Pasadena Note Queen

Investor's Business Daily and Rickabaugh Have a Chat About Seller Financing

2008-10-03T08:41:50Z

It's great to see that the media is increasingly picking up stories about my favorite topics. I had the privilege of being interviewed by IBD recently. You can read the article in today's paper: "Seller Financing Can Seal the Deal in Rough Market."

Here's the first couple paragraphs:

"Owner will finance."

Those three words are coming back in today's real estate market. With financial markets in turmoil and lending very tight, home sellers who own, or have equity and a stable mortgage, are financing deals to lift their property's attractiveness.

"The last time the market was down, creative financing was up," said broker and owner-financing consultant Dawn Rickabaugh of Rickabaugh Realty, in Pasadena, Calif. "We're hitting a time when creative financing is up again."

Liquidity (the ability to readily convert assets into desired benefits) is desperately needed in today's economic climate. I love showing you how you can create your own liquidity. You're not necessarily at the mercy of the market.

And what about superior tax treatment? The installment sale and/or the land trust (sometimes in conjunction with a 1031 exchange) can really save on capital gains, which is always an important conversation. Lots of baby boomers are ripe for seller financing exit strategies in today's market. Let's talk! (In case the above link to IBD doesn't work, you can read the article here)

Pasadena Discovers the Secrets of Seller Financing to Close More Deals

2008-09-17T18:23:51Z

It's my privilege to speak to the agents at Keller Williams in Pasadena this Friday. The management is very supportive of every possible strategy to help their agents earn more commissions. KW is one of the most supportive and progressive real estate companies I've seen so far.

Let's face it . . . the Real Estate "Warrior" of today needs more tools to get transactions closed. Having an open mind, some flexibility, and learning a little about seller financing and real estate notes can get your escrows closed, and give your seller what they need most.

Do you have a seller stuck on price?

What if you could show them how to get their price by offering terms?

Is your listing getting ready to expire?

What if you knew how to approach your seller about carrying paper?

Do you know people who won't sell because "the market's not good?"

What if you could show them that the installment sale can get them the benefits they're looking for?

Do you know people who worry about capital gains?

What if you could show them how to defer capital gains without an exchange?

Do you know sellers who just need someone to take over their payments?

What if you could get your clients out from under their payments without a short sale or foreclosure?

Do you have a buyer who can’t qualify?

What if you knew how to sell them a home anyway?

Have a property that’s non-conforming?

What if you didn't worry about a potential buyer to be able to qualify for bank financing?

Is your deal falling apart?

What if there was a way to keep it together?

So, there are the key points I'll be addressing. I am approached by people every day by phone or email who are hungry for this information, and I'm increasingly needing to find other real estate professionals who know about seller financing, or are at least interested in learning. There are lots of clients to help.

Note Queen to Speak at Real Estate Investors Club of L.A. August 23, 2008

2008-08-20T19:38:50Z

Yeah, sounds kind of fancy, doesn't it? The reason I'm so excited is that I really love talking to people about investing in (or divesting themselves of) property in this market. My whole joy in life is putting real estate transactions together completely outside of and apart from the institutional lending community.

When cash or cash-to-new-loan isn't working, that's when I get the chance to shine. (But seller financing isn't just a desperation tool, it can be a great estate planning tool for retirement, as well).

No qualifying for financing, no asking for a short sale . . . I don't know, I just think closing escrow is a whole lot more fun when I get to say when it closes, not some catatonic organization desperately in need of a liver cleanse. I feel more powerful that way, plus my blood pressure is more stable.

So, here is the link to the REICLA so you can attend if you want. According to the "flyer:"

Dawn Rickabaugh, Broker/Owner of Rickabaugh Realty, is known as "The Note Queen" because of her passion for real estate notes and the installment sale. She loves the dance between property and paper, and thrives on putting real estate transactions together without so much as a nod from the institutional lending community. For the last 5 years she has been buying real estate notes, buying and selling her own seller-financed properties, and helping others close real estate transactions through a variety of creative strategies as an investor and as a broker.

Dawn wants you to be able to be successful so she can buy your notes. When you learn how to do this, it is a win-win situation for all parties. Dawn is not selling any package-just her service.

You will learn how to:

Do less and get more by becoming the bank on properties you already own
Have twice as many buyers looking at your property
Get top dollar by offering terms
Close escrow quickly
Get out from under heavy mortgage payments without short sale or foreclosure
Sell, carry the financing, and still walk away with cash at closing
Buy property without qualifying for bank financing
Structure the sale of your real estate note to meet your financial objectives

I look forward to meeting you there, or on cyberspace, when you're interested in having a conversation about ways that seller financing techniques can help you get what you want regardless of what's going on in the market at large.

I had a really nice email recently that I'll share with you. It's always gratifying when someone appreciates the work you've put into something, like this Note Queen blog:

Hi Dawn,

A quick note (no pun intended) to tell you what a helpful and informative web site you have put together! I just spend an hour reading every word and I am fascinated. I am preparing offers for several properties with a business partner this week. A seller carry back will be presented as part of our offer so my finding your web site is very timely. Perhaps we can ask you assist in some capacity and do some business.

Thanks again for a great site. The secondary market of note buying and selling opens up all kinds of possibilities. My world just expanded... ;-) Thank You, Mike Hardy - President, Paradigm Mortgage Group Phone (800) 587-4096

Thanks, Mike. It'll be great to get together with you and your partners to discuss the possibilities.

Can a Seller Without Any Equity Offer Seller Financing, and Can They Sell Their Note?

2008-08-11T15:23:29Z

"Hello Dawn,

You really are the note queen! I am a buyer and I am interested in finding owner financed properties. The only way a seller can sell their note is if they have an assumable loan or own their property free and clear. Is this correct? Or are there other ways to do this, and if so, how does it benefit the seller? I find your website and advice very helpful!

Best Regards, H."

Hello Howard,

Thank you for your feedback on my website. I'm glad that you find it helpful.

To answer your question, the seller carry back scenario is simplest when the seller owns the property free and clear and has a lot of equity, but a seller can "carry paper" even if all they are doing is leaving their existing financing in place for you. That means that seller financing can work even when the seller doesn't have any equity.

