I went back to California from Texas. It has been one month for me to personally submerge into the current Los Angeles real estate market. A refreshment?!
I swear to myself that I would not say anything before I have some ways to get along with the market. For now, all I want is just sit tight, observe what the market is functioning and doing some purchases and investments. Hope no extra word of opinion out of mine.
One month watch leaves me a very impressive and confusing image on Los Angeles market. It is incredible to believe what could be like this, out of the housing bubble and Bernanke-Paulson-Gaithner‘s policy. What kind of monster is out of there? I wonder if a decent traditional real estate market does exist in terms of conventional wisdom, foreclosure, short-sale, justice and mortgage banking laws.
Using a foreign language to describe the current maze situation, such as "Shonda" is not good enough (please see Mortgage crisis is crying 'shonda'.) Not only it is still too foreign to me, but it confines itself within the angle of hindsight. It is not good to portrait the "REAL" pictures of the status quo, let alone the foresight, solution or predictable game rules.
If I have one word to say, it is "LP." In Taiwan, it is the word bearing a sense of "barbarian civilization." It will make the term of "jungle" too polite when a civilization meets this hard-to-explained situation.
What I mean exactly? It is difficult to imagine and explain what kind of real estate market the current Los Angeles is. Well, I believe nobody with reason can interpret the LA market without difficulty. Sometimes I have very difficult time to see what is going on like last night when I received two “addendum” from a REO banker in one day. The first email was revoked when the 2nd one arrived in 30 minutes.
I was so frustrated that I don't even know how to reasonably response or proceed. While the REO banker has totally ignored the original 8 page CAR form my agent presented, its asset management gave a brand new "addendum" as its counter offer or contract. Ann, the bank asset manager, is insisting on conveying the title to the property by a "quitclaim deed," even she orally and in her emails agreed to use "Grand Deed." However, in the last two addendum, she still insist to include the "quitclaim deed" in the contract and says that is the bank form which no outsider is able to change without its legal department's permission.
I have no enough reasoning ability to see why she or the bank lawyer wants "quitclaim deed" in the contract on the one hand, and, on the other hand, they claim all their transaction are done by a "grand deed" with no exception? They even went so far to admit it is illegal to use a "grand deed" in their transaction. But if the bank is not going to do "quitclaim deed," what is the big deal for the banker refusing to take the term "quitclaim" out of the contract? Does any my fellow agent understand the rationale behind this? Dealing with this banker, only this nonsense issue is enough for me to rush out for Rolaids. (NOTE: l don't want to mention other issues, such as the bank's right of unilateral termination to the contract. To rebut the "illegal" claim of their usage of "quitclaim deed", I may release the legal form of the attorney later for my agent fellow to review.)
Is it totally insane, irrational or crazy, or may be I should be not so strong to say, different from what I am used to. Hum, am I too old for this brand new ball game in the E-ages?
With the Californian judges denying gay community the marriage right, I am also wondering what is so important for them to fight to death, when some people decide to love and live together without a legal license? Hum, am I an old-fashioned? Am I normal or abnormal in facing the Los Angeles new game? At least at this moment, I have to think: By who’s definition of normality or the law of cause-effect?
I wonder, it would be much easier for Hilary Clinton to face and react to the recent behavior of North Korea than I am going through the Los Angeles real estate phenomenon.
Hardly for me to check my earned points. I am just farting my thoughts in AR. Who cares about points? But, today Jay invited me to join his political group so that I went to check other fields in "my home." It surprised me that my most recent 3 articles has been removed their points since 2 weeks ago. This is the first time I encounter this episode.
No idea for what's going on. The only thing I know of is I hate to play an unfair game under the rules unfairly set by others. Since I am an individualist and naturalist, I love freedom and hate to do "confrontation." Life is too short to mingle with something unpleasant; or to make this already miserable world more miserable.
So I left my inputs of reply to John, the CEO of AR in his blog above as follows:
To Linda, Pat, Steven and all of you:
I am with you.
All most recent 3 articles of mine are being treated the same way as yours. Points are removed without a clear explanation, just saying "view guidelines" in which I don't see anything specifically related and applied. I really don't care about points. What good is it for me? Can I use it to buy a pack of VERY EXPENSIVE cigarette without the recent Congress tax hike? No way, Jose!
