Dear ,
In previous newsletters, we have talked about the current state of our economy, the devastating affects on the real estate market, and the credit crunch that has contributed to these problems.
We also discussed that whenever a "void" or "gap" exists anywhere, that void eventually gets filled. This is just the nature of things; new or different solutions arise so that the business cycle can continue in some fashion.
In the last few years, real estate investors have been dominant. In their own way, they are playing a vital role in allowing the real estate cycle - someone has a home to sell and someone has a need to buy a home - to continue. Eventually, the market will stabilize, buyers and sellers will again dominate, and the real estate cycle will have some degree of normalcy.
But, look at what is happening today, and how the " void" is being filled by investors. Yes, many are buying properties at below market prices with the intention to accumulate wealth and become landlords. But many others are seeing the current market as a temporary trend that can be capitalized on NOW. This isn't bad, its just part of the cycle that will allow us to get back to a "normal" market. This is especially true in the area of foreclosures. If an investor can purchase a property for below market value, repair the property, and then sell it to someone at or below market value who will live in that home, this is a good thing for all concerned. The bank benefits, the buyer benefits, the neighborhood benefits, and the investor benefits.
To speed up the process, how is the financing handled? If you have been reading my newsletter on a regular basis, you know the answer. The investor offers to be the bank. He creates a seller financed note. But, the investor is doing that for one reason only - HE WANTS TO SELL THE PROPERTY QUICKLY! He does not want to be a landlord and he does not want to collect monthly payments. He wants to sell the property, cash out, buy another property, and repeat the process.
This investor needs someone to give him CASH in return for his monthly payments. That's my job - I have relationships with buyers who want those monthly payments and are willing to pay cash for them. Creating and selling his note allows this investor to continue to buy and sell properties, which is his motivation. But in the big picture, he is playing a vital role in getting this real estate market rolling again.
So, if you are an investor, I can help you get cash for your note. If you know someone who is an investor, I can help that person get cash for their note. Together, we can play a small role in turning around this turbulent economy.
Denny Stanz
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