Real Estate Note Hub

I’m a private investor. I’m starting to look into privatly held real estate notes that people have carried back when they sold their property. I know that most times (at least with the people that I’ve talked with) they wanted the cash in the 1st place, but the deal was too good to turn down.

Does anyone know of anyone who is doing this successfully at this time? Does anyone know of anyone with a note that they may like to get a quote on?

Thanks!

There are many people that would like to sell their owner carried back notes, the problem is that most of the note buyers want too much of a discount for the sellers to sell.

I attended all the note buying seminars and those that would purchase them from me and how much money was in this business. Why would I give you 25%-30% of my note. I had to ask the same thing as I went through my foreclosure period. Why would a person give me thier house for nothing down.

I tweeked each a little so each could be happy and now I purchase both foreclosues as well as mortgage notes. You have to find a way to make the seller want to sell as oppose to giving away their money.

I have taken a different approach to buying notes so I can still earn a higher than normal interest rate. I purchase the note at closing off the table.

I inform the seller how to construct the note, insert a prepayment penalty that normally seller carry backs don’t do, structure the note at a .50 rate higher for maximum profit. When the loan close.

I immediately give the full cash value to the home seller, take the note and deed of trust that has been recorded by the title company. I have a note structured to earn money the seller is happy and so am I, as well as the buyer

After about a week I send the buyer a document indicating that I have purchased the note and where to send the monthly payments.

I hope this has been of some use to you, good luck.

"FIGHT ON"

My mother passed away a month ago and she had a lot of medical bills. We were told that her estate will take care of it, but there is no estate. My dad is alive, but is disabled. The only asset they have is their house, but we were also told that the hospitals cannot go after real property. Is that true? What happens to the bills then?

That’s not really true…What happens is that they can’t go after it directly, such as a mortgage can.

What will happen is that they sue and get a judgement and then they will take that judgement and go after that person’s assets which will include the real property. It’s a longer road.

Depends upon in whose name(s) the bills are in…If it is only in your mother’s name it goes with the estate, if the estate has nothing, the creditor has to simply eat it and write it off. If it was in both your parents name then dad is on the hook for it. And they can eventually take the house.

I need to find the records on the sale of my parents home. They are both deceased, and the sale took place in the late 70’s. Are these public records? What department do I start with?

The actual hard records have probably been destroyed.

The title company that organized the transfer might still have them but some reason or the real estate company might. But I shred mine after about ten years.

The city would have some record that it happened. Start with the property tax department.

http://RealEstateProfitCoach.com. Bob Leonetti shows in this Two Men and a Whiteboard series of videos, all the basics on how to start and invest in a real estate notes and paper business. Real estate investors can control real properties without owning them and still make profit. These videos show how to find notes, how to find paper, how to value notes and value paper, how to analyze note and analyze paper, how to negotiate for notes and paper, and how to create notes and create paper to then sell and profit from them.

Duration : 0:4:1

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New Laws For California Realtors and Real Estate Investors

With the housing market taking center stage among the nation’s concerns, both Congress and California’s State Legislature have enacted significant new laws affecting REALTORS and Real Estate investors.

EMERGENCY ECONOMIC STABILIZATION ACT ($700 Billion Bail Out)
Hope For Homeworker
http://portal.hud.gov/portal/page?_pageid=73,7601299&_dad=portal&_schema=PORTAL

This bill also extends the tax exemption for debt forgiveness on home loans under the Mortgage Forgiveness Debt Relief Act of 2007 from December 31, 2009 to December 31, 2012. _Source:_H.R. 1424[4].

DRE LICENSE NUMBER MUST BE ON FIRST-CONTACT MATERIALS: Effective July 1, 2009, California’s real estate agents must disclose their Department of Real Estate (DRE) license numbers on all solicitation materials intended to be the first point of contact with consumers.

DEBT RELIEF INCOME EXEMPT FROM STATE INCOME TAX: Starting September 25, 2008, the federal income tax exemption for debt forgiven on a home loan now applies to state income taxes to a limited extent. Federal law provides a tax exemption for debt forgiveness on a loan incurred for acquiring, constructing, or substantially improving a principal residence up to $2 million if the debt is discharged from 2007 through 2012. Under the new California law, the maximum qualifying debt is only $800,000, not $2 million, and the maximum exclusion is $250,000.

Moreover, the California law only applies to a debt discharged in 2007 or 2008. Senate Bill 1055.

