Due Diligence For Real Estate Investors

Due Diligence For Real Estate Investors

Protect yourself and your investment by doing some things that could pay off big down the road when you are looking for the right properties to buy.

Real estate investors must be very careful and knowledgeable in order to protect their financial investment and get the best deal possible. Savvy buyers, no matter what they are buying have a set of shopping rules when making a purchase…the best price possible…haggle…inspect carefully (buyer beware)…best quality you can afford…so why not do the same for a really big purchase like real estate you buy as an investment?

It starts with picking your target location. What do you need in a target area where you want to invest? If you are investing in single-family homes or apartments, you might look for the best possible schools along with convenient shopping. A professional might want office space. An entrepreneur might want a store space and living space in one where lots of shoppers gather. Narrow down your needs and desires. Then decide what area fulfills your list of needs and wants and start deciding what you can afford.

Some commercial ventures may not be location sensitive. You might find something cheaper further out, but still in the path of development and changing zones from rural or residential to commercial. Or you might find a good location that’s improving from previously depressed values. If you can see the improvement coming it could be a great decision.

Then get your financing in order and pre-approved before you narrow down your target properties. No Realtor will take you seriously if you don’t take this step. We all have to be realistic about what we can afford.

A good Realtor will listen to you. If they show you a lot of properties that don’t seem like good matches, you may need to consider changing to someone who listens better.

When you have found a property that seems to fit your needs, make the Realtor prove value. Ask to see a market analysis of properties VERY close by that have sold and closed in the last 60 days. You may find that the property you’re buying is significantly over or under priced. This data is available from “Multi-list” or at the local tax office.

Study selling prices in your target area to make sure you know enough about prices, especially if you want a fixer upper. Fixers need to sell low enough to justify the cash you plan to invest in remodeling. Any good appraiser will tell you asking prices are often very different from selling prices. Don’t believe everything you hear. Get the facts.

When you feel like the time is right, make an offer contingent on an inspection and obtaining financing. Inspections can cover a number of issues that could cost you money, like pest infestations, environmental issues, and broken stuff. Do them all. With this data in hand you can go back to the seller and HAGGLE big time. Try to get the seller to lower the price, not make the repairs. Any work the seller does at this point WILL be quick and dirty. If a structure is in pretty bad condition you can make a really low offer, one that would justify the amount of work you have to do. It might be accepted. You never know. And you might find something that would make you pass on the property. If you have the right contingency contract you only pay for the inspections.

If you make a deal be sure and get a title search and title insurance, preferably the day of closing. This is especially important if you are to have a clean title free of workman’s liens, tax liens or other debts that you would have to repay in order to have a property you could resell. It’s the single most important thing that happens to protect the investment you make that many buyers don’t see a need to pay for. It is worth it.

Another thing that’s worth the money you spend on it is a survey. You need to know if there is any encroachment or easement on your property. Many of these things could involve expenses for you. A municipality might expect you to accept liability for water damage to other owners below your property. You don’t want this kind of problem. Know these things ahead of time.

The point is you have to really study hard and go in armed with knowledge. A real estate purchase may be the biggest investment people ever make in their lives or businesses. In the current real estate market, capable buyers have an advantage. Maximize your advantage by being well educated. Knowledge really is power.

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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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Bankruptcy or Foreclosure, Which Is The Best Option

In the past, "Foreclosure" and "Bankruptcy" were considered two of society's dirty words. Today these terms are viewed by many as relief from Financial Black holes that can not otherwise be escaped. In the current economy, inundated with bad mortgages, many of which stem from predatory lending practices, coupled with credit card debt spinning out of control, bankruptcy and the loss of ones home have become common place. For many homeowners, a decision needs to be made as to which of these terms is the lesser of two evils.

For homeowners whose debt has spun out of control, and whose income does not cover expenses, foreclosure and or bankruptcy are options that may be inevitable. However, which of these terms truly is the lesser of two evils?

Should a homeowner file for bankruptcy, they may be able to eliminate all of their credit card debt, medical bills, court ordered judgments and even electric and gas bills. With the assistance of a bankruptcy discharge, they may then be able to stay current on their mortgage. However, many people are even more concerned about their credit score. They may ask, "Will we be able to obtain future financing?"

Should a homeowner rather, opt for foreclosure, they will certainly loose their home, but do they really want to keep it in this market where the house may be worth far less then what is owed. If a homeowner opts to walk away from their house, they may own other investment property, and be able to live in a multi-family house, or they may simply want to rent and not deal with all the hassles of homeownership. "If something breaks, let someone else fix it, repair it, deal with this problem".

