEVER materialize!
The Seller Finance Solution
Property sellers who want to both obtain their desired price and close
on the deal quickly should consider seller financing. Seller financing
is a powerful tool to remedy real estate situations that otherwise
look grim.
Many home sellers (and their real estate agents) do not see seller
financing as a viable option. In actuality, seller financing can bring
new attention to the listing and invite a different group of potential
buyers - thereby opening up a unique, untapped market.
A large percentage of people throughout the country cannot get
approved for bank funding to buy real estate because of their credit
situation. Many of these people are still in the market to buy a
house, however. The "credit-challenged" are often frustrated with the
limitations of apartment living or being renters; as a result, many
are willing to pay a higher price just for a chance to get seller
financing and improve their quality of life.
A savvy property seller who recognizes this opportunity can salvage an
unfavorable situation and turn it into a bonafide seller's market. By
using this type of creative financing, the seller could actually end
up getting more than the original asking price - without resorting to
the questionable strategy of patiently waiting for the "right buyer".
Seller finance can enable homeowners to receive a favorable selling
price despite bad market conditions. In addition, the real estate
agent (if any) gets to close a deal and move on to other sales, while
a home buyer with poor credit is able to become a home owner. It's one
of those rare situations where everyone at the negotiating table gets
what they want.
Paper Tigers
Many home sellers never consider seller financing because they don't
understand the benefits. There are also common misconceptions that
it's much too complicated to attempt to orchestrate a seller financed
deal, or that there are no buyers willing to sign a private note.
Once a property seller takes the time to learn about the basic
process, the advantages of offering financing instead of a lower price
to sell their property become very clear. Plus, a little education
about seller finance will make it apparent that drafting a secured
private note is actually a very straightforward process.
The bottom line is seller financing can enable a home owner to "have
their cake and eat it too" - i.e., sell at the desired price, close
the deal quickly, and even receive additional income from interest
payments as well.
frustrating situations for sellers is when market conditions make it
nearly impossible to sell at the desired price point. A high initial
listing price might be because the seller simply has an unrealistic
idea of how their house stacks up against the competition in the area,
or because the owner needs to sell for a set minimum price in order to
pay off their loan against the property.
With traditional property sales methods, the only way to prevent the
property from sitting on the market indefinitely is to keep dropping
the price. Unfortunately, this technique doesn't always work -
especially if the seller is unwilling to "discount" their house by
much.
In areas flooded with homes for sale, reducing the asking price
slightly will not bring the desired result. In fact, it's common that
the property will continue to sit on the market without offers,
alongside the multitude of other unsold properties with similarly
reduced prices.
Anyone experienced in sales understands that making your product stand
out from the crowd is a critical technique for success. But if there's
too much competition offering the same attributes, the only logical
way to attract the attention of serious buyers is to drop the price so
that your property is a much better value than the competition.
In cases where the seller is too inflexible with their asking price,
this is not a practical solution. Without an alternative strategy, the
seller is forced to keep the house on the market for an extended
period of time with an unrealistic asking price, hoping for the right
buyer to come along. And as you know, that "Mr./Mrs. Right" might
NEVER materialize!
The Seller Finance Solution
Property sellers who want to both obtain their desired price and close
on the deal quickly should consider seller financing. Seller financing
is a powerful tool to remedy real estate situations that otherwise
look grim.
Many home sellers (and their real estate agents) do not see seller
financing as a viable option. In actuality, seller financing can bring
new attention to the listing and invite a different group of potential
buyers - thereby opening up a unique, untapped market.
A large percentage of people throughout the country cannot get
approved for bank funding to buy real estate because of their credit
situation. Many of these people are still in the market to buy a
house, however. The "credit-challenged" are often frustrated with the
limitations of apartment living or being renters; as a result, many
are willing to pay a higher price just for a chance to get seller
financing and improve their quality of life.
A savvy property seller who recognizes this opportunity can salvage an
unfavorable situation and turn it into a bonafide seller's market. By
using this type of creative financing, the seller could actually end
up getting more than the original asking price - without resorting to
the questionable strategy of patiently waiting for the "right buyer".
Seller finance can enable homeowners to receive a favorable selling
price despite bad market conditions. In addition, the real estate
agent (if any) gets to close a deal and move on to other sales, while
a home buyer with poor credit is able to become a home owner. It's one
of those rare situations where everyone at the negotiating table gets
what they want.
Paper Tigers
Many home sellers never consider seller financing because they don't
understand the benefits. There are also common misconceptions that
it's much too complicated to attempt to orchestrate a seller financed
deal, or that there are no buyers willing to sign a private note.
Once a property seller takes the time to learn about the basic
process, the advantages of offering financing instead of a lower price
to sell their property become very clear. Plus, a little education
about seller finance will make it apparent that drafting a secured
private note is actually a very straightforward process.
The bottom line is seller financing can enable a home owner to "have
their cake and eat it too" - i.e., sell at the desired price, close
the deal quickly, and even receive additional income from interest
payments as well.
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.