Well, so that's fine with me. However, I just realize that talking or socializing in AR doesn't make things happen. I have no intention in attracting business to me or marketing a plan to profit myself. So, I'd better leave AR and save me some time in "farting" my love of our people or feelings about the surroundings here.
Ready to go out alone doing something workable about my dream: help the poor folks or little guys to have an affordable housing.
(NOTE: I just accepted two students.
2 weeks ago, Coldwell Banker's real estate agent Shanna and her husband Steve asked me to meet when they knew I plan to leave Texas this end of April. Now, I am doing my free intensive "mentor" to guide them step by step to understand the "distressed real estate market." Shanna has been working in real estate as an agent for 2 years or more. She helped me buying one piece of REO property and highly regarded my very profitable investment strategy, that created 500% return rate in the case which she got her little commission check.
Nobody knows better than her for how much I paid for the property and how much I sold it. She is not surprised how many little guys line up to buy my properties. But, she would be very surprised if she could talk to my buyers and see how happy they are. One of them is a mechanic. Knowing I am leaving, he volunteers to check and fix my old Mercedes 560 to make sure I have a safe long trip to California. That's what kind of people I love so much; but being ignored and mistreated by our government.
I am just wondering if a small poor guy with very limited source like me can help some of those little guys to easily and happily have a very affordable housing, why those big brothers and sisters like Tim Gaithner or Sheila Bair can't?
It is much more rewarding to my knowledge when they came to me for help knowing what they are short of, eager to learn my investment recipe by driving one hour to buy me a lunch and show their appreciation for what I put in my blog in AR. Besides being so honored and the lunch I ate, the most important qualities of them is I can see their desire to help other little folks in our society that makes me feel the need to teach them everything I know.)
I am not sure what modern "being married" is in terms of conventional concept of traditional marriage, since I am an old style family-oriented man. Don't mention about what "independent" means in terms of legal context.
Well, we have evolved so many legal concepts that contradict themselves sometimes. A buyer of mine asked me a good question when I told her about the new federal plan for first-time home buyer's tax refundable credit of $8,000:
"I have NEVER owned a property or house in my past 5 years or in ALL my LIFE. Do you think I am qualifying the program?"
Good question, isn't it?
To qualify as a first-time home buyer, the law (?) says: Who has never owned a home as his/ her prime residence in the past 3 years. Well, you may simply answer: she is over-qualified, isn't she?
Don't be so fast, did you consider other factors that may involved? At least, consider our "marriage penalty" in our legal system.
Even she was "legally" seperated for a while, She has been married until this moment. During their marriage, they are not mingling their property. It is a fact that her husband has owned a house where he, she and her kids live as their own residence. But, it is HIS sole property, not HERS. Looking everywhere in the county recorder office or courthouse, no file is able to deny the fact that she does not "legally" own any piece or part interest of property in USA or the whole world. So, you think it is very simple and clear that she is qualified to the federal mercy?
Are you sure about your conclusion? Please not be so fast again. Let's ask IRS bureacrats what they think first before she gets in trouble.
The answer from IRS is loud and clear: "NO! You are not qualified to apply the tax credit of $8,000."
Do you know what the rationale IRS has behind this interpretation? Let's see what my real estate agent folks think and answer first. I will continue the logic in 2 days.
As I maybe told you, everybody has his way to do business. Sure, I have mine. As a free individual, I don't give FICO a shit and I don't have to follow a book or code as a banker.
My way to sell my house is easy, simple and humanistic. I treat people as a human being, not a number such as FICO. I am willing to give our American poor folks a chance to buy their dream home.
At this difficult time, my next buyer told me they have had decent FICO but still no way to buy a home with bank financing (they do have more than 10% down. But every banker asks more than that! ) There are 3 people working 3 jobs (one is a manager in animal hospital) in the household and they currently pay $1,200 rent money to burn by no help in getting into their own house. After they buy my house, they'll pay only $700 a month and have a dream home with much bigger living space and better conditions.
I try all my best to help, such as helping them to remodel the house to fit their dream. My house is in move-in condition. But, they don't like the wall color, particularly carpet. The buyer's dream is all tile and wood floor. I let them use part of down payment to do whatever they want. Yes, no banker will take this approach and don't count their labor and improvements as a value into down payment. I do!
They won't have enough money to improve their property if they put everything into down payment. But I am different and I do give value to what they are so motivated to improve the property.
