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Kathleen Couch
Empty Nest? I found I didn't have the blues, as much as I was ready to fly. I was ready to try new things. That's when I started to educate myself on real estate investing. I started investing in real estate in 2000. It's been fun. I have learned some of the in's and out's of investing. My other interests are serving the Lord in mission work in the U.S. by going on projects that build or repair, and show the recipients God's love. My grandchildren are my love and delight. I have four grandson's, and one granddaughter from the ages of 11 mo. to 5 years. They are sweethearts.Top Blogsites
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Stumble It!You May Qualify for a Short Sale
Then why would anyone want to sell by short sale? It is a better option than foreclosure. It you have a reason, or hardship, you are behind on payments, or soon will be, you may qualify for a short sale. Have you tried to sell your house for the amount owed, and selling expenses, but are unable? Do you owe more to one or more mortgage companies, than the amount the house is now valued?
All of these are factors that can qualify you for a short sale. Unfortunately in this market, most houses that are listed qualify for a short sale. Even if the reason you are selling is because you have been transferred, or required to move to get work, you may qualify for a short sale. About 80% of real estate agents do not know how to do a short sale. This cheats the homeowner who is facing foreclosure, because they are usually not told their options, and the home ends up being auctioned, (foreclosed on).
A foreclosure stays on your credit record for years. A short sale is considered "paid as agreed", with a few late payments on the credit report. Recently the FHA has set standards that a person with a foreclosure is unable to purchase a house for five years after. Along with that, they have additional rules about the type of property. In contrast, if a person has a short sale done for them, the time period is only two years before a house can be purchased. Also, without any restrictions.
I have formed a company, KC Real Estate Solutions LLC just to service those homeowners who find that a short sale is the best option for them. Whether the home is listed, or not listed, I can help. If you choose to use the same agent that is already listing your home, I will work with them. If you choose to use another agent, I have working relationships with some agents who are very experienced in short sales.
Don't fail to check out all options available to you in this stressful time. Even if your property is already listed to be sold at auction, often the bank will postpone the auction date. One more thing that most people do not know, is that you do not even have to be in the same state as the short sale negotiator to use the service. There is no charge to you the homeowner for this service. Also, you don't have to worry about getting the house in tip top shape, or cleaning for showings. Do you want to try this option? Go to: KC Real Estate Solutions.com to get more information and contact me through the contact form.
The Multigenerational Housing Challenge
2009: The Year of Opportunity!
I look
forward to 2009 with anticipation and excitement of what the new year will
bring. Do I know something you don’t
know? No. I am fully aware of the dire forecast for
even worse circumstances to come in the housing market. This does not make me happy. I feel great empathy for those involved in
circumstances that make it hard for them to keep up with monthly payments, and
keep their home.
Is this a
bad time to be an investor in the real estate market? Absolutely not! It is a bad time if you are not
flexible. Different times call for
different strategies. When the credit
market, and mortgage loans were easy, the easiest way to make money in the
housing market was to buy a house that needed some fixing up at a lower price,
and fix it up, and sell at retail.
Sometimes this was selling with a mortgage, or sometimes it was selling
by lease option, or holding the property and renting it. It was easy to make a profit with just
cosmetic fixes.
Now the name
of the game has changed. If you could
not think beyond the way it was done before, you have bailed on real estate
investing. Or if you are a realtor, you
have also bailed on the real estate market if you have been unable to be
flexible, and change some of your strategies.
Also, more than ever, this is a great time for agents, brokers, and
investors to team together.
Like I have
been doing throughout 2008, I am going to continue helping people who do not
have any other choices, by negotiating a short sale on their real estate, and
then selling it at a discounted price.
This keeps the homeowner from having a foreclosure on their record. The bank doesn’t lose as much, and the buyer
gets a property at a discount. This is a
way you can benefit from the current real estate market if you don’t have money
to invest. The loss mitigator gets a fee
from the bank. The real estate agent
gets commission. Both the investor/loss
mitigator and the agent need each other to make the transaction go smoothly.
If you have
deep pockets, or have private investors, or are credit assured, you can buy
these deeply discounted properties to hold for yourself. They will have equity even in this market if
the short sale was done properly.
Another opportunity for those who can fund the short sale, is to resell
the property either wholesale, or retail to an end buyer after you have closed
on the property, for a larger profit spread.
