Posted by David Butler on March 17, 2001 at 13:20:53:
Hello Kim,
Hey… good for you! There really is a whole 'nuther side of the retail real estate market out there, and the real estate agents who grab hold of it will see a much better closing ratio for their efforts.
Here are some links to immediate discussion that should answer a great deal of your questions, fairly quickly and clearly…
REALTOR NEEDS GUIDANCE, posted by Patricia, Mar-15-01, 05:44 PM at:
You might also want to browse the product descriptions course material related to many creative financing approaches, particularly from an investor point of view (after all, investors buy a ton of property too, right?) - here on CREO’s bookstore pages at: http://www.creonline.com/mailmart.htm
And to your last question… yes, the subprime lending industry exists exactly for the purposes you describe, and has exploded over the past few years. However, be aware that there are limits to everything - and after the blood bath these fellows have experienced the past two years with some very poorly underwritten high-risk loans… the subprime fellows have had to tighten up a little bit too. Still, there are some pretty loose programs available out there… you might want to visit Ed Garcia over at the “Financing Forum” to discuss this last questions a little further, at: http://www.creonline.com/real-estate-financing/wwwboard6/index.html
Okay… this should give you a good afternoon of easy-to-follow homework
I’m a Real Estate agent in the Cincinnati area and am looking to learn more about creative real estate. (mostly helping people with little or no down payment and/or borderline credit)
Any good books out there?
Also… Anyone know of good Mortgage companies that take a little more risk for a better rate of return?
Re: Real Estate Agent needs help - Posted by Jon Richards
Posted by Jon Richards on March 18, 2001 at 21:53:15:
Dave Butler’s response is correct.
In the note business, we buy and sell existing notes, or we create notes and then sell them. This means we are really acting as “B” or “C” lenders and that is our market. If a Realtor can get a buyer a bank loan, he or she does not need us.
Our lenders however, offer powerful tools to the creative realtors:
They have a lot softer lending standards than most banks. Many of our note buyers look only to the equity for the loan, and do not have strict credit requirements.
The Realtor (or you as the note broker) can create a note with terms no bank would ever consider. e.g. our note buyers will buy notes where the payor does not have to make payments for a year. Or a note with increasing payments. You (or the Realtor) are limited only by your imagination in creating terms that meet the names of all the parties.
It is what makes note brokering so intriguing and challenging. If you bother to learn to manipulate loans, you are far better equipped to do deals, and make profits. Financing is the key.
