Real Estate Investor · Orlando, AL · Member since 2008 · 11 posts · 0 votes
Bigger Pockets Members,
8 years ago I became a licensed real estate salesperson in Florida, while working as the general manager of a health and fitness club. Although I was motivated and interested in real estate, things at the time didn't click for me.
Instead, I became heavily involved in e-commerce, internet sales and marketing, and the pharmaceutical industry.
Well, I've come back to real estate but in a different arena - buying and selling paper (Seller Financing Carry Backs and NPN/REO bulk transactions)
I am green, yet ripening like a piece of fruit in a paper bag overnight. This field gets me juiced up and it's just the type of thrilling work I was searching for.
My respect goes out to the moderator of this forum and to all the members. I think this may become a second home for me. Hopefully, I can build fun and fortune filled relationships with some of you.
:D
Real Estate Investor · Orlando, AL · Member since 2008 · 11 posts · 0 votes
18y
Michael,
It's pretty strange really.
I had been considering the possibility of opening an aircraft parts export business after discussing it with an ex-politician friend of mine. In the process, people were asking me if I could find someone to buy their seller financed aircraft paper at a discount and what would the discount be.
This motivated me to understand how this was done. Once I contacted companies who orchestrated such transactions, I was further educated about how broad the note purchasing market is and that most outfits are more interested in notes backed by real estate.
So, I guess this is the opposite of what we were all taught. I started off flying and found my feet on the ground - so to speak.
Investor · Bellefonte, PA · Member since 2008 · 1k+ posts · 88 votes
18y
So I'm starting to think that you might be getting quite busy here in the near future with the tightening of the mortgage market. I just talked to my Realtor last night and he told me that someone was purchasing a house for around $200k and the appraisal came back at $40k under the purchase price. The bank said no and the purchaser went and got another appraisal done and the second appraisal came in at even less than the first. He said with the banks tightening up so much even when an agreement is made the appraisals are coming in under the agreement price and the banks won't move. So that means the only thing left is creative financing for these people.
Real Estate Investor · Orlando, AL · Member since 2008 · 11 posts · 0 votes
18y
Michael,
I like it!! :woohoo:
That's what I'm expecting and exactly why I've offered some instruction on my website about how the seller can structured their creative financing with the intention of cashing out the note.
Those seller who really never want to use creative financing buy were forced, as per your example, can now look to a simultaneous closing of their home and the note they create. This allows them to get the cash they wanted and while conveniently selling their home.
Personally, I love it. It is rewarding to make a living helping people get what they want. Thanks for the feedback based on your recent experience. Those are the boosts we all need. Hey, are you a therapist too? lol
Minneapolis, MN · Member since 2008 · 691 posts · 12 votes
18y
That makes me wonder - how does that affect the marketability of the paper, if any? Are you having any problems in this area? I don't really understan the buying and selling of notes process.
Real Estate Investor · Orlando, AL · Member since 2008 · 11 posts · 0 votes
18y
That is the right question!
"how does that affect the marketability of the paper, if any? Are you having any problems in this area? "
Yes, it affects marketability.... an appraisal is part of the underwriting criteria when purchasing a note. On a submittal for an offer, often the "Sale Price" is used as the determining factor buy the seller for "Market Value". Eventually, all comes to the surface and the accurate yield for the investors is offered.
Am "I" having a problem with this? No, right now nearly all note sellers coming to me have already created there own note without guidance and understand what the true market value of their note is. I screen them on the initial interview and make it clear what their expectations should really be. This education is appreciated by them. At that very moment, it becomes evident how motivated they are to sell their note.
If more people starting asking for help prior to creating the seller financed note, I will gladly report if I'm having difficulties with such. For me, I will still work hard with these people because, at the end of the day, my service is still excellent - it's the market that stinks.
You see, it's really about a clients "need" for cash. It just happens that most of the time people are inquiring because they need the money.