creative finance in alaska: WOULD YOU EXCHANGE YOUR REAL ESTATE FOR UNSECURED, NON-INTEREST BEARING PROMISSORY NOTES?
- 06/20/11 11:41 AM
I bet that a lot of you think that I have lost my mind by asking such a stupid question! But the truth is that this is what most Sellers want to do! Before you call the looney bin to have me admitted, take a minute and look closely at this photo of a $50 bill. Notice the writing at the top which describes this bill as a “Federal Reserve Note”. That’s right, cash is nothing more than an Unsecured, Non-Interest Bearing Promissory Note! The question then is, “Why do Sellers want Cash?” The answer is because cash can be exchanged … (0 comments)
creative finance in alaska: TOYOTAS AND HOUSES
- 06/15/11 01:41 PM
What, you may ask “do Toyotas have to do with houses”. Actually they have nothing in common, but the relationship between them is a graphic way of demonstrating the impact of value appreciation and price increases due to inflation. This analogy is one that I first heard from my friend David Campbell of Hassle Free Cash Flow Investing. I liked David’s analogy so much that I have adopted it. Prior to becoming a real estate investor, David was a teacher, and like many good teachers, is better at explaining complex concepts than us long-time Real Estate Junkies. So lets begin the … (0 comments)
creative finance in alaska: BUYERS REJOICE--THERE IS BLOOD IN THE STREETS!
- 06/15/11 01:35 PM
As Baron Rothschild once observed, “The time to buy is when there is blood in the streets”. To say there is blood in the streets may be a bit of an exaggeration in describing today’s housing market, but the recent release of the Case-Shiller Home Price Index report that nationwide home prices have hit a new low is Bad News for Sellers but is Great News for Buyers. Of the 20 major metropolitan areas included in the index, only Washington, D.C. and Seattle avoided the downward trend. And while there is price appreciation being experienced in Alaska, North Dakota and several … (0 comments)
creative finance in alaska: NOW IS THE OPPORUNITY OF A LIFETIME TO BUY REAL ESTATE!
- 06/04/11 01:22 PM
I believe that now is the opportunity of a life time for buying real estate for three reasons: Most folks are very pessimistic about real estate right now and therefore it is a strong Buyers Market without a lot of competition. Therefore properties can be purchased for significantly less than replacement cost! Interest rates are still near their lowest level in the last 50 years! Often a small change in interest rates can increase the cost of ownership much more than a change in price. For more on this see Price/Interest Dilemma. In spite of the attempt of the government to … (0 comments)
creative finance in alaska: THE EASY WAY TO GET LOW DOWN, LOW INTEREST LOANS!--Part 3
- 05/16/11 11:46 AM
In Part 1 of The Easy Way to Get Low Down, Low Interest Loans, I explained that there are many homes today that have little or no equity that are subject to low interest loans that can be assumed, and offered the opinion that the risk of a Lender invoking the “Due on Sale” clause is very low. In Part 2, I discussed the use of “0 Balance Wrap Arounds” to reduce risk to Sellers and provided a link to a full disclosure form to reduce risk to Real Estate Licensees. In this part, I will discuss why it may make … (1 comments)
creative finance in alaska: THE EASY WAY TO GET LOW DOWN, LOW INTEREST LOANS!--Part 2
- 05/07/11 05:15 AM
In Part 1 of The Easy Way to Get Low Down, Low Interest Loans, I explained that there are many homes today that have little equity that are subject to low interest loans that can be assumed. Even though these loans will almost always have a “Due on Sale” clause, the risk of a Lender invoking that clause today is extremely low. If the Seller’s equity is small (say 10% or less of the sales price) the simple way to structure such a sale is to have the Buyer pay cash (or exchange something) for the Seller’s equity and just assume … (1 comments)
creative finance in alaska: THE EASY WAY TO GET LOW DOWN, LOW INTEREST LOANS!--Part 1
- 05/03/11 06:20 AM
You may be surprised to learn that the Easy Way to Get Low Down, Low Interest Loans is not some new government subsidized program. In fact, there is nothing new about this time proven technique which was a major source of financing during the high interest rate era of the late 70s and early 80s. The Easy Way to Get Low Down, Low Interest Loans is to simply assume an existing loan that was made in the last several years! Throughout the United States today, there are millions of properties that have little or no equity (thus the opportunity for low … (1 comments)
creative finance in alaska: STRAWBERRIES AT ONLY 5 CENTS A QUART!
- 04/28/11 07:18 AM
Wouldn’t you love to buy fresh strawberries at only 5 cents a quart? Who wouldn’t? But of course you can’t. In fact, you couldn’t even buy them at that price during World War II, when 5 cents a quart was the official price controlled by the government. And of course, that is the point, and is why Nobel Prize economist, Milton Friedman, liked to use this example to show why free market pricing is better than government control. He would observe that it is far better for something to be expensive and obtainable, than for it to be cheap and unavailable. … (0 comments)
I bet that a lot of you think that I have lost my mind by asking such a stupid question! But the truth is that this is what most Sellers want to do! Before you call the looney bin to have me admitted, take a minute and look closely at this photo of a $50 bill. Notice the writing at the top which describes this bill as a “Federal Reserve Note”. That’s right, cash is nothing more than an Unsecured, Non-Interest Bearing Promissory Note! The question then is, “Why do Sellers want Cash?” The answer is because cash can be exchanged … (0 comments)
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