We are waiting to close the house sale by the end of this month. Before they move in, we try to beat the time to have a TV "Extreme Makeover" jobs done (even it is moderate one.) Enclosed is some pictures for what they are doing now and I participate to do part of floor at my leisure time as a hobby to have fun too.
Well, that is my way to recognize a real EXCELLENT home buyer who are so anxious to have a decent home for themselves. The most important to me is the valuable quality, only a human being can own spiritually, in their desire to take the responsibility to pursue a dream: to own a sweet home as it should be and to dare to work hard to get more out of their lives. In this modern society, it seems most of the people talk about material stuff such as money. I am dare to be different to highly appreciate mental power or dreaming will of a person. In fact, I almost ignore my buyers' FICO score in the past 5 years. Nobody screwed me up too (except one time I just follow my "big heart" to let one person move into my property without close of escrow. Now I learn a lesson from that.)
Look at the whole family members working so hard after their 9-5 jobs and weekend. I am so happy to have them as my buyers.
Anyway, I believe we'll end up normal or so-so if we do things the normal way other people do. No way to complain since we are normal and we'll get normal result as everyone of those stock fat cats played the same SWAP game by institutional codes 2 years ago which led us into "recession or depression."
ET
--- On Tue, 4/14/09, Perry <perry@.com wrote:
From: Perry <perry@****.com
Subject: Re: Fw: Land contract to *****
To: et@yahoo.com
Date: Tuesday, April 14, 2009, 10:56 AM
Edward:
As always I wish you nothing but the very best and I hope
you accomplish your goals throughout all of life. Thanks for your
friendship.
Perry
Perry
(***) 333-****
email perry@******.com
Thank you, my friend.
For your info, the contract is subject to my providing payor's SSN (not their satisfaction or approval of payor's credit.) BTW, the house is built in 1998, it is only 10 year's old (not 20 years old.)
I am still waiting for Henry's contract/ proposal to approve its content. Who knows what the result is? Maybe it is another case just like Kimberly's proposal without an escrow that I rejected before.
At least, my friend Perry, it is so nice to work with you. Also, I was invited by my buyer/ payor to have an Easter's dinner. Since he collect antique car and he would like to buy my 1990 Mercedes 560SEL at the time he bought my house if I sell the other house to go back to SoCal. He showed me his 1970 Mustang. That's my dream car at college. He asked me if there is a permit needed for a garage from county. He'd like to build a garage at the property. I told him it is not needed, but I will double check. It is true that no permit is required.
I have a good buyer who has taken care of the house: he re-painted the house and transferred it into a very modern style. Inside, he changed the wood frame into "sweet walnut" color and took all old-fashion frame and fixture including the fireplace frame out to replace with a modern accent. That's a lot of beautiful works in 2 months.
Thank you, Perry. Keep in touch. We don't have to do business together to be as friends, right?
If you want, you can propose your purchase to buy my other note of $73,000 just listed in ***.com or a back-up offer to the one we talked about, in case Henry's deal doesn't go thru.
Thank you again.
ET
--- On Tue, 4/14/09, Perry <perry@***.com wrote:
From: Perry <perry@****.com
Subject: Re: Fw: Land contract to ******
To: et@yahoo.com
Date: Tuesday, April 14, 2009, 10:03 AM
Hi Edward:
Just saw your new posting of your note on ****.com. I wish you
luck. No one I know will buy a note where no information is provided on
the payer plus the collateral is a 20 yr. old mobile home which is not
really favored as a single family home would be. If I can be of help to you
She spent so much energy and money to work on real estate selling and almost got nothing in return. That fits into what I called "the least protected professional" in the world.
USA society is well managed; almost every acitivities involved a license, even a small job such as selling a used car needs a license in California issued by DMV. Sure, someone or something don't need a license. The most important public jobs like politicians including President has no specific license requirement. They don't even need a political training or test.
Nobody says all license are equal. A real estate license is not an Attorney license. Before getting paid, a real estate agent paid a lot in advance. After getting paid, a real estate agent has a lot of risk to lose a lot if someone doesn't like the result. Certainly, an agent is not an attorney who still gets very good handsome pay even he loses his client's case in court. An attorney has no liability when he pays no attention to ignore something to review a client's documents. But, for an agent, no way Jose!
Now, there is a bill waiting for politicians to pass which wants to charge sales tax on an agent's commission. Gee! I can't believe it. As I know, a sale tax is only applicable to tangible goods. Humm, very interesting! Since when a real estate commission is deemed to be "tangible" in the eye of politicians? I am wondering when we are going to pay sales tax on a barber's fee? For me, to wonder when an attorney's consulting due will be tangible to be taxed? Give me a break! No way, Jose, I am not so stupid. Don't you know I know who control the passage of a bill?
