seller finance

Right now we are seeing one of the greatest fire sales on real estate that our country has ever seen. Many pundits are comparing it to the real estate market that we had in and after the Jimmy Carter days and the Great Depression! Talk is serious that pricing is about to bottom out and will start turning around.

While that could take a little while longer the time is great for buying at a discount. Take a minute and think back to January 1, 2000. If you can remember that far back, that is when pricing had hit a low a few years prior and had stabilized. As we moved forward from that day, prices went through the roof.

I know that if there was one of us that could create a time machine to go back we would so that we could buy anything and everything that we could get our hands on. To know what happened to pricing from January 1, 2000 forward would make anyone buy. I owned over 70 units then and wish I had 700 or 7,000 looking back. We are at January 1, 2000 again figuratively. Prices are higher because we have gone through eight years, but compared to what they are going to do, they will be considered low, even historically low.

WHAT ARE YOU GOING TO DO ABOUT IT? WILL YOU ACT OR SIT ON THE SIDELINES LIKE YOU MAY HAVE 8.5 YEARS AGO? WILL YOU MISS A REAL ESTATE SALE THAT COULD SURPASS ANY IN HISTORY WHEN IT IS ALL DONE? WILL YOU CREATE UNPRECEDENTED PERSONAL WEALTH OR MORE EXCUSES?

I know that I am committed to doing something about it for me AND the students in the MWI system. We are embarking on an urgent tour, called: “The Great Real Estate Liquidation” One-Day Boot Camp. I would strongly encourage you to make immediate plans to attend this mind-blowing event. Admission is free, and the only condition is that you USE the techniques you learn. I want to make sure this valuable training is available to anyone that has a desire to learn and take action.

We are teaching the strategies that I and other successful investing millionaires are using to create unprecedented wealth in this time of real estate opportunity. Topics include, foreclosures, seller financing, bank seller financing, use changes, highest and best uses, rocketing rent increases, cash flows and much more.

DON’T MISS THIS OPPORTUNITY LIKE YOU DID IN 2000! WE’LL SEE YOU THERE.

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Did you read the title correctly? I said, “We are getting seller financing from banks!” Most of the nation is crying, whining and complaining about how hard it is get financing at banks. Perhaps they should be asking for a different type of financing from banks………SELLER FINANCING!

I just got back from another meeting with some of my investors, partners and students and found that one of them had taken my advice, followed my strategies and asked a bank for seller financing on a house that she wanted to buy from them. They agreed offering seller financing at 7% interest only payments. Our student has a one year call so that they can close on the property and sell it or refinance the seller financing in plenty of time. The house provides a $450 per month positive cash flow for the investor.

The crazy part is that my student didn’t stop there. They ended up asking the bank if they had any other properties for sale and found one that the bank owned (because they took it back) that had a mixed use zone on a piece of land smaller than an acre. They are going to have a floor of commercial space on the first floor and over 30 condo units on top on less than an acre sized lot! My student will be able to buy that for about an $800,000 purchase price.

This property will require less than 25% of their own money out of pocket and be financed again at 7% interest only as seller financing from the bank. Since the bank was giving them an extended time frame to close (due to their contract strategies and negotiating time frames) they will be able to pull a building permit to build their project and start construction in less than 60 days after they close on the project.

I think the craziest part of all is the fact that this bank has also committed to do a construction and development loan to get the project built behind their seller financing so that my student will be able to get the original seller financing paid off. WHAT A DEAL! My student Roberta was so stoked I don’t know if she could see straight.

What many of you don’t realize is that with all the foreclosures and repossessions going on in the marketplace right now, banks are holding near record numbers and amounts of non-performing assets and mortgages. What are these banks going to do with all of these properties and non-performing debts? Many banks have so many of them they can’t get to them all. They literally have boxes and boxes of non-performing files. Why do you think some of these banks are taking 5-6 months or more to get an answer back on a short sale?

I find it odd, amusing and titillating that I can go into a bank, ask for a mortgage, get rejected, talk to someone else in the bank about getting seller financing (which requires less paperwork and far less credentials) and get a yes. HILARIOUS! We are entering a new age of seller financing. Everyone, including banks, will seller finance.

