Greetings! 

In this Newsletter I typically talk about owner carry back notes. I try to tell you about the good and bad I experience every day simply by talking to note holders. I trust you can learn from the mistakes of others and pick up some good pointers from folks who are doing things correctly.

Unlike the real estate industry, we in the note business are in the "paper" business. We don't buy real estate. We don't buy brick and mortar. We buy monthly payments due under a Promissory Note. These payments are secured by real estate and evidenced by a Recorded Trust Deed. As the insiders say, we are in the "cash flow business."

We are without question a small niche industry within the real estate industry. And, along side us is an even more niche business that I want to talk about just a little bit.

Odd Cash Flows!

What is an odd cash flow? Here is a partial list to give you an idea:

1. Personal Injury Settlement

2. Medical Mal-Practice Settlement

3. Wrongful Death Lawsuit

4. Business Litigation Lawsuit

5. Sexual Harassment lawsuit

6. Wrongful Termination Lawsuit

7. State Lottery Winnings

8. Television Game Show Winner

9. Hole-in-One Winner at a Charity Golf Tournament

10. Disability Income payments

What do all these situations have in common? A person has been wronged or won a lot of money. The "payor" of these monies is an insurance company, large corporation or a public entity. They are stable with millions or billions in assets. The recipient has a large degree of certainty that he will receive the money awarded.

 These situations are typically litigated with attorneys representing both sides, and the settlements reached my involve large sums of money. Consequently, the final arrangement may involve periodic payments over time rather than a lump sum payment. As time passes, the recipient may become unhappy with the payment schedule or may have a pressing need for cash, for whatever reason.

What to do?

Many of these companies will allow their structured pay out schedule to be interrupted with a lump sum or series of lump sum payments. And our little niche industry of "cash flow buyers" has some folks who specialize in this very thing and negotiate with these companies.  That's right - you can convert your settlement payments into a cash lump sum.

I bring this up simply to make you aware of it, so if you or a family member or a friend ever to have deal with this type of event in your life that you know other possible options exist.

"In the land of the blind, the one-eyed man is King.".....James Spader, The Blacklist.

                                          Why not Buy Here?

If you are curious as to why some note buyers won't buy notes in certain states, this article from Realtor Magazine will tell you why.

Realtormag.Realtor.org/daily-news/2015/04/20/average-foreclosure-time-620-days?

"Arrogance and ignorance are a deadly combination.".....Gordon Moss, Real Estate Investor.

                    Pending Home Sales Index Hits 9- Year High

MMG Weekly and the National Association of Realtors report that new home sales under contract increased 14% from April 2014. This comes despite rising prices and tight supply, putting sellers in the driver's seat. N.A.R. projects sales prices will rise 8% in the second quarter, up from the 6.5% year over year gain in the 1st quarter.

The median price for new homes in April was $297,300 nationwide, up 8.3% from a year ago.

Answering machine message: "I am not available right now, but thank you for caring enough to call. I am making some changes in my life. Please leave a message after the beep. If I do not return your call, you are one of the changes."......Stop, Look, Listen to Life.

                                         Michael Jackson

Remember Neverland, Michael's 2700 acre playground? It's available. You will have to dig a little deep. 100 million will do the job. Take a look below.

abcnews.go.com/business/Michael-jacksons-neverland-hits-market/story?id=31391706.

Personal tidbit: I used to play basketball with Michael's older brother Jackie. Nice guy, very down to earth, good player. I handled him, though!

                                            Line of Duty

We have an all volunteer army today. I was drafted, spent 3 and 1/2 years, 1 year in Vietnam. For vets like me, here are some sad statistics:

5.1%  -  Share of  Americans who served in the military during WW I

12.3% - Share of Americans who served during WW II

4.3%   - Share of Americans who served during the Vietnam War

0.4%   - Americans currently serving

Source: Department of Veteran Affairs, Department of Defense, U.S. Census Bureau.

"To ignore the facts does not change the facts."..... National Friendship Week.

                                                  Refis

Watch out, refis are back!

Bank of America - everyone's favorite bank - reported a 47% jump in the 1st quarter for cash out refinancings funded compared to 1st quarter 2014.

Loan Depot, a non bank mortgage originator, saw a 78% jump!

Lending Tree had a 40% increase.

Lenders like Wells Fargo and Quicken Loans are not experiencing anything like this. What's the deal? Looks like there is demand and certain lenders are rising up to meet that demand. Standards are tougher, and it appears most people are paying down higher interest debt or remodeling their homes, not buying cars and going on vacation like folks were in the pre bubble days.

If you have substantial equity, may be worth a call to your lender and investigate.

Source: Ken Harney, Washington Post Writers Group.

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