Well, back to the subject, we have a herd mentality to pursue a fancy internet commercial. A real estate agent is trying all the possible to outpace others. Everyone tries to get on board a new wagon, no matter it is working or not. Because life is too tough for them. They don't want to be left behind. They will take a slim hope by spending a lot of time, money and energy to try make it work.
Since 1991, I have surfed on internet. I really doubt its fancy ads function. I decided not to spent one cent for my real estate advertisement. I believe my old fashion: "real estate is a people business." On the net, it is very difficult to develop the sense of people relationship so that the effects would be very limited, if not failed as Teresa said.
There are a lot of websites like a puzzle once you get inside. Two days ago, I tried to find a piece of property information listed under a nation-wide reputable brokerage. I spent about 2 hours in its corporate website. First, my password is not accepted. Then, it was rejected by keying in the password sent back to me. Well, they don't even have its office listing link on each of its independent franchise individual office. I had to use its nation-wide "search." Checked the agent's name, well, it said "NO SUCH an agent." Can't believe what I saw. But I have a strong personality, not so easy to give up. I tried to use just the first name "M," I got it now. Okay, I clicked on her own listings. Out of luck, there is no SUCH listing shown. So I gave my good agent friend at that brokerage an email. Now, I finally got the information/ answer by her connection.
As a buyer/ consumer, you will be better off to just make a phone call to a local real estate brokerage and let them busy working with a dumb computer (legally they get nothing). It won't cost you anything, not like a phone conversation with a lawyer. Why waste your time if you are not a seasoned investor knowing what you are looking for?
Did I use internet to broader the exposure of my properties? Yes, I did use all available free internet ads. Why I use them? Because they are free, no penny out of my pocket. Don't blame me for taking advantage to uploading my ads as I told everybody I am a cheap guy.
However, no matter what and where I sell, I have never had a property sale or trade from almost all the internet websites in the past 5 year (I have a lot of sale thru E-bay. I gave it up 10 years ago. So I don't think I have a problem with my marketing skill.), except just one producing a possible result for me.
Last month I came across a website "Kijiji." (NOTE: Be honest, it is not fit to what I am selling since it limits its program to be a local ads so that I have to spend time to re-type and re-load for each city I want) The newly used website really surprised me by sending me a serious buyer (sure, the website attracted at least 2 con-artists sending me emails too) a week ago and a binding contract of my trust deed note reached by emails yesterday (still waiting to close).
Talking about real property, I believe the old way works much better than those in cyberspace, unless someone like me can do purchases without a visit to the property. Recently, I sold my 2 houses in 5 months. How I sold them? Simple, thanks to my yard "FSBO" signs and my water company who allows me to post a sale sign at their entrance on a busy street (NOTE: it is illegal to post a sign on city sidewalk.)
Humm, nobody says life is fair. Nobody says everything works the same to everyone. Is the old fashion way still works better for you? You be the judge! Tell us your finding if you do periodically check your ads result.
Auctioneer reserves the right to withdraw any item before or during the auction and also reserves the right to bid on behalf of the seller.
Only registered bidders may bid on the property being sold, any exceptions to this requirement shall be within the sole discretion of REALestate*****.COM and F**** C******.
No allowances, adjustments or rescission of the sale will be allowed based upon failure of the property to correspond to a particular need. The registered bidder will be responsible for any purchase made with his or her unique REALestate******.COM identity and password. One should also note that as the auction nears the closing time the auction will automatically extend until the bidding is silent for 30 minutes.
A BUYER'S PREMIUM OF 10% PERCENT WILL BE ADDED TO THE SUCCESSFUL BID AND WILL BE USED TO ESTABLISH THE FINAL CONTRACT PRICE.
----My disclamation statement: This is a fictitious copy of a real estate auction game rules. No intention to refer to anyone. It is a coincidence if there is a match of words.
*****
What? Is it an AUCTION by the traditional definition of "auction" in a dictionary?
What a word of arrogance! Here we see one of those fancy devices used and invented by those MBA from the Ivy Tower!
