Actually, that conversation was near the end of the call, but Joe in New Jersey has positioned himself such that many of his professional real estate acquaintances are bringing him their stale listings that are getting ready to expire, so he can create an owner-financed solution that would meet the needs of the principals, and put money in their pockets.
I'm surprised he's trying to offer them 3%, because when you're getting ready to be paid a big fat $0, wouldn't 1% to 1.5% be better, if there's not enough room on the table for a full commission?
In Joe's example, there was only $12,000 in equity... maybe. Probably there was no equity, or negative equity, because it didn't sell at the listing price after several months. And the sellers are desperately trying to preserve their credit, so they are willing to consider one of the many owner-financed solutions that are available to them.
I've started doing this “Virtual Coffee” thing once a month (although I confess, I’ve switched to drinking tea made of freshly juiced ginger, lemon, honey and cayenne… delicious, and doesn’t leave my stomach feeling sour).
The topics covered included: investing in notes, land contracts for sale, how owner-financed deals in New Jersey might be structured, as well as a lot of discussion as to how I can restructure the community to actually function more like a community, without soaking all of my time.
I definitely want the space to grow into something that allows members to build connections between themselves, and support each other, and probably do deals together. With education and support, and a common ethical framework from which to operate (which I hope I’ve instilled), we can all do a lot more business and create more solutions on all levels.
So, yes, I’m in the midst of an overhaul for the community, so please stay tuned, and if it’s right for you, I hope you’ll consider becoming a part of it. In the meantime…
Here’s the link to the post where you can get the audio download:
http://ownerfinancingclub.com/?p=2371
If you want to be added to the Virtual Coffee email group, please click the link above and follow the instructions, and after the next Virtual Coffee Q&A (that happens once a month) you will see that you are added to the list of parties interested in owner financing and notes.
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