And I’m quite certain that 99.999% of them would gladly trade places with you … no matter what’s happening in your life right now.

Be grateful for being who you are, exactly as you are in this very moment … there’s no one more special!

“We can only be said to be alive in those moments when our hearts are conscious of our treasures.”  - Thorton Wilder

Your gifts are infinite … open them.

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In fact, many react as if the concept is not only marginal, but borderline illegal.

I’m always a bit confused by this, as seller financing has been around for many decades, long before MBSs, CDOs and TARPs, and in some areas of the United States, it’s an important backbone for the real estate market.

But in fairness, let’s address the biggest fear circling around in a seller’s head:

“What happens if the buyer defaults and I have to foreclose?  I just can’t tolerate even the remote possibility that I would have to foreclose on someone.”

A large down payment and good underwriting will massively reduce the statistical likelihood of default, but won’t entirely erase it.

But seller financing, especially in this market, and especially in the jumbo arena (houses worth $700,000 and above), can be such a powerful strategy for selling quickly and easily for top dollar, that it’s a shame we can’t do something about this little foreclosure nuisance.

I mean, wouldn’t it be great if we could get all the benefits of seller financing without some of the risks?

This is where I pull out my syringe (I still have my RN license, so don’t worry that there’s a junkie hitting the press) and fill it chuck full of steroids . . . not so I’ll get large muscles, but so I can pump the seller financing model: the Title Holding Trust.

The Title-Holding (Land) Trust is accepted throughout the United States, and may arguably be the best possible means of real property asset protection and/or transferring real estate.

That’s why I like to call it Seller Financing on Steroids.  It could also be called Lease Option on Steroids because of the added protections and benefits it provides for both parties to the typical lease option agreement.

Also called Land Trusts, Blind Trusts and Business Trusts, the trust model dates back to the 1500’s under King Henry VIII, and the Illinois Land Trust was introduced in the U.S. in the late 1800’s.

California’s version, the Title Holding Trust, was introduced in the early 1900’s, and is similar to, but not exactly like the Living Trusts that many of us use for estate planning purposes.

Increasingly, investors and ‘regular’ property owners like you and me are taking title to every piece of property they own in the name of a title holding trust.  Why?

Privacy.

Most people would rather that their assets are hidden from the snooping eyes of clients, lawyers and governments.

And speaking for myself, it’s also a preferred way for transferring real estate when I am interested in deferring capital gains and/or leaving my existing financing in place for the next buyer (without worrying about the due-on-sale clause).

And here’s the clincher.  When I offer seller financing through the title holding (land) transfer system,

I never have to worry about potential foreclosure.

If they stop making their payments, I simply evict them according to tenant law.  I won’t have to foreclose to regain possession of the property, and when I do, I won’t have a higher tax basis to worry about.

My original tax basis in the property is preserved until the trust is terminated, up to 20 years from inception, though most average 5-10 years in length.

So, if you’re ready to line up for your own shot of steroids, take a quick peek at the introductory information I have on Title Holding Trusts on my website.

[Always consult with your CPA, tax attorney and/or financial adviser before selling any real estate.]

I’d love to give you some FREE gifts and send you my Seller Financing Newsletter:

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Creative real estate strategies empower you to achieve desired benefits regardless of market conditions, and being alkaline in an increasingly acidic world will empower you to preserve and improve health regardless of environmental conditions.

I like to align my natural passions with my business pursuits.

As for me, I still like my red wine and to party a little too hard once in a while, so I don’t see myself living a perfect alkaline lifestyle any time soon (for proof, join me on facebook . . . yikes!)

That’s why I’m excited to use products that supercharge my health and alkaline level.  They buffer me against occasional excesses (and prevent hangovers, too, I might add!)

Dr. Ola Madsen, CEO of Easy Pha-Max, will make a rare personal appearance tonight in Alhambra, CA at 7p.m.

If you’re interested in easy alkaline living (remember that alkalinity = health and life), you don’t want to miss this if you’re anywhere in L.A.

Linda Hacker is hosting the meeting at her home, and can’t believe the results she’s getting already.  Her doctor has started to take her off of prescription medications she’s been on for years!

Listen to her story first hand here:

It’s as easy as falling down (and a lot less painful) to get supercharged nutrition, even when traveling or at work.

If you’re local, and you think you might want to come, email me for directions!For info on the related business opportunity, visit: www.easygreenqueen.biz

If you’d like to be kept up to date with the latest, cutting edge and EASY ways to get and stay healthy, sign up for my newsletter below:

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The one where you woke up excited, inspired, alive, and ready to claim the day as yours alone?!

Dream it again … and again … and don’t wait till you’re sleeping!

