California NoteBuyer Newsletter
October 2011
Relax - Everything is Temporary




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California Note Buyer LLC

 

 

 

This newsletter is a happy, upbeat one. I want to share the joy.

 

Maybe it is coincidental that business is very good. People are selling their notes. Why? Because they want the cash and don't want the monthly income.

 

The biggest objection for a seller to "not offer a seller carryback" ?  He wants the cash and does not want the monthly income.

 

Funny how it works!

 

My September Newsletter was filled with depressing facts about the dismal state of housing in our country. How about some good news?

 

According to CoreLogic, a mortgage and real estate data firm who maintain a database on 80% of all existing mortgages, about 48% of all homeowners have at least 25% equity stakes in their homes. About 25% of all homeowners have more than 50% equity.

 

Yes, CoreLogic says, 22% of all homeownwers have negative equity. But let's talk about the folks with a lot of equity who want to sell.

 

If a seller has a lot of equity in his property and is not interested in offering a seller carryback, it will come down to two simple reasons - he wants the cash and/or he does not want to be a landlord and collect monthly payments. The practical problem this seller has is that a hot, potential buyer may not qualify for bank financing. So, the property won't get sold, as the seller holds out for a "qualified" buyer to show up. When will he show up? Will he ever show up?

 

We all understand that death and taxes are inevitable - and permanent. Everything else is temporary. So let's apply this philosophy to our seller with a lot of equity.

 

"Mr.Seller, would you be willing to sell your property if you knew you could get your asking price? Would you then be willing to "temporarily" receive monthly payments? Not permanently, not forever, just for 3-6 months? Would you be willing to then "cash" out after this 3-6 month period? Would this slight gratification delay satisfy your desire to get your cash and not receive monthly payments till you died?"

 

If our seller says "No", will he find the "qualified" buyer he seeks in the next 3-6 months? If he does not, how long is he willing to wait? Is his wait "temporary" or "permanent"? Would a different decision already have put the cash in his pocket and have him on his way?

 

People creating or selling notes where the collateral has a lot of equity are in a strong position, because notebuyers are willing to pay top dollar in today's marketplace.

 

Sometimes, just a little information, a little knowledge, a different perspective, will turn a seller. Maybe it won't. But in this market, we have to be in the business of giving information and creative options to clients. Let them decide what is in their best interest.

 

 

 

Sincerely,

 

Denny Stanz

 

760-245-5366
760-245-5367 fax
dennystanz@verizon.net
www.CaliforniaNoteBuyerLLC.com