creative financing: WOULD YOU EXCHANGE YOUR REAL ESTATE FOR UNSECURED, NON-INTEREST BEARING PROMISSORY NOTES?
- 06/20/11 11:41 AM
I bet that a lot of you think that I have lost my mind by asking such a stupid question! But the truth is that this is what most Sellers want to do! Before you call the looney bin to have me admitted, take a minute and look closely at this photo of a $50 bill. Notice the writing at the top which describes this bill as a “Federal Reserve Note”. That’s right, cash is nothing more than an Unsecured, Non-Interest Bearing Promissory Note! The question then is, “Why do Sellers want Cash?” The answer is because cash can be exchanged … (0 comments)
creative financing: THE EASY WAY TO GET LOW DOWN, LOW INTEREST LOANS!--Part 3
- 05/16/11 11:46 AM
In Part 1 of The Easy Way to Get Low Down, Low Interest Loans, I explained that there are many homes today that have little or no equity that are subject to low interest loans that can be assumed, and offered the opinion that the risk of a Lender invoking the “Due on Sale” clause is very low. In Part 2, I discussed the use of “0 Balance Wrap Arounds” to reduce risk to Sellers and provided a link to a full disclosure form to reduce risk to Real Estate Licensees. In this part, I will discuss why it may make … (1 comments)
creative financing: THE EASY WAY TO GET LOW DOWN, LOW INTEREST LOANS!--Part 2
- 05/07/11 05:15 AM
In Part 1 of The Easy Way to Get Low Down, Low Interest Loans, I explained that there are many homes today that have little equity that are subject to low interest loans that can be assumed. Even though these loans will almost always have a “Due on Sale” clause, the risk of a Lender invoking that clause today is extremely low. If the Seller’s equity is small (say 10% or less of the sales price) the simple way to structure such a sale is to have the Buyer pay cash (or exchange something) for the Seller’s equity and just assume … (1 comments)
creative financing: STRAWBERRIES AT ONLY 5 CENTS A QUART!
- 04/28/11 07:18 AM
Wouldn’t you love to buy fresh strawberries at only 5 cents a quart? Who wouldn’t? But of course you can’t. In fact, you couldn’t even buy them at that price during World War II, when 5 cents a quart was the official price controlled by the government. And of course, that is the point, and is why Nobel Prize economist, Milton Friedman, liked to use this example to show why free market pricing is better than government control. He would observe that it is far better for something to be expensive and obtainable, than for it to be cheap and unavailable. … (0 comments)
creative financing: FIVE WAYS TO FINANCE A SALE WHEN THE BANK SAYS "NO"!
- 04/03/11 07:08 AM
Actually, I lied! There are literally dozens of ways to finance the sale of real estate without using Bank Financing. The reason that I only mention five in the title is that this Blog will discuss the “Five Pillars of Creative Real Estate”. These Five Pillars are individual, independent Creative Real Estate techniques, but when one or more are combined, they provide dozens of ways to structure a real estate transaction. By learning the basic techniques of the Five Pillars, and then applying your individual creativity in combining them, you will be able to finance real estate transactions even if no … (3 comments)
I bet that a lot of you think that I have lost my mind by asking such a stupid question! But the truth is that this is what most Sellers want to do! Before you call the looney bin to have me admitted, take a minute and look closely at this photo of a $50 bill. Notice the writing at the top which describes this bill as a “Federal Reserve Note”. That’s right, cash is nothing more than an Unsecured, Non-Interest Bearing Promissory Note! The question then is, “Why do Sellers want Cash?” The answer is because cash can be exchanged … (0 comments)
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