" />

Real Estate Note Buyers

and Seller Carry Consultants

You are here: Home / Archives for Seller-Carry.

Case-Shiller: National House Price Index increased 3.7% year-over-year in March

By

Case-Shiller: National House Price Index increased 3.7% year-over-year in March

by Calculated Risk

S&P/Case-Shiller released the monthly Home Price Indices for March (“March” is a 3 month average of January, February and March prices).

This release includes prices for 20 individual cities, two composite indices (for 10 cities and 20 cities) and the monthly National index.

Note: Case-Shiller reports Not Seasonally Adjusted (NSA), I use the SA data for the graphs.

From S&P: S&P CoreLogic Case-Shiller Index Shows Annual Home Price Gains Continue to Weaken

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 3.7% annual gain in March, down from 3.9% in the previous month. The 10-City Composite annual increase came in at 2.3%, down from 2.5% in the previous month. The 20-City Composite posted a 2.7% year-over-year gain, down from 3.0% in the previous month.

Las Vegas, Phoenix and Tampa reported the highest year-over-year gains among the 20 cities. In March, Las Vegas led the way with an 8.2% year-over-year price increase, followed by Phoenix with a 6.1% increase, and Tampa with a 5.3% increase. Four of the 20 cities reported greater price increases in the year ending March 2019 versus the year ending February 2019.

(NOTE: The Phoenix Market did a complete u-turn NORTH. 45% of all inventory was sold in April. What was a down turn, is now back on track. The Phoenix area is growing by 86,000 people every year. Maricopa County is the fasted growing county in country. CLICK HERE FOR THE LOCAL REIA STATS

THE COMPLETE ARTICLE CAN BE VIEWED HERE

New to Market – New Performing Notes

By

Property Locations

IL  IN   MI   OH  TN
    
BPO Range: $33,000 – $70,000
UPB RANGE: $17,785 – $34,860
PURCHASE PRICE RANGE: $19,000 – $26,200

PRICING RANGE:  76% to 90% of UPB

Re-Performing Loans & Seasoned Performing Loans
Click Here to Access

Case Studies ~ Buy A Performing Note – Then It Goes South — Part 2

By

As discussed in my prior blog, Note workouts are not rocket science. It is a matter of treating every party fairly.

CASE STUDY 2

This 2nd case study happened on a 2nd Mishawaka, IN property. My

partner & I bought a non-performing note(NPN) in October, 2014. The payor had become functionally unable to do anything due to a debilitating disease and had been out of the house for 2 years. We tried a workout which was not viable but did get a deed in lieu of foreclosure with cash for keys.

After fixing the place up, we found a recently divorced lady. She was happy with a probtionary rent-to-own for 12 months a and Seller-carry to follow with 10% down. She was also qualified by an RMLO oer Dodd-Frank. We sold the 1st note to a partial note investor and kept the second.

Fast forward, the payor stopped paying due to illness. Again we developed a good working relationship with her. After a series of discussions, she confirmed that she really did want to stay and agreed to a loan modification. The “we” was the partial note buyer.

The end result is after consulting with our legal counsel and her daughter, the payor signed a Quit Claim deed to be held in escrow and agreed to a payoff schedule for her to get caught up on the back payments. If she falls behind on any payment for more than 15 days we can record the Quit Claim deed. My company will own the house. We have avoided the the foreclosure process to boot. The bottom line: the payor is happy and agreed to bring the loan current, the partial buyer is happy as she is geting paid, my partner is happy as we are both collecting on our second and have avoided a negative situation –the long forfeiture process.. This was/is a total win-win.

Potentially, we may have to record the deed and rehab, but for now it is all good.

Case Studies ~ Buy A Performing Note – Then It Goes South — Part 1

By

I have been in the note space in various ways since 1985 with the purchase

of 20 acres in Scarborough, ME which was developed into 17 house lots. The last lot I sold with seller-carry.

To that point, in the last 14 months 4 notes have taken a turn for the worst and required developing a work out strategy to protect my interests or if a partial to protect the interests of the partial buyer.

Currently I buy, keep, create partials and broker notes from around the country. Mostly performing notes | Contract for Deeds. Very rarely do I purchase non-performing notes. It just is not my thing. However, notes can and do go bad. The payor has personal issues, etc. Life just happens.