I put my comment about this fictitious website in Chinese to my friend as follow: 按照其規則﹐就算依起標價 １50﹐０００計﹐再加傭金１０％﹐就是至少買價要不少於＄１65﹐０００。同時﹐拍賣人可以下場投標﹐拉高競標金額﹐這是『球員兼裁判』﹑『法官兼被告』﹐佔盡所有便宜﹐非常不公平 (very unfair)。就別浪費時間吧﹗Well, in short, my comment on the website is "It is a marketing scam, a fake auction."
There are some decent and well-established auction sites out there. Just don't waste your time on this new one where they can arrange "straw men" to bid up the price (like the post inside Seattle buses: "we have plain clothes police on board." You don't even know who they are there and they have the "legal" right to do it without your notice.) Humm, a Judge is also a player or defendant?
They have all the rights whatever, and where is your right for you, the consumer? In short, your bidding is binding on you, but it is just a piece of tissue with no legal binding effect to the seller or auctioneer. Too MUCH unfair! Well, all I can say is "life is too short to deal with jerks." It is you, a dummy, putting yourself in that game. Now, are you going to ask more government regulations in this so-called "unregulated" area?
They even charge 10% buyer premium to give a phony impression of low price for a buyer to overlook what the actual end bid price is. In addition, they make it very clear "all the bids subject to seller's approval."
What on the Earth they believe they can claim they are truly doing an auction!
Hummm, just like some people are creative enough to say the two same sex human beings can still marry to meet the definition of "marriage."
Hummm, just like some government people copy the "rebate" program from "BEST Guy" to give the first time buyers tax credit of $8,000 after they buy a house. They make it sound so modern and creative in impression. Why don't you just give them $8,000 upfront to make up or "add" up the amount of down payment, to make a banker more comfortable to approve a loan and to ease credit crunch?
Well, I am an old fashion guy, honest down to Earth, may be too old to learn the new tricks and don't understand the rationale in their plans too.
Nowadays, I always keep myself wondering if it is possible to have 3 adult persons or more had one certificate of "marriage", even that piece of paper carries NO better function than a piece of toilet tissue?
Gee! Carolyn of the San Francisco Chronicle is a sweet lady. She is just so nice to point out a fact with a very conservative figure.
I read a lot of report. I have no exact figures of this so-called "ghost foreclosure"; but I guess Carolyn's number is too nice.
I has kept in my mind the fact banks' REO are piling up into its books as "assets." Almost all the big bankers don't like to release info about its REO holdings, except three bankers I know. One of them is Wells Fargo Bank.
No Wonder Wells Fargo has been shown its desire to play the game by the old rules. Under the old game, Wells Fargo has the possibility to become the Top one bank by its good and decent performance. Sure, others don't like it happen and would like to change the well-established rules by taking advantage of TARP with their pals help.
Sure, I read some reports telling us there are legal redtape such as courts is not cooperating to speed up foreclosure. Also, some said there were a massive layoff causing shortage of manpowers in banking system to meet the increasing REO pile up. Well, to me they are not incurable. Almost all the reports are just giving an excuses after an excuses.
Still it is a good question for me to ask: Besides those excuses, what makes them doing it this way? I mean what is the real core cause behind all of these. We can't cure a disease if we don't know the roots, am I right?
To Mr. E T and all others: just read your post and could not agree more. People are either inherently ignorant of what "trading" means, or think potential trade partners are stupid. `I joined this sight on the possibility of connecting with people who do understand what is meant by equity, value, price, mutual interest, debt, risk assumption, etc. but so far it is disappointing. But, let's continue to try.
Comment by ET 11 hours ago
I have been with other real estate exchange for 4+ years. But, it is totally a waste to me. A website full of junks. Why? 1) I believe, a trade has to be on realistic or reasonable basis. A lot of people contacted me wanting to trade their stuff with me, I have never had a successful trade. Their trade prices are way out of line (NOTE: I just get in here a few hours ago, I browse two states. I found someone doing that inflated price are here too.) For example, one Florida owner proposed a trade to me. He wants "$150,000" for his boat-access land. The problem is there is a similar land right next to his is listed for $39,000. The worst is he listed his property on MLS for $59,000. How can he want to trade almost 3 times than his listing price for the same property? That's a phony and intentional fake trade. Still, a lot of Californian owners want to use the peak price in 2006 for trade. Say I had a trade proposal from California Vally. He wanted $80,000 for his vacant land. After checking with local realtor, its value is roughly $5,000-15,000. I don't see any point to waste my time to keep myself in that website. Could anyone tell me: did I miss something or did it wrong, even I know "trade or barter price" is normally higher than "cash deal" ? 2) A trade is an exchange of equity. However, a lot of property owners don't understand this or try to play dumb. For example, a Californian owner proposes to trade his Oceanside $1 million property with $800, 000 mortgage for my free and clear $350,000 property. I asked him how we are going to balance our equity, i.e.how he plans to pay me $150,000 in cash, paper, or something else if I assume his property still worth $1 mil. Do you know how he react to my question? He pissed off by saying: " I give you my $1 mil property for your cheap $350,000. You take advantage of me already. How could you dare to ask me to pay you money?" Well, what can I say? Maybe he is trying to find a fool after him, a fool having a negative equity in his McMansion.
