Ever done a seller carry? Graduated payments...varying interest rates...no payments? An All Inclusive Note and Deed of Trust? Contract for deed? A Created Note? For those of us who have been around a bit in this world of real estate...polish off the old brain cells and get them working on this economic gap. We've had it pretty good for a number of years and now is the time to get back to basics. They call it creative now but, in reality, it's back to the barter/benefit days of putting deals together in a "Win/Win" concept. Lenders are more forgiving of the more 'creative'financing techniques as long as payments are being made. Most Lender's are concentrating on the loans in default to police current loans and, in some circumstances are even ALLOWING assumptions and wraps, or 'subject to' transfers. No, the disclosures and risks are still there however, the risk of losing a deal or the whole property, at times outweigh the risk. I have a commercial loan on buildings that I own where the lender is allowing the loan to be taken 'subject to' if I decide to sell...yes, there is a due on sale clause!!!
I completed a neat transaction a couple of months ago where the seller found their dream property before their home sold and, because they went ahead and made a contingent offer to the seller of their dream home...those seller's went out and found their dream home too! Ever had that happen? Well, in a faster market this would be fine however, the domino didn't work in this case!!! Big time!!! We decided we'd use some of the old techniques...yes, I've been in the business for 34 years! We offered the seller of the first dream home a note secured by the buyer's home and, some cash, too. This allowed the seller to go ahead and get their dream home...and, even though they had to finance a bit more than they wanted...they had income to offset the additional loan balance with the income from the note on the buyer's home. We put a month to month tenant in this home so the buyer's didn't have to make double payments so, the tenant was actually making the payment on the created note...everyone had the feeling that they had their perfect deal. Everyone's been cashed out now and, it's a happy story....
Real estate is the most interesting profession, I think? Let me know what creative deals you've come up with lately.
I teach a class called Creative Real Estate/Alternative Solutions. I'd love to have some 'far out'/or 'simple' examples from all of you folks out there in real estate land!!!
ALSO, LET ME KNOW IF I CAN SHARE SOME IDEAS WITH YOU REGARDING THAT 'CHALLENGE DEAL/CLIENT' YOU'RE WORKING WITH ?
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