This spread could be $5,000 to $100,000 or more, depending on the short
sale agreement, and the property.
In 2009, I
am also going to start looking into buying non-performing mortgages from the bank. A steep discount is available with
non-performing mortgages. With this method it is possible sometimes to
re-structure the loan, so the homeowner can afford the mortgage. Or, if they are not a candidate to stay in
the home, you can buy the second, and catch up the first and take over the
first. With this method, I will need to
increase my funding through procuring private individuals to lend for the
purchased mortgage amount.
Another goal
I have is to keep this blog updated more often.
I need to concentrate on my own blog, and keep it consistent. Plus, this is a special announcement! I will soon be releasing an ebook on: The Art of the Short Sale. It will be available
in January. If you have not learned how
to do this method yet, or need more information for success, this will be what
you are waiting for.
Merry Christmas 2008!
This Christmas season finds me on a family holiday to see our Ohio relatives. We are toting four grandson's, ages 7, 5, 4, and 2, their mother, (our daughter), with my husband and I. Just before we left my hubby bought 3 new kid movies, so our long car trip from Georgia would provide entertainment for the troops. Previously we had one movie, Nemo. Do you know how many times I heard that movie. I could probably recite the whole movie.
The seven year old no longer believes the Santa Claus fantasy, but is having a good time with keeping it a secret from his brothers and playing along. On the way to Ohio we saw a line of deer running. The five year old was sure they were Santa's reindeer going to meet Santa's sleigh. Another thing they were amazed at was snow on the ground. We don't see much of it in Georgia. With it only being 5 degrees, we aren't letting them play in it. But, when getting in or out of the car they still linger a little, testing it out. Another surprise to them, is they can get water out of the faucet that is as cold as water that has been in the refrigerator.
Before going to the relatives we stayed at Great Wolf Lodge. We had been there two other times, and it was high on the request list to do again. In case you are not familiar with Great Wolf Lodge, it is a family friendly lodge that has an enormous indoor waterpark. It's 85 degrees year round in the waterpark, so the 5 degree outdoor temperature wasn't a problem. Plus, the boys could visit with Santa Claus every night. Seems like he stays there!! He could really know if they were naughty or nice!
After the adults were really exhausted from several days of nonstop fun, the boys were still full of energy. We went off to great grandma's. There is a full basement to play with fabulous old toys. Somehow Santa, and all the presents found there way to great grandma's in Ohio. After Christmas we will be visiting with great Papa Jim, and other relatives which will complete a fun relaxing vacation.
Lot's has changed in my family, and in the world, and real estate this year. There are a lot of different types of opportunity in real estate. But, what I really want to focus on is the unchanging love of God. He sent his Son as a baby to be the substitute for our sin. We all have a choice to accept Him as our Saviour. Praise be to God, that he sent us this gift! Along with all the fun, and family get togethers, don't forget to celebrate the birth of Jesus. Be sure to read the biblical account of the birth of Jesus, and be reminded of the gift that never changes.
Affiliate Earnings Going to Honduras Mission Project
The previous trips, I have been involved in, were to Vero Beach, Fl., Virginia Beach, Va., and Nikiski, Alaska. On these trips the teens have worked hard, doing things they never thought they could. They have done roofing, built decks, wheelchair ramps, worked on building an entire house, done painting, drywall, put in windows, and more. They have blessed the lives of the ones they served, but also gained great blessings from the people that were being served.
This next summer, the group will be going to San Pedro Sula, Honduras. The work they will be doing consists of:
- Working with local feeding centers
- Ministering in daycare centers
- Working with our partnering church, Jerusalem Baptist
- Crusades in local schools and at the new church site
- Construction project with Jerusalem Baptist and their daughter church (possible)
- VBS at day care centers and churches (possible)
For the entire month of November and December, I am giving all earnings from affiliate advertising on this site to the fund raising efforts of this mission trip to San Pedro Sula, Honduras. Please shop with these affiliates by clicking on their ad through this site. You can feel good about the shopping you do here, knowing that all earnings will be going to help the teens help the Honduran people.
To learn more about the Honduran people, and other details of the trip, please see:
My Heart For Honduras Blog
My Heart For Honduras web site.