I hope I can meet reasonable people and do some sensible swap here and all the parties involved with me are happy, feeling as a winner out of the trade as all my customers.
President Obama has promised to plump paychecks -- and he'll be starting soon. Find out how much workers can expect and learn whether or not you qualify.
(NOTE: How much is the money Obama talking about? Find it out. I am a poor guy, but I have never been bothered by a $1,000 purchase, even it is a impulsive. I give out $30 loan to anyone in my neighborhood without brain or hesitation. To me, that action won't cast me a leg or arm. No harm at all.
But what is big or small? See, I can't even think of buying a property with starting bid price of $100 million or willing to be forfeited $1 million deposit as those big ladies or guys (Apartment Buyers Abandoning 6-Figure Deposits.) To a lot of people, $1 million is just like $1 in my pocket as those big VIPs talk about $1 Trillion without raising their eyelids.
So, big or small is a question of relativity. Now we have one BIG Big guy who is so proud of talking to give us a petty money every month.
He is so kind to give us more monthly allowance. That's right, $15 to $30 a month on your paycheck. Great! Who is He? That's our President who has a good mind as a detailed maid to "well-manage" our household.
Here comes your stimulus bonus, Big guy play petty money (尚未發行)
時事評論｜財經
2009/04/01 02:52 ｜瀏覽 1｜回應 0｜推薦 0｜
Thank you, God! Can you give him just a little bit other kind of mind to know "governing" strategy by looking at LP, i.e. Lager Picture and find out the total burden of our people to release the pain--- Please see this article after I pointed out nobody discuss the heavy taxwedge against American people: I cross it out because, after I post a draft, I am unable to locate the article I read a few days ago. I will post it here if I find it.)
Tue, 3/31/09, Perry wrote:
From: Perry P*** <perry@.com> Subject: Re: Fw: "Texas Land Contract of $60,000" To: etahoo.com Date: Tuesday, March 31, 2009, 2:39 PM
et writes: Texas Land Contract of $60,000 for Sale Hi
Ed: This has to be a problem on my end and I still cannot access the photos but no matter as all doublewides look pretty much the same. Still did not get the 2nd note details either tho'. How would you feel about an offer for PART of your note i.e. You keep the April and May 2009 payments of $644.76 each. We buy the next 117 payments and you keep the balloon payment of $30,000+. We'd offer you $**,000 cash for the June 2009 pmt. onward and you would collect the balloon payment in 9 yrs.+. Let me know. Thank You. Perry
Thank you, Perry, In 9+ years, $644.76X118= $76081.68. For that cash flow, you are willing to pay a lot of money.
Hmmm, if your return rate is 22%, you'll be happy to pay me $34,562.87 for 118 payments. So you'd like to pay me $**,000 (plus closing costs.) That's too kind an offer per my investment goal. I would get you much better return if we could work out a master plan I proposed to you.
Now, for me to get your money, is it simple and easy? No future liability? If I need CASH in an emergency and have no other alternative. Yes, not bad a deal ! But, do I have other choice?
Hmmm, let me think about it. Yes, I do need some more cash than what I have in my pocket, if I will go for my purchase of next home in Arizona, Las Vegas, or SoCal.
Any freedom out there for me to choose?
(1) Go to my credit card. Just one phone set everything. Great way to get money I need! I have to pay 3% of transfer fee, i.e. about $1,020 in advance and then be billed about $450-650 per month in the first year (even the promotional interest rate is 4.99%, but there is a 1-2% principle pay back.) All I have to do is sign my name and be executed (NOTE: Sorry, it is not me to be executed. It is the note. Nowadays, there is no need of signature. As said, help is just one phone call away.)
