There’s no reason we can’t get a huge kick out of tying our shoes, saying hello, or making a sales presentation.

Enjoy everything that you do … and you’ll do only what you enjoy!

Jerry

“Today was good … today was fun … tomorrow is another one.”  - Dr Suess

Do you know what the wise man said when he saw three holes in the ground?

Well, well, well.

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A title holding (land) trust is a great way to hold title to property, and personally, I will never again hold title to any piece of property in my own name, or even in an LLC or Corporation.

First, it’ll go into a land trust, and my entity of choice (LLC vs. S Corp) will be the beneficiary.

When the trustee is deeded the property, the trustee is said to hold bare legal title.  The trustee holds legal and equitable title, but does NOT have the power of direction . . . that resides only with the beneficiaries.

The trustee does not have the ability to take any action with regards to the property or related paperwork without the express written consent of all beneficiaries.  This is why, in most states, there is unparalleled asset protection:

• not only do you have killer anonymity and privacy in ownership,
• but your ownership is consider personal property, not real property (which means it’s usually protected from partition, judgments, probates, divorce proceedings, IRS tax liens, etc)

Judges, police officers, politicians . . . these people never want to show up on public record, right?  They don’t want anyone to know what they own or where they live, and no one should in a society where lawyers are looking for a reason to snatch away your net worth.  Hey, wait a minute . . . are they working for the government???

Contrastingly, BEAR legal title refers to that right that a large mammal, known for its prodigious strength, has when it wants your property . . . or at least to get in for a snack . . .

It usually doesn’t ask for written or even verbal permission . . .

Be sure to sign up for:  Seller Financing on Steroids:  Pumping Paper for Power, Peace and Profits.  Defer capital gains & sell fast for top dollar, regardless of market conditions (and have a note that’s worth something!)

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As much as you’d love to believe you’re the wrong person, in the wrong place, doing the wrong things … it just isn’t so!

YOU … right where you are, with your present circumstances and resources …

Are in the perfect position to take the next step in the miraculous and magnificent adventure called your life!

Jerry

“The foolish man seeks happiness in the distance, the wise man grows it under his feet.”  - James Oppenheim

It’s not there … it’s here.

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His client owned a nice free and clear 9,000 sqft commercial property on historic Camino Real Road in Northern California.  A couple of years ago, the property would have fetched close to $3 mil.  Now it was listed at $1.6 mil, and there was one lone buyer who wanted it, only he couldn’t get traditional financing.

He needed owner financing.

He would pay the $1.6 mil if the seller would take $400K down and carry the rest at 6.5% over 30 years.

Well, because the seller doesn’t want to pay ANY capital gains, his agent was trying to see if we could create and then sell the note so the seller could put all the money towards a 1031 exchange, deferring all of his capital gains and depreciation recapture.

Good idea, except for this…

The discount on a ‘green’ commercial note (even with a good down payment and good buyer credit score) would be so high that it just would make sense (especially with that low interest rate!).

At the very best, he might get $800K for that $1.2 mil note, so it didn’t really make sense.

Here are the seller’s options:

1. Just carry the note and defer most of the capital gains through the installment sale IRC 453.  You’re getting your price, for heaven’s sake!  And after some seasoning, you can sell the note for a smaller discount!
   
2. Drop the purchase price and hope for a cash buyer, or one who can actually get a loan, so you can do a 1031 Exchange or Deferred Sales Trust to defer most, if not all, of your capital gains
3. Lease the property out and be prepared to wait 10-15 years before you can sell at $1.6 mil, or better.

Owner financing is a great way to put real estate transactions together in today’s market.  We just have to know what matters most to the seller, and what the buyer is able and willing to do.

Be sure to sign up for:  Seller Financing on Steroids:  Pumping Paper for Power, Peace and Profits.  Defer capital gains & sell fast for top dollar, regardless of market conditions (and have a note that’s worth something!)

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Or are you still beating yourself up with it?

Let it go … let it go … and in case you didn’t understand me … let it go!

Your magnificent NOW is flying by while you’re stuck in last week …

Live each moment as it comes.

Jerry

“You can clutch the past so tightly to your chest, that it leaves your arms too full to embrace the present.”  - Jan Glidewell

Who wants a hug?

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Instead of going broke with many of her colleagues, she’s a real estate broker, turning note broker as well.

So here’s what she’s doing . . .

