Several months ago, a man called me. He received a letter from me about selling his note. He began the conversation by saying he would be crazy to sell his note because he was getting 7% when the bank would only give him 1%. Plus, his buyer was well known in town, ran a small business, gave him a 15% downpayment, and has made every monthly downpayment on time. So, why in the world would he want to sell his note to me at a discount when he had such a great deal? He would be nuts, he told me.

When I finally had a chance to talk,I simply said "I agree!" He got a chance to vent, got it off his chest, and I listened.

This conversation got me thinking about why people do sell their notes. The bottom line reason is always the same - better use of the cash. But the specific reason is always personal to the circumstances of the seller. I looked at my last ten closed transactions. Here is why these folks sold their notes for cash:

1.  Opportunity to buy an investment property.

2.  Buy a new home.

3.  Pay a big income tax bill.

4.  Pay off medical bills and funeral expenses of a close family member.

5.  Pay expenses for parents in a Living Care Facility.              

6.  Pay off mortgage on an investment property.

7.  Selling a business and liquidating assets.

8.  Buy another investment property.

9.  Buy a new SUV.

10.Mother in poor health, need cash.

When opportunity or crisis presents itself, and people need cash, they will examine their options to determine the best source of that cash. If they are a holder of a seller carryback note, many times they were compelled to offer a seller carryback in order to get the transaction completed. Since the seller carryback was not the first option in creating the necessary financing, it becomes easier for the seller to liquidate this asset in order to get the cash needed.

If the cash price offered for the note solves the seller's problem, he will be happy to sell and move on. As always, the goal is to understand the need of the seller and align that need with the reality of the marketplace. Both parties benefit when this is done properly.

That's my job.

                                      Tidbits

Our modern word "salary" comes from the Latin "salarium" or "salt money." Salarium was the monthly wages given to Roman soldiers in ancient times - paid in salt.

"Politicians and diapers have one thing in common. They should both be changed regularly, and for the same reason."

You might have heard that George Washington's dentures were made of wood, but in fact, they were made of hippopotamus ivory.

In the first century B.C., the Parthians would turn away from the enemy, feigning defeat. This allowed the enemy to get closer. The Parthians would then suddenly turn around and shoot arrows at their confused pursuers. This maneuver was called a "Parthian shot", which today is known as a parting shot. 

                                                               Tidbits.com

           Are Underwater Homeowners Breathing Again?

Zillow is reporting that nearly 2 million U.S. homeowners exited negative equity status during 2012. Should you wish to sell your home this year, this news hopefully means you are in a better position to do so.

According to the Federal Reserve, total home equity in the U.S. is at its highest level since the bust - $8.2 trillion . In 2012 the equity gain was $1.2 trillion, a stunning figure the Fed says.

Sadly, the flip side is about 14 million homeowners still have negative equity. Most of these folks bought at the wrong time - near the peak in 2006 - or used mortgages that required little or no downpayment to buy bigger homes that they could not afford. Miami, Phoenix and Tampa still have about 40% of owners with motgage debt in excess of property value. The Fed says most of these folks, though, are not as deep in negative territory today as they were 12 months ago.

Is this cause for a deep breath and small smile?

Read my weekly Blog at www.CaliforniaNoteBuyerLLC.com

         If You own a Small Business, How are You Feeling?

Follow the stock market? It's flying high! Small business? Feet are on the ground!

Here is what Moody's Analytics is saying: Since February 2010 companies with at least 1000 employees have grown their workforce by more than 8%. Companies with fewer than 20 employees - the heart of American business - have job growth at 3.4%. Why this disparity?

Weak sales and feelings of uncertainty, particularly over tax and government policies. When the housing market collapsed, many small businesses saw an erosion not only in sales but also in the value of their own properties, which many had used to support their business. With tight lending standards, many small business owners have few places to go for needed cash. Dyke Messinger, President of  Power Curbers, Inc., who has 90 employees, sums it up this way:" Are we as a nation going to adopt fiscal policies that will create incentives for businesses to grow?"

Stay tuned. Let's see how sensitive our political leaders will be to the true needs of the people.

                                Only in America

... Could the rich people who pay 86% of all income taxes, be accused of not paying their "fair share" by people who pay little or no income tax.

....Do you need to present a driver's license to cash a check, open a bank account, use a credit card, or board a plane - but not to vote!

... Could politicians talk about the greed of the rich at a $35,000 a plate fund raising event.

... Would government officials who are surrounded by armed Secret Service agents demand that ordinary Americans not be allowed to own guns to protect themselves and their families.

                                            W.J. Mencarow, Paper Source

 Sincerely,

Denny Stanz

CA Broker # 01915404

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