DRE CAN DISCIPLINE LICENSEE FOR INFLATING BPOS: Beginning on January 1, 2009, the DRE can suspend or revoke a real estate license if the licensee generates an inaccurate opinion of value (Broker Price Opinion or BPO) for a short sale of residential real property to manipulate the lender to reject the short sale or to acquire a financial or business advantage, such as obtaining a listing agreement. This new rule aims to preclude a self-serving agent from inflating a BPO in hopes that the lender will reject the short sale, foreclose on the property, and give the BPO agent an REO listing. Senate Bill 1737.

DUTY TO DISCLOSE AGENT IS ARRANGING FINANCING: Starting January 1, 2009, a listing or selling agent who undertakes to arrange financing for the sale, lease or exchange of real property (or an agent arranging financing who undertakes to act as the listing or selling agent) must, within 24 hours, provide a written disclosure of that role and any related loan transactions to all parties to the sale, lease, or exchange. Senate Bill 1737.

TENANT VICTIMIZED BY DOMESTIC VIOLENCE CAN TERMINATE TENANCY: Beginning on September 27, 2008, a tenant can terminate a tenancy upon giving a 30-day written notice to terminate, if the notice also informs the landlord that the tenant or a household member has been a victim of domestic violence, sexual assault, or stalking as defined. The tenant must attach to the notice a copy of a temporary restraining order, emergency protective order, or police report issued within the last 60 days. The tenant is also entitled to a proration of the last month’s rent if, within those last 30 days, the tenant vacates and the landlord re-rents the premises to a new tenant. This law will sunset on January 1, 2012. Assembly Bill 2052.

LANDLORDS AND REO LENDERS MUST TAKE CHARGE OF ABANDONED ANIMALS: Effective January 1, 2009, any person or private entity with whom a live animal has been “involuntarily deposited” must take charge of it, if able to do so, and immediately notify animal control officials to retrieve the animal. An “involuntary deposit” includes the abandonment of a live animal on a property that has been vacated upon, or immediately preceding, the termination of a lease or foreclosure of the property. The animal control officers who respond can secure a lien to recover the rescue cost, but this law imposes no other liability upon a depositary who complies with these rules. Assembly Bill 2949.

Duration : 0:10:41

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Luxury Real Estate in Miami just off Historic Old Cutler Rd.

This new home is now reduced to $810,000.00 by a motivated seller! Take advantage of the current real estate market to live like a millionaire at a fraction of the cost. Prices in this area will go back up soon. This home is immaculate, the appliances are brand new, and it has many upgrades and improvements that you won’t find in the other homes in this development.

This home is located on the main lake in prestigious Cutler Cay, a gated community in South Miami-Dade County. The community clubhouse is amazingly beautiful, and includes tennis courts, an exercise room with professional equipment, a children’s playground, a fabulous heated swimming pool, and a spa. There are also fitness and tennis trainers, as well as swimming coaches.

Picture yourself stepping outside the upstairs master bedroom onto your luxurous tiled upstairs balcony, relaxing with your favorite beverage while taking in the calming waters of the lake, enjoying the gentle easterly breezes.

The interior details of this home are impressive. Many extras have been built-in, including:
• recessed lighting,
• diamond set 18 x 18 tiles throughout the downstairs,
• stainless steel appliances
• wood molding on the kitchen cabinets
• granite countertops with a full granite back splash
• bull nose countertops in the bathrooms
• frame-less shower doors
• jaccuzzi tub in the master bathroom
• remote wireless security system
• surround sound wiring in the family room
• ceiling fan supports inside and outside
• upgraded window sills throughout to match the floors
• French doors
• lush tropical landscaping.

The kitchen is very large, with a breakfast nook and a center island that look directly out onto the placid waters of the lake. The enormous family room/den area adjoins the kitchen, and is the place where your family and friends will gather for fun and entertainment, enhanced by a beautiful view of the lake. It is also large enough for a great party, and opens up through French doors onto a tiled patio surrounded by lush landscaping.

YOUR HOUSE TOUR

You will enter the house through large, carved wood double doors into a grand foyer with a spiral staircase to your left. The formal dining room area is to your right just off the kitchen. There is easy access to the kitchen, and then just as easily you can move out into the family room. Just off the family room is a bathroom, and down the hall is the guest bedroom. Come back down the hall and turn right into the large formal living room. The ceilings go on forever! Step back into the foyer and you’ll find the laundry room (just behind the spiral staircase) to the right that also leads out into the north garage. There is a one car garage on the north side of the home, and on the other side of the home is a two car garage. Both enter the house via the foyer area.

