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Category: Investing

  • Questions on Selling Mortgage Notes

    Wondering how this whole note buying process works? Get answers to frequently asked questions including:

    Why Would I Sell My Mortgage Note?

    How Do Note Buyers Decide on a Value?

    What Can I Do to Make My Note Worth More?

    Here are some of the most common questions on selling your mortgage notes. We also invite you to visit our learning center filled with helpful articles and tips for creating and selling trust deeds, land contracts, and mortgage notes.

    Why Owner Financing?

    Owner financing is on the rise, with more sellers agreeing to accept payments from buyers. There are many reasons people agree to take back a note, deed of trust, mortgage or contract including:

    • Banks having stricter requirements for lenders, so property is harder to finance
    • More qualified buyers for your property
    • Quick sale of the property
    • Monthly income from the note
    • No hassles of bank financing (fees, delays, and strict underwriting)

    Why would I sell my mortgage note?

    Circumstances change. Many sellers would now prefer cash today, rather than small payments that trickle in each month. Here are just a few reasons people have sold their note payments for cash:

    • Unexpected Financial Changes
    • Peace of Mind – no more worrying if the buyer is going to make late payments or having to foreclose
    • Retirement
    • Taxes
    • Investment Opportunity
    • Expensive Medical Care
    • Vacation
    • College Tuition
    • Accounting headaches, IRS regulations, paperwork hassles and the list goes on…

    What is a Note Appraisal?

    A note appraisal reflects the current market value of your payments, similar to what a real estate appraisal provides for real property. It shows what your future payments are worth in cash dollars today and is sometimes referred to as a “note analysis” or “quote”.

    We recommend you have your note evaluated once a year as pricing may change based on market conditions.

    How do I maintain the value of my note?

    Many of the items that affect the value of your note were determined at the time the property was sold. However, there are three things that you can do now to make your note more valuable:

    • Keep good records and copies of the payments received;
    • Obtain a copy of the property insurance policy from the buyer each year; and
    • Verify the property taxes are paid when they come due (usually twice a year).

    This will help maintain the value of your important asset and avoid any unpleasant surprises.

    Can I sell All or Part of my note?

    We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment.

    Many people elect to sell just enough payments to meet their cash needs today, and keep some of the future payments as an investment or nest egg. Always ask for an option that meets your needs.

    How is the Value of a note determined?

    The value of a note is affected by the down payment, interest rate, payment amount, and terms, as well as the buyer’s credit rating and payment history. The type, condition, and value of the property also impact the value of your note.

    The time value of money, which makes payments due now more valuable than payments due in 20 to 30 years, also plays a role in the evaluation process. Generally, due to inflation, money in your pocket today is worth more now than later. All of these elements will be taken into consideration in determining the current value of your note.

    How will selling my note affect the payer?

    The payer experiences no change in the way the payments are structured. The only change will be the address where the payments are mailed.

    How do I get started?

    The first step is to obtain a quote using our online form or by calling us at 623-738-4632. We also request copies of the documents relating to your transaction:

    • Note and Mortgage (Deed of Trust or Contract)
    • Buyer information
    • Closing statement
    • Payment history and current balance
    • Previous title insurance policy
    • Current hazard insurance policy

    We will then provide you an offer subject to the standard title, appraisal, and buyer’s credit review. Once under contract, you will receive your cash as soon as all of the documentation can be obtained. This typically takes as little as 10-15 working days.

    How will I be paid if I decide to sell my note?

    The purchase price is paid in guaranteed funds (cashier’s check or wire transfer) upon receipt of the final transfer package and original documents.

    We are happy to wire funds to the title company so you may exchange your original documents for the proceeds, assuring the safe and secure transfer of your valuable asset.

    Why should I work with Lerner Investments?

    We pride ourselves on:

    • Excellent customer service
    • Flexibility on all note purchases
    • Competitive quotes
    • Quick closings
    • Providing customized options
    • Strong financial backing
    • Confidentiality with all transactions
    • Credibility in the industry

    At Lerner Investments we provide top rate service combined with the best prices available.

    Contact us if we can assist you!

  • Request Your Free Quote and Mortgage Analysis for Selling Your Mortgage Notes

    Turn your future payments into cash now!

    We offer top dollar pricing and no upfront costs.

    Contact us today to receive a free note analysis and no obligation quote.

    You’ll be glad to know you have options!

    Requesting a free note analysis is easy!

    Please select from one of these convenient options:

    Option #1 – Complete the Online Worksheet below

    Option #2 – PDF Worksheet

    Print the PDF Quote Request Worksheet and scan/email or call it in to us. notebuyer@lc.lndo.site or 623-738-4632

    We invite you to contact us at 623-738-4632 and we’ll discuss the worksheet information over the phone.