Monday, May 18, 2009
Check Your Credit Score Before You Apply For A Mortgage
Bad credit or good credit, the process of obtaining a mortgage has changed. Even if you are simply trying to refinance your existing mortgage, you may be surprised at how different things are. Of course your credit score always played a significant role in determining what kind of loan you can apply for, but nobody could have predicted what you need in order to get a mortgage today.
in the past, banks were eager to lend money to people who were interested in buying a new home. They would barely look at your income and sell you loans that were more than you could afford - virtually regardless of your credit history. A credit score of around 680 points would have been considered good credit and allowed you to get preferred rates and the best plans.
Today, just a few months later, things have changed dramatically and it is nearly impossible to get a mortgage without excellent credit. The good news is that along with those changes, it has become increasingly easy to increase your credit score.
Before you try to get a new home loan, the very first step is to access your personal credit information to find out where you stand on the credit score scale. You can then use this information to remove the errors that are common to credit reports, quickly increase your score, and then get approved for the loan you need.
You can also think about owner financing with a mortgage note. Click here to contact us for more information.
Tuesday, May 12, 2009
More Selling your Property in a Difficult Market
The Spring 2009 Real Estate Season is peculiar. It is a buyer's market but with only a few buyers around. Those that are looking, and able to buy, are fearful of making a mistake. Lots of mistakes: buying too high, buying a house that doesn't comp out, buying too soon, missing the bottom.
It is impossible to time the market. Money managers can't do it and neither can we in the real estate business. This is because we only know where the bottom is when it has passed when you're no longer in it!
So with such overwhelming pressure on the price, what options does a seller have to keep the value of his property in tact?
Here, in NJ real estate, when there is a large supply and fewer buyers, it is unwise to keep dropping the price. That simply creates a price war that no-one can win. Instead, understand that buyers will be comparing all the options in their price point as analytically as they can find tools. The strategy to shore up value is to focus on the beauty contest and offer tools of comparison that enables your property to stand out. Clearly and cleanly.
The Beauty Contest
Your home must look its best. All the stuff we know - freshly painted, neat and tidy, clean and in perfect condition. PLUS,
- Open spaces in each room. Buyers need a place to stand to see each room and then see room for them to move into.
- How does it work? If they were to buy this house, where would they eat, play, work, sleep, rest and relax, etc.
- Depersonalized. More than personal photos, certificates and trophies, put away anything that is completely specific to you the homeowner, as opposed to a wide group of buyers.
- Photos. The last and most important part of the beauty contest is the pictures. You must have beautiful photos of the inside and outside of your home, taken from the right angle, with the right lighting so that the house looks great...online! 85% of all home searches start online, and the more photos you show, the better your home stands out against the competition.
Tools of Comparison
Buyers, with lots of choices, will compare and contrast options by price point, as carefully and analytically as they can. Make sure you offer them information to make the best comparison possible. The more information you can provide here, the more in control you are of the story being told to the buyer. information to have available, on hand, with the realtor's brochure, floor plan and comps is:-
- Illustrations of the home being located in a "Great Neighborhood "
- The Cost to Run the home
- Square Footage, amenities including # of closets, level lot, basement & extra spaces (include everything that could possibly be seen as a positive; you just don't know what's going to trigger the "must have it" impulse!)
- Ratio of Asking Price: Assessed Value
- Recent Sales in the Neighborhood and feel free to offer a paragraph to each listing illustrating how you stack against each sale.
Sunday, May 10, 2009
Selling your Property in a Difficult Market
If you listen to the media hype, you're probably thinking that you need to hold onto your home until the economy bounces back; that you'll never offload your house in this market. While it's true that sellers in some regions are finding it tough to sell right now, there are still buyers out there looking for a home.
The first step you need to take to ensure a successful sale of your home is to hire a reputable listing agent. While many people try the For Sale by Owner route first, most discover that selling a home is time consuming, complicated, and requires more specialized knowledge than they have.
Many homeowners who try to sell their home on their own become overwhelmed with trying to market their property to buyers. After all, it takes more than a yard sign and a couple of balloons to attract large numbers of viable buyers.
A good real estate agent will organize and host open houses for you, taking care of the scheduling, showing buyers around, and answering their questions. For these events, they will likely create professional brochures or fliers that feature the listing details of your home, as well as highlight the property's best features. This gives buyers something to bring home with them, and will make a positive impression.
In addition to traditional marketing methods like open houses, today's agents will also develop a solid advertising campaign for the internet. With over 80% of buyers starting their home search on the web, listing your home on the Multiple Listing Service and on other reputable websites is an important step in getting your home noticed. Thousands of agents and potential buyers will be able to access details and photos of your home from the comfort of their living room.
Having a web savvy agent is absolutely vital in this market, but you also want an agent who has been in the industry for a few years-particularly one who has experienced the ups and downs of the housing market. He or she will be able to provide insight and practical advice about how best to go about getting your home sold in a difficult market.
With your listing price set and marketing campaigns in place, a realtor will also help you negotiate with buyers to get the best price possible. Agents are trained and skilled in the art of negotiation, and will make the entire transaction much smoother for everyone.
