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Fannioe Mae – Allowable Attorney Costs

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Fannie Mae has approved attorney foredclosure fees. One of the first questions that is asked regarding any real estate foreclosue is “What does it cost”?  This topic was discussed at the February 2020 NoteWorthy Summit.  Some Attorneys charge by the hour. Some attorneys charge by Fannie Mae allowable limits. My experience is do NOT hire an attorney by the hour. The attached list details allowable costs by state. But………….keep in mind there are other costs.  Ask your attorney for those details so you know your options. For instance, one of the more expensive counties for foreclosure  is Allegany County(Pittsburg). The Sheriff charges $2,500.  Yikes!!

The costs are different for Land Contracts/Contract For Deeds. That may be a different process which is referred to as forfeiture.  Some states now view Land Contracts/Contract For Deeds just like a foreclosure. Some states have a relatively short process(Texas-60 days). Other, Florida, New York, New Jersey may take 2+ years to foreclose. Typically the “sand” states have a short fuse–Arizona, California etc.  As an investor, Capstone avoids the states North of and including, Maryland/New Jersey due to the anti-investor seniment. Be smart, check out the laws first before you invest.  If you own a real estate note, or contract,  performing or non-performing, Capstone Capital USA buys notes and mortgages. Give us a call.

Fannie Mae_allowable-attorney-trustee-foreclosure-fees

 

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NOTE INVESTORS FORUM MEETUP ~ WEDS 2/5/20

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The February 2020 Note Investors Forum Meeting
will be Wednesday, February 5th 11:30am-1:30pm

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

Special Guest Speaker:   Howard Tenn  

Topic: 
Risk vs Reward   |    Greed vs Fear      

Howard is a protiage of Stan Harley, January’s guest speaker.  He will follow-up on Stan’s presentation. Preparing for 11/22 —

Prepare yourself for the next BIG Correction.
What happens when the music stops?

Being a former financial planner, Howard understands this topic.    
 
SAVE THE DATE.
MARK YOUR CALENDAR
YOU WANT TO BE IN ATTENDANCE!!!
FOR WEDNESDAY FEBRUARY 5th
NOTE INVESTORS FORUM 

The room is maxed out @ 55 attendees.

Lunch served.

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

 

HOW TO READ BODY LANGUAGE

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Several years ago–going way back to the late 1990’s I had the pleasure of meeting and working with HOW TO READ BODY LANGUAGEJeffery Combs of Golden Mastermind Seminars in a large MLM venture.  Subsequently, Jeffery went on to build a huge personal development business. Prior to meeting Jeff, I had a fair amount of sales training via Dale Carnegie and the AMWAY business.

So what’s this post about? Bottom line —working with people and watching their body language. If you work with or interact people the year 2020 is no different than 1990 or 1998. This post is about integrating people skills into what ever business you are in. Notes, investing, real estate or whatever. It even works in personal realtionships!!!  Technology is great, but people skilss is where the rubber really meets the road.

The full article is below, but you can also click on the picture to access the article and Jeffery’s site.

Personally I Read Body Language @ the Note Investors Forum Meetup and every time I speak on stage or even on the phone–which is can be done by listening very carefully to voice inflections.

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HOW TO READ BODY LANGUAGE

Connecting with people is easy.

You shake their hand, say hello, and ask genuine questions to get to know them.

But do you know what the person is saying beyond their words?

Let’s face it…

…If you can’t read between the lines of what they are saying or aren’t paying attention to their body language… you are missing the boat!

I know…

I’ve been in sales for over 35 years and have been a success and addiction coach for 20 years PLUS!

It’s critical that you understand how to read energy, body language, non-verbal communication, what is meant along with what’s said, and be able to read why people do what they do.

Why… you ask?

Because body language and non-verbal communication can account for over 60% of what is being communicated.

So today, I’m going to teach you how to read the signs.

DISCOVERING PREDICTABILITY

A frown means someone is sad or disappointed.

An upturned mouth means a person is happy.  You learned this at a very young age without anyone formally teaching you.

Over time, you began interpreting expressions and body language.

Here’s what you require knowing today…

Human beings are predictable. The more you understand people’s predictability, the better you will be it be able to adapt and adjust to the situation.