Free and Clear example:

Purchase Price: $300,000
10% Down Payment: $30,000
Loan Amount (face value of note): $270,000
Amortized Over: 360 (30 years)
Interest Rate: 7%
Monthly Payment (principal and interest): $1,796.32

You would give the down payment and each monthly payment to the seller (who is now the bank). This seller (now note holder), who is now holding a good first position note, can sell all or part of it if they want to. People who own their properties free and clear have a lot of options. They can sell for top dollar and close quickly by offering seller financing, and then turn around and sell all or part of their note to raise the cash that they need.

No Equity example:

Property Value: $300,000
Underlying Loan: $300,000 (with 6% fixed interest rate)
Monthly Loan Payment (principal & interest): $1,798.65
5% Down Payment (Contribution): $15,000
Trust Transfer System used with maturity date: 7 years

With a low down payment of $15,000 (and no bank financing = no hassle or fees), you simply take over the existing financing and get all the benefits of home ownership, including mortgage interest write-offs. You pay the Trustee, and the Trustee pays the lender. You will refinance the property in your own name or sell the property to a third party in 7 years, when, hopefully, the property value is $400,000, and both seller and buyer can split the equity in some fashion.

The seller should be happy to get out from under the payments, avoid short sale or foreclosure, and have a chance at regaining "lost" equity at a future point in time. Obviously, there is no note created in this scenario that the seller could sell. There is already a large note against the property.

Because there are very few, if any, assumable loans out there, we need to structure the transaction in a way that does not violate the "due-on-sale" clause. We do not want the bank to be able to "call" the loan. Most lenders have the contractual right to accelerate the loan (make you pay everything you owe them right now) if you transfer title to another party.

The way around this, which still protects the rights of all parties and is 100% legal, is the Equity Holding Trust Transfer System. You can read more about land trusts if you like.

If you have a particular house you are interested in making an offer on, and/or someone who would like to sell their note, please let me know and I will help you structure your offer and the transaction itself. And, if you want to find an agent in your area familiar with seller financing that will work well with me on helping you close a successful seller financed transaction, just let me know and I'll help you arrange something.

Best wishes,

Dawn

Buyer Wonders How to Structure an Owner Financing Offer - If the Owner Will Carry, What Should You Do?

2008-07-19T14:54:56Z

If you're a buyer right now, it really behooves you to know how to structure a seller financing offer. In the live deal that I'm sharing with you below, the buyers specifically looked for properties that were owned free and clear (there was no mortgage on the property) and zeroed in. Here's the conversation in a nutshell:

Hi Dawn, I saw your website while searching for a way to put together a deal to purchase a home. My husband and I are the buyers and have found a lake home in north Georgia that we would like to buy and we have a great realtor. The seller is willing to owner finance the home for 10 years @ 6% with a 30 yr amortization but wants more of a down payment than we have at this time. We have a great income but a few years ago through a failed business we damaged our credit. We have spoken to a mortgage broker and we qualify for the new FHA loans with our income and even with our credit but last september my husband became self employed and they need 2 years on the tax return before the underwriters will do the loan.

So, we are searching for a creative way to raise the cash for the down payment he is wanting. Is it likely that we might structure a note for the cash needed in the form of a second and then sell it at closing to raise the funds? You might have some other ideas that we could try ? Like I said before we have the income to support this home but we just do not have the cash.

Thanks in advance for your help.

We chatted on the phone and by email so I could get a very clear picture of the needs and objectives of all parties, and then I responded below with what I would have the listing agent (who will double end this deal) submit to the seller:

Hi Laura, Great talking to you again. So here's the recap:

Purchase Price: $675,000
Down Payment: $20,000
Face Value of Note: $655,000
Interest Rate: 6%
Amortized Over: 360
Due In: 120
Monthly Payment: $3,927.06

In light of the low down payment, property to be placed in a 2 party trust to give the seller the ability to regain possession of the property through eviction (as if buyers were tenants) instead of foreclosure upon any buyer default. The buyers will be able to take all the usual mortgage interest write-offs.

Property to be purchased "As Is" (no requests for repairs or warranties)

Escrow to close in 21 days (likely sooner)

Just after close of the first escrow, I will buy a portion of the note. I will bring $75,000 to the closing table in exchange for either:

1. the first 24 payments of $3,927.06 OR

2. half of each payment ($1,963.53) for the first 67 payments

If the seller accepts the first option, he will get:

Buyer's down payment: $20,000
My note purchase: $75,000
TOTAL: $95,000
Estimated closing costs (if agents will take 4% total commission): $50,000 (trust, title, escrow/atty)
At closing: $45,000

Two years from now the note will still have a balance of $638,416.82, he will start receiving the payments:

$3,927.06 for 96 payments: $376,997.76
When the balloon pays off in 10 years, he will get $548,140.82
Grand total to seller: $970,138.58

OK, so there's my pitch. Please feel free to have the agent and/or seller call me regarding any questions they may have. Best of luck!

Seller Financing and Mobile Homes

2008-07-16T19:41:59Z

Bummer . . . well, I found out that my nice little seller financing strategies don’t work on mobile homes in parks when there is underlying financing in place (the seller still owes a bank some money). If the seller owns the mobile home free and clear, or if the manufactured home is somehow affixed or attached to the land, then that’s a different story and I can work with that.

I had someone named, well . . . Dawn (the names have not been changed to protect the guilty) contact me about a situation she had in Northern California. She had purchased the mobile home 3 years ago, expecting to stay single. She put down about $7,000 and had a first mortgage of $69,000.

Everything was great, but then it happened . . .

Good news: She fell in love and she and her husband bought a fixer upper house because that makes a whole lot more sense for raising a family

Bad news: If she tried to sell in this market, she would end up being a short sale, and she doesn’t want to ruin her stellar credit

Good news: She had a friend that wanted to move in and take over the existing loan payments and space rent

Bad news: The mobile home park’s rules prohibits anyone but owner occupants . . . no renters allowed

Good news: OK, then, we’ll just leave the underlying financing in place and “wrap” the note (AITD). The friend will pay the seller and the seller will pay the bank.

Bad news: You can do this with regular real estate, but not with mobile homes in parks. They are governed by a different governmental agency, and they will not allow a property transfer unless the underlying loan is completely paid off.

Good news: There’s still the land trust idea

Bad news: It only works when the personal property (mobile home) is affixed to the land. Hmmm . . . there may be some reason it’s called a land trust after all.

More bad news: The bank won’t let the friend assume the loan, and they won’t modify the loan. They’d rather lose a lot of money foreclosing instead (Gee, I wonder why the banks are in such trouble.)