    Please be assured there is no obligation or cost associated with your free note analysis. We keep all information confidential in strict compliance with our Privacy Policy.

    We respect you have choices when selling your mortgage note. Please feel 100% confident in trusting us to help you every step of the way.

    Complete the Online Worksheet and the information will be sent electronically to us.

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  • Consequences of Bad Decisions: The Need for Stronger Penalties for Big Banks’ Reckless Actions

    I support businesses making profits, growing the business, employing people, making the owners money. But bad decisions in business have consequences. Huge bad decisions in huge businesses should have huge consequences.

    Banks used to be valued based on the value of the loans they held. The laws were changed, so banks are valued based on the value of the collateral for the loans. A drop in housing prices of a few percent, which happens regularly, now meant that banks with highly leveraged mortgage loans could be bankrupt — a 3% drop in housing prices in a bank lending 33 times more than the cash they had, is bankrupt in the new accounting. (Insurance companies invested essentially identically to banks, but are still valued based on the loan amounts, and insurance companies didn’t fail.)

    The big banks say they didn’t know that changes in how their business was valued meant their investments were at such risk — they therefore acted recklessly (ignoring the changed financial environment, ignoring potential consequences to their business), or they did know and acted deliberately, harming millions of people.

    (The laws probably should be changed, so a normal or unusual change in housing prices doesn’t bankrupt a bank, if the bank loaned money responsibly.)

    We couldn’t allow the economy to crash, from their reckless or harmful actions. We should penalize the people responsible for the harm their actions caused — strong enough penalty to fit the harm they caused.

    Big banks are continuing to risk the same way they did before the financial crash. They now clearly know the potential consequences to the national/global economy. They obviously need to learn the risk to their own financial health.

    The risk to the national economy didn’t dissuade the industry leaders from investing in ways that could ruin the company. The risk to their shareholders didn’t dissuade them. The small chance of personal financial ruin didn’t stop them from going for the huge probability of huge financial gain.

    If low risk of personal bankruptcy if their business failed, didn’t dissuade them, we have to make the consequences more likely and more severe, and we have to make the benefits lower. We can’t allow them to crash the economy again.

    There are benefits of big banks, including people feel more comfortable putting their money in a well-known bank. Big banks can make bigger loans, for growing large businesses, for huge important projects. But they have to run the business so they can handle mistakes, failures, bad loans, changes in the economy.

  • Sea Levels Expected to Rise Through 2100

    A report on how global warming, melting the ice in the Arctic, Antarctic, and mountains, will affect California. Conservative estimates are 1.0 to 1.4 meter increase in sea levels, by the year 2100.

    From Pacific Institute: Sea Level Rise

    • Under medium to medium‐high greenhouse‐gas emissions scenarios, mean sea level along the California coast is projected to rise from 1.0 to 1.4 meters (m) by the year 2100. Maps for the entire coast of California demonstrating the extent of the areas at risk are posted at www.pacinst.org/reports/sea_level_rise
    • A 1.4 meter sea‐level rise will put 480,000 people at risk of a 100‐year flood event, given today’s population. Populations in San Mateo and Orange Counties are especially vulnerable. In each, an estimated 110,000 people are at risk. Large numbers of residents (66,000) in Alameda County are also at risk.

  • Small Business / Entrepreneurship Products

    Enjoy these Small Business and Entrepreneurship products, you can download and start using them now, to improve your business.

    Please add comments about the ones you get and use. What do you like (or dislike) about them?

  • Real Estate Power Investor Course VIP Invitation

    Charrissa Cawley's Real Estate Power Investor, $97

    Real Estate Power Investor Course VIP Invite

    Charrissa Cawley has gone so far beyond what’s expected, with her new real estate program, that it seems to have ruffled some feathers in the industry!

    You’re about to discover how Charrissa put over $2.14Million in her bank account in just 14 month’s time!
    http://www.lernerconsult.com/recommends/homeflip/

    Seems the gurus are showing some distaste because of the low price point of this course compared to all the $4,000 to $12,000 courses. “Huh? You put your stuff down to a few hundred bucks?! Why?” and “Wow this package is huge-I can’t believe it does’t cost ten times more than what you are charging!”

    Charrissa Cawley is the Only Power Investor Willing to Share Her Millionaire Tactics during this Gloomy Recession. Get on board, the Real Estate market Is the Best for Investors since the 1930’s!

