July 06, 2008
Vol. 1. Issue 6. 3rd Quarter, 2008
This E-zine is intended for anyone interested in creatively financing the purchase or sale of a property. Whether you are looking for help with your first home sale or something much more substantial, the insider tips, tricks, and techniques shared here will give you a very deep and personal understanding about the many ways to finance a property without the need for a bank or a mortgage lender.
Subscribe to The Seller Financing Insider for News, Views, Tips, Secrets and More brought to you for free every quarter from Keith S. Donald at TDO Properties, LLC.
Everything is designed to help you achieve your goals of property sale or purchase with creative ways of financing your properties (single family or multi-family) with the innovative and effective use of promissory notes and other creative financing alternatives.
There is a timeless description for the term "insanity". It goes like this. "Doing the same thing you have always done, but expecting different results is insane."
Another way to get to the same point might go like this. "If you want to keep getting what you're getting, just keep doing what you're doing."
You may believe that our housing and credit problems will be solved by the government. Must you be reminded that if you count on Washington to fix this financial crisis you’re in for a very big disappointment? The following quote may put your expectations of the government into perspective.
"Any government that can give you everything you want or need can also take everything you have." -Davy Crockett, U.S. Congressman, Tennessee
Let's see what other choices are available.
In this, the first quarterly issue of the Seller Financing Insider, we focus on the property seller's need for "Protective Equity."
The Benefits Of The High Equity Seller
Realtors and FSBOs Have New Financing Tools
Self-employed Buyers Have Choices With Seller Financing
Tough Sell? Note Modification May Solve Your Problem.
The Benefits Of The High Equity Seller
In the U.S. the worlds of finance and credit have been turned upside down. Conditions for mortgage financing are curious. Mortgage interest rates are low, but credit is harder to get. There are tons of properties available, but traditional lenders are reluctant to lend money. There are 15 times more sellers than there are buyers for the properties for sale.
One of the catalysts for the problems we have right now is a prior home finance market that compromised one of the most valued underwriting criteria in home financing.....adequate protective equity. You might also refer to this requirement as the buyer's "skin in the game."
Details of the down payment and other underwriting criteria have been consolidated into our Buyer-Criteria. Be sure to check them out.
Many studies have been conducted on the effects of the size of the down payment relative to mortgage defaults. While there are many factors that affect mortgage quality, the most telling factor was the L-T-V, (Loan To Value) or down payment. According to the Federal Home Administration, (FHA), "a low down payment is the best predictor of a mortgage default."
In the current home sale market, a large percentage of properties are in foreclosure. However, there are also high equity property owners that also need to sell their property. It should be understood by now how important it is to get a substantial down payment from your buyer.
Here is an example of how a high equity home seller can really benefit from a well constructed seller financed mortgage contract. Remember, every contract is customized. That is part of the service we provide.
Realtors and FSBOs Have New Financing Tools
"These are the times that try men's (and women's) souls." Real estate professionals in this market need a few life lines. These are the kind of life lines that can really help a client in need by getting a property financed and sold. With results instead of disappointment, you get cash and cash flow.
If you are a Realtor or if you know real estate professionals, or individuals facing the challenge of selling For Sale By Owner, please send this link to them. It may very well be the life line they have been looking for.
Realtors
Since this issue deals with "protective equity", you might also enjoy these updated financing examples. The more protective equity you have, the more options you have for financing your property.
Self-employed Buyers Have Choices With Seller Financing
Historically, self-employed property buyers have had special challenges with mortgage financing. In the current market, qualifying for a mortgage loan is much more difficult than before. Once again, seller financing comes to the rescue.
This example shows one of many ways to finance a Self-Employed home buyer. Self-employed property buyers may also be excellent candidates for well designed Business Notes. Just take a look at this "win-win" solution.
Tough Sell? Note Modification May Solve Your Problem.
If someone you know is having a difficult time with escalating Adjustable Rate Mortgage payments, listen very carefully. There has never been a time quite like this in our nations history. It is imperative that you communicate with your lender for several reasons. This article describes three reasons to contact your lender under normal circumstances.
Since these are abnormal circumstances there are some other things you should know. The mortgage lenders are between a "rock and a hard place" with tons of so-called "bad paper". This Sub Prime Primer gives a rather graphic illustration of the nature of the problem. Be sure to go all the way through it.
Lenders are compelled to find solutions to these financing problems. If you can afford the original mortgage payments, but cannot afford the adjusted payments, be proactive with your lender. Discuss the situation with them and ask if there is anything they have developed that can help both of you. If you are not aware of the choices available to you contact the FHA for details. A simple note modification may be the simplest and best solution for you. Just check the alternatives and determine what works best for you. Whatever you decide, make sure you meet your commitments.
Finally, when you are faced with mortgage payment challenges remember to focus on the problem. Will it be solved with a cash sale or a terms sale of your property? There are at least 169 ways to sell and finance a property. Don't hesitate to see what we can do to help you solve the problem.
As a property seller you should get all of the protective equity you can from your buyer. It is the best insurance you can get against a mortgage default.
Well, that's it for now. I have much to do and time really flies. I will have more to report next quarter.
In The Marketplace:
The magnitude of the opportunities we have right now are similar to the question concerning how you might eat an elephant. An elephant is so big it can only be eaten one bite at a time. The same can be said about housing related problems you may be aware of. It is unique to you. The problem has one or more solutions that will work effectively. The solution to your problem must be created. That creative energy and effort can be much more productive than you can probably imagine right now. But it does work.
The most compelling message we can give to you is this. You have the power, ability, and the resources to solve your property financing challenges....without the need for a bank or a mortgage lender.
This is the scenario we have been preparing for the last two years. Where do you go when the bank says no?
www.Cash-Now-Seller-Financing.com No Banks Are Needed When You Sell Or Buy!
There are plenty of property sellers so home buyers are welcome!
Get the details about The Secrets Of Selling Your House FAST In Good Or Bad Markets. The complete professional services and information package is valued at more than $1,200. If you act quickly, you can get this one of a kind E-book at an unbelievable discount. Once you have this information you will wonder how you ever got along without it. For details just click on the link above.
It does not matter whether you are selling or buying a property. Whatever your challenge may be, share it with us and let us see what we can do. Maybe we can help. You will be anonymous, only your unique situation will be revealed. Everyone can learn and benefit from creative solutions.
Just send your responses to: The_Seller_Fincing_Insid@cash-now-seller-financing.com