Why I believe this concept is a way to build your business and close more transaction during this economic crunch. Every week I will bring information on how to build and resurrect your real estate business.
1. Think outside of the Box-if your are a professional in the Real Estate business then you are aware if the turn of events our industry. Slow homes sales & financing resulting from a dwindling economy and the high credit standards and criteria set by the banks. Well I am here to tell you there are opportunities knocking at our doors. Just think outside of the box. These opportunities will benefit, the Buyer, Seller, Banks, Realtor, Investors and our communities. Thinking outside of the box is also a way to get our economy back on its feet by the efforts of ourselves. We can do this by applying new concepts and approaches to the market one professional at a time. "YES WE CAN".
This brings me to my discussion: PRIVATE OWNER FINANCED NOTES
What is a Private Note? An instrument with a promise to pay based on the terms agreed upon between the seller and the buyer. A promissorynote. Breakdown: At the time the seller sold their property, odds are that they would have preferred a cash sale. Taking back financing, however, provided a quick and inexpensive way to sell the property without the rigid guidelines,hassles, and delays of bank financing. This loan also provided them with the same monthly income and hopefully, a good rate of interest.
Taking back financing is a sensible way to sell more properties and is extremely common all over the United States. In some states they are called Trust Deeds, Contracts for Deed, Deeds of Trust, Notes or (privately-held) Mortgages, but they all represent the same thing: a way of selling property where the Purchaser "borrows" from the Seller rather than paying cash up front or borrowing from a bank. All these vehicles are referred to as Seller Take Back financing.
Now that you understand what a Private Financed Note is, lets talk about how this can increase your real estate sales and how banks can benefit from this too. Below I will give you an example of a Note Transaction:
Sue wanted to sell her house for $100k. Dave was a food friend of Sue's and wanted to buy the house but could not come up with $10,000 or get a loan from the bank leaving $90,000. Sue agreed to carry the financing and allow Dave to make monthly payments to her at 8% interest. She receives $100k from Dave promissory note to make payments every month for the next 30 years.
Sue would have liked to use that money to pay all of her bills and take a long vacation but will have to put those plans on hold. Thankfully, Sue discovers me, the Realtor who makes this all possible. "YES YOU CAN". My service as a Private Note Specialist will allow Sue to sell her note at a discount and get a lump sum of cash. A few weeks later, Sue is in Hawaii sipping on Pina Colda's and all of her bills are paid. Dave is happy, he is now a home owner and living the American Dream. Dave is working on his credit and he is considering making some upgrades to his home in the future 12 months up the road. By that time his credit will be strong and he will probably want to refinance his home for a lower interest rate to save money for upgrading his home. The investor who bought this note his jumping to the ceiling, because he will get paid the balance of the note he acquired at a discount profiting the future equity from the property. Everyone WINS!
Well folks, thats it for now, I will be blogging with more insight of this exciting business. Lets all think outside the box for once and re-birth our businesses. Get excited, opportunity knocks! If you would like more information about my note service visit my website: www.cash4cash4flows.com/tadams8 You may also register for a FREE newsletter and monthly updates with the changes in our Real Estate industry.
Hope you enjoyed this blog. Give me some feed back. Your thoughts, ideas and motivation are all welcomed.
Thomasina Adams, Realtor
Professional Note Specialists.
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