It was a great disappointment not to have a solution for these people. I refunded the consultation fee she had paid, and received this from her:

“Thank you so much for following up on this. This is a big disappointment to me, too, as I think I have exhausted all the options. I talked to the loan servicer again the other day and they said they absolutely cannot do an assumption of the loan. I will have to talk to someone about refinancing the loan and maybe putting my friend on the title as a co-buyer. Thanks again for all your help. I have learned a lot from your site and, though it didn’t help me at the moment, I have no doubt that I will be able to pass this information on to someone whom it can help at some time in the future. I would not hesitate to refer people to you. Thanks.” - Dawn

Wow, thank you.

How Seller Financed Properties Help First-Time Home Buyers Get Their Piece of the Dream

2008-07-11T11:59:05Z

A common buyer's lament: "Now that prices are coming down and it's finally a buyer's market, there's no more 100% financing, and even though I do have a 5% down payment, it's so hard to get a loan . . . what good does it do to have a buyer's market if I can't buy?"

There's a big disconnect out there. Many people who want to buy are discouraged.

But they don't have to be . . . this can be such a great time to put a deal together if you'll just step outside the box with me for a moment. There are ways to consummate real estate transactions without any institutional financing whatsoever.

And they involve some form of Seller Financing: find a property where the owner will carry the financing, leave the existing financing in place, or both.

"Yahoo!" you say, "let me call my Realtor right now so they can find me a nice seller financed property. They'll just look through the MLS and print me out a list of all the properties where the seller is willing to offer terms and provide the financing for me.

Well . . . good luck. Yes, there is actually a place where the listing agent can indicate that the seller is open to this. They can enter: OWC (Owner Will Carry) or OMC (Owner May Carry). Commercial brokers are more accustomed to seller carry back, but residential listings rarely get coded this way.

So does that mean these sellers won't do it?

Not necessarily. What it means is that sellers don't know about it, haven't considered different options that might work for them, and likely, the listing agent has never thought to probe and poke around on the topic. Most sellers and real estate agents just don't think beyond cash-to-new-loan, but I think the time is ripe for this pattern to change.

When you can open your mind and create a solution "out of thin air," for yourself or your client:

Sellers get to sell
Buyers get to buy
Real estate professionals get to eat and look like heroes (when they're involved, of course)

If you're a buyer or a buyer's agent, you're going to need to know how to structure a seller carry back offer. Most sellers don't know that they will accept a seller financing offer until they get one (and the longer they hang on the market, the more open to alternatives they will probably be).

Most owner financed deals are instigated by the buyer's side of the equation. The exception is when (usually older) sellers offer to carry paper as part of their retirement strategy. They usually own their properties free and clear and use the installment sale to defer capital gains and create cash flow.

So, if you want to find a property where the seller will carry, here's some steps you might want to take:

Get Prequalified for a Conventional Loan

You need to know what your finances can handle. Getting a great seller financing "deal" doesn't really help you if you discover 6 months into it that you just can't afford the payments.

Granted, the debt-to-income ratios required by the banks right now may not reflect your true ability to pay, but getting checked out by a traditional lender will give you a good starting point for evaluating your financial situation.

Get a Down Payment Together

Most sellers are not going to get caught being the next round of subprime lenders, handing out 100% financing to anyone with a pulse. An educated seller will typically ask for at least 10% down, but may take 5%.

Yes, it's risky to take 5%, but it may be worth it just to get the property sold quickly. Otherwise, if they have to attract a conventional or cash buyer, they will probably have to lower their asking price. Better to take the 5% and hope that the buyers keep paying than to discount heavily now, they muse.

It is not uncommon for first-time home buyers to get help with the down payment from parents and/or grandparents. Sometimes the money is a gift, and sometimes it's structured as an equity-sharing agreement where both the parents and children own an interest in the property and agree to split the profits when the home is eventually sold. 50% of something is better than 100% of nothing.

Even if you can do no more that put 3-4 months' rent aside, it's possible to get into a property by taking over someone's existing financing. This type of arrangement is most prevalent when the seller owes as much as the property is worth (has little or no equity), and just wants out from under the payments.

If you can afford the payments, then you can 'buy' this property for very little down. When there is less than a 10% down payment, the seller should put the property in an Illinois-type of land trust to: 1) prevent the bank from exercising their due-on-sale clause, and 2) be able to regain possession of the property in 60 days if you quit making the payments.

Find a Seller Financed Property

Finding a seller willing to help out with the financing isn’t always easy, but it can be done. You will probably want a good real estate agent helping you, but you need to pick one that understands the owner carry back world. Unfortunately, that can be as hard as finding a seller willing to advertise seller financing.

I can help you root around for a knowledgeable seller financing agent. I have connections in most parts of the country, and can usually help you hook up with someone who understands this expanding niche of the market.

As mentioned above, sellers who have had their homes on the market for a long time may be good candidates for seller financing. Check expired listings, as well as FSBO's who haven't had much luck in selling (and give them this FSBO report).

And, of course, retired sellers who own their properties free and clear are always great owner financing prospects.

I'm available for consultations that help you put a seller financing deal together.

Owner Financed Properties Gaining Popularity as Freddie and Fannie Face the Fire

2008-07-08T04:48:52Z

"Will the seller take 5% down?" the agent asked me. "FHA is the only possible thing out there right now for my first time home buyer, but if your seller can match it, then we should be able to write an offer." This kind of conversation will become increasingly common as the credit crisis plays out and buyers and sellers look for other ways of putting and keeping real estate transactions together.

Go read this article by CNN Money regarding Fannie and Freddie:

"Fannie Mae and Freddie Mac are government sponsored entities that help the mortgage market function by purchasing pools of loans and packaging them into securities.

Fannie Mae has reported a loss for the past two quarters while Freddie Mac has posted three consecutive quarterly losses. Both companies are expected to report a loss in the second quarter as well.

According to a report from Lehman Brothers analyst Bruce Harting, it would be "extremely challenging" for either company to come up with so much cash to meet new minimum capital requirements, causing already timid investors to be concerned. He added that a "severely undercapitalized" Fannie and Freddie "could possibly topple the already fragile markets."

A study by Bridgewater Associates, one of the world's biggest hedge funds, estimates that total credit crisis losses will amount to $1.6 trillion worldwide, and we've only lost $400 billion so far . . . so the global financial crisis might only be 25% complete? Wowee . . .

"Yes, we're ready to consider a 5% down," I answered, "but we'll have to structure the transaction in a way that adds some extra protection for the seller."