Successful sales are possible even in slow markets like this one, but it's important to have an ally with know-how to guide you along the way.
Do not forget about seller financing with a mortgage note. We can help you with selling a mortgage note or creating one to take back financing.
Thursday, May 7, 2009
Things to consider when selling your home FSBO
If you're opting to sell your own home rather than using a realtor, it's important to take a systematic, proven approach to your sales campaign. The market is very different to what it once was, and you should focus on how to sell a house during recession. This article outlines 3 areas that are crucial to a quick house sale.
1) Your Pricing Strategy
It's not wise to aim for big profits in the current market. Unless you live in a particularly unaffected area, you're going to find that the only way to sell your own home is to ask at or just below market value. Don't be scared of this, as chances are buyers will run the price up. In fact, with a good marketing campaign your price can be risen quite high through buyers competing with each other.
2) Your Advertising Campaign
It's absolutely imperative that your advertising is targeted to wards the right market. Let me say now that the majority of serious buyers at the moment are property investors. Families are not exactly in a position to buy. Keeping this in mind, you need to write your sales copy and headlines to appeal to these investors. Write about how much profit they'll make in 5 years time when the market returns to normal.
3) Your Property Presentation
A very popular trend over the past few years has been "home staging". That is essentially where you move your old furniture out and hire some up-market household items to ive your place an expensive feel. Though this strategy can work well, I think many buyers are now weary of it. Instead, just de-clutter your home of excess "stuff", and go for an airy and open feel. Concentrate on your bathroom and kitchen especially.
You should also consider taking back the mortgage with a mortgage note!
Visit our site for more information or email mortgagenotes@smilingdogenterprises.com
Friday, March 27, 2009
Understanding the logic of note discounting
Understanding the logic of note discounting
When the owners of real estate notes liquidate their investments the resulting sales will almost always require some kind of discount. Here’s an easy explanation of the Investment to Value (ITV) method that many Note Buyers use to determine their pricing.
Most experienced Note Buyers have predetermined guidelines in mind that serve to narrow their focus to the notes that are likely to fit their buying preferences. Still, many buyers will purchase almost any note if the price is right – in other words, if the financial rewards are in line with the associated risk. To compensate for added exposure buyers adjust their pricing guidelines downward, which results in a higher yield.
Many buyers gauge their risk in a deal by considering their Investment to Value (ITV) percentage. ITV measures the amount of protective equity the Note Buyer has by comparing her purchase price to the property value. The amount of protective equity in the property is calculated by subtracting the ITV from 100. The lower the number or percentage the safer it is for the Note Buyer.
When a Note Buyer thinks that acquiring a note may be risky one potential solution is to make a lower offer that decreases the ITV. A lowered ITV results in more protective equity for the Note Buyer.
An ITV-based buying example
Consider a house valued at $100,000 that secures a $95,000 note. If the Payor in this situation had poor credit or a history of missing payments this would be considered a risky situation. Since there is only $5,000 in equity any Note Buyer would want a mitigating factor to offset the risk involved in
this purchase.
A logical way to improve this deal from the buyer’s perspective is to make a discounted offer. If a buyer offers only $60,000, the ITV would be 60 percent, giving him 40 percent of protective equity. That $40,000 of protective equity could help her to make a profit, even in a foreclosure situation. If the buyer incurs extra costs when foreclosing and reselling the house, the $40,000 of protective equity should more than cover the
extra expenses.
Note Buyers always have to look after their own interests. Consequently, notes with little equity and a poor payment history are likely to see deeper discounts in order to create protective equity for the buyer. This protective equity will help ensure that Note Buyers can recoup their funds if Payor default leads to foreclosure.
email us or Mortgage Note
When the owners of real estate notes liquidate their investments the resulting sales will almost always require some kind of discount. Here’s an easy explanation of the Investment to Value (ITV) method that many Note Buyers use to determine their pricing.
Most experienced Note Buyers have predetermined guidelines in mind that serve to narrow their focus to the notes that are likely to fit their buying preferences. Still, many buyers will purchase almost any note if the price is right – in other words, if the financial rewards are in line with the associated risk. To compensate for added exposure buyers adjust their pricing guidelines downward, which results in a higher yield.
Many buyers gauge their risk in a deal by considering their Investment to Value (ITV) percentage. ITV measures the amount of protective equity the Note Buyer has by comparing her purchase price to the property value. The amount of protective equity in the property is calculated by subtracting the ITV from 100. The lower the number or percentage the safer it is for the Note Buyer.
When a Note Buyer thinks that acquiring a note may be risky one potential solution is to make a lower offer that decreases the ITV. A lowered ITV results in more protective equity for the Note Buyer.
An ITV-based buying example
Consider a house valued at $100,000 that secures a $95,000 note. If the Payor in this situation had poor credit or a history of missing payments this would be considered a risky situation. Since there is only $5,000 in equity any Note Buyer would want a mitigating factor to offset the risk involved in
this purchase.
