"Always vote for principle, though you may vote alone, and you may cherish the sweetest reflection that your vote is never lost."John Quincy Adams
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A Closer Look at Pigeon Forge Real Estate
Those looking to invest in real estate should not overlook Pigeon Forge, TN. Though the 2000 census estimates the number of permanent Pigeon Forge residents at just over 5,000, the population during the popular summer months can soar to tens of thousands. ...
How to be a successful Real Estate Agent
My name is Rob Scribner. I am not a real estate agent, nor am I a mortgage broker. I am the owner of Northwest Custom Webs ( <http://www.nwcustomwebs.com> ) . I have built and maintained over 180 web sites for real estate and mortgage companies. I ...
If Real Estate Investment Is So Great, Why Doesn't Everyone Do It?
Oh, that's an easy one. I can answer that in one word. FEAR. Real estate investment is a great way to change just about everything in your life, but it's one of those things where doing it for the FIRST time is the toughest. In fact, the second is ...
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1. They make sure that the insurance policy on the property is issued for an amount that represents at least the full value of the note still owed to them.
2. They also make sure that the note is recorded and they are listed as mortgagee, trustee, or the first contract holder on the policy. This guarantees that they will be entitled to any proceeds from any claim ahead of the borrower. 3. They make sure that they get a notice of cancellation if the borrower fails to keep a current policy on the property.
4. They make sure that real estate taxes are paid on time by the borrower, and if necessary the note holder will pay the taxes themselves.
5. They make it a habit to drive by the property on a regular basis or have someone drive by to make sure that their investment is still intact.
6. They keep all pertinent information on the buyer in a safe place in case of fire, flood, earthquake, hurricane, tornado or any other type of catastrophe.
7. They make sure that they have received an amortization schedule from their attorney or title company so that they can keep up with all payments that are made to them.
8. They notify the borrower well in advance (at least 3-6 months) before a balloon payment is due. This gives the borrower more than enough time to find favorable financing; this reduces the threat of default.
9. They don't allow the borrower to get comfortable making late payments. They install a late payment clause in the contract and enforce it.
10. They are serious about their money and initiate foreclosure proceedings at the first sign of trouble. They are not childish in this area. They obtain the services of an experienced foreclosure attorney to handle the problem instead of trying to save a few bucks and "do it yourself".
11. They realize that a note is a depreciating asset. They understand that each month and each year the value of their note becomes less and less due to inflation.
12. They understand the time value of money and are able to answer these questions:
. How much is my note really worth in today's market? . If I decide to sell today for all cash, how much would I get? . Can I sell a partial of my note? . How fast can I get the money? . Who will buy it? . What is my risk factor in the long run? . What if things don't work out as planned? . What is my exit strategy? . Should I continue to receive monthly payments for the duration of my note?
These are considered some of the best reasons why some people are successful note holders and some are not. There are more, but these will make the greatest impact on you if you can emulate them. If circumstances in your life indicate that now is the time to convert your note into cash, please give us a call and let us help you.
Also, if you need to only raise a specific amount of capital, we can structure a partial so that you receive exactly the amount you need without having to cash out your entire note.
About the author:
Richard Wills is an expert in private Real Estate Financing and cash flow settlements. He is a former Licensed Real Estate Professional and Bail Agent for the state of California, as well as a noted author, professional coach and consultant. He has helped 100s of real estate professionals, attorneys, financial planners, business owners, accountants and others, in converting paper assets into cash. To learn more visit http://www.a-znotebuyer.com
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