In the standard seller carry back world, a 10% down payment is considered minimum, with 20% or more being preferable. If a buyer puts down that much hard equity, then it's considered a pretty good note, and a note buyer will offer a higher price for it. Anything less than 10% and you seriously compromise the value of the note, or your ability to sell it at all.

So why would any seller consider taking a 5% down payment? Because:

that may be the only way to sell without a drastic price reduction
the seller needs out from under their mortgage payment
we can close quickly
there are more potential buyers if there is a low down payment requirement and there are no loan origination fees
we can structure this deal using a land trust so that the underlying financing can stay in place without risking a "due on sale" violation, and upon any default, the seller can regain possession of the property in 60 days rather than the 120+ it would take if foreclosure were necessary. This reduces the risk of accepting a low down payment.

If we can't count on the institutional lending community while they work out their issues, secure government bailouts, etc., then buyers, sellers and the real estate professionals who serve them need to become proficient at other ways of closing real estate transactions.

If you're a seller (or seller's agent) wondering if you are able to offer seller financing on your property, email me
To talk about buying a home (or helping your buyer buy) without bank qualifying, call me! 626.641.3931

Related Reading:

The Ten Commandments for Private or Seller Carry Back Lending

2008-07-05T11:19:33Z

These 10 spiritual principals were received by James M. Allen in 1993 on top of Mt. La Jolla, California. Originally created for the edification of private hard money lenders, the principles largely apply to any seller thinking of becoming the bank on their own property:

1. ALWAYS take possession of the original note.

2. ALWAYS make sure that the deed of trust is recorded.

3. ALWAYS make sure that you have title insurance showing your deed of trust in the proper priority.

4. ALWAYS make sure that you record a "Request for Special Notice" with respect to all senior deeds of trust at the time you make the loan, and promptly when your address changes.

5. ALWAYS personally inspect the property which is security for your deed of trust. Would you like to own this property in this neighborhood?

6. NEVER lend money on a deed of trust where you cannot afford to keep prior payments current while you foreclose your own deed of trust.

7. ALWAYS insist that the note and deed of trust show you as the original beneficiary on a new loan, not the broker who arranges the loan.

8. ALWAYS make sure that the note is assigned by separate assignment on the note or permanently attached to the note, and by recorded Assignment of the deed of trust when you are buying a "seasoned" note.

9. ALWAYS keep your original notes and deeds of trust in safe deposit boxes, or in similarly secure environments. You can keep copies in your files for working reference.

10. ALWAYS make sure the property taxes are paid current, that prior deeds of trust are kept current, and that hazard insurance is adequate, in force, and premiums are paid current.

My friend, I testify that if you will heed these principles, and your attitude improves greatly, you will one day enter Seller Financing Heaven. Hallelujah and Amen.

Related Reading:

Seller Financing: Coming Back Around

2008-07-04T18:47:21Z

I was recently speaking with the managing editor of Inman News, exploring the possibility of becoming a columnist for them around the topic of seller financing and real estate notes as I believe the message to be very apropos. Creative financing is coming back around. Why not educate people about how to use these strategies safely?

Not only have many buyers and sellers begun to express excitement about the information I am providing, but I have been contacted by several real estate professionals that are getting on board, as well.

Because I was curious about how often the LA Times had published articles talking about Seller Financing, I dug around in the archives at LATimes.com. Here are a few that popped up on my initial search (links to articles):

Jun 5, 1988 - Home Buying Creativity Can Bridge Lack of Cash Series: Last of four articles on bridging the affordability gap - DAVID W. MYERS

May 21, 1989 - Getting In: A special report on how to buy a first home in today’s tight real estate market: How First-Time Buyers Can Get Their Piece of the Dream - DAVID W. MYERS

May 21 1989 - House Not Beyond Reach of Most - ROBERT J. BRUSS

Jun 25, 1989 - There Are Some Tricks to Finding and Buying Seller-Financed Homes - ROBERT J. BRUSS

Apr 15, 1990 - Home Seller Can Be Good Source of Financing Second Mortgages: With the market slowdown, more sellers are offering to carry back loans to help buyers consummate the deal. - DAVID W. MYERS

Jun 24,1990 - Seller Financing: Panacea in Slow Market Mortgage: Both buyer and seller benefit from this type of financing. To secure it, buyer should include this condition in the purchase offer. - ROBERT J. BRUSS

Jun 24,1990 - Five Basic Ways to Get Financing for the Purchase of Real Estate - ROBERT J. BRUSS

Dec 8, 1991 - Carry Backs Offer Buyer, Seller Benefit - DAVID W. MYERS

Mar 6, 1994 - High Risks Involved in Owner Financing - HOME EDITION

Oct 16, 1994 - Q&A: Real Answers. Buyers who don’t have 20% to put down on a home often are attracted by seller financing. - HOME EDITION

Dec 3 1995 - Your Mortgage; Creative Financing Can Benefit Both Home Buyers and Sellers - DIAN HYMER

Oct 8, 2000 - Real Estate Q&A: What It Means When the Seller “Carries Back a Second” - ROBERT J. BRUSS

Sep 9, 2001 - Your Mortgage; Don’t Hesitate to Ask for Seller Financing - ROBERT J. BRUSS

May 21, 2006 - Old loan, new interest; Driven by capital-gains rules and soaring home appreciation, the appeal is growing for ‘owner-carry’ mortgages - JESSICA C. LEE

Jul 22, 2007 - Housing Scene; Safeguards are key when seller assumes the role of lender - LEW SICHELMAN

Seventy-five percent (75%) of the articles were published between 1988 and 1995, which corresponds with the last down cycle in the real estate market. Now, we're starting to see them emerge again, and for good reason. The real estate market is in dire need of creative financing strategies.

Buyers need to know how to buy, sellers need to know how to sell, and everyone needs to understand the associated risks and rewards and how to set up the transactions properly.

Related Reading:

Note Seller Finds Note Buyer Blog - Petitions Queen

2008-07-03T16:48:13Z

The whole "Note Queen" idea was sort of an accident . . . a mere nickname in the office that somehow stuck. Instead of fighting it, I created a brand around it. Most people merely smile (or smirk) when I call myself the Note Queen, so I was really surprised when one "note buyer blog" Googler found me and stepped right up on stage.

Her email made me laugh right out loud (LOL, in modern language, in case you don't have teens).