A logical way to improve this deal from the buyer’s perspective is to make a discounted offer. If a buyer offers only $60,000, the ITV would be 60 percent, giving him 40 percent of protective equity. That $40,000 of protective equity could help her to make a profit, even in a foreclosure situation. If the buyer incurs extra costs when foreclosing and reselling the house, the $40,000 of protective equity should more than cover the
extra expenses.
Note Buyers always have to look after their own interests. Consequently, notes with little equity and a poor payment history are likely to see deeper discounts in order to create protective equity for the buyer. This protective equity will help ensure that Note Buyers can recoup their funds if Payor default leads to foreclosure.
email us or Mortgage Note
Wednesday, December 31, 2008
Tips on Cutting Your Business Taxes
As the calendar turns to another year, it's time to get 2008 tax information in order. Taking advantage of all opportunities can reduce the burden. Here are some opportunities, courtesy of the Internal Revenue Service, that are not widely known. If they don.t apply to your 2008 returns, this is a good time to consider them for the new year. In hiring, consider taking advantage of the Work Opportunity Tax Credit.
This was designed to provide an incentive to hire from certain groups with particularly high unemployment rates, including urban youths, government assistance recipients, ex-convicts, veterans and vocational rehabilitation referrals. The credit has been extended a number of time. Now it's combined with the welfare to work tax credit and extended through August 31, 2001. The combined credit is available for employers hiring from one or more of nine targeted groups. Depending on the group and circumstances, the maximum credit per employee ranges from $1,200 for qualified summer youth employees to $5,000 for long term family assistance recipients. If you own real estate, you might benefit from cost segregation.
Real estate holdings represent a significant capital investment. Cost segregation carves out shorter lived assets, which qualify for five, seven and 15 year write off periods, normally embedded in a building's construction or acquisition cost, and thus depreciated over 38 years. Reclassifying assets and accelerating depreciation could bring tax savings and easier write offs when items become obsolete. Reclassifying assets is most effective for property valued at $1 million or more. For retailers that are considering buying equipment, enhanced Section 179 may help. The Economic Stimulus Act of 2008 has two incentives for business that purchase, tangible personal property, for use in the business. The first enhancement Section 179 is expensing.
For property placed in use during the 2008 tax year, business can deduct up to $250,000. the deduction begins to phase out if the business spends more that $800,000. Before the Act, the Section 179 expense limit was up to $238,000, with a phase out beginning at $510,000. What property qualifies? Generally, the property must be newly purchased tangible personal property, actively used in the business and for which a depreciation deduction would be allowed. It must be used more than 50 percent for business.
Bonus depreciation is back, offering another incentive to purchase equipment. It is the second incentive in the Economic Stimulus Act. This incentive was used after 9/11 and after the gulf cost hurricanes, to encourage businesses to invest. The new law provides qualifying taxpayers 50 percent first year bonus depreciation of the adjusted basis of qualifying property.
To claim bonus depreciation, the assets must be new, qualified property put into service after December 31, 2007. Qualified property must be: "Property with a depreciation recovery period of 20 years or less." "Depreciable computer software that is not amortizable over 15 years." "Water utility property." "Qualified leashold improvement property." If purchasing equipment isn't practical, there are tax advantages to leasing. If you lease your equipment, you are allowed a full write off of lease expenses each year, no matter the size of your business or the dollar value of the leases.
Technorati Tags: irs, taxes, tax credit, real estate, financial planningWednesday, December 3, 2008
How to make sure you get the highest price for your mortgage note.
How to make sure you get the highest price for your mortgage note.
- Buyer's credit.
The better the credit rating of the buyers, the more valuable your note.- If they are a husband and wife, find out the credit rating of both of them. many time the wife is earning more than the husband.
- If you don't have a credit report, you can order a free report from us.
- Sale price of real estate.
If this is MORE than the actual value of the real estate expect to take a bigger discount when you sell the note. An experienced note buyer wants to have some equity in the property in case the buyer defaults. - Third party buyer.
If you sell to a family member or friend you WILL have difficulty collecting your payments. - Actual, provable value of the real estate.
If you are taking back a first mortgage note there is no legal reason to have an appraisal. But if you intend to SELL the note, any experienced note buyer will want to know what the property is worth. It may be harder to access the property and have an appraisal done after you close on the sale. - Loan to Value ratio. LTV.
For a note to be marketable the total LTV, that is including the first and second mortgage (if any) should be no more than 75% of the actual value of the property. However, if the buyer's credit is good, this 75% could refer to the Investment to Value or ITV. In other words, the amount the note buyer is investing in the note. Thus if the property is worth $100,000 and the buyer has put down a 10% payment and has a $90,000 mortgage, you could get $75,000 (75% of the value) for your note. - Who are the buyers?
If the buyers are husband and wife they BOTH need to sign the note. If the buyer is a corporation, trust or LLC then make sure the principals also PERSONALLY sign the note. If they refuse to do so this could be an indication they will let the note default if the deal doesn't work out for them. Of of, this need not apply if the buyer is a substantial corporation. (I wouldn't ask Bill Gates to personally sign on a note from Microsoft. :-) But how about a note from WorldCom or Enron?) If the borrower is NOT a substantial corporation then the note could be either unsaleable or only saleable at a much larger discount to reflect the lack of personal liability. - Seasoning, aging.