NOW, to be in an emotional space to read people on a deeper level, you have to get beyond the fear of judging people. Being able to read people effectively DOES NOT mean you’re judging them.

It means that you live in a know state… That’s K-N-O-W. Not N-O. Meaning you see the signs, interpret them, and KNOW what is communicated.

Have you ever seen someone who broods and pouts? Their bottom lip comes up over their top lip. Then their energy drops.

Have you ever encountered someone who’s hostile and unapproachable and you could tell how angry he or she was without talking to him or her?

These are just a few examples of non-verbal communication that you require interpreting to understand body language.

So here’s the thing…

The psychology of reading body language is not that difficult once you become aware of the signs.

INTERPRETING THE SIGNS

Watch the person’s eyes.

When you ask someone a question… a simple a yes-no question like,  “Have you ever considered starting your own business?” And the person answers with the sound, “Um” followed by a “Well…”

Realize these are stalling words. They are a CLUE you know you’re going to receive a story.

Pay attention to words of indecision like guess, kind of, and sorta. These are words of non-commitment.

When you ask someone a question, and they cross their legs or cross their arms… This is a clue that they are shut off or overwhelmed.

If the person has very little or a tense facial expression, their body is turned away from you, or their eyes are downcast, maintaining little contact… this typically means they are disengaged, not interested, or unhappy.

On the other hand, when you ask a person a question, and they respond immediately, this is a positive sign.

Here’s a bigger clue…

If they use a superlative like: Yes, Absolutely, or Unequivocally… this is a sign that the person is decisive. They are someone who can commit.

Examples of positive body language signs include: having an open body position… that means the arms are unfolded and hand gestures will face up. The person will hold an upright posture and have a relaxed facial expression. There will be regular eye contact… And the person’s arms will be relaxed by their sides when they are not gesturing.

UNDERSTANDING WHAT’S MEANT AND NOT SAID

O.K.

Here is one of the biggest secrets when it comes to reading the signs.

As you observe the body language of a person, also PAY ATTENTION to what’s meant… not what’s said.

What does that mean?

You can intuitively know what they mean by what they say.

I’ve been a sales professional for 35 plus years. Often, people tell me what they think I want to hear.

Here are some examples:

“Yeah, what I’m going to do is look over this information, and I’m going to get back with you.”

“Yeah what I’m going to do is hire you just as soon as I get my money together.”

“Um… I’ll call you after the holiday.”

“This sounds great BUT… I have to run it by my spouse.”

It’s your responsibility to understand who means what they say and who’s telling you what they think you want to hear.

When someone says to me, “I’m sure you can appreciate I have to run to buy my husband.” In reality, I appreciate someone who can make a decision. The person is assuming that I’m going to agree with them.

Now, I’m not going to disagree with them, but I understand what that means. I also know that some people DO require to speak with a significant other. I do understand that they require to get approval from someone else or acknowledgment.

BUT I also ask a question to test the situation.

“Can you close your husband?”

“Can you close your significant other?”

“Are you going to be able to ask for a loan from your bank?”

These are situations where you learn to ask further questions.

GETTING GOOD AT READING PEOPLE

When you get good at reading people, you can see the non-verbal communication in their eye irises. You can see it in the smirks in their face. You can see the downtrodden corners of their mouth. You can see how high or low their energy is.

And by interpreting the tone of a person’s voice, you can hear vibrationally where he or she is coming from.

Be attentive when you ask a question.

Does the person cross his or her legs? Do they look away? Does his or her eye iris’s go up and out? Does the sound “UM” come out of his or her mouth? Does the person start telling you a story completely unrelated to the question you ask?

Watch the person’s body language. See how closed and contained he or she is…

…or how open he or she is.

These are all telegraphs… They are signs.

The more you pay attention to the signs, practice interpreting the non-verbal communication, and read body language… the better you will become at the science of reading people.

 

 

Dave Franecki Interview By Whitney Sewell The Real Estate Syndication Show Podcast

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I was just on #TheRealEstateSyndicationShow with @WhitneySewell and talked about note investing and meetups. If you’re interested in this, but don’t know where to start,

be sure to check it out! CLICK HERE 

 

2020 GOALS FOR REAL ESTATE ENTREPRENURS

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I thought this post by Jim Ingersol was so to the point. Just outstanding. Jim and I met on a Walter Wofford / Quest IRA cruise several years ago. Jim and his wife Janice live in the Richmond, VA area. He is a real pro. Trustworthy and to the point. A no BS type of guy. A great human being!!