"Call me! I don't want to be ripped off by weirdos on the net . . . Save me My Queen!!!!! I have a note for sale now and would like the help of Note Sale Royalty :)

I have been jerked around by a note buyer pretending to be a principal and I am not happy.

Oh: Price was $240,000, DP $48,000, loan is $192,000 6.5% 30 yr amort./10 yr balloon.

We want to sell it now as we decided to get another house and want to make a large DP. The home was free and clear and we have had it for 8 years or so in the family."

After I stopped laughing, I picked up the phone and we had a really great conversation, and even now she's gathering all the paperwork I asked her for so I could help her get cash for her note:

Note
Deed of Trust
Credit report of buyer
Appraisal
Title policy
Escrow opening instructions
Escrow closing statement

I also sent her a 1003 (loan application) so she could have the buyers fill it out, as she had not done this prior to closing escrow.

One of the first things I did was congratulate her on a very well-structured note: 20% down payment, great credit score, ten year balloon. Her attorney was proficient at structuring a good seller carry back note, so even though this is a "green" note (little seasoning: only one payment received so far), she will get the maximum price the market will bear.

Seller Financing and Land Trusts - Secrets of Liquidity After PTSD

2008-07-02T14:58:52Z

Trying to close a real estate transaction these days can be like trying to swallow an ice cube . . . it hurts a little, and if it gets stuck in your throat, well, let's hope it converts into liquid rather rapidly. You can sit around and wait, but wouldn't you rather add a little heat so it'll melt before you choke?

What is "liquidity?" If an investment is "liquid," then it's easy to buy it and sell it and convert it to cash in a relatively short period of time. The real estate market has lost a lot of its liquidity due to the credit crisis and subsequent PTSD (Posttraumatic Subprime Disorder).

Many buyers who could buy, won't, and the one's that would buy, can't. They can't get the financing . . . it's in the freezer. So what can we do to help thaw this insane institutional ice cube that's choking the real estate market?

1. We can wait for a new administration to "fix" everything . . . (don't hold your breath)

2. We can hope the financial institutions can borrow enough money to pay for therapy so they can heal from PTSD and start lending again without psychotic funding conditions

3. We can put deals together without any institutional financing at all (my personal favorite)

The way to liquefy the real estate market is to add a little heat, all by ourselves. There are so many ways to put transactions together without having to ask permission from some catatonic financial institution. Sellers can sell, buyers can buy, real estate professionals can eat, and prices don't have to fall through the floor.

But we need some flexibility to create liquidity. The seller needs to be willing and able to offer terms, provide the financing, carry paper. "Like who?" you ask. Like:

People who own their properties free and clear
People who insist on getting their price (even though it's somewhat unrealistic)
People who have a large equity position in their property (a small loan)
People who have a medium-sized loan on their property
People who owe as much as their property is worth but have great underlying financing (a loan that has favorable rate and terms)
People who owe more than their property is worth . . . HUH??? (Surely this was a typo . . . NOT!)

Yes, even people who could never refinance or sell their property for what they owe, can sometimes get out from under the payments without a short sale or foreclosure or a ding to their credit (as long as they're not behind in payments yet).

Don't you think there might be a buyer out there (who doesn't have a big down payment or good credit) that would gladly pay $50,000 more than a house would appraise for just to have a chance at home ownership? You bet.

The "Illinois type" title-holding land trust in conjunction with the NARS Equity Holding Trust Transfer System allows almost any type of seller carry back strategy to work without triggering the "due on sale" clause. The buyer can just take over the existing financing in either a "subject to" or "wrap-around mortgage" fashion.

Read more about the Land Trust

If you're a seller wondering if you qualify for seller financing, email me

To talk about buying a home without bank qualifying, call me!

If you're a real estate professional, and you want to know more, let's talk! Let's all put more deals together and serve our clients with innovation and brilliance!

Bunny Sighting in Old Town Pasadena

2008-06-27T13:02:41Z

Well, it IS Friday, what do you expect? Plus, I feel it's my duty to warn unsuspecting citizens of how incredibly wild and dangerous Old Town Pasadena can be.

This bunny sighting happened right in front of Cafe Bizou at the corner of Holly and Raymond. Amidst honking and hooting, this brood of bunnies was seen heading into Vertical at approximately 6pm on a Friday evening. They haven't been seen since.

This is the type of unfortunate thing that happens when women are not properly repressed. Women hit their 40's and sometimes they simply break out of social constraint, creating havoc and cultural instability wherever they go.

AND, they seem to be quite amused, don't they?

It does appear that it may have been a birthday celebration (note the crown). Six bunnies . . . does this mean that this folly happens six times a year here in our sacred community?!

Good grief . . . perish the thought.

Well, I'll be at Vertical tonight around 6pm, and I sure hope these shameless hussies don't show up.

When Real Estate Becomes Real Estagnant - the Sacred Path to Low Ball Offers

2008-06-27T04:27:54Z

Oh I hope, I hope, I hope . . . I really want that $100 gift certificate from to Vertical, my favorite upscale wine bar in Old Town Pasadena. (You don't think I talk about wine too much, do you?). Well, even if I don't win Irina's contest, it was fun to think up silly names for stale listings . . . properties that are begging for low ball offers.

One of my fellow bloggers here in Pasadena has put together a very good post about this:

"What is a stale listing? A home listing that has been sitting on the market, in our Pasadena MLS for over 3 months with no takers.

Pasadena home buyers are not interested in these home listings because they're either over priced, not marketed properly by the real estate agent or are just plain overlooked by the Pasadena real estate community for a variety of reasons." -- Irina Netchaev (read the rest)

Some real estate friends of mine in Arizona have written a brilliant post about the current market and how sellers can either excel or become extinct, so go read about Seller Survival Tips:

"The days of asking more than the house is worth and getting offers, are over. Some sellers still like to tack 20% on to the list price to “see what happens“. I don’t know how else to say it, but that strategy is nothing more than a waste of time." -- The Huffman Group

OK, so Pasadena isn't Prescott, but the principle applies. I wish all sellers would get this! Don't they love to chase the market down?

I was just talking to a buyer today who is interested in making a low ball offer on a property that has been on the market for 608 days . . . unbelievable. Oh, they've done price reductions, alright . . . yeah, sure . . . they've reduced the price by $10,000 every 3 months or so. Sorry, but that's just not going to cut it. And I'm sure the listing agent has tried to talk some sense into the sellers, but hey, what do we Realtors know?