There is no doubt that a seasoned note, where the buyers have made payments for a year or more, is easier to sell and will get a higher price than a new one. But of course you won't have this option if you want to do a simultaneous closing. - Institutional lender allows secondary financing.
There are many institutional lenders, banks etc. that will not allow secondary financing behind their note. Why not? After all, their lien is senior anyway. One answer is simply that they do not want to the borrower to be stretched to make their payments. Also they would sooner the buyer put down more cash or pay for mortgage insurance (a fancy way of saying a higher interest rate.) - Loan properly secured.
If your mortgage is a second mortgage, it should be a properly recorded mortgage or deed of trust to comply with your local laws. Any documentary and intangible taxes should be paid. Without this the mortgage may be unenforceable. - Title insurance.
You should have proper mortgagee's title insurance. - Rights with respect to first mortgage, if you hold a second.
If you are holding a second mortgage it should contain language to the effect that a default on the first mortgage is a default on the second. Also that you, as second mortgage holder have the right to check on the payment status of the first. - Interest rate.
Other things being equal, the higher the interest rate, the higher the price you will receive. But be aware of laws concerning Usury and Predatory lending. A below market interest rate will demand a hefty discount to be saleable. - Length of note to short.
Typically it is hard to sell a note with a short balloon, or a balloon due in just 6-12 months. The note buyer will be concerned that the borrower won't be able to refinance and pay them off.
But a loan with for example, 3-5 years to run, and a 30-year amortization is going to be saleable, other things being equal. - Length of note too long.
The note buyer won't usually want to wait 30 years to get paid off, but these notes can often be sold to institutional note buyers.
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Tuesday, November 25, 2008
Mortgage Note Buyers Helping You Get The Most Money For Selling Your Mortgage Note
All mortgage note holders want to know more about selling their mortgage note. Don't you?
Well, the popular way to get a lump sum of cash for your future payments is by using a mortgage note buyer.
Most people don't realize they have different creative options when using a contract buyer that can keep them from getting the most money for their owner-financed mortgage note.
It may seem scary or challenging, but truly it is not, unless you do not know the answer to this question.
Can I receive cash now and still hold part of the note? In other words, do I have to sell all of my note at once?
At first glance, this may seem obvious that this is the best choice because it will get you the most money up front. For some people, it is. When it comes down to it, it is up to you and your needs. If you need or want a large all cash payment and want to be out of the deal, rid of headaches and worries of a default buyer, avoid destruction of property, taxes and insurance, and would like a larger sum of money now instead of collecting small monthly checks, then a full sale is best.
But let 's take a look at some more needs. If you are just looking to get a
larger down or some money to take care of some immediate needs or
pleasures, then a partial payment may be better. Maybe you just want to
lessen the amount of strain or burden of carrying the note and would like to sell just a portion of each monthly payment. Then a split payment option will be better for you. (This way you can go on vacation, consolidate debt buy a new car...)
What is a partial? A partial is the purchase of a portion of an income streams remaining payments, or a purchase of a portion of a specific payment, or any combination thereof.
There are many times when this may make sense. Let 's say that you have a new note and it has not been seasoned (length of time that a note has been in place and paid on), it has little or no down payment, and has poor credit by the payer. In this case, it would be better to sell only part of the future payments. It will get you more money in the long run because the mortgage note buyer would have less risk should the buyer default on the note. Then after the note has experienced seasoning you could sale the rest of the payments at a much higher percentage.
Let 's look at an example of this:
Sales price: $100,000
Down payment: $5,000
Original note balance: $95,000
Payers credit: poor
Seasoning: 1 month
Appraised property value: $100,000
Term: 360 months
Interest: 10%
Remaining payments: 359
This is a low quality note because the buyer is not putting much money down,
the pay back period is very long, and the buyer 's credit is bad. But you could still make out like a bandit by selling it as a partial. Let 's say you sold the first 120 payments (10 years) for $51,000. After the 120th payment, the contract would be returned back to you. The balance owed to you would be $86,391.12. You would then start to collect the payments from then on. Let 's see how this looks.
Sales price: $100,000
Down payment: $5,000
Original note balance: $95,000
Contract written for 30 years @ 10%
Monthly payment: $833.69
Note buyer purchases first 120 payments for: $51,000
Total cash to home seller $56,000
(down payment + cash from note buyer)
After 120 payments contract is returned to you with a balance of $86,391.12
Total money to you: $142,391.12 (including interest). Not shabby for a house that sold for $100,000.
So, what is a Split?
A split is a purchase of a specified monthly amount. If you're getting to the point where you would like to enjoy some of the finer things in life, while still receiving a good monthly income, then a split payment is a great choice for you.
For example, if the monthly payment on a seller-financed note is $1,000, we could purchase $200, $500, $750, etc. of the monthly payment. This will allow you to get cash now and then still collect a monthly income from the note.
All in all, each situation is different and may need to be tailored differently to meet your needs. I can't say exactly what you will get for your individual situation, but I can say that you should walk away happy. Selling your mortgage note should be much easier and more profitable now that you are armed with some creative options.
