Posted by Nate on May 04, 2007 at 15:11:25:
Sure you can create “subprime paper” but that doesn’t bode well when you want to do a simo close with your buyers fico of 520!?
Sub Prime Meltdown creates opportunity - Posted by Michael Morrongiello
Posted by Michael Morrongiello on April 22, 2007 at 20:46:27:
More and more lenders are shutting their doors, and more restrictive underwriting criteria is being put into place, gosh, it seems that a borrower these days may actually have to do something quite novel; that is “qualify” for a Mortgage loan…
With Wall Street’s appetite for the so called “sub prime” loans waning, more and more anxious property sellers are being asked to carry a 2nd lien or to help with the financing of a prospective buyer.
The move to fill the void by creating your own financing is a niche more and more in the know investors will serve to fill. They in essence will become their own “sub prime” lender - selling their properties to borrowers who cannot obtain financing readily elsewhere and then also providing the financing themselves to such buyers.
More and more “paper” is going to get created. The question is; Will it get created so that is marketable later on down the road if the seller / Note holder wishes to create cash liquidity?
I see this niche developing right before our very eyes… the losses sustained in the current crises have not even been fully reported by the press.
Those who have an understanding of how to effectively use “paper” and seller financing as a tool to continue to operate will weather the coming storm.
Just my .02 cents…
Warmly,
Michael Morrongiello
Author of “Paper” into Cash- the convertible currency study course
&
the Unity of Real Estate & “Paper” study course
Re: Sub Prime Meltdown creates opportunity - Posted by ttime
Posted by ttime on May 14, 2007 at 17:51:37:
Michael,
What is not clear from the discussion is how the property seller will be benefited? For the new borrower the seller has to carry a 2nd lien in order to sell the property. His(buyer’s) income should be adequate to fulfill both the payments. With stagnant incomes and RE economy loosing the steam only way this would be possible is that the purchase prices have to recede till the income and mortgage payments(PITI) are in balance I think.
My $0.02
ttime
Re: Sub Prime Meltdown creates opportunity - Posted by M. Osterman
Posted by M. Osterman on April 23, 2007 at 14:43:57:
Might a good source of potential buyers be those who are being foreclosed upon? Granted they are in foreclosure…but that’s a steady flow of house users…
Just a thought
Mike
Seems like… - Posted by Jason (AL)
Posted by Jason (AL) on April 23, 2007 at 11:59:44:
…it would be MORE opportunity for those to “earn while ya learn” too, eh?
–seeing that houses are sitting longer, waiting for that
all-cash (from the bank) buyer.
I see more business headed my way…
Re: Sub Prime Meltdown creates opportunity - Posted by Michael Morrongiello
Posted by Michael Morrongiello on May 14, 2007 at 18:30:06:
Ttime:
During this market slow down, shake out, whatever you wish to call it unfolds - If you can continue to buy and sell your properties (Inventory) while your competitors are scratching their heads in wonderment because you have an understanding of how to effectively use seller financing as both a marketing and financing technique to create your own internal financing program that ultimately will get you back to a cash position (when you can move through the “paper” and convert it to cash) is that not a benifit to you as a property seller…?
Again, there is no need to carry high risk, “throw away” 2nd liens of bow to the edicts some of these lenders have recently come forward with (you cannot hold any secondary financing, etc.) WHEN you have the proper knowledge to create your own “convertible currency”…
Best to your success;
Michael Morrongiello
Author of Paper into Cash - the Convertible currency - creating marketable Real Estate Notes
Re: Sub Prime Meltdown creates opportunity - Posted by Michael Morrongiello
Posted by Michael Morrongiello on April 23, 2007 at 15:13:28:
Mike:
There are going to be PLENTY of buyers who are “sub prime” - many of them will shortly learn of being shut out of prior loan programs that were just a few months still available but NO LONGER will be availble.
The niche you as a property seller can serve to fill is that of becoming your own “sub prime” lender.
Michael Morrongiello
Re: Seems like… - Posted by Tim
Posted by Tim on April 28, 2007 at 12:35:33:
I am also in Alabama, in the Auburn/Opelika area. Where are you located?
NW part… - Posted by Jason (AL)
Posted by Jason (AL) on April 28, 2007 at 17:53:23:
About 75-80 miles NW of Birmingham.
My wife’s best friend graduated from Auburn.
Keep in touch.
Re: NW part… - Posted by Tim
Posted by Tim on May 01, 2007 at 16:16:53:
Thats nice country up in that direction. Good luck with the investing.