Hmmm, that is just like keeping my note as a stable income source for me to pay back. In the case, I am still possible to have some money of $100-200 left to me every month. $200 X 118= $23,600. So in effect I get only **,000 from you, let don't mention my payment to credit card is gradually reduced every month along the line. Is it worthy for me to be bothered to create a legal entanglement, if not a trouble, in the future? Hmmm, I am a lazy guy and want to do things simple and naturally.
(2) Go to my friendly banker's office to sip a cup of coffee and ask her give me a personal (signature) loan without any document, in the worse case pledging my note as a security collateral?
(3) My banker friend used to tell me "no problem to give you $100,000 loan at any time, just ask and sign." Time changes as Chase bank recalled one of my credit cards of $35,000 line of credit, due to 2 year "inactive." (Don't blame Chase, it is very difficult for them to keep that line for me idle since they are short of cash liquidity.)If she is not so friendly as she used to be, what I could sweet the deal? Hmmm, maybe I have to threw in my new house as security in addition?
(4) Call my "Big Brother" Eugene and his lovely wife, the richest friends to me, to ask their favor as I did last time in May 1997. They didn't want to charge me interest as my lady Ambassador friend Marietta and her husband gave me a loan of $35,000 without security, even a written note, in 1988; but I insisted. I got a hard money loan of 12%, interest only, no any junk fee in advance. I refinanced my purchase and only paid them 3 monthly interest payments and I made a "negative down" deal, better than Robert Allen's "zero down." At end, I put an additional $34,000 in my pocket and better, it is tax-free. (NOTE: I mentioned this case in my AR previous articles. May I ask how much is my return rate after the deal finalized?)
But I have never asked help from anyone, including them, since then. Even Sharon and Eugene still keep asking me FREE legal advice from California, I've never initiated a phone call to them? About 8 months ago, I advised them to post a "foreclosure" against one of their properties in order to solve a property title cloud after their mom passed away 7 years ago, without will. Their attorney who suggested to go to a probate court switched to my strategy even he said "crazy" at the first hearing of my idea. But I succeed in convincing him to finally say "capital idea!" in legal practice. Now they completed the volunteer "foreclosure" themselves and have a clean title.
However, I do have a big problem in asking a favor from anyone. That's against my Principle I said to myself at the time I retired: "Never ask any financial or money help from others from now on."
Well, I am an easy and lazy guy, sell partial note is not my top priority. That creates too complicate legal situation to my simple mind, if not to those Obama‘s guys who love it. It would be much appreciated if you could have us had a straight sale.
Do I have any other alternatives? Sure, I believe I do in this democratic society, not like those Obama's guys or politicians. (NOTE:I came up an idea to better my seller financing to cope with Obama's home buyer's $8,000 tax refundable credit. Do you know what it is?)
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NOTE:After I checked into it, I came up an idea to better my seller financing to cope with Obama's home buyer's $8,000 tax refundable credit*. Do you know what it is? The Oop Depression tax credit plan has been estimated to cost our government revenue about $39 billion**(NOTE: I don't know where they get this figure: a lot of houses have to be bought. At least, in theory, 5 million houses have to be sold. That's about our normal sales volume a year. But even we assume all the house purchases qualify for the full amount of credit, at this slowdown market, do you think it making sense to project this huge revenue loss? ) Mind you that there is no ceiling cap limit set on this tax credit in our Federal budget, unlike California which set a budget limit of $100 million.
Based on the current law and Chinese philosophy of "上有政策下有對策", It would be easy for me to legally incur 10 times the projected revenue loss to $390 billion if I could be in charge of a small size charity foundation. Well, I am not greedy; $39 billion is too big money to get for my sales goal and too good to work on for now.
My plan would be function like another subprime loan to the poor for an affordable housing, without its bubble effects. Trust me, NO way for New York attorney general Guamo to accuse me of something like Madolff case or Chase bank recent credit card membership surcharge of $4.4 millions. Because I don't like government regulation, I am going to navigate mainly in un-regulated "private economy." or, you may say, private citizen "automacy."
What's my plan in my mind? Give you guys a hint. There is a Chinese saying: "朝三暮四"i.e. even a monkey knows some basic laws of economics in face of his master/ government game play.
* The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Compared last week and last two business days, the stock market is very interesting!