Neither option is an easy choice. A bankruptcy will remain on your credit for 10 years, while a foreclosure will only remain for 8 years, but many credit counselors report it has twice the negative impact on your credit score compared with a bankruptcy. It will be extremely difficult to obtain a new mortgage for many years after you have lost a home to foreclosure. Many homeowners may see foreclosure as a better option then simply obtaining the financial relief that the Bankruptcy Laws provide. What many do not realize is that a foreclosure may be even a darker mark on their credit then a bankruptcy. As a result, it may be even more difficult with a foreclosure on their record to obtain subsequent housing. Many mortgage lenders look at a foreclosure more seriously than they will a bankruptcy. As a result, a former homeowner may not qualify to rent the apartment or house they want, even though they may be able to afford it now that the mortgage obligation is gone.

One of the key factors to keep in mind is that when you file and receive a discharge of your debt in a bankruptcy, even if your credit score is lower, you are still a better candidate to receive future financing and in very short order. The reason is simple. After your bankruptcy discharge, you do not owe anything to anybody. Additionally, creditors realize that you can not file for a new bankruptcy for another eight (8) years, and as such can not walk away from any new debt that you may incur as a result of credit extended to you by a new creditor, be it landlord, credit card, or other financing option.

Now it should be pointed out that in many cases, you may be so far behind that a foreclosure is going to happen no matte what. If this is the case, it may be in your interest to file for bankruptcy right before the order. The reason is that if the bank sells the property for less then what is owed, the difference (commonly referred to as the deficiency) will be discharged. As a result, the bank will often sit on a foreclosure order for some time before they act upon it, so as to not loose more money. In the meantime, a homeowner can possibly short sell their house and move on with their life.

Based upon the foregoing, if you are facing a financial crisis that may end in either foreclosure or bankruptcy, consult an attorney to explore what your best option may be. The right decision may save you years of restricted credit in the future.

If you have a mortgage note you can sell your mortgage note for cash now. Click here to email us for more information.

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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.

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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.

Do not forget to think about taking back the financing with a seller financed mortgage note.  Click here to visit our web site for more information or email us at info@smilingdogenterprises.comTechnorati Tags: mortgage notes, trust deeds, refinancing, get cash now, divorce, financial planning

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. 

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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

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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.

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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.

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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.

1. Buyer's credit.
   The better the credit rating of the buyers, the more valuable your note.
   1. 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.
   2. If you don't have a credit report, you can order a free report from us.
2. 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.
3. Third party buyer.
   If you sell to a family member or friend you WILL have difficulty collecting your payments.
4. 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.
   
5. 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.
6. 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.
7. 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.
8. 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.)
9. 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.
10. Title insurance.
    You should have proper mortgagee's title insurance.
11. 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.
    
12. 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.
    
13. 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.
14. 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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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.

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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.

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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

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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. 

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Five Steps to Improve Your Credit

For many, improving credit is an important step towards a chance at some of the most important aspects of everyday life. Good credit is vital if you want to own a good car, a good house, or any other major purchase. Like millions of people in America, you might have a few issues with your credit report; here are a few hot tips that can lead to improvement:

Step One: One of the best things you can do in your efforts to improve your credit is to learn your rights. Laws protect you as a consumer, and thus your credit score as well. You need to be familiar with those laws and your rights to improve that score. Policies of all sorts are in place that regulate everything from criteria regarding rejection to the ways a collection agency is allowed to go after late payments. If you're unaware of your rights, you'll find it difficult to insist on the proper steps that are in place to help you. Confusion is the enemy.

Step Two: The three major credit bureaus (TransUnion, Experian and Equifax) are required to provide you with a free copy of your credit report once a year, at your request.

Step Three: Once you have the credit report in-hand, go over it in miniscule detail. File a report for each and every negative item immediately. Any negative item must be investigated by the bureau: if they don't verify it within 30 to 45 days, the item must be removed! There are many reasons creditors refuse to verify information, which is great news for anyone trying to improve their credit. Better still, file your disputes when the credit business is busiest to help ensure there's less chance of verification.

Step Four: For certainty's sake, send every dispute form by certified mail (which only costs a few dollars extra) and request return-receipt. Make sure your records are extremely detailed, covering dates, times, names, every single minor step along the way. You want this process to be rife with delays and it will only help if you can make yourself as difficult as possible for them to deal with. Just one person failing in the verification-chain on their end, that's all it will take to get the negative mark cleared off your record.