The only way sellers might be able to minimize the "discount" needed to sell in today's market, is to offer terms. Advertising "Owner Will Carry" can greatly increase the pool of potential buyers for, and interest in, a property. Sellers can leverage price for terms if they're stuck on price.

And sometimes, being willing to carry back a note, precluding the buyer from having to get bank financing, is the only way to close quickly in this market.

Related Reading:

Owner Will Carry - Luxury Palm Springs Estate - No Bank Qualifying

2008-06-23T20:55:41Z

What if we could get around the troublesome mortgage industry and put real estate deals together without bank participation? Seller Financing, OWC (owner will carry), can be the vehicle.

This estate has been seasoned with many warm and happy memories . . . perhaps its best and most auspicious feature. If you live a happy life surrounded by loved ones, and are prone to spiritual reflection, you will certainly resonate with the vibrational tones of this property.

Depending on the day, you can either hear the echoes of adolescent laughter, or the profound silence that you can only find under a full desert moon.

In traditional real estate yabbo: this absolutely stunning luxury home is available with NO BANK QUALIFYING! Don't worry about getting yourself a jumbo loan. And it comes fully furnished with great style and amazing attention to detail.

Boasting 7,000+ sqft. of living space, the open floor plan is elegant. There are 4 fireplaces, a chef's kitchen, a theater room,a separate guest house (casita), open firepit, 4 car garage, bedrooms with individual baths, tons of golf courses around . . .

A very good friend owns (and is now selling) this property, but in the last couple of years, my children and I have spent the most fun, yet tranquil and inspiring weekends you can imagine out there.

Because of my expertise and fascination with seller financing, he has agreed to let me advertise not only great price, but great terms. Submit any potential seller carry back offers to me, as I am negotiating and underwriting this aspect of the deal.

Soon, www.notequeen.com will grow into a database of homes where there is seller financing available.

Carry Paper, Carry the Market - Seller Financing Can Soften the Housing Crisis

2008-06-17T17:28:58Z

Below you'll find a few snippets of just-released, juicy information that sound fairly bearish, but there is opportunity everywhere. Sellers and buyers can adapt to the current climate and still get the benefits of buying and selling property. Seller financing (carrying paper, seller carry back) figures beautifully into the equation.

Housing starts have fallen to their lowest level in 17 years, a 3.3% decline from April and a 32% crash from this time last year
Starts on single-family homes fell 1%, to a 17-year low
Building permit applications declined, down 1.3%
Builder confidence has fallen to a record low. The National Association of Home Builders/Wells Fargo housing market index has sunk to a score of 18
U.S. mortgage rates are currently at an eight-month high
According to Freddie Mac, the average 30-year fixed-rate mortgage is 6.3%
"Mortgage rates jumped this week after a number of Federal Reserve officials… expressed concern over a threat of inflation," said Frank Nothaft, Freddie Mac VP and chief economist. “This led some market participants to believe that the Fed will raise rates more aggressively over the year than previously thought.”

If you've been following me at all, you know that my passion is putting win-win deals together without bank financing. This will provide liquidity, support prices and help both buyers and sellers get the benefits that they're looking for, regardless of market conditions.

What if a seller can get top dollar by offering terms and close in 21 days or less instead of languishing on the market and expiring unsold?

What if a buyer can acquire a home or investment for his family without the hassle and expense of dealing with an ailing mortgage industry?

What if taking a fresh and innovative approach can take a deal that is falling out of escrow and throw it back in?

What if someone who just needs out of their mortgage can walk away without foreclosure or short sale?

The "bad" news I reported above can make you depressed and worried, or you can trust that the answers are out there and get excited about the possibilities. I hope for the latter.

What You Don't Know About Notes Can Cost You Listings, Sales and Closed Escrows!

Naked Real Estate Investor Club Takes Off!

2008-06-16T15:57:45Z

These are really exciting times in real estate, especially if you're an investor. I learned so much and was very inspired by the things I heard at the kick off meeting of a brand new RE Club: Naked Real Estate Investors Club. Rosie Nieto is launching a whole new way to run a club. In her own words:

"You guys, I'm gonna try and do the impossible with my club . . .

I want to create a club that is a true, educational, networking, deal-making, friendship-making environment without all the hype, without all the sales-y, pitchy poo, crap that we have to suffer through in order to continue our education and networking in this industry.

I heard Bruce Norris say the most incredible thing a couple months back and it resonates with what I am determined to accomplish here. When he first started presenting, there was a man who he thought of as a mentor that showed up at his first several speaking engagements. He didn't really know why he was there, but he supposed that the man was just trying to support someone who was doing an honorable service to the industry.

THAT'S IT! This is what I am setting out to do. I can't stand the BS that is being feed to all of us investors by some events and gurus. We are here to be of service to others and to: "Support Those Who Are Doing an Honorable Service to the Real Estate Industry."

I absolutely love Rosie . . . she is such a delight. Not only is she fun and crazy and committed to learning, but she has the heart of a lion. Integrity saturates her flesh, right down to the bone. She truly cares about people, and is dedicated to avoiding the exploitation of novice investors.

I'm thinking that between now and the end of 2009 will be prime time to adopt a buy-and-hold mentality. My own personal goal is to pick up at least 6 properties (maybe more) that will stay in my family's wealth portfolio long term. One down, 5 to go . . .

If you're serious about learning strategies to help you take advantage of this real estate market, tap in and stay tuned to what is happening at the Naked REIC: The Bare Truth About Real Estate Investing.

Her personal blog is also a great resource.

Seller Financing and Drinking Wine in Pasadena

2008-06-13T17:42:08Z

I know wine goes well with a lot of things like cheese, crackers, fruit, dark chocolate, love . . . it's just that I didn't know it went well with a nice chat about seller financing. And actually, the more wine you drink, the better the conversation gets and the more brilliant you feel . . . that nice fuzzy feeling of, "Wow, we've really shared a nice connection here . . ."

Last night I attended a wine tasting event put on by the PFAR Charitable Foundation (Pasadena-Foothill Association of Realtors). The evening couldn't have been more beautiful as we watched the day fade over the Brookside Golf Course from the back yard of one of Pasadena's highly desirable homes.

I was all dressed up, and if I hadn't spent the evening sinking into the lawn with my stiletto heels, I'd have almost felt sophisticated.