The upstairs is very spacious! There are four bedrooms upstairs with three bathrooms. Two bedrooms adjoin one bathroom, with the middle bedroom having a doorway to the front upstairs balcony. All three have large walk in closets, and very high ceilings. One bedroom has it’s own private bathroom.

The master bedroom is on the opposite side of the upstairs with it’s own enormous master bathroom and a door to the balcony. The master bedroom is a grande room that includes very large his-and-her walk in closets, and his-and-her vanities (no more sharing personal items)! There is a large walk-in shower with frame-less shower doors, a very large roman jacuzzi tub, and a separate room with both a toilet and a bidet.

If you would like more information about this property please contact Jason Turner at 786-319-0920 or email him at jasonbturner@aol.com.

Duration : 0:1:38

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For anybody that has done their research they will know, that paying some-one to work on their website to get to that elusive Page 1 ranking on Google seems to be an expensive exercise with quite possibly no guarantees and the need for a level of trust that frankly, you would find difficulty bestowing on a member of your own family!

The arguments for obtaining the ranking spot are clear. It is widely accepted that to be noticed in the search results of the major search engines you need to be in the top 30 positions or top 3 pages. Anything less than this is frankly a waste of time. To seriously get some traffic then that Page 1 top 10 position is where 85% of all searchers stop looking and so is where you need to be, to get the traffic, to get the business, that makes your website not just an expensive advert that nobody sees unless you advertise it in conventional advertising media.

Now there are 2 ways to achieve that Page 1 slot. The first is through the Search Engine results. The second is via the Pay per Click sponsored links.

Which one costs more?

PPC v SEO

I am going to give you an example using some actual figures for the Real Estate Industry in Spain or Spanish property industry depending on which side of the pond you hail from.

The keywords I am using are: Spanish property, Spanish Property for sale and Costa Blanca Property.

On the 15th April 2007 the cost of PPC for position 5 on Overture UK, (Yahoo Search Marketing) was as follows. The figures are in British Pounds.

Spanish property 1.11
Spanish Property for sale 0.90
Costa Blanca Property 0.87

The mean figure then for a major keyword, for the middle page spot was 96p ($1.75) per click.

For the smallest keyword in terms of Number of searches, (Costa Blanca Property – 60000 a month), a top 10 position should bring an average number of visitors of;

10% x 60,000 = 6000 a month or approx 200 a day. Assuming an equal share of the market.

This would mean that if you had the budget, 200 PPC visitors would cost you;

200 x 0.96 = 192.00 pounds a day x 30 days = 5760.00 a month x 1.75 for $

Most people don’t have this sort of budget!

So what do you get for 50.00 pounds a day budget?

Well in this example, from our pay per click visitors you will achieve 52 visitors a day.
With SEO you still get the 200 visitors and more. (You will have to ask me what the more is!)

Now these figures are not perfect. I have taken fixed positions and prices for pay per click taken at a fixed time on a fixed day. They were taken just before I wrote this and are not intended to mislead. Check the figures yourself at Yahoo Search marketing UK. I have also assumed levels of visitors as an average.

But even when all this is taken into account SEO still beats PPC by a factor of 4.

The only thing left to do now is to achieve that Page 1 ranking. But ‘what about the entire trust thing you mentioned at the beginning?’, I hear you ask.

Well the best way to judge if an SEO firm can achieve the results is to ask them to show you what they have achieved so far. If your market is Real Estate then make them show you the real estate sites they have put on Page 1. Call the owners of the site to verify.

If they are, what they say they are, then they should be able to prove it.
The old adage ‘You get what you pay for’ when it comes to SEO is probably true. Good SEO is time intensive as well as knowledge intensive. If some one says they can do it cheap then it is either by ‘black hat’ methods which may end up getting your site banned or by not putting in the hours needed to achieve the results. Either way you lose out.

SEO is a commercial decision. Treat it like one.