Let’s start by looking forward 10 years, to the year 2030.   What do you really want your life to look like?  Take a minute and write down your answers to the following 5 questions.

1. Who do you want to be spending the most time with?
2. How physically fit do you picture yourself?
3. How much time freedom do you want and what do you want to do with it?
4. Where will you want to travel (and with who)?
5. What impact do you hope to be making  in 2030?

All things are possible, but first you have to know where you are heading and then believe in yourself to make it happen.  You have to dig deep and really discover your “why.”   Without knowing your “why” you will likely run away from your dreams as soon as you hit your first obstacles.  So how do you really find your own “why?”

2019 in review  – Now take a look back at 2019 by looking through your photos on your phone (and in facebook), look through your dropbox, review your journal, take a look at what went great and what your business struggles were, look through your dropbox and your journal along with the places you went and the people you met in 2019.   Which things brought the most joy and what did you learn in your struggles?   Reflection can be an important piece of planning for your future!

The two most important days in your life are the day you are born and the day you find out why.
– Mark Twain

CLICK HERE FOR THE FULL ARTICLE

 

STAN HARLEY OPENS 2020 @ PHX NOTE INVESTORS FORUM

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The January 2020 Note Investors Forum Meeting will be
              Wednesday, January 8th 11:30am-1:30pm
La Famiglia Restaurant, SE corner of Dobson & Guadalupe, Mesa

Special Guest Speaker:   Stan Harley  
                          
Topic: 
Economic Predictions – 2020 and beyond      

Stan Harley and his market insights/wisdom 
have made Stan the Note Investors Forum Meetup favorite speaker. Stan has shared the stage with Harry Dent
and other well known economists.
If you have not heard Stan speak in the past,

YOU NEED TO SAVE THE DATE.
MARK YOUR CALENDAR
YOU WANT TO BE IN ATTENDANCE!!!
FOR WEDNESDAY JANUARY 8th
NOTE INVESTORS FORUM 

The room is maxed out @ 55 attendees.

Lunch served.

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

R U INTERESTED IN INVESTMENT GRADE PARTIALS?

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QUICK QUESTION………..

Do you have an interest in buying
INVESTMENT GRADE PARTIALS?

TO BE ADDED TO OUR PREFERRED CONTACT LIST 

CLICK ON THE MORE INFO BUTTON

Capstone only buys and Capstone only sells
Investment Grade Notes.
FIND OUT WHY HERE

 For a Deep Dive into Partials 
Watch a Short Utube Video Overview

CHECK OUT OUR UTube Channel for Free Education

What The Heck Is My Note Worth Anyway?

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Factors Affecting the Value of Mortgage Notes

When you start the process of selling your mortgage note it’s important to keep in mind that how much a mortgage note sells for mostly comes down to risk. Typically, the less risk involved in the note, the greater its market value.

Value of Property

One of the first things a note-purchasing company looks at is the value of the property that serves as collateral on the note. The current market value of the residential or commercial real estate listed on the note can increase or decrease the note’s market value.

Keep in mind, the amount listed on the mortgage typically is not the same thing as the current value on the property, or the amount for which the property was last purchased. Real estate values can fluctuate over time. If you’re not sure of the current value of your property, online resources such as Zillow can provide a rough estimate. During the note-selling process, a more precise quote is given.

A factor which affects property value is the actual type of the property. Typically single family dwellings maintain higher values than other property types like condos or manufactured homes.

Equity from Buyer

The equity the real estate’s owner has in the property factors into the value of the note. This includes the amount of the down payment, as well as payments already received from the property owner.

When a payer has invested a significant portion of his or her own assets into the real estate, the payer has a vested interest in the real estate and is less likely to default on the loan. Thus, a mortgage note with a significant level of equity from the buyer presents a lower risk.

The more equity the homeowner has, the more money a note seller is typically able to get for the note.

Property Owner’s Credit Score

The mortgage note owner’s creditworthiness does not factor into the sale of the note, but the property owner’s creditworthiness does.