I ended up being able to catch up with some people I haven't seen in a while, and had some nice conversations that I really didn't expect. Even just a couple of years ago, I couldn't seem to hit a single chord of resonance in this type of crowd when I would talk about notes, seller financing, carrying paper, creative financing. I'd usually get a sort of disinterested stare and I imagined them thinking, "This one needs to get locked up."

But as it turned out, I had more than one conversation last night where we were on the same page. It was nice.

One mortgage broker was interested because he owns some apartment units and would like to buy the ones next door, but the owner doesn't want the capital gains hit, and doesn't want to exchange into any more property. He owns it free and clear.

The broker got very excited when I told him that the installment sale was a perfect solution, and that I'd be happy to come in as a consultant to facilitate the deal coming together. The broker can put 20% down, so the seller can safely carry the balance in a first deed of trust.

And, he should be happy to do this when he realizes that the installment sale lets him defer capital gains. He'll only pay on the principal he receives in any given year. The rest of his money sits in the property working for him, and collecting payments on a note is easier than managing property and paying property taxes and insurance.

It'll be fun to meet with him next week. Helping people put or keep deals together by thinking outside the box is one of my all-time favorite things.

Related Reading:

With or Without Recourse? Clarifying the Endorsement When Selling a Note

2008-06-12T16:21:59Z

You should practice safe recourse, or at least be aware of the risks if you don't. When I buy a note, I need to have the note properly endorsed to me, very much like a check is endorsed from one person to another:

"For value received, pay to the order of Little Johnny Cakes," signed and dated by the note seller. This is written on the back of the note, or on a separate piece of paper that is then permanently attached to the note (an allonge).

But there's another aspect to the endorsement . . . After identifying the new owner of the note, it should say "with recourse" or "without recourse."

June 12, 2008

For value received, pay to the order of Dawn Rickabaugh, with recourse.

Sigmond Seller:_____________________________________

With Recourse:

If the endorsement includes the words "with recourse," it means that the note seller is guaranteeing the note. If the Payor doesn't make the payments, the note seller is agreeing to make the payments to the keep the note buyer whole. If I'm the note buyer, then I would want the seller to agree to a recourse loan . . . that adds another layer of protection for me. If a seller is willing to endorse "with recourse" it probably means he is expecting the note payments to keep coming in, and is not hiding some known problem with the note.

Without Recourse:

A note sold "without recourse" means that the note seller doesn't have to be on the hook for the money if the payments stop coming in. If I'm the note seller, I would probably want to sign "without recourse." I don't want to take a big discount and then have to guarantee the note payments as well. It's a point of negotiation between buyer and seller.

The silent endorsement: if nothing is mentioned about recourse either way, guess what? The note is sold with recourse . . . that's the "default" setting. Sellers are often unaware of this, so it can become a point of contention if the note buyer all of a sudden starts demanding payments 2 years down the road when a problem arises.

It's just better to discuss it and establish it clearly within the endorsement on the back of the note. As always, it's best to consult with an attorney to understand the complexities and variations in your state.

The REO Conspiracy: What Happens When the Banks Own Everything?

2008-06-11T18:49:46Z

"Conspiracy" is a good word to use if you want to get some attention . . . did it get you to read this post? If what's going on with all the foreclosures, failed short sales and mismanaged REO's isn't a conspiracy, well then . . .

Well, I guess I really hope it IS a big conspiracy because I don't feel happy thinking that so many high-paid, Harvard-trained market makers are so stupid. It's more fun to think that some Reptilian alien race has taken over in a sinister plot to humble the US of A by creating a telepathic mind link to all those high-powered Wall Street types who were caught without their aluminum hats on.

OK . . . that was probably more than you wanted to know about the workings of my mind, but before you roll your eyes and click away to the next blog, let me tell you something about a market snapshot I just took.

I've been talking to a real estate broker over in the South Bay area who has been doing probate work for over 25 years. He's very experienced, well-respected, and carries at least 20+ probate listings at any given time all over L.A. county. I noticed recently that he was sending out distressed email flyers to other real estate agents saying, "Freaking Bring Me a Buyer, Will You??? The probate attorney wants to get paid!"

In all seriousness, the properties that are fixers are really hard to sell at "market" because FHA won't lend on fixers. He was begging me to submit something so he could move his process along, so I did - all cash offers on behalf of some investors that I know, but guess what? At half his listing price, or less. Why?

Case in point:

3 bedroom, 1 bath home, 1,080 sqft in Los Angeles 90002
Listed currently at $224,900
265 Days on Market
4 comparable properties ACTIVE between $149,000 - $168,900
3 PENDING properties from $113,900 - $169,900
1 SOLD in the last 4 months at $160,500
Everything else is EXPIRING unsold

When I ran a title search to see what was closing, I saw that out of 18 deed transfers, 13 were obviously trustees deeds. That means that 72% of the property transfers were from banks foreclosing and taking back property. So anyone trying to sell a house in that neighborhood was competing with REOs who really do have to sell at some point, whether on the open market, or at an auction (where they'll get even less).

Umm, when Trustees Deeds represent almost 75% of property transfers, there's a problem, and one that will continue to feed on itself in a negative fashion, with or without Reptilians.

So here's where I'm saying to this probate attorney,

"Frank, (his name has been changed) you've got to get some of your clients to consider carrying paper on this stuff. They could use Seller Financing to get a decent price, and if we underwrite the deal properly, they can sell the note and still be better off than taking the low-ball cash offers an investor is going to make. Even taking .80 cents on the dollar on the note, they're going to probably walk away with at least $25,000 more, bottom line."

I think I got his attention, so we'll see where that conversation goes. But I need to go . . . this post is already too long.

So, make a comment, will you? Or email me to explore this whole idea.

San Marino Real Estate Market Report March 2008

2008-06-07T23:34:07Z

Can the housing market go down another 10% or 20%? "Sure," grumbled Robert Toll, CEO of Toll Bros.

The head of the nation’s biggest homebuilder had reason to be grumpy . . . Toll Bros. just reported its third straight losing quarter. Revenue has fallen 30% from this time last year. Toll went on to say the housing market was in a “depression” and that recovery could be up to three years away.

“I believe the industry will continue to face rising pressures,” echoed D.R. Horton CEO Don Tomnitz, “for certainly the next 12-18 months. 2010 will be the earliest we get a more solid homebuilding environment."

So how did San Marino do in March of 2008 compared to the national decline of 14% for the month of March, and the home builders' stresses?