Step Five: 30 to 45 days after you've sent in your dispute, get another copy of your report. Pay for it this time if you have to! Review it from top to bottom and start making phone calls about why unverified information hasn't been removed; it had plenty of time, after all. Dispute anything that remains, over and over and over again, until they get tired of dealing with you. Don't give up, because the reward for your persistence is an improved credit score!

In truth, it isn't difficult to improve your credit score, not really. It's as easy as getting your report, disputing everything negative, and repeating those steps until you get the results you want. Pay attention to every little detail and keep strict records, and you'll be well on your way to the better score that you want.

Get cash now for your mortgage notes and trust deed!

There is a lot of money to be made in real estate, even for people who do not own any property. This is possible if they decide to buy and sell mortgage notes. Real estate notes, commonly known as mortgage notes, are basically contracts that promise to pay the amount that is secured by any real estate property.

What are the steps involved in selling the mortgage note? First, after note sellers receive an initial quote, they advise the broker or the buyer on the cash option that they have chosen.

In note transactions, the phrase ‘simultaneous closing’ is often used to describe transactions that take place when the seller is carrying back a note as payment for his property. The intention behind selling the note is to exchange it for cash. Thus, ‘simultaneous closing’ means that there are two separate closing transactions taking place at the same time, during an escrow closing.

Why do people try to sell a mortgage note? Mainly because people have sudden exigencies or requirements that call for ready cash. Alternately, there are other incidents like the depreciating values of real estate, insurance liabilities, or vandalism that force people to sell mortgage notes. There are also instances where a low interest rate might mean that the mortgage is worth more today than it would be in the future. Then there is the belief that with a nationwide recession, people with ready cash who are quick to act have more prospects than the ones who like to wait and watch.

In the recent years, owner financing has emerged as an established and accepted practice in real estate. The emergence of the private mortgage industry in the US has boosted owner financing as a better and more attractive option that it ever had been in the past.

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How to Get More Than The Asking Price For Your Property

How to Get More Than The Asking Price For Your Property

Part 1 of 4

When the number of real estate buyers is greater than the number of available homes, real estate property values usually go up. It’s an ideal environment for sellers because buyers are forced to compete, and properties usually sell quickly – often for even more than the asking price!

But as more properties go on the market, buyer competition subsides. Prices level out, and eventually drop. Most assume this is a bad time to sell a home. But in fact, it can be the best time for educated sellers to tap into a little-known market, using the creative power of seller financing.

A seller’s best strategy

With the help of a professional Note Finder, a seller can open the doors to buyers normally locked out by traditional financing. A so-called “down market” is the ideal time for resourceful sellers to target the millions of people who can’t get funding. These buyers are often willing to pay more in order to buy a home without traditional financing.

The seller sets the price, determines and accepts a down payment, and then finances the remaining balance. The buyer gets a home without having to fully-qualify for a traditional loan. It’s a favorable situation for both seller and buyer. And while this “outside of the box” form of financing can seem a bit daunting, it can happen very smoothly and easily with the knowledge, experience, and guidance of a professional Note Finder like me.

Here is an example: If the seller wants $100,000 for the property, and the buyer gives the seller $10,000 cash, the seller will finance the balance of $90,000. 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 has just purchased.

A great opportunity for sellers

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 will not receive a large one-time payment at the time of the sale. In fact, she will only receive the down payment. Since many home sellers are also looking to buy another property, the seller may need to get enough at closing to pay her down payment. Without this payment, the seller’s hands could be tied when she looks to purchase another house. There is a common solution to this issue that offers the potential for even MORE money to the seller!

Note Finders specialize in helping new mortgage holders sell newly-created notes for a lump sum of cash. In the end, seller financing could be used to sell property at a higher price than expected and the sellers could get the money they need. Essentially, sellers can “have their cake and eat it too.”

In summary

Step #1: Use the seller-finance option to find unique customers willing to purchase at a higher price than would have been possible otherwise.

Step #2: Decide on the terms of the deal and create the note to complete the real estate transaction quickly.

Step #3: If the property seller needs immediate cash, contact me to help locate a buyer for the new mortgage note. The person who buys the future payments from the seller will likely provide the funding to act as a down payment on a new house and every party involved in the deal comes out smiling.

Join my mailing list or subscribe to this publication by leaving me your contact information. I can be reached at 303.317.4488 or via email at sydney@smilingdogenterprises.com.

Sincerely,

Sydney Griecci

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