Get a free quote email us at quote@smilingdogenterprises.com
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Wednesday, November 12, 2008
Most Often Asked Questions About Selling A Mortgage Note
Mortgage note buyers exist to help you create, sell and understand your mortgage notes, contracts for deeds, trust deeds, and promissory note both residential and commercial.
Below you will find 5 frequently asked question about selling your mortgage note.
5 frequently asked questions, that most note sellers have about selling their owner-financed mortgage note are:
1. How much cash can I get? There are many factors in determining the offer price for selling a mortgage note The main four are equity, seasoning, interest rate, and credit of payer.
The more of these you have in your favor the larger lump sum you will get. This is why many mortgage note buyers offer a free no obligation quote.
If you look through some of the questions there, you'll see that they are simple and only take a few minutes to fill out.
These type of questionnaires are designed to keep you from having to dream about how much money you will get. The coolest part about it is, if nothing else, you know how much money you could receive if you wanted it.
2. How do I sell my note? Selling your note is easy. The first step is finding and contacting a mortgage note buyer or contract buyer and simply telling them that you want to sell your note.
This initial contact could be by phone, email, or through filling out a free mortgage note quote form. More than likely, if you are reading this, then you are at a site that can help you get a cash offer for your note.
If not, then there is a link to a good website and company above, that can give you a "No hassle, No obligation" quote.
Once you give the contract buyer some required information, they will be able to get back to you, usually within 24-48 hours, with an offer.
3. How long does the process take once I decide to move forward? After you have given the mortgage note buyer the required information, either by calling, email, or filling out an online form, they will get back to you in 24-48 hours.
Usually, it only takes 2-3 weeks to complete the deal and have a huge certified check deposited, or wired to your bank account.
4. When I convert my note to cash, how will it affect the person(s) paying me? Not at all. The terms, payment, and amount owed stay the same.
This is a really neat thing about selling your mortgage note. You can get a large sum of cash and it doesn't affect the person(s) paying you. Sounds like a "win-win-win" situation to me.
5. Where would the closing take place? Usually, at the closest title company near you. Sometimes it takes place in the town or city in which the property is located...which brings up another question.
Do you have to be there for the close? Nope, not generally. The person handling the title and closing the deal can send you the closing package. This is all done to make it as convenient and as easy for you as possible.
As you can see, getting a large sum of cash now for your future mortgage payment is an easy process that can put a lot of money into your pocket for a vacation, to consolidate bills, and buy or enjoy any other necessities or pleasures.
Mortgage Note Questions - How To Sell Your Mortgage Note
When it comes to selling real estate, one of the biggest obstacles sellers face is a so-called “depressed” market. Even when a property is highly desirable, it can be hard to get the price you want in this real estate environment. You could end up losing a lot of time, money, and opportunities, waiting for a “perfect buyer” who may NEVER materialize!
The traditional solution is to drop your asking price. But this common strategy doesn’t always work in your favor. In fact, it can work against you, making your home seem undesirable and your position seem weak.
But there IS a way to turn this challenge into a profitable opportunity! I am not selling anything. I am in the business of paying cash for mortgage notes and trust deeds.
Keep in mind that it has to make financial sense. Although having regular income is a nice idea, there comes a time when you might need a lump sum of cash for an investment, a large purchase or just to pay.
A cash flow notes statement documents the amount of incoming and outgoing cash and its equivalents. Only cash sales are recorded in a cash flow statement – all future sales including those made on credit are not declared.
Most banks refuse to accept a short sale or modify the terms of a mortgage unless the owners are numerous months behind in payments. The homeowners come to the bank to ask for help to avoid foreclosure. Individuals sell structured settlements to get liquid cash. They can be sold to special financial institutions. The main advantage of selling structured settlements.
In situations where you are holding the sell mortgage notes and receiving payments from the sale of commercial and residential real estate, and you are want to cash in on those payments, there are service agents who provide help. This technique has been the key in making up an estimated 20% of all private note sales.
Right now, thousands of people across North America are stuck with investments that they don’t want. They would rather have the cash now! Whether it’s a real estate note created when selling a property, a business note created when selling a business or even a structured settlement, there are thousands of notes out there that could be turned into cash!
Get cash now and forget those monthly payments FOREVER! We work with buyers who are ready to pay top dollar for your notes. If you have a trust deed, a mortgage note or any private loan, it's time to find out exactly how much CASH you could be entitled to.
* It's Quick: Learn how to cash out in minutes
* It's Easy: You could have cash in just days
* It's Secure: Get real quotes directly from certified buyers
There has never been an easier or faster way to cash out of your investment. Whether you need money to pay bills... to buy a home... to fund an education... or even if you just need some spending cash... We'll show you the money for your mortgage note or trust deed!
http://www.smilingdogenterprises.com
getcashnow@smilingdogenterprises.com
Thursday, November 6, 2008
Financial Planning How To Sell Your Mortgage Note For Cash Now
Many people that sell their home or property choose to sell it themselves as opposed to going through a real estate agency, bank or lending institution. There are different reasons why they may choose to do this. They may be selling it to a friend or relative and want to avoid or eliminate the middle man or the buyer may not be able to obtain conventional bank funding. Another reason may be to avoid having to pay commission to a real estate agent for selling your property. If you’re selling your property for a large sum of money, the commission the real estate agency will earn can be quite substantial. When you are the seller that holds the trust deed on the property sold, things can go smoothly or problems may arise.