    “It’s nice to be able to offer a product to the masses that won’t break their bank account and is easy to integrate into your life from part time to full time. I’m proud of the package and it feels great that the course is being received well. Today marks a special day as we take on a fully digital and virtual relationship with our students, and turn them into real estate experts while teaching them exactly what we do, and exactly how we do it, not leaving even one stone uncovered. This is nothing short of being held by the hand while you are on your way to success, and to be sure we even threw in a free 60 day no risk refturn policy for those that for whatever reason, simply do not find tremendous value in what we offer”…

    Again, it’s rare that an expert would go all out like this for such a low price point, but at the same time it’s smart and there is a huge demand for it in today’s recession based market. Charrissa knows that her curriculum is incredibly valuable, and she proves it with personal success, not a screen name or actor behind a dot com web address… “Why wouldn’t I teach people how to do this, it’s a great time to make important decisions about your future, and working for others will always leave you at risk of ‘losing it all’ overnight.  I don’t want that for my students. They deserve more!”

    She knows that she can charge way more and get asking price for her curriculum/coaching all day long, but her main passion is to bridge the gap between learning and doing and she sincerely wants to help as many people as she possibly can, achieve true Financial Independence.

    View Charrissa’s REPI Invitation and Claim your VIP offer now.

    Yours In Success,
    George

  • Real estate financing in Today's tight economy

    Real Estate Financing

    Someone asked me on Twitter: “@george_lerner Are you able to get financing? My So Cal Realtor friends say getting a loan is next to impossible. What do you think?”

    Absolutely right, getting a loan from Banks is next to impossible, despite them receiving $billions and federal guarantees. See Where’d the bailout money go? Banks aren’t saying and In 2009, Economy Will Depend on Unlocking Credit for more.

    There are, however, People who have $100,000 or more in an investment account, who would Love some way to make more than they have been getting from investing in stocks or mutual funds. (Most stocks and mutual funds are Losing money, fast; a positive return would be Great!)

    How can someone with an IRA invest in Real Estate?

    You can switch to a self-directed IRA. Talk to your investment advisor about how to do it, and what the rules are. (Of course, make sure you have an advisor who understands investing. If they don’t Find Another Advisor! Ask the wealthiest people you know where to find them…)

    Then instead of you taking money out to buy property, you Leave the Money IN the account. The account (your IRA, or 401K, or other investment account) buys the property, it owns it, just like the IRA you have now has been buying stocks. The investment returns stay in the IRA too.

    Isn’t real estate a Bad investment now?

    That’s not what savvy investors think. The people who have money and know how finances work are very excited now.

    Yes, as USA Today reported October home prices drop to March 2004 levels – but as an investor looking to buy property, that means America is On Sale. Ever heard the investing rule: Buy Low, Sell High(er)? With the number of houses sitting vacant owned by the banks, and the number of properties that are still facing foreclosure, you can buy properties at very low prices, if you have (or can get) cash.

    What if I don’t know how to pick investment real estate?

    You need to buy property 20% to 30% below Current market prices. This is Not the time for wishful thinking, hoping the price will go up. Are there properties available at those prices? Absolutely.

    I have systems in place for locating properties, evaluating what price the property should sell for quickly today, make offers on only the best potential deals, and inspect and appraise the property (and re-negotiate if the inspection or appraisal doesn’t meet my standards).

    I have money, how can I participate?

    There are two basic ways:

    1) I find the property, verify the property is a deal, you pay me for bringing the deal to you, you buy the house (and then lease it or rent it, the income going into your investment account).

    2) You fund the initial purchase of the house and any rehab needed, your investment guaranteed by the property. I find a buyer who can pay cash (either from their investment accounts or they get a loan) to cover our expenses.  I carry a note for the remainder of their purchase price (still substantially below market price); I pay back your investment plus interest.

    There are numerous ways we can have the investment work. I will go over options that fit each property individually, and you pick the property and investment option that makes sense to you.

    Helping Home Buyers

    Banks have huge inventories of REO property, “real estate owned by the bank”. But banks are not meant to be in the real estate business, they are supposed to be in the lending business. Normally banks own mortgages, not houses. Real estate they own interferes with their ability to lend money. So we can negotiate great prices with banks.

    Houses we pick carefully, purchase well, fix up if needed, and market, are available to home buyers.

    We can then get home buyer’s financing:  since we own the house, no mortgage on it, we can set any financing criteria, down payment, and terms that work for us! You can earn interest just like banks do.

    Are there people who have money to pay for the house, maybe some credit blemishes from years ago that are from circumstances that have passed, good people, who want houses? Absolutely. We can find out what happened that hurt their credit score, and many people turned down by banks would seem to Us to be good credit risks — especially since we purchased the house at such a low price.

    We are helping the entire economy when we get houses from banks to home owners.

    Comments? Questions?

    Either write comments below, or contact me in private.