Greetings! 

I have mentioned many times in this Newsletter that the overwhelming majority of people who sell a property and carry back the note will do so one time and one time only in their lifetime. As Sgt. Joe Friday used to say on the old TV show Dragnet , this is "just the facts, ma'am, just the facts."

It is also a fact that a lot of people are scared of the idea of holding a note. Why? Primarily because they equate being a note holder with being a landlord. Most people do not want to be a landlord, with all the attendant problems that come with it. And, they just prefer to cash out and move on with their life.

Implicit in the thinking of this particular seller is that being a note holder - or landlord, in his mind - is that he has to be a note holder forever. Let's face it, forever is a long, long time! And this kind of thinking leads this note holder to being totally turned off by this idea, sometimes not even willing to enter into a discussion about its merits.

However, would this seller reconsider if he knew he could escape forever? Would he reconsider if he knew that a marketplace existed where he could sell the note he created for cash? And, that he could get that cash within a relatively short period of time after selling his property, in some cases, as soon as collecting only 1 monthly payment? 

Well, maybe, maybe not.

 So, let's take a quick look at why a seller might give up his reluctance to sell his property by carrying the note for a qualified buyer:

1. More potential buyers. In a tight credit market, there will be more "qualified" potential buyers for an attractive home when the seller announces he is willing to carry the note. Why? Because a little glitch on a credit report may negate a buyer from getting a bank loan but still make him a very good prospect for a seller carry back.

2. Attract 1st time buyers. 1st time buyers have been on the sidelines the past few years, waiting to get into the game. The real estate market needs them. Offering to carry the note helps the 1st time buyer and the overall real estate market.

3. Neighbors are happy. We all want nice, friendly, caring and invested neighbors. The seller's neighbors will be happy knowing the new homeowner was vetted by the seller and is as committed to the neighborhood as they are.

4. Note buyers will want to buy the note. If the seller structures his note properly with a healthy down payment, good interest rate, shortest term possible, etc., he will attract buyers who will want to buy his note and pay the highest price possible. And, his realtor can run credit history/score, and someone like myself can assist in suggesting note terms.

5. Seller can move on. With a nice property and sound terms, the seller may be able to sell his note for cash with as little as 1 monthly payment received( we would prefer at least 6 payments). He no longer needs to be a "landlord." He does not need to hold the note "forever." He can move on!

True, the seller's note will be discounted - he will receive less than the principal balance. But he is getting cash today rather than waiting for his monthly payments over the next 20 or 30 years. And, he is getting peace of mind, which may be the biggest benefit of all for this reluctant note holder.

"Sunlight is the greatest disinfectant." ..... Doug Gottleib, TV/Radio Sports Talk Host.

Cash Sales - 32% of all Sales Accounted for in May 2015 is Lowest Since 2008

Market indices show that we continue to move to a more normal real estate market. See this article at www.CoreLogic.com.

Click on Insights, Blog, and then the Cash Sales Article.

                                        Credit Score Knowledge

Your credit score is the key piece of information that affects decisions on everything - from whether or not you can get a loan, credit card, home or job. The national credit score average is 676, but individual scores can range from 330 to 830. The higher the score, the lower the credit risk.

According to the Public Interest Research Group, one in four credit reports has errors that are serious enough to disqualify consumers from opening a bank account, purchasing a home or even getting a job. You can obtain a copy of your report by going to each of the 3 top credit agencies - Equifax, Experian and Transunion.

You can also try www.annualcreditreport.com.

 More Americans have died in automobile accidents than have died in all the wars ever fought by the United States.

Tokyo has had 24 recorded instances of people either killed or receiving serious skull fractures while bowing to each other with the traditional Japanese greeting.

Source: Mortgage Report, Chris Trafecanty, Lighthouse Loans, ctrout@fasterhomeloans.com.

                     The U.S. Housing Market is On Fire!

Another positive report on our housing market from David Rosenberg. Go to

www.businessinsider.com/david-rosenberg-on-the-us-housing-market-2015-8.

"Think not those faithful who praise thy every word and deed, but those who kindly reprove thy faults.".....Socrates.

"Your life is a parenthesis in eternity - a garage where you park your soul just for a few metaphysical moments. Once you know that, then death doesn't become something you're afraid of."..... Wayne Dyer, Self-help guru and author. Died August 29, 2015.

                                              Water

Here in California we have been dealing with a pretty severe drought for quite some time. Some cities and counties have restricted water use and it appears most folks are abiding by these restrictions. The rest of us have become sensitive to our daily water use and try not to let water run when we are shaving, brushing out teeth, doing dishes, etc.

In the midst of all this, I came across an interesting article that shared a lot of facts about water that I found kind of fascinating. Want to share some of it with you:

1.There is a total of 369 quintillion gallons of water on Earth. If all the water were split evenly among the residents of the Earth, we would each have about 85 billion gallons.

2. The amount of water on Earth has not changed since the beginning of time. It covers 3/4 of our planet. It's the only material that passes through the three stages of liquid, solid and gas within a range of temperatures that can sustain human life.

3. If all the water in the oceans was spread evenly over the surface of the Earth, it would be 6,000 feet deep everywhere.

4. There is 30 times more water underground than in all the world's rivers and lakes.

5. If all the groundwater in the world were pumped to the surface, it would cover the Earth to a depth of 100 feet.

6. 65% of the human body is water.

7. The human brain weighs about 3 pounds, but if all the water were squeezed out of it, it would weigh only 10 oz.

8. California uses more water than any other state.

9. New York city uses 1.5 billion gallons of water daily.

10. London is roughly the same size as New York City, but uses 1/3 the water.

We Americans use an average of 200 gallons of water in our home daily! This includes 5 gallons for every flush; 3 gallons for brushing teeth with water running; 40 gallons for a bath; 10 gallons to wash dishes; 8 gallons to clean house; 30 gallons to wash clothes; 30 gallons for lawns and pools; and a mere 2 gallons for drinking and cooking.

Source: Tidbits, Issue No. 34, Week of August 16, 2015.

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