Just about 10 days ago, 3 days afte stock consecutive 3 day rally, my wife asked me: "Is this the time for me to get back into stock?" My answer is simple: "Stay put where you are." Last weekend she kept asking the same question. I told her, "Did I tell you be patient?" It is a so-called "sentiment" after Gaithner and Benanke release a optimistic aroma. Some investors are trying to realize their paper gain, cover their short sale to clear their position. I don't see any fundamental improvement in our economy if it is still as "sound" as those politicians said.
Tonight, I will tell my wife: "See what I told you 10 days ago? After those big investors make profit, the DOW is definitely coming down before April. It is very possible for you to see it back to 6700. Did I tell you that. A lot of people made a lot money in the last week. Now, we are going back to the basics if our government won't stir it up again."
A few days ago, I made my challenge by a loan proposal. It seems no any my fellow agent takes it serious. Okay, I am a lazy guy. Just let it be.
Well, a chance came in. A guy "Perry", not that famous TV lawyer, contact me about my notes. He claimed he control $50 mil in his portfolio. Sure everyone can put any number on his screen. I am a naturalist with open mind to look at all the alternatives, not like Hank Paulson or Obama's people who have chosen one option: to eye on big fat cats with green bucks. They shut the "eye-door", if not turn their back, to the Main Street Mr. Joe as a banker uses FICO to reject some decent citizen and laugh them out of the door.
Here is my reply to Perry last night for your reference.
Dear Perry,
You are very interesting. Maybe we can work together as a team to make more money. Tell me what your return rate you expect to get in a year. Try to see if I can do better for you than you thought.
I have my way to do business. All I care is NUMBERS, no emotions. But FICO score is almost never my major concern.
For a trust deed, so many factors are materially more important than FICO such as those basics: LTV, market value, and local market appreciation trend.
Tell you the truth I really don't trust FICO codes because I know how the establishment/ system works. I am a creative individual, not a bolt and knot in a banking mechaine. I don't have to follow a book or guideline.
I have my own way to judge a buyer's decency and safeguard my decision. For example, I had a buyer Laura who paid me off in 11 months. When I wanted to mail her my annual interest charge for tax return, I didn't know her social security number. Sure, now I have all buyers' SSN in file; but still I didn't check their credit score.
I have my ethics to do business, such as "everyone dealing with me has to be happy about the deal and feeling as a winner," i.e. any one can walk away from my deal before close of escrow no matter what reason he has and I don't even ask, even we have a binding contract.
One of my business game rules is to protect the privacy of the other party or my co-workers. I don't release my buyer's credit unless it is needed, such as a binding contract with a contingency on satisfaction of my buyer's score.
So many people, including so-called "birddogs," contacted me about this note. Unlike you, almost first thing for them is to follow book or so-called "proven formula" asking my buyer's credit score. If I gave it to them, trust me my buyer's FICO would be reduced 100 points in just few days by so many inquiries. That's not fair to my buyer/ payor. So please understand my position: unless we have a binding contract, I would not give their private information out even that is very easy for me to just look at my files. Well, so sorry to say that.
I look at you profile in ******.com in which, you claimed, you have control of $50 mil. If you do in that position, I just wonder if we can do a much bigger project, not these small notes, to make your life much easier and more profit. Say, would you give me 1 percent of you fund, $500,000 as my line of credit and we do business as car dealers do? Every time they buy and sell a car, they apply or re-pay the line of credit to release a car, case by case. I believe I could make you very happy to make a steady profit of much larger amount, under this master plan, with much lighter everyday routine email and paper work.
In addition, while I am providing 50% LTV to your credit/ loan, you are going to be proud of ourselves to know our providing social justice/ charity to the poor in need.
At this moment, just let try to do this note first. After we make some deals and you can judge me. Then we may try to do something else together even before discussing my master project that will give us a glory sense of achievement: a meaning of life.
Enclosed herewith are those info for my two properties you asked and interested. (1) For the note we discuss here: *****.com (2) for the possible note creating later: ******.com
Thank you for listening. Give me your 2 pennies if you have any question. ED
From: Perry Subject: Re: Land contract to **** To: et@
Date: Sunday, March 29, 2009, 5:07 PM
--- On Sun, 3/29/09, Perry wrote: Ed - I could bring you an offer muy pronto if I only had the credit info. to check on your **** payers so please try to get that info. to me as quickly as you can and the same if you will be carrying any note on the 2nd house too. I hope this message doesn't go into your 'spam' file too. Thanks, Perry
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