If you are not in instant need of the proceeds from the sale, being the “lender” may work out great for you. Many people, however, discover after a certain amount of time that they want to invest in property and need the money. If this is the case, the first question you may ask yourself is, “How do I sell my trust deed?” This is actually something you should consider at the time you sell your property. You may think that acting as a lender will be simple and quick for you and the buyer, but you may want to learn all you can about this procedure before you make a commitment.
If the buyer is having difficulties making the payments, you may tire quickly of being the “bad guy” demanding payments or collecting late fines. If I was considering selling and holding the trust deed for my property, I would research how to sell my trust deed before I signed any legal binding contract. Even though I may not ever need to sell my trust deed, I’d still want to get all the information I needed ahead of time. We can help you learn the best way to sell my trust deed at NO cost to you. An attorney can also give me information if I want to sell my trust deed and what steps need to be taken.
We will not only buy your trust deed, but often we will buy just part of it. You may want to go on a vacation, make an investment or just have extra cash available and not want to sell the entire trust deed.
Click here to email us Our complete BLOG List a Note on our site
Wednesday, October 15, 2008
Purchasing Property In Todays Tight Credit Market With Mortgage Notes
People want to have their own house. But in today's extremely tight credit market, a potential home buyer may not be able to obtain financing from a traditional bank or a mortgage company. In this case, a buyer may choose to purchase real property through a land contract or mortgage note.
A land contract sometimes known as a contract for deed, trust deed or mortgage note is a contract between a buyer and a seller of a real property wherein the seller provides financing to
purchase the property for an agreed-upon purchase price and the buyer repays the loan
in installments. The seller holds the title or the deed to the property until the buyer completes all payments stated in the contract.
Purchasing a property by way of a land contract can prove beneficial to the buyer. He/She does not have to contend with hefty down payments, credit requirements or other tedious bank financing prerequisites.
Initial costs incurred with a land contract are also significantly lower than those through bank financing. Likewise, the seller does not have to wait for lengthy bank processes. Furthermore, property sold via a land contract can be priced higher than if sold through bank financing. Since the buyer is not obligated to pay a large down payment, the seller can ask for a higher price or a higher interest rate enabling the latter to realize a considerable profit.
Under a land contract, the buyer and the seller enter into an agreement that stipulates that the seller shall only transfer the legal title of the real property until all agreed-upon payments have been paid in full.
During the duration of the contract, the seller allows the buyer to occupy/use the property for purposes other than legal ownership provided the buyer is not in default. In most land contracts, the purchase price is typically paid with a modest down payment and then
periodic installments for a set period of time. At the end of the course of the payments, the buyer pays off the balance with a balloon or lump sum payment. When the full purchase price inclusive of any interest has been paid, the seller tenders the legal title to the property to the buyer.
If the buyer defaults on his/her regular installment payments or fails to make full payment at the end of the land contract, the seller may re-possess the property. The buyer loses any payments made including the down payment and equity through his/her periodic payments. Money and time spent on improvements on the property will all go to waste. Thereafter, the seller is not required to transfer the deed to the buyer. On the other hand, if the seller owes a mortgage on the property and has not settled the entire loan prior to the buyer's final payment at the end of the contract, the latter may be forced to pay off the mortgage to prevent foreclosure on the property thereby losing his investment. Aside from mortgage on the property,there can also be back taxes or other liens that the seller owes.
We can help. Click here to email us.
A land contract sometimes known as a contract for deed, trust deed or mortgage note is a contract between a buyer and a seller of a real property wherein the seller provides financing to
purchase the property for an agreed-upon purchase price and the buyer repays the loan
in installments. The seller holds the title or the deed to the property until the buyer completes all payments stated in the contract.
Purchasing a property by way of a land contract can prove beneficial to the buyer. He/She does not have to contend with hefty down payments, credit requirements or other tedious bank financing prerequisites.
Initial costs incurred with a land contract are also significantly lower than those through bank financing. Likewise, the seller does not have to wait for lengthy bank processes. Furthermore, property sold via a land contract can be priced higher than if sold through bank financing. Since the buyer is not obligated to pay a large down payment, the seller can ask for a higher price or a higher interest rate enabling the latter to realize a considerable profit.
Under a land contract, the buyer and the seller enter into an agreement that stipulates that the seller shall only transfer the legal title of the real property until all agreed-upon payments have been paid in full.
During the duration of the contract, the seller allows the buyer to occupy/use the property for purposes other than legal ownership provided the buyer is not in default. In most land contracts, the purchase price is typically paid with a modest down payment and then
periodic installments for a set period of time. At the end of the course of the payments, the buyer pays off the balance with a balloon or lump sum payment. When the full purchase price inclusive of any interest has been paid, the seller tenders the legal title to the property to the buyer.