Well, any time you see such a dramatic reduction in inventory, you know changes are afoot. 14 homes sold in 91108 in March of 2007, only 6 in March 2008. That represents a 57% decline in the homes sold. Holy cow.

However . . . The odd odd thing is that prices are going up, on all accounts. Median home price in San Marino for 2008 was $2,100,000, up 57% from March 2007. Weird, isn't it? I don't know, I guess for the short term I'd have to say that sellers are better off now than they were last year. But it's kind of like a particular stock making a large leap in trading price on low volume . . . it may not have the support it needs overall.

So will the home prices last?

I mean, in what other city are sellers getting MORE than 2007 prices??? Crazy! Perhaps God loves San Marino . . .

I'd have to say I'm not so sure. It feels like that odd green air just before a tornado touches ground . . . things are just a little too quiet.

If you are going to need to sell within the next couple of years, SELL NOW!!! Or be prepared to wait at least another 3-5 years for things to turn around.

How can prices continue to rise when foreclosures (vacant properties) will represent 75% of the transfers recorded in L.A. County within the next 6-9 months??? Most people tend to think that some areas are divinely protected, and some really do seem to be. The thing is, there are national and even global influences yet to shake out, so don't get lulled into a sense of security just yet.

If you need to sell within the next couple of years, sooner is better, and price it right out of the starting gate, for heaven's sake. Chasing the market down isn't nearly the wonderful exercise it sounds like it should be . . . Pilates is way better.

How to Endanger the Sale of Your Seller Carry Back Note: Lose the Original

2008-06-05T13:52:11Z

I guess you can always say the dog ate it, or a tornado snatched it into the sky when you were in Nebraska visiting Aunt Dorothy and Uncle Toto, but the truth is, you may not be able to sell your note if you can't produce the original.

The original note is the "green stuff," it's the currency, it's "the thing you're selling." A copy just won't do! The original John Henry (signature) of the Buyer/Payor, even if it's not very attractive, fluid or sophisticated, is the silver lining in your paper.

And it kind of makes sense, doesn't it? Would you be able to pay your mortgage by sending in a nice copy of your check to Bank of America? Or Bear Sterns, or Lehman Brothers? (OK, maybe the last two . . . they're used to losses these days and probably wouldn't notice).

If I'm buying your note, I want to be the legal holder of the note, so I need:

the original note in my possession
the note properly endorsed to me ("For value received, Pay to the Order of Dawn Rickabaugh, with recourse" and it must be signed and dated by the Note Seller)

If the original note is in my possession, and is properly endorsed to me, then I am a holder-in-due-course, which gives me some substantial protection should any legal issues arise.

Right now I am working with a probate attorney in Los Angeles who is liquidating an estate holding a $500,000 seller carry back note, secured by a commercial property in Redondo Beach. I was able to offer the estate more than the Payor on the note was offering.

When I last spoke with the attorney, he said all the beneficiaries/heirs were scrambling to find the original note. No one knew where it was. Perhaps the escrow company still has it in their file, but they really need to find it, or things get a lot more complicated.

Do yourself a favor, when you carry back paper: keep the original note, deed of trust, Buyer's credit application (1003) and credit report all together in a very safe place. And keep a very good payment history to be able to prove that you have a performing asset.

Related Reading:

Real Estate Dealers Sell Owner Financed Notes to Pay Taxes - The Partial to the Rescue!

2008-06-05T13:44:28Z

The subprime meltdown forced many dealers/rehabbers to sell their properties using some form of owner financing. People just couldn't get the bank financing, so to move the properties, they provided the financing for the buyers.

Now, they're sitting in front of their CPA and gasping! The IRS considers the note they took back in profit is the same as cash, and Uncle Sam wants his share!

What can note holders do to cover an oppressive tax liability?

They can sell a portion of their note, a partial. Let's say the dealer owes $30,000 in taxes, and one of his notes is $100,000 at 9% over 360 months giving him a monthly payment of $804.62. He doesn't need to sell the whole note, he just needs $30,000.

So what if he sells the next 5 years of payments? What would that look like?

The note buyer pays $30,000 for the right to receive $804.62 a month for the next 5 years. $804.62 x 60 = $48,277.20. This represents a 20.59% yield.

The note seller gets $30,000 now to cover his tax liability, and he gets the note back in 5 years. When he starts receiving the payments again, the note will still have a principal balance of $95,880.34! He gets his money now, his principal balance is only $4,119.66 less than when he sold it, and he still has 25 years of payments to collect!

$804.62 x 300 = $241,386.79 + $30,000 (from note buyer) = $271,386.79 total income from his $100,000 note!

Sierra Madre Market Report - March 2008

2008-05-30T18:37:51Z

The next several consecutive posts will be market data tables from our local real estate market. This table shows how Sierra Madre fared in comparison to the national real estate trend numbers that were released a couple of days ago showing a 14% reduction in home prices.

sierra madre real estate 91024

As you can see from the numbers, there were very few closed transactions in Sierra Madre . . . a whopping 6 for the entire month of March. This is almost half the number that sold during the same time last year, and it took about 30% longer to sell (86 days on market compared with 63).

But just like many surrounding areas, prices were up on all accounts, from low "sold" price to the median home price. The message? If you're willing to price reasonably, you will likely be in escrow in less than 90 days, and you're still going to sell for more than you could have last year. At least, so far.

This is NOT what most real estate markets are experiencing, so let's count our lucky stars! And we're even luckier that NO Sierra Madre homes were lost in the recent foothill fire . . . that was scary. A friend of ours had the flames stop only 3 feet from their backyard fence! Yikes!

I've got a cabin up Santa Anita Canyon past Chantry Flats on the way to Sturtevant Falls, and we were holding our breath hoping the flames wouldn't go over the top, and they didn't. But wow, talk about stressful!

How Does Pasadena Compare With National Real Estate Trends?

2008-05-29T19:44:22Z

National housing is down 14% . . . how does Pasadena fare? Here's the data for zip code 91107: Wow! There were 63% fewer closed real estate transactions in March of 2008, than March of 2007! Holy cow! That's quite a lot, isn't it? But the interesting thing to note is that prices were UP, not DOWN!!! Average home sales were up 9%, and the median home price was up 5%. OK, so you had to wait a little longer (63 average DOM), but prices are still going UP instead of DOWN. Just fewer people are risking it, I guess. Priced well, homes are getting multiple offers and selling within a couple of months. Not bad. The government is currently offering some great incentives, so if you're thinking of buying, don't wait!