Savvy investors will do anything to learn these strategies and techniques and them implement them. How much do you really know? What are you prepared to do to learn more?

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Most profitable investors are doing two key things that others are not doing right now. The first skill is being able to provide seller-financed mortgages to buyers and obtain seller-financed mortgages from sellers as a buyer. Just because banks don’t want to give mortgages doesn’t mean sellers can’t and won’t.

The second skill is learning how to find or create available product to sell that would have a mortgage payment equal to or lower than rent through property use change. Imagine how easy it would be to sell your investments for profits if the buyers could get mortgage payments lower than their current rents. This technique and ability is extremely profitable. I will be teaching these skills at an upcoming Seller Finance camp in sunny San Diego.

I have a student from a large metropolitan area that is working with my “Equity Builder” program with tenants. In his tenant search, he just found a nurse that makes $86k per year, has very little personal debt and a fico score of 796. She is paying $2,200 per month in rents. My investor has several investments he can sell her for a profit of over $30,000 and estimates that there are another 1,000 properties in the area that would yield a fixed mortgage payment lower than her current rent. The best part is that he just started this tenant procurement program and he has had amazing results.

The nurse had no idea that she could purchase a property with all the negative press the market and mortgage industries are getting right now. The sad thing is that a lot of good people aren’t buying because of all of the negativity when they should be buying. Amazing investors are using programs and advertising to locate these types of tenants. There are a ton of them.

As prices fall, more investorse will profit by helping people that don’t know their own financial abilities to follow the American Dream and own a home.

Learn more about this system with my free ebook and video.

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The market around the country has faced some unique challenges as of late. I have really been thinking about what has contributed to the slow down in real estate. I have also tried to determine what has contributed to the slow down in investor’s actions.

As far as I have been able to tell with my research, the single biggest cause of our slowdown has been the crisis in the mortgage industry. Mortgages the last couple years (before this year) were given out far too liberally. Products were create to get people in homes and properties that were not ready for the responsibility of ownership. Lenders gave loans to people that they had to suspect couldn’t handle the debt service of their loans. Especially considering the adjustable rate mortgages, prepayment penalties, historically low consumer credit scores and little or no money down products being given.

The free-lending practices combined with available housing and decent interest rates set America on fire. Prices escalated incredibly around the country. The euphoria helped to cause an unsubstantiated increase in value causing many to buy in a market that was doomed to have the bottom fall out. Sure enough, as adjustable rate mortgages increased payments and the market began to fall, owners were not able any longer make their payments or refinance to get a fixed mortgage at an affordable payment. The foreclosures began.

Foreclosures have continued at an alarming rate causing a banking crisis that we probably haven’t seen the equal of since the Carter-lead interest rate problems of the late Seventies and early Eighties. The difference is that in the high interest days, banks still wanted to lend but borrowers couldn’t justify the high mortgage payments. Today, banks don’t seem to want to lend.

I find it amazing that an industry that makes money lending doesn’t want to lend anymore. We have watched them transition from being far too liberal to far too conservative over the last 6+ months. Essentially, far too many people could get mortgages before and far too few can get them now. I personally believe that lending is what got bankers into this mess and lending is what is going to get bankers out of this mess.

If we look back to the aforementioned Eighties crisis, a technique emerged and became extremely prominent in the real estate market place. That was seller financing. Banks couldn’t lend due to rates so sellers became the banks. I am mentioning this because the market today is another prime example of a situation where people can’t or won’t get traditional financing. Those that are able to seller finance, as a buyer or seller, will have opportunities for success on a level not seen in over 20+ years in the real estate industry.

The question isn’t whether seller financing will become a predominant part of today’s real estate landscape. The question is whether or not you will participate in this amazing technique and the success offered by today’s market place. Seller financing is just one of the amazing factors that I believe will be a hugely successful investing environment. Below is a list of some of the factors I will be focusing on in my blog that will cause great success for those that still want to practice profitable investing.

1. Meeting seller’s needs in seller financing

2. Creating mortgages without the banking industry

3. Making those mortgages “recyclable”

4. Capital raising

5. Taking advantage of deep discounts in the market place

6. Utilizing falling construction costs

7. Capitalizing on ever-increasing rents

I hope you follow along as I discuss each of these opportunities over the next several weeks.

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