If the buyer defaults on his/her regular installment payments or fails to make full payment at the end of the land contract, the seller may re-possess the property. The buyer loses any payments made including the down payment and equity through his/her periodic payments. Money and time spent on improvements on the property will all go to waste. Thereafter, the seller is not required to transfer the deed to the buyer. On the other hand, if the seller owes a mortgage on the property and has not settled the entire loan prior to the buyer's final payment at the end of the contract, the latter may be forced to pay off the mortgage to prevent foreclosure on the property thereby losing his investment. Aside from mortgage on the property,there can also be back taxes or other liens that the seller owes.
We can help. Click here to email us.
Tuesday, October 7, 2008
The Real Estate Market with a New President
The existing real estate market is in decline and current forecasts do not see a significant rise any time soon. However, there are many variables that could affect this forecast. Being an election year, a new president, depending on the policies of his platform, may be able to change the economy to such an extent that the real estate market also changes. There is no guarantee that it will be for the better but it very well may affect change. This late in the game the front runners for the election are Barack Obama and John McCain.
Obama is a Democrat who has a proposed housing reform plan. His reformations include changes to the financial regulatory system to have stricter controls on financial institutions. Also in his plan is a system to help with the current foreclosure problem facing many Americans today. He proposes that the Federal government take steps to assist those who are in financial straits by buying out or refinancing existing mortgages to drop monthly payments.
Also, he wants financial institutions to restructure loans as early as possible when a borrower is having problems. In addition he wants to increase tax incentives for people who have mortgages so they can get a break on their taxes. His final initiative includes a federally funded program costing up to thirty million dollars to help with the existing foreclosure crisis facing America today.
McCain, a Republican holds that there should be little government intervention in the banking situation and that the economic issues should play out naturally. However, recognizing the crisis he is open to suggestion from leading authorities for temporary solutions for assistance in order to help the American public through the crisis. However, he maintains that any assistance should be temporary and any permanent reform should be in the means of regulatory changes and increasing the accountability of banks so that the crisis does not occur again.
He also insists that any financial assistance to the public should be for those in primary residences to save their home and no assistance should go to investors in trouble or those who have trouble keeping up a second home or vacation property. While McCain is amenable to analyzing the issue and open to discussion regarding possible solutions for both long and short term, he is non committal about what his housing policy is and refuses to make it a part of his campaign. He does not want to play on the fears of the public to win votes by touting a reform policy that is not feasible or would not pass.
Both Obama and McCain have recognized the existing housing problems in the country. Both have acknowledged a need for some type of reform. They do, however, disagree on how much government should be involved and in which aspects. Obama has a clear cut strategy for housing reform as part of his campaign platform but that does not mean anything will actually come to fruition if he is elected. McCain has been noncommittal in pinning down specifics but has stated it is something that will take precedence. How the market will unfold after the election, though, will depend not so much on who is elected but what will actually occur when they are. Right now, there is merely discussion and planning with nothing concrete evidenced by either side.
We buy mortgage notes and trust deeds.
Obama is a Democrat who has a proposed housing reform plan. His reformations include changes to the financial regulatory system to have stricter controls on financial institutions. Also in his plan is a system to help with the current foreclosure problem facing many Americans today. He proposes that the Federal government take steps to assist those who are in financial straits by buying out or refinancing existing mortgages to drop monthly payments.
Also, he wants financial institutions to restructure loans as early as possible when a borrower is having problems. In addition he wants to increase tax incentives for people who have mortgages so they can get a break on their taxes. His final initiative includes a federally funded program costing up to thirty million dollars to help with the existing foreclosure crisis facing America today.
McCain, a Republican holds that there should be little government intervention in the banking situation and that the economic issues should play out naturally. However, recognizing the crisis he is open to suggestion from leading authorities for temporary solutions for assistance in order to help the American public through the crisis. However, he maintains that any assistance should be temporary and any permanent reform should be in the means of regulatory changes and increasing the accountability of banks so that the crisis does not occur again.
He also insists that any financial assistance to the public should be for those in primary residences to save their home and no assistance should go to investors in trouble or those who have trouble keeping up a second home or vacation property. While McCain is amenable to analyzing the issue and open to discussion regarding possible solutions for both long and short term, he is non committal about what his housing policy is and refuses to make it a part of his campaign. He does not want to play on the fears of the public to win votes by touting a reform policy that is not feasible or would not pass.
Both Obama and McCain have recognized the existing housing problems in the country. Both have acknowledged a need for some type of reform. They do, however, disagree on how much government should be involved and in which aspects. Obama has a clear cut strategy for housing reform as part of his campaign platform but that does not mean anything will actually come to fruition if he is elected. McCain has been noncommittal in pinning down specifics but has stated it is something that will take precedence. How the market will unfold after the election, though, will depend not so much on who is elected but what will actually occur when they are. Right now, there is merely discussion and planning with nothing concrete evidenced by either side.
We buy mortgage notes and trust deeds.
Saturday, September 6, 2008
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