The higher the credit score of the property owner, the higher the value of the note. More creditworthiness in the owner means the person purchasing the payments is taking on less risk. Because the buyer of the note is assuming less risk, that money is passed on to the seller.

A low credit score does not automatically mean the note can’t be sold. Other factors such as payment history on the note, and the payer’s equity in the property, can help in cases where a low credit score hurts. Still, a lower score means more risk and thus degrades the note’s value.

Payment History on Note

Payment history on the note also determines how much a mortgage note is worth. This concept is often described as notes either being “performing,” meaning having regular payments, or “non-performing,” which means the payments have not been paid on time.

Being able to show a strong payment history from the property owner can make your mortgage note more valuable.Most private mortgages are not reported to credit bureaus, and so the payments do not influence the payer’s credit score. Thus, positive credit history on the mortgage note can help compensate for a payor having a weaker credit score.

Recourse vs. Nonrecourse

If the payer on the private mortgage is a corporate entity, trust or nonprofit, it helps to have an individual listed as the personal guarantee of the payer. By having a guarantee, it means the note has recourse in the event the entity, trust or nonprofit stops making payments on the loan.

The term “recourse” means the note has someone with whom recourse could be taken in the event the loan is defaulted upon. Though it does not bar it from being saleable, a nonrecourse note has significantly more risk, which degrades its value.

Other Factors

Interest rate and the length of a loan also help determine the value of the note. A higher interest rate and shorter loan term make for a more valuable note.

Other note terms, such as a rider on the mortgage affecting the term, can also affect its value. For instance, some private mortgage notes have a balloon rider. This type of rider lets smaller payments be made for a time, with one lump sum due at the end of the term. This would be instead of evenly distributing the amount due over a series of payments. Any rider affecting the payment schedule can affect the value of the note.

Metro Phoenix Real Estate Overview

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I understand many of the folks reading this post are not from Phoenix. You may find this interesting for now, then let’s revisit in a year and compare. Just sayin.

For Buyers:
The news media is filled with short-term predictions regarding the economy and how it will, or will not, affect real estate prices.  It’s understandable for buyers to want their home to appreciate in value after they purchase, who doesn’t?  However, there is far too much attention paid to short-term influences and fluctuations these days and not enough attention paid to the long view.  Real estate is a long-term investment for many people.  Despite the euphoria of 2005-2007 and the nightmare of 2008-2011, on average homes are selling 81.6% higher today than they were in the year 2000.  That’s an average appreciation rate of 4.3% per year over the course of 19 years.  Smaller homes appreciated the most over time while larger homes appreciated the least.  Homes under 1,000sf have appreciated 122% since 2000, an average of 6.4% per year.  Those between 1,000-2,000sf appreciated 106%, an average of 5.6% per year.  2,000-3,000sf appreciated 68% at 3.6% per year.  3,000-4,000sf appreciated 49% at 2.6% per year and homes over 4,000sf appreciated 11% at 0.6% per year.

For Sellers:
Average asking prices per square foot are up 9% over this time last year and they’re continuing to rise. However, not one individual price range has risen 9% or more; confusing, right? That’s because the sharp increase in the average has more to do with a growing market share of luxury active listings over $500K as inventory has plummeted everywhere else. The highest increase is within $200K-$250K, where sellers are asking 5.6% more than they were last year. That’s followed by listings over $1M where they’re asking 4.2% more and $500K-$1M at 4.0%.  All other price ranges are just 1-3% higher.  But are buyers paying?  Actually, many of them are! In the $200K-$250K range, the average sales price per square foot is still 0.8% higher than the average list price; and between $250-$300K the average sales price is 6.8% higher than the average list per square foot. Things change over $500K.  Between $500K-$1M there’s a -6.3% gap between asking price and sales price and over $1M the average sales price is -15.1% below the average asking price.

 

Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report ©2019 Cromford Associates LLC and Tamboer Consulting LLC

Why Are Note Seasoning & Verifiable Payments So Important

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There are several items a note buyer should verify before purchasing a note. Both are related to the Payor. A note buyer needs to confirm the payor will continue to pay. We are buying a dependable cash flow. To that point, they are foundational. Details the impoortance of both.