“Dream as if you’ll live forever; live as if you’ll die today.”  - James Dean

It only seems real because it is.

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“Hi Dawn,

Just read an article about Canadians purchasing property in the US and saw your name.

We want to buy a 2nd home in Palm Springs that is owned by the bank. Unfortunately in this situation we cannot get the vendor to finance.  We have a great credit rating.  Can we get a mortgage?  Look forward to hearing from you.

Kindest regards,

Janet”

Hello Janet,

How much of a down payment could you put down? And what is the purchase price of the property?  Would love to help if I can.

Sincerely,

Dawn

“Hi Dawn,

This property was purchased in 2005 for around 1.7 and the owners did a real number on it.  Then they rented the property and tried to sell it for around 2.6.  The bank foreclosed and it is soon to go on the market. We know the current market value of the property is 1.4.

We were hoping to put down 10-20% and are hoping to purchase it for less than 1 million. We have owned a condo in Sandpiper, Palm Desert for around 10 years.  It has a mortgage.  We have a great credit rating.  Hope you can help.

Kindest regards

Janet” 

Hi Janet,

If you can acquire the property for that much below market value, then you may be able to get a private money loan if you put the 20% down.  You could refinance out of the 12% loan at your earliest opportunity once the lending environment supports it.

Alternatively… we may be able to get a private investor to purchase the property, taking title in the name of a land trust, and then beneficial interest would be transferred to you.  Obviously, your purchase price would be higher than the price the investor would pay to acquire the property to create some profit in the transaction for the investor(s).

For instance, investor buys it for $900K cash, and then ’sells’ it immediately to you for $1.1mil through a land trust, carrying the financing for you, that would last for 5 years or so.

To pursue your hard money options, contact Steve Aranda @ 323.868.6242.  If that option doesn’t look feasible, then let’s explore option #2.

Sincerely,

Dawn

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“Dear Dawn,

I saw your recommendations in the Tribune article on waiting for Recovery. My question to you is should we sell our home now or next year?

We bought this home 7/2007 for $950,000.  We have spent $150,000 plus. The last project is to have the outside of the house painted, which is scheduled for July.

We have been told that we could probably sell for $950,000.
The lot is about ¾ acre, the house is about 2500 sq feet.

We realize we are losing money and our proposition 60 taxes.  But the lot has proven too much for us.  We would expect to buy a replacement home for about $850,000.

Our property taxes will increase ($6,000 to about $11,000 a year).  We will look for the same size house, but a smaller piece of property in the same city.

If we wait, replacement house prices could rise and the property taxes could also rise.  We do not have a mortgage. We are retired.

Thanks so much for any help you can give us.”

First off, it’s encouraging that they have a realistic view of the market and the value of their home. Too many sellers these days would insist that the value of their home is $950K + $150K = $1,100,000.

This couple seems to understand that the market doesn’t care how much you put into it. The market is just the market. A stock is worth what Mr. Market says it is, whether you’re making money or losing it.

[But wouldn’t it be great if the government would step in and make sure we don’t lose money in the stock market any more?  Maybe they could set up a special fund and buy GM shares at $30 a pop for anyone who paid that much or more for them . . . it’s only fair]

And then those property taxes . . . it makes my stomach churn to think of this couple losing their Proposition 60 base year value transfer.

If they could somehow manage to become ’severely and permanently disabled’ they could transfer the tax basis one more time . . . but, um, that’s probably going a little too far.

The market is not going to be better next year.  Of course, I could be excruciatingly wrong, but I don’t buy the ‘green shoots of recovery’ story.

If you can wait 7-10 years, maybe, but in a year we’ll still be unwinding, and things could be the same . . . and they could be much worse.

What happens if interest rates have a sudden change of heart? Jumbo loans are already difficult for many people to qualify for.

So back to the couple at hand.

Because they own their property free and clear, they have more options than the average seller.  If they are willing to offer terms, they could get top dollar regardless of market conditions.

My guess is that they could easily inch up to $1mil if they agreed to finance a buyer who just couldn’t qualify for a conventional loan for some reason.

They could:

• take a $250K down payment,
• carry a $750K first at 7.5%,
• due in 5, for a
• monthly cash flow of $5,244.11

(If they wanted to preclude the possibility of foreclosure, they could put the property in a land trust first.  This would also preserve the existing tax basis on the property just in case they ever got it back again).

And if they have other cash reserves to buy their replacement property outright, then they’re set, because cash is king, and they should be able to get the lowest possible pricing.

But what if they don’t have $600,000 sitting around to polish off the cost of their new home?

What if they could find someone with a nice 5.5% fixed and ask them to leave it in place?

