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I am stealing the title of this Newsletter from Lawrence (Larry) Tepper. I usually write about what a good note looks like. Or what a bad note looks like, and try to get you to understand the difference.
I also write about the fact that there is a very nice market for note holders to sell their note when they find themselves in need of cash - usually for a better opportunity that will bring a greater return than the note does.
But, I never talk about the different things you can do with a note. Here is what Larry says:
"Promissory notes are valuable finance tools. Unfortunately, they are underused because they are not understood. They have 12 - or more - important uses:
1. Hold for investment income
2. Hold in a tax-free or tax-deferred IRA account for income
3. Sell for cash
4. Exchange for real estate
5. Use as a down payment on real estate
6. Use as security for a loan
7. Use to repay a debt
8. Use to make a gift
9. Use to reduce taxable income
10. Use to divide assets in a business or domestic settlement.
11. Each of a note's payments can be sold - partially or in total.
12. A note's balloon balance can be sold - partially or in total.
Depending on the note's characteristics and your goals, many possibilities exist to improve your financial picture."
Source: Lawrence Tepper, Lawrence.Tepper@comcast.net www.promissorynoteappraisers.com
As printed April 19, 2016 in papersourceonline.com
The Paper Source, W.J. Mencarow
Is Flipping Coming Back?
Are you a flipper? Were you a flipper? You may want to read this interesting article from CoreLogic, comparing 2016 flipping activity to the 2005 peak. The article also tells you the cities where a lot of flipping is going on.
Corelogic.com, Insights Blog, April 26, 2016.
CountyRecordsResearch.com
Get daily reports of defaults, trustee sales, and REO's for California, Arizona, and Nevada.
Kurt S. De Meire
800-664-2567
Most stress is caused by people who overestimate the importance of their problems......Daily Reminders.
Are you breaking the law?
I want to remind you again that Dodd-Frank created an unnecessary burden for you if you want to sell a property and carry back a note in order to facilitate the sale. Residential installment sales are part of the restrictive rules that Dodd-Frank includes that could lead to you becoming licensed as a Loan Originator - something I suspect you have no interest in!
You need to know the rules that affect us in the seller carry back business. And, you need to know that there is a small group of folks talking to Washington, D.C. on your behalf and mine, trying to get them to understand what our business is about. And, how we help people. And, most importantly, how we played no role whatsoever in the mortgage meltdown.
Please do the following:
1. Go to SaveSellerFinancing.org
2. Read the Action letter and White Paper for details.
3. Sign the Petition to Save Seller Financing.
4. Donate whatever you can.
The note business is my business. I donate annually. If you are active in our business, give what you can so the Coalition can convince the CFPB( Consumer Financial Protection Bureau) to strip seller financing from these onerous rules.
Thank you.
2016 Trends for US Commercial Property
Tranio is an overseas property broker that has published an interesting report on commercial property trends in our country. It's 6 pages long, tells you the most promising segments, top local markets, and what/where to buy and sell property in 2016. Check it out:
"What the Experts Say: 2016 Trends for US Commercial Property." Tranio.com
"All that is due to us will be paid, although not perhaps by those to whom we have lent.".....Daily Reminders.
Pennsylvania
I grew up in Pennsylvania and moved to California after getting out of the Army. My heart still resides there, however, primarily because my upbringing was so dramatically different than what my own daughter experienced in our adopted state.
Here are a few things you probably don't know - but are glad now that you do - courtesy of my sister Janice Reis, a lifelong resident of the Keystone state:
1. The Pennsylvania Dutch aren't really Dutch. After migrating to America from Germany, they were called Pennsylvania Deutsch, which is the German word for Germanic people. Eventually, the English language converted Deutsch into Dutch.
2. Pennsylvania leads the country in a lot of things, including:
a. Number of licensed hunters
b. Pretzel bakeries
c. Sausage production
d. Covered bridges
e. Rural population
3. The Crayola factory is located in the Lehigh Valley, producing almost 3 billion crayons annually.
4. Pennsylvania is the only original colony not bordered by the Atlantic Ocean.
5. Philadelphia is the proud home of the Liberty Bell - and Pat's Cheesesteaks.
6. Hershey is the chocolate capital of the world.
7. C.F. Martin Guitars Company, founded in 1833 in Nazareth, is the world's largest and oldest maker of high end acoustic guitars.
8. I am a die hard Pittsburgh Steelers fan.
Now You Know!
Home Prices Rise Faster than Wages
Home values have risen 2.6 times as fast as average hourly wages, which have climbed just 2.2%. Tight supplies of homes on the market have fueled much of the price growth.
Case-Shiller 20 city home price index.
Home Building Sinks in March
Construction of new homes fell in March by the largest amount in five months, with weakness in all regions of the country except the Northeast.
Home construction dropped 8.8%. It was the third decline in the last four months and left construction at its slowest point since October 2015.
Applications for permits to build new homes, a good indicator of future activity, fell 7.7% in March to an annual rate of 1.09 million units.
US Commerce Department
"Forgive, Oh Lord, my little jokes on Thee. And I'll forgive Thy great big one on me."....Robert Frost.
If you enjoyed this Newsletter, please tell a friend.
If I can make it better, please tell me.
Thanks for reading.
Denny Stanz
CA Broker # 01915404
760-245-5366
760-245-5367 fax
dennystanz@verizon.net
www.CaliforniaNoteCompany.com
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