She’s taking all these good buyers who can’t qualify for bank financing, and hooking them up with FSBOs who are willing to carry paper (of course, she does a lot of educating in the process).

She collects a consultation fee from her buyers after she qualifies them, and knows they have a decent down payment.

Then, she goes out and finds FSBO sellers who are having a hard time competing with all the short sales and REOs.  She shows these sellers how they can carry paper (offer owner financing) and still walk away with cash when they let their note season for 1-12 months, and then sell it.

And guess who will most likely be brokering that note?

So, she may not make a big commission selling the property, but she’ll make a commission when she helps those sellers/note holders get cash for their note.  And because she understands the note business, she knows how to help those sellers create a note that will sell for a decent price on the secondary market.

Fun, huh?  She’s a visionary and a leader, and she’s passionate about helping the economy, and preserving the dream of home ownership for her clients.

Real estate brokers should be note brokers, as well.  These markets dovetail nicely, and the specialized knowledge can make the difference between a broker going broke . . . or not.

Be sure to sign up for: Seller Financing on Steroids:  Pumping Paper for Power, Peace and Profits.  Defer capital gains & sell fast for top dollar, regardless of market conditions (and have a note that’s worth something!)

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Stop that!

When you get satisfied with any area of your life, you stop moving, and you stagnate.  It may feel like you’re doing OK, but if you’re not growing … you’re decaying!

Still water gets pretty slimy.

Jerry

“When we’re through changing, we’re through.”  - Bruce Barton

Scrape the algae off the top and stir it up a little.

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Here’s a webinar with Lisa Moren Bromma of The Entrust Group and Clint Hinman of NoteWorthy.  Clicking the link below will allow you to listen to the recording and follow along with the slideshow part of the presentation.

https://cc.readytalk.com/play?id=fsy2la

The current offer of 30% off the normal registration rate for the convention ends tonight, September 30th at 11:59 pm EDT.  Taking advantage of this offer also gets you a six-month subscription to NoteWorthy’s online newsletter.*

Visit www.noteworthyconvention.com for registration information.   Enter discount code: DAWN2009.

Information regarding the convention agenda, workshop topics and speakers can be found at:

http://www.notetools.com/14notsubcon.html.

The Convention dates are November 10th-12th at the Hilton Mission Valley in San Diego, CA.

This year’s theme is Keys To Mastering Private Financing Markets.  We encourage note brokers, realtors, real estate investors, and other cash flow professionals to join us in San Diego to better understand the private financing markets and derive more profits from them.

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But if you’re to have the best chance at happiness and fulfillment, it’s critical that you realize YOU are the source of all your experiences.

It can’t be “out there” unless it’s first “in here” …

So the good news is everything outside can be changed by you working on the inside.

There is no bad news.

Jerry

“I am the chip on my own shoulder.”  - Wayne Sleep

Knock it off, and get the heck out of your own way.

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“Hi Dawn,

I hope this day finds you well.  I found your web site by searching how to sell our note.  My husband and I are the only note holders to the house we sold.  We’ve been kicking around the idea of selling the note, but still not sure.  Your web site is very informative, this is something we might be interested in.  Looking forward to hearing from you.

Regards,

Jennifer”

So, here I’m talking about the deal:

1. Try to sell the entire note for as much as $150,000 (the note balance is $412,000, but the value of the property is $350,000. Anyone who buys this note will expect to eventually have to foreclose, so they need to buy at a price that ensures they can still profit after paying taxes and insurance out of pocket while not receiving any payments on the note.  Foreclosure can take up to 18 months if the buyer decides to file BK, and it’s possible that the property could be in poor condition by the time the defaulting parties are out, and that the market will be even softer at that point.




2. We can see if my partner, who does traditional loans, can refinance him.  If he can get regular financing (meaning, he actually has decent income and credit), then we will finance him for as much as the lender will approve.  It could be somewhere in the ballpark of $300,000, but you would walk away with more money on a short refinance than an outright sale of your note.




3. You can work out a loan modification directly with the Payor.  You can reduce the principal balance and the interest rate and make it as easy as possible for him to continue (or start) paying you.  Your return would significantly decrease, but you may be able to avoid massive principal reduction with this technique.  You could hire me to help you negotiate this, and you may want to have him put the property in a land trust in exchange, so you eliminate your exposure to foreclosure from here on out.

Thank you for the opportunity of working with you.  Let me know which way you are leaning after you have the chance to chew on things this weekend.

Best regards,

Dawn”

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