Let us create a 3d Digital eBook for you! DigyCat.com
|
||
|
||
|
Real Estate Information | Let us create a 3d Digital eBook for you! DigyCat.com |
|
|
|
Why Are Mortgage Notes Discounted Anyway?
When real estate note brokers purchase partially paid notes, they pay the note holder a discounted price after factoring in the time value of money, the payer history, and property condition. If there is still a significant period of time left for the payer to make payments, the future payments are not worth the same amount in current dollars. Calculations are made to equate all the payments into current value, which is how the discount is determined. After purchasing notes at a discounted price, note brokers try to restructure the loan and increase its value. Increasing the value of the loan requires the payer to refinance or increase payments, which requires a new contract. Factoring the same concept of time value of money, we can understand how increasing payments now creates more value. The note can then be sold for a higher price. Discounts must be taken from the loan amount due to inflation and the time value of money. There may still be years left on the loan repayment, but the payments far in the future are not worth the same amount in dollars today. Calculations are made using special formulas to equate the future payment amounts into today's prices, making today's price discounted significantly. On the other side of the coin, notes that are well seasoned can fetch near remaining balance face value. Additional Major Reason Notes Are DiscountedAlthough I am a broker myself, I put this site here because I want to bring you a clear understanding (from an insider's perspective) of the nuts and bolts mechanics of how the secondary market mortgage note industry works. A major reason many people are turned off from selling their real estate notes is because of the discount factor......but what you probably don't understand is that when you use a broker, like myself or any other broker anywhere, you pay additional fees that further drive down the amount of money you walk away from the table with. Significantly. Let me give you an example: You have a $50,000 note you need to sell. Although you could sell only a few payments or the whole note, for this example, let's say you wish to sell the whole note. You do a search on the internet and find a long list of brokers hawking phrases at you like, We can get you top dollar for your note..." and the like. So you choose one and give them basic information about your note so that they can give you a quote on what you could expect to receive for your note. So, the broker calls you back after speaking with an "actual investor" about your note. The investor has told the broker that he'll pay, say $41,000 for your note. Your broker says to you, "We can pay you $37,500 for your note". He explains the whole reason notes are discounted but never mentions that other $3,500 discount you had to take because of his broker fee. So, without ever discussing fees, you just paid $3,500 to have a guy make a phone call on your behalf to an "actual note buyer/investor. A Smarter Way To Sell Your Note What I am about to reveal to you is the subject of many nasty emails I get from other brokers....angry brokers. Angry because what I am about to tell you takes money out of their pockets and back into yours. All brokers are in possession of a "little black book" of the "real note buyers and investors". Private individuals mostly but it also includes institutional note buyers.Check it out yourself. It's the $67 Solution! www.mortgagenotecash.com/directaccess.htm Frederick Webb is a Certified Cash Flow Consultant and is President of Webb Funding Group, a small debt brokerage agency he runs with his wife, Kashita Webb Get more information about this and other information by visiting