Neil Ebsworth
http://www.articlesbase.com/non-fiction-articles/property-real-estate-seo-the-case-for-optimization-v-ppc-133616.html

At the beginning of 2006, the so named real estate “bubble” across the nation was leaking air. We read opposing views by economists, whose opinions graced the pages of national media and were dependent upon which economic theory they followed. It was difficult to know whom to believe. It is now 2007, and we know in most areas the real estate market is considered to be in a recession.

A national economic recession occurs when the gross national product declines by five-to-ten percent over a six-month period. Residential real estate prices have dropped double digit percent points since the beginning of 2006 and inventories of used homes listed for sale doubled between 2004 and 2005, then again between 2005 and 2006.

The News Isn’t All Bad

Real estate is only a part of the gross national product, and the Federal Reserve helped curb inflation by raising the interest rate in 2006. Overall National business activity has increased in the past year, and unemployment is fairing well, remaining at 4.5 percent. New jobs totaling 167,000 were added in December 2006. The gross national product has not declined and the national economy is in very good shape.

So, what does this mean to the sellers and buyers of residential real estate? It means business is back to normal, before the real estate “bubble” inflated so to speak — with some roadblocks to navigate.

Less Available Money

First, all the money that was being invested into real estate during the boom has been diverted into other non-real estate investment opportunities. This means that money once invested in mortgage-backed securities is diminishing.

Additionally, large mortgage lenders are receiving more federal oversight scrutiny for lending practices used during the latest real estate boom. They continually raised the lending limits to control the market (or so a few of these lenders are accused), making mortgage access much too easy. Many of those, who took loans at only 20 percent-to-nothing down (called leveraging), now are losing their homes and defaulting on their mortgages. Even if these owners could sell their homes, afterwards, they would still owe much on the balance of the mortgage. They are being hit the hardest with default rates doubling in both 2005 and 2006, and expected to continue throughout 2007. This, too, has hit the mortgage lending industry where it hurts the most — profits.

Buyers will have a more difficult time securing a mortgage than during the real estate boom, when just about anyone with any type of credit rating was approved. Less mortgage availability means less potential buyers for the home sellers, too.

Before looking for new residential real estate, secure your financing first. Not only are you then confident in looking at property, but also you know exactly what you can afford.

For sellers, ensure your realtor asks potential buyers if they have secured financing. Those that have, even if their offer is a bit lower, may be more attractive buyers than those who have not. You decide which offer to accept. This is especially important, if you are in a hurry to close.

Prices at Practical Levels

During the real estate boom, home values rose by almost 500 percent between 1990 and 2005. Now, they are back to practical levels.

For sellers, who purchased their homes by leveraging, they may have to take a loss or wait out the current market for better times. All sellers face a lot of competition from other homeowners wishing to sell. Some creative staging of their property (inside and out), as well as adding incentives to buyers, can make their residential real estate for sale stand out among the rest. Some Realtors have found success placing the asking price right on the “for sale” sign. Others have taken advertising and marketing into the 21st century by creating specific web sites with a gallery of interior and exterior photos of the home1 . Many Realtors believe in promoting the home for sale through the media by giving the asking price (especially when it is a great deal) — buyers are more apt to be interested, when they know they can afford it. Sellers were in the lead negotiating seat during the real estate boom. They must accept that, though they still have negotiation power, they have relinquished the lead seat to the buyers. This makes a realtor invaluable to both sellers and buyers, alike.

For the buyers, you will get much better real estate deals now. You can take more time to decide and make an offer than during the boom. Secure your financing first, hire a realtor and enjoy the hunt.

1 Ensure no valuables are in the photos. You wish to attract potential buyers — not thieves.

John Harris
http://www.articlesbase.com/real-estate-articles/is-the-national-residential-real-estate-market-headed-for-a-depression-in-2007-is-there-any-good-news-98893.html

If you’ve tried the traditional mortgage broker route for investment financing, you know how hard it is to get a ‘no money down’ loan for real estate investing. Deals take a month to three months to close, sellers get angry at having to continuously extend their contracts, or pull out of the deal altogether, interest rates at close aren’t what you were quoted. I can tell you from experience, it’s a total mess, and a downright miserable experience. 10-20% down is more likely to have a smooth outcome.

Regular banks view investment loans as a higher risk. They reason, if the owner is not living in the property, in times of trouble they believe, an investor will opt to pay their own home mortgage first, with less consideration to the investment mortgage. This puts the bank in a very bad position. 100% financing for investment property is difficult to come by to say the least. VERY few lenders will even consider it.

