In a typical conversation with a note seller, we will talk about the state of the economy and the real estate market before we ever discuss details of a particular note he is interested in selling.
Invariably, I will get the comment "The real estate market is not as bad in my area as it is in the rest of the country". Typically, we have bought notes in that area so we already know what the market is like there. And, yes, it is just as bad as the rest of the country.
Also, I think sellers are talking to one another. "I want to sell but I don't want to give my note away". Today is Tuesday and I already have been told this a few times this week. It's just like selling a home - everyone feels their home is worth more than the next guys' home. In reality it is not, but the homeowner is emotionally invested. This is human nature and I understand.
The specific motivation to sell a note varies widely from one person to the next. But the bottom line reason is the same - the seller wants CASH - and the note they are holding is the best source of that cash.
When two parties have agreed on the terms of a property sale and the note that goes with it, neither of them consulted the marketplace and asked for a third party objective analysis of the transaction. The transaction was done in private and without public scrutiny, as it should be. However, when the seller decides sometime later that the need for cash is stronger than the need to hold onto the note, a third party enters the picture and the public scrutiny that did not exist in the beginning is now paramount. And as I have said countless times in this newsletter, the value of any given note will be determined by the eyes of the open market.
Consequently, readers of this newsletter who may be creating a note in the future, with the possibility of eventually selling that note, need to review past issues in the Archives and look for salient points that will help them construct terms that are favorable to them and allow them to receive the maximum amount of cash possible at time of sale. You owe it to yourself to do this.
And, please forward this email to anyone you know who is interested in real estate or who may be creating a seller financed note - you could save your friend thousands of dollars by doing so.
Buy Probate Properties
I want to remind you again that on August 28 and 29 in Las Vegas, my friends Diana Hill and Ken Stimson will be teaching their class on how to find and buy probate properties at 30%-50% below market value. This is a niche market that is totally under the radar screen and little known to most real estate investors. If you are looking for a more personal way to buy property in today's market and want to learn from two experienced and trustworthy professionals, this is your answer. Just click here for all the details.
And, I will be on the program talking briefly about the use of seller financing in this marketplace.
To those of you in the High Desert area of Southern California, I will be promoting my book Food Stories on 100.7FM radio at 8:30am on Thursday August 19. And, on August 28, I will be part of the Fan Appreciation Night for the High Desert Mavericks baseball team for their 7pm game. I will be giving away 400 hundred copies of Food Stories. Hope to see you there.
Regards,
Denny Stanz
760-245-5366
760-245-5367 fax
dennystanz@verizon.net
www.CaliforniaNoteBuyerLLC.com
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