There is a destiny that makes us brothers; none goes his way alone.
All that we send into the lives of others comes back into our own.
– Edwin Markham


  1. Greeting from Roberta Standen
  2. Seller Financing to the Rescue! By W. Eddie Speed
  3. “What the Federal Bailout Means to Seller Financing” – By Tracy Z. Rewey
  4. Great News
  5. Upcoming Events(Seminars, Workshops)

Greetings to All our Friends and Colleagues

Are you still on the right track for completing your 2008 goals?  Take a look at the calendar folks and you will see that we are well into the fourth quarter of this year, but you still have time to press harder and smarter and regain your focus and successfully sprint to the finish line.

Believe it or not we are in the last quarter of 2008 the Holidays will be upon us and we will be starring down highway of a brand New Year.  Historically, business associates including Note Brokers and Consultants start thinking about their plan for the New Year about 4 – 6 weeks late.  Don’t get lulled into this rut particularly this coming year. You will want to begin right now (if you haven’t already) to determine your specific goal for 2009 and take the time to develop a good solid workable plan of action to successfully get where you want to go.

I’ve heard just about all I can stand of the doom and gloom in the economy. Opportunities abound as never before for those of us involved in private financing, purchasing seller carry back notes, growing real wealth by purchasing real estate.  I suggest you sharpen your entrepreneurial wits in developing strategies such as lease/options and Illinois type land trusts. During the last decade of low institutional interest rates, private notes have been in a slump.  The door of opportunity now is swinging wide open during this era of almost zero liquidity, credit crunch and in the not too distance future – rising interest rates.  It’s a NEW DAY – Cease it!

With seller financing in mind, I would invite you to take a look at the following article “Seller Financing to the Rescue” written by Eddie Speed, Founder of the Note School™ and Founder of Colonial Funding Group.  If you plan to attend one of his workshops, our code is: zjbn136, which the Note Servicing Center has arranged in order for you to receive a discount on the event.

The 2008 NOTEWORTHY Convention held earlier this month in Las Vegas was one of the most informative ever.  Although a smaller crowd than usual, this phenomena made the event intimate, informal and yet full but chuck full of great ideas, networking and an opportunity for quality time to be spent with the most successful in the business.  David Butler, President of Hotspur Investment Group presented a full day outlining opportunities available in real estate during this era of economic meltdown. You can reach David at or at He has an exciting strategy idea on how you can change an REO to a RAO (Rent and Own).

We snatched a great article for you (by permission) from Tracy Z. Rewey, President of Diversified Investment Service and co – creator of, entitled “What the Federal Bailout Means to Seller Financing”.

Here is the Note Servicing Center’s website “Pick of the Month” We suggest you go to and take a look at Dawn Rickabaugh’s fresh new site. We visited with this delightful young note broker entrepreneur at the NoteWorthy and were impressed with the technical skills she has developed in the last couple years and her success in the business – a real encouragement to all new note brokers.

Don’t forget to download your two FREE Booklets from our website at,  “Turbo-Charge your Retirement with Real Estate Notes” and “Trust Deed Investments – What You Should Know”.   Just click on the picture on the left of the Home Page and download with our compliments.

All of us here at the Note Servicing Center wish you all a very Blessed Thanksgiving Day, Roberta

“Seller Financing to the Rescue! –
How Investors Can Profit from the Emerging Solution to the Real Estate Crisis” – By W. Eddie Speed

As a real estate investor, you know all too well that the mortgage industry is suffering from a major meltdown. Lending institutions are folding, foreclosures are reaching record highs, and subprime lending has caused a catastrophe for property sellers, buyers, and lenders alike.

As a result, there’s a limited pool of qualified buyers and a shrinking supply of conventional lending sources. In addition, there’s an abundance of properties on the market at low prices.

Seller financing is filling the void created by the mortgage crisis, offering an alternative to those hard-to-come-buy conventional loans. It moves property, more quickly and at higher prices.

Seller Financing Goes Mainstream

After the high-interest rates of the 1980s, seller financing became a specialty niche among real estate transactions. The upheaval in the housing market, however, is now creating an extraordinary demand for this alternative financing method.

Two years ago, seller financing accounted for about 1 in every 400 real estate transactions. Today, it accounts for 1 in every 50 transactions. What’s more, some experts predict that it will soon become the financing vehicle for one out of every ten real estate transactions.

What does this mean to you? Seller financing provides you the opportunity to sell your properties to quality buyers – at the full retail property values and more quickly – for a substantial and steady income stream.

For Quality, Qualify

Qualifying for a conventional mortgage today is much more difficult than it was just a few years ago. More restrictive underwriting criteria disqualify countless candidates who have both a willingness and the ability to meet the requirements of the loans.

As a result, as many as 50% of the people who would have qualified for a conventional mortgage just two years ago no longer do. Since the shakeout in the lending industry, many good candidates are being denied the opportunity to borrow money.

Seller financing is the ideal solution for these people and investors alike. To avoid the same pitfalls that brought down many lending institutions, however, the investor must weigh the risk of each loan, and proceed only with those that present a high likelihood of success.