My Heart For Honduras: Blog Action Day 2008
Here are some statistics of the poverty in Honduras:
Statistics
...<< MORE >>
Creative Real Estate Deal Structuring with Subject-To's
Patrick is also a friend of mine on Twitter. The topic he is dealing with today is structuring a deal with the method of Subject 2.
If buying property subject-to has been somewhat of a mystery to you, I hope that I can clear it up for you today because it’s an extremely powerful way to leverage your way into more deals and build massive wealth.
I’m going to cover what it means to buy property subject-to, the truth behind the due on sale clause, how buying property subject-to can leverage your way into more deals and build massive wealth, and how to safeguard yourself for success.
What Does it Mean to Buy a Property Subject-to
When you hear about an investor buying a property “subject to,” it means that the underlying loan was not cashed out when the property was purchased. The investor simply took over payments on the existing loan.
In traditional real estate transactions, the buyer brings in a loan for whatever amount is required as per the purchase price and the underlying financing is paid off at closing. But instead with subject tos, the investor simply leaves the seller’s loan in place and starts making the monthly payments after closing.
The Truth about the
Due on Sale Clause
You may have heard of the due on sale clause. This is a clause in practically every loan today that states that if a property’s title is transferred, the lender has the option to call the loan due and payable in full. But . . . the due on sale clause is a contractual right, not a law.
Remember, banks lend money to make interest. As long as you make timely payments, you will most likely be OK. Plus, there are ways to protect yourself when buying subject-to so that a loan is highly unlikely to be called due.
I’ve been buying houses subject-to for years and have never run into any problems.
Leverage Your Way
into More Deals and Build Massive Wealth
Just think of buying property subject-to as seller financing. The seller is financing to you, the investor, whatever amount is owed on the underlying loan.
Let’s say that a seller owes $150K on their house, and it’s worth $200K. The seller really needs to sell and just wants debt relief. He or she wants to get out from under the payment on the home and rid themselves of the burden of this unwanted property.
If you aren’t privy to buying property subject-to, your only option to buy the house would be to bring in a loan for $150K to pay off the seller’s debt. But, if you know how to harness the power of buying property subject-to, all you would have to pay would be closing costs! I don’t know about you, but bringing $150K LESS to closing makes sense to me.
Another huge benefit is when you take over payments on a loan that originated many years ago. You skip over all the front loaded interest years in the amortization schedule. I bought a house several years ago where the loan was already in year 20 of 30. Every time that I make a payment on the house, more than half of it is going in may back pocket due to pay down! That’s how to build massive wealth!
How to Safeguard
Yourself for Success
Here are a few quick tips to safeguard yourself for success when buying subject-to:
1. Take Title in a Land Trust – One exception to the due on sale clause is when the title to a property is passed into trust for estate planning purposes. I buy all of my property in separate land trusts. If a lender ever looked at the chain of title, they would see that the previous seller owned it in their personal name and then deeded the property into trust. There would be no reason for the loan to be called due.
2. Make Timely Payments – Like I said earlier, as long as a lender is getting paid their interest, they are happy. And, you don’t want to give them any reason to snoop around.
3. Change Information on the Loan – As soon as you close on a subject-to deal, notify the lender that you will now be managing the property for the previous seller. Give them the new mailing address for the property and change the phone numbers on the account. You want every piece of communication coming to you.
Patrick Riddle has done over 100 deals since he started investing just over 5 years ago. He is considered an expert in creative real estate investing techniques, lease options, short sales, and recruiting private money. He has raised over $6,000,000 in cash from private investors for his company.
Check out Patrick’s creative real estate investing blog for tips and strategies on building massive wealth through real estate.
Free Short Sale Help
Dear Agent,
Do you have sellers who are upside down in their
mortgage, because they are heading to foreclosure, or have reduced property
values?
As a real estate agent, negotiating short sales with the
bank often takes up way too much of your productive time.<< MORE >>
Does the FHA REALLY Think They Will Get the Equity?
SHORT SALE OPPORTUNITY FOR A SAVVY INVESTOR
The best use of this property would be for an investor to buy and hold, or for an owner occupant. If times were normal, and the owner wasn't in a distress situation, this property would sell for $160,000 or more. Because of the situation I am able to work with the bank and offer this property for $95,000*, or best offer higher.
*Subject to bank approval
Related posts: Wholesale House/Reduced $30,000