• Purchase price $850K,
• Down payment $250K,
• Take over the existing financing at $600K (or less), for a
• Monthly liability of $3,406.73 plus taxes and insurance, so $4,000 (for an overall positive cash flow of about $1,200 per month).

If the replacement property is also in a land trust, then the existing loan cannot be accelerated by the lender, and the existing tax basis (probably lower . . . $6,000?) could also be preserved to give this couple the equivalent of their Prop 60 base year value transfer.

I call the title holding (land) trust “Seller Financing on Steroids.”  Especially in the jumbo markets, this strategy is empowering buyers and sellers and putting deals together where they otherwise wouldn’t be possible.

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“Dear Dawn –

We are looking to buy a modest property in Evansville, IN (about $100-120K). We have a 10% down payment, a solid income, and have been told that our credit would qualify us for a VA loan in about one year.

We recently sold our home in Indian Wells, CA — no foreclosure, no bankruptcy, although plenty of delinquents the past three years due to a medical crisis. We had a tax lien and judgment lien, and those were satisfied at the time we sold our home.

“Seller financing” is not well-understood out here. Right now, we’re looking at a couple of homes that are 50% more expensive than the type of house we want and need only because those are the only ones where the Seller — out of desperation — is willing to carry for a year.

Any chance that you know of anyone who would be interested in buying the note in a seller-financed transaction here in Indiana that would allow us to get a house we REALLY want that is far cheaper than what we may have to settle on?

Thank you, Ren”

Dear Ren,

What are your FICO scores?  If above 600, then there may be a simultaneous note sale program that you would qualify for.  There would still be some educating to do, as all parties involved usually need some guidance and clarification, but it’s possible to create and then sell the note created with minimum discount (.85 on the dollar).

Once you have a property in mind, you will need to present an offer for the seller to consider, and you will need to see if you qualify for the simo program by turning in a 1003 and paying for credit reports.

Alternatively, if you find a seller who has great underlying financing, you may want to leave it in place by using the title holding land trust transfer.

I am available to consult with you regarding your individual situation by the hour or by flat fee.  The flat fee of $495 covers you until you successfully consummate a transaction, including talking to all parties involved until everyone is on board.

Best wishes,

Dawn

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If you’re reading this (and I’m pretty sure you are), you’d better get down on your knees and thank All That Is that you are right here, right now … a part of it all!

Could your life be any more exciting and thrilling than it is right now?

Ok … How?

Let’s get busy on creating that!

Be you.

Jerry

“Bad times, hard times - this is what people keep saying; but let us live well, and times shall be good.  We are the times; such as we are, such are the times.”  - St. Augustine

We are the cause and the solution!

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People selling business notes need to understand that typically, there are significant discounts involved, so if you’re not prepared for a 20%-50% discount (depending on all factors involved), then you’d be better off waiting out the term.

To set up your note and transaction ahead of time so you have a note worth as much as possible, you’ll want to consider hiring me to help you put your deal together.

The basic info I’ll need to start working on your business note:

• type of business
• location (city & state)
• sale date
• how note created (seller carryback?)
• sale price
• down payment
• original note balance
• interest rate
• term
• payment amount
• lien position
• payor onwership structure
• payor credit rating (D&B if applicable)
• personal guarantees
• value of hard asset collateral (tangible and intangible)
• value of intangible ’soft’ asset collateral
• goodwill value
• if real estate included (zoning factors, usage, operation history including NOI past 5 years, any other liens and their rate/term/balance, debt coverage ratio)

These are the documents I generally need to get started and that help me put together the above:

• copy of the note (front and back, or allonges) - be sure you keep the original note handy
• copy of the security agreement - you’ll need the original
• copy of the purchase agreement if purchase-money note
• copy of the bill of sale
• copy of closing statements related to creation of the note
• copy of the appraisal, if any
• copy of the payor’s original credit application and credit report
• documentation of payment history

Potential fees that the note seller MAY be required to pay in order to sell:

• UCC search fees
• credit report fees
• appraisal cost
• corporate records search fee
• legal research cost
• background investigation cost
• field research cost

Let’s get started!  I’d love to work with you to ensure that you get the best price and the best service with someone you can trust.  You can email or fax documents to (626)451-0454.

And don’t worry . . . the documentation requirements can seem overwhelming, but my associates and I will be here to help you every step of the way.

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Because YOU are a part of it!  And YOU have the capability of making someone’s day/week/year/life! … by how you think, and feel, and act towards them!

So, who’s day will you make today? … and how?

It’s all about the love, Baby!

Be you.

Jerry

“In our life there is a single color, as on an artist’s palette, which provides the meaning of life and art.  It is the color of love.”  - Marc Chagall

… and it goes with everything.

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