From This Day Forward . . .

Most people enter into seller financing contracts with the same enthusiasm with which they enter into marriage. They’re as happy at closing as newlyweds at the altar. But if the commitment is based on blind faith, the relationship may dissolve faster than ice in the punchbowl.

No investor finances his property for a buyer with the belief that the arrangement will turn sour. At most, it’s considered a remote possibility with tolerable consequences. If the buyer defaults on the loan, the investor assumes that he can simply annul the deal, repossess the property, and avoid any loss.

But the buyer has likely occupied the property for months, perhaps years. What condition is it in now? Have the taxes and insurance been paid? Have needed maintenance and repairs been done? Has the buyer trashed the place and fled? Has the equity disappeared? The seller/lender could get stuck with unpaid bills and costly repairs. The honeymoon is over.

Like fiancés, borrowers are emotionally involved with the transaction and might not view their financial situation objectively. Equally excited about closing the deal, the seller might also be blind to the risks in doing business with a particular buyer.

Other investors recognize the risks but believe they can sidestep a foreclosure action by having the buyer pre-sign a deed back to them at closing. However, the buyer cannot waive his future rights. There’s no protection for the seller if the arrangement goes sour. Seller financing doesn’t come with a pre-nup.

Clearly, the smart approach is to learn all you can before you’re heavily invested in the relationship.

A Safe Bet

How risky is seller financing? Much lower than it used to be. That’s because it used to be easy, too easy, to obtain a conventional loan. People who failed to qualify for traditional mortgages were, by definition, the riskiest borrowers.

Lending institutions have since tightened their criteria, making it far more difficult for would-be buyers to borrow money. Many are “just missed” borrowers who now fall narrowly outside the newly tightened criteria of lending institutions. These are reliable, low-risk prospects who show every intention of meeting the terms of their loans, and have the ability to do so. They simply no longer “measure up” on paper.

What the savvy investor must do is differentiate between these deserving buyers and the risky ones.

I Do Diligence

Approving your seller-finance candidate is like choosing your life partner. During that first encounter, your date presents himself or herself in the best possible light. He appears honest; she seems responsible. You like what you see and you want this to work. You make plans.

Smart couples conduct due diligence before saying their “I do’s.” They learn their fiancés’ background, character, values, strengths, and weaknesses. Many singles even hire private investigators to do a background check on their potential mates.

Likewise, real estate sellers should carefully analyze their seller-finance candidates, using disciplined underwriting. The primary variable that affects the cash value of their note is the buyer’s credit. Thus, not only does good underwriting mean a more trouble-free loan, but you also create a more valuable, salable loan.

As Ronald Reagan said, “Trust but verify.”

Seller Financing: It’s a Good Thing

You can be extremely successful in this business, if you use a methodical approach that calculates the risk and weighs the benefit. Plus, it’s much more profitable than sitting on an unsold property.

With due diligence, good judgment, and some common sense, you can become very successful with seller financing. And the timing couldn’t be better.

In addition to your own success, you can provide a much-needed service to people who deserve the opportunity to own their own homes. Are you ready to say “I do”?

About the Author

Eddie Speed, Founder of Note School®, has purchased more seller-financed notes than anyone else in the business. With a lifetime volume of seller-financed notes topping half a billion dollars, Eddie has seen just about every scenario. He is also an acclaimed instructor, mentor, and recipient of the industry’s most prestigious award.

“What the Federal Bailout Means to Seller Financing” – By Tracy Z. Rewey

Worried about the effect of toxic mortgages on the overall economy, the Federal government is pulling out the checkbook to help bailout failing mortgage companies.  It started with Fannie Mae and Freddie Mac and now includes a proposal for another $700 billion infusion of funds.  Why is the government involved and what does it mean for seller financing?

In order for banks to lend money they must have an outlet to sell loans.  Fannie, Freddie, and other financial companies help provide necessary capital by buying the loans from banks.  The loans are held in portfolio or packaged as mortgage-backed securities and sold to investors around the world.

With rising foreclosure defaults and decreasing values, investors became understandably nervous about buying these securities leading to a large dry-up of lending funds.  This squeeze on liquidity is partly to blame for the shrinking number of institutional investors currently buying private mortgage notes.

The government intends to increase certainty in the credit markets by providing funds to purchase mortgages.  They hope to ultimately add stability to the ailing housing market.

Results of any bailout plan will not be felt overnight.  In the meantime, demand continues to increase for alternatives to conventional bank loans.  Creative financing techniques utilizing seller financing and private lending are on the rise.

A quick glance in the real estate section of the classifieds will reveal a multitude of ads including the words: “Owner Will Finance.”  It’s quite possible the inventory of owner-financed notes will swell to levels last experienced in the late 1980’s.

With the increase of private mortgage notes there is also a surge of activity for note professionals. Make sense deals with strong security and higher returns appeal to private investors and pension funds.

The cycle is coming full circle offering moneymaking opportunities to note brokers and investors alike. The key is to develop funding sources that rely on in-house funds to hold notes in portfolio until the institutional money is once again flowing.

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