|“By making and keeping promises to others and achieving our set goals, little by little, our honor becomes greater than our moods.” – Stephen Covey
“From the Sub-Prime to the Ridiculous” – well almost except for some Blue Sky behind the storm clouds and chill winds of a possible recession. The Sub-Prime meltdown is taking it’s toll on the housing market and the daily steady drip of news about foreclosure, disintermediation and tight credit grips influences the decisions of every one of us involved in the real estate industry.
This quarterly newsletter is dedicated primarily to the Real Estate Investors, Entrepreneurs and Brokers struggling to make sense of it all and therefore contains information, recommendations and possible solutions. These include ideas on what real estate and note practitioners might do to assist homeowners and investors in our individual micro cosmic areas – in our own neighborhoods. Having lived through at least two “downturns” and on recession, we have found there actually are tools and systems already in place to assist homeowners, for instance, who must sell for any reason including those who are facing foreclosure. Even Real Estate Brokers in many areas, do not have the experience to deal with file draws full of expired listings and are unfamiliar with most non-traditional solutions that exist or how to apply them.
More and more people are becoming aware of the “Illinois Type “Land Trust” which I have written about in the first article entitled “QuickSilver – Liquid Mobility For Solving The Credit Crunch!” A complete 12 page booklet is available for downloading by simply contacting [email protected].
We have included two articles written by David Butler introducing you to the subject of “liquidity” which drives the real estate and finance market and produces the benefits intrinsic to owning real estate. Additionally, there are events coming up featuring some of the most knowledgeable and successful real estate practitioners in the business that you surely don’t want to miss attending.
Great News!! The new and improved Note Servicing Center Inc. bookstore is now on-line. Click Here to link to the store
Owner Will Carry – Broadbent & Rosenberg
“QuickSilver – Liquid Mobility For Solving the Credit Crunch!”
Will real estate lead the way to economic recession this time? As a result of the sub-prime meltdown and the credit crunch on its heels, leading indicators seem to confirm that a chill wind of pending recession seems almost certain to sweep across the country. On April 2, 2008 Bankrate.com NAR posted the biggest quarterly drop in home sales in 29 years and the inventory of unsold homes at a record high.
Analysts warn that a free-fall in the market will continue. Additionally, as sales have fallen, many home builders have seen their inventory increase by more than 60% during the past year. But, builders continue to build – because that is what builders do. They must keep their organization intact and working.
Despite President Bush’s proposal to encourage FHA Lenders to allow families who are now in foreclosure to reset their loans and; regardless of the efforts of lawmakers, consumer groups and lenders meeting with mortgage industry leaders to avoid foreclosures; there still remains the distinct possibility that struggling homeowners will be unable to avoid the tragedy of having their dream of homeownership become a nightmare of tsunami proportions.
Against this backdrop, what can we in the real estate, entrepreneurial real estate, and finance community do to assist sellers to move their property and buyers to stake their claim in a home at the same time? Certainly the answer is not sitting comfortably asleep in an easy chair while one of the most lucrative and satisfying opportunities of a career silently and quickly slip away?
Right now, there is a distinct opportunity to solve the problem of dozens or perhaps even hundreds of home sellers trying desperately to dispose of their property along with buyers who do not have the 25 or 30 percent down to buy during this housing crisis. Think about it, Realtors files are bulging with expired listings and Builders and Developers are saddled with blocks and blocks of vacant unsold inventory literally eating them alive.
Smart real estate professionals realize that in challenging times it is no longer possible to continue doing business “as usual” or in the same old way. In many ways, you have the answer or at least one of the answers – a solution as a Real Estate Practitioner, to bring to the table. As the age old wise axiom reads, “Opportunity Swings on the Hinges of Adversity”. Here’s a pleasant thought – while helping solve problems for others, it is altogether possible to reach new heights of success for yourself and your family.
Most people have come to mistakenly view cash (including cash to an existing loan and/or cash to a new loan), rather than benefits, as the driving force behind real estate transactions. So when cash is tight, transactions don’t get done, and benefits for buyers AND sellers are left by the wayside.
But knowledgeable creative real estate investors and well-trained real estate agents (investment and exchange specialists such as CCIMs, SECs, and NCEs,) have understood that cash itself is not the answer to all real estate conveyances. As part of that equation, these astute folks realize that liquidity is ultimately the ability to readily convert assets into desired benefits.
Consequently, they focus on circumstances surrounding ownership of the property and uncover objectives (benefits) sought by the parties as the basis for making more successful transactions happen.
As the dark skies of the growing “liquidity crunch” … To finish this article click here
The “Illinois type” title-holding land trust (a revocable, inter vivos, beneficiary directed trust) in conjunction with the NARS Equity Holding Trust Transfer System™ (NEHT™) allows the Seller (Settlor) to vest both the legal and equitable title of Subject Property with the trustee of a land trust to be created; and to then subsequently transfer a beneficial interest in that land trust as a Co-Beneficiary.
This approach results in a personal property interest in the trust being conveyed without an unauthorized transfer of the real estate title, and without a violation of an exising mortgage lender’s “due on sale clause” or other “alienation” clauses (FDIRA 12USC1702j-3). The NEHT™ system allows Sellers to provide advantageous Seller-financing terms, by way of preserving attractive existing mortgage terms to pass through – while avoiding the inherent risks of other types of seller-financing arrangements (lease-options, wrap-around financing, contract-for-deed, or equity sharing, etc.).
The time-tested (since 1986) NEHT™ system is a meticulous, straight-forward process of transaction documentation that incorporates: … To finish this article click here