If a lender will consider 100% financing, the requirements are hefty. You need top notch credit, access to at least 6 months of mortgage payments in liquid funds, 2 years full income documentation, and that’s not mentioning the property requirements.

That being said, real estate investors still are not advised to use their own money to do their deals. Even if you have 10-20% saved for specifically for a down payment on your investment property, most real estate guru’s warn, NEVER spend your own money on real estate investments. Most beginners start their investment career saving up for a down payment, but the fact is, a serious real estate investor does not use his own money to do real estate deals.

There are a couple of reasons for this.

1. Savvy investors always want their money somewhere where it’s working for them, yeilding interest and making more money.

2. If you are serious about investing, you’re going to be buying multiple properties, higher priced properties and eventually apartment buildings or commercial property. The fact is, if you’re paying 10-20% down on every deal, you’re going to run out of money fast, even if you have A LOT of money. When you’re ready to move on to the next good deal, and all of your money is tied up in your other property(s), and you’re going to lose out on possibly a really good deal.

So HOW THE HECK do you buy a property without a down payment, if its so incredibly hard to get a loan???

Buying real estate without using your own money IS possible, and it’s not difficult. With the right kind of deal, investment property can be purchased without a single penny of your own money.

Enter the world of Private Lending…
There are private lending companies that will give you every penny you will ever need for your real estate investments. Imagine having all the funds you need at your fingertips. If you’re finding the right kind of properties, you should never have to miss out on a deal again. After learning how to use a private lender to fund your deals, your business will flourish. Whether you’re brand new at investing, or a seasoned investor, all investors should learn how to use a private lender to fund their deals.

There are a few tips to getting financing from private lenders:
You will need to make sure your deal conforms to their standards. There are specific property requirements that will need to be met. But you’ll be happy to find that a privatelender cares mainly about the value of a property, and not how high of a risk you are. This means that you could have mediocre to poor credit, and you will still get your financing and knab that incredible deal.

Note: You will however, want to stay on top of your credit, as good practice. You’ll also want to keep some of your money in a bank account, where the lender can see it. (Privatelenders usually have a ‘just in case’ standard in terms of available dollars on hand) This makes you look more responsible. In general, good credit and a decent amount of money in the bank is a sign that a person takes care of their responsibilities. It’s a matter of trust. They want to know that you have the ability to get the deal done the way you have agreed to, and they will be repaid at the end of the loan term.

Private lenders offer short term loans for investment, usually six months to a year, possibly longer for larger projects. They lend at 65%-70% of the properties after repaired value (ARV) from the appraisal. If you are serious about investing in real estate, you really need your deals to be within this range for maximum profits. Here’s and example, if you’ve found a property for say $40,000, but it’s really worth $100,000 either right now, or after it has been rehabbed, a private lender will give you $65,000 to purchase and repair the property.

Most likely they will also roll closing costs into the loan, so you’re coming to the table with no money to close. The lender typically will charge points which is included in their closing costs (a fee paid to the lender for doing the loan, calculated in a percent of the loan amount. 1 point = 1%) Interest rates range from 13-18%, which is really not very high for a short term loan.

Points and high interest is a very small price to pay for having all the money you need right at your fingertips any time you find a good deal. Every investor knows time means money. The good deals go fast, and you need to move on them fast, or they will be gone in the blink of an eye.

If you plan on keeping the property as a rental, it’s incredibly easier to refinance into regular bank financing, and pay off the short term loan, than to try to get all the money upfront from a regular bank. There are usually no prepayment penalties to paying off a private lenders loan before the end of the term, so in any case, private financing is the way to go for a real estate investor. Hard money loans are quick and easy, and can really get your real estate business off the ground.

Trisha Dingillo
http://www.articlesbase.com/investing-articles/how-to-get-every-penny-you-need-to-invest-in-real-estate-75666.html

http://RealEstateProfitCoach.com. Bob Leonetti shows in this Two Men and a Whiteboard series of videos, all the basics on how to start and invest in a real estate notes and paper business. real estate investors can control real properties without owning them and still make profit. These videos show how to find notes, how to find paper, how to value notes and value paper, how to analyze note and analyze paper, how to negotiate for notes and paper, and how to create notes and create paper to then sell and profit from them.

Duration : 0:4:15

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Technorati Tags: analyze, buy, control, create, estate, finance, flip, invest, investor, negotiate, note, notes, paper, real, sell