CASE STUDY 1

I purchased a performing note in Mishawaka, IN in 2015. Great #’s great pay history. Good colateral. I found a buyer to fund the purchase via selling a partial and in effect a double close. It was good for them and good for my ROTH. Fast forward to April, 2018, the payors health took a turn for the worst. They called the servicer stating they would not continue paying and were going into a Bankruptcy. My 1st challenge was to keep my partial investor whole. I made up 4 months to the partial buyer, completed a deed in lieu with the payor, rehabbed the house and resold it in February, 2019 at which time the partial buyer was made whole. Throught the process, the partial buyer was in the loop and concurred with the workout and dispostion. They were made whole at the COE. A couple of months later they thanked me stating it was all good especially the net 11% return. To boot my ROTH cleared $20k on a small value asset of < than $70,000. It was a win for everyone. Even on a lower value property.

Note workouts are not rocket science. It is a matter of treating every party fairly.

PHOENIX – NOTE INVESTORS FORUM MEETUP

By

The May 1st Note Investors Forum Meetup will be chalked full case studies;

Real Life Recent Topics:

  • Loan Modifications & Workouts
  • How to structure and evaluate land notes

Finding opportunity in the pain and ……….work the Opportunity. 

 La Famiglia Restaurant, SE corner of Dobson & Guadalupe, Mesa

https://www.eventbrite.com/e/note-investors-forum-meetup-tickets-60904602305

Is The Phoenix Housing Market on Borrowed Time?

By

The next Phoenix Note Investors Forum will be
Wednesday January 9th, 2019

Guest Speaker – Stan Harley              

MEETING TOPICS —Economic Predictions 2019

Is The Phoenix Housing Market on Borrowed Time?

RESERVE YOUR SPOT ON THIS SITE
Attendance capped at 55

Full buffet lunch.

How to Raise Capital From Private Investors

By

The November 7th Note Investors Forum will be hosting –Howard Tenn

of Asian Night Capital. This will be an enlightening presentation on

How to Pitch a to a Private Investor. Click on picture for 68 second overview

 

 

 

 

 

 

Tickets can be purchased at

 

TRUSTS | NOTES | REAL ESTATE | IRAs – NOTE INVESTORS FORUM

By

A CONUNDRUM of  Confusion and Questions?  

Join us Wednesday September 5th 11:30am.

Lunch at the Note Investors Forum Meetup

Topic:

Trust Basics For  Notes & Real Property
What Every Note & Real Estate Investor Needs to Know

Why trusts should be utilized in the Note/Real Estate Arena.

We’ll drill down into what works & does not work.
Practical hands on application for a ROTH IRA

Location: La Famiglia Restaurant, SE corner of Dobson & Guadalupe, Mesa, AZ

10 Numbers That Prove That America’s Current Financial Condition Is A Horror Show

By

I am passing this information along, not a a pessimist but, rather a realist in that history does repeat itself. The Feds have been kicking the can down the road for a long time.

How does this relate to notes?  Capstone Capital USA is a value buyer of real estate assets verses a spectulative buyer. As such we only buy assets with a 35%-40% equity cushion — with a strong Payment history and seasoning on performing notes.  With proper and detailed due diligence, notes are & will be a safe haven.  Safety and security is everything. The following article from the Economic Collapse clearly articulates what is in front of our economy…………………

America’s long-term “balance sheet numbers” just continue to get progressively worse.  Unfortunately, since the stock market has been soaring and the GDP numbers look okay, most Americans assume that the U.S. economy is doing just fine.  But the stock market was soaring and the GDP numbers looked okay just prior to the great financial crisis of 2008 as well, and we saw how that turned out.  The truth is that GDP is not the best measure for the health of the economy.  Judging the U.S. economy by GDP is basically like measuring the financial health of an individual by how much money he or she spends, and I will attempt to illustrate that in this article.  To read more CLICK HERE.

AUGUST 1st- -NOTE INVESTORS FORUM MEETUP

By

The August Note Investors Forum Meeting

will be Wednesday, August 1st 11:30am-1:30pm
La Famiglia Restaurant, SE corner of Dobson & Guadalupe, Mesa

Topic:

Note Due Diligence 201
buying
selling
seller carry
partials
one offs or a pool of assets.

Expect standing room only. The room is maxed out @ 50 attendees.

Buffet lunch served.

Click on the link below to reserve your spot.
$16.83 includes networking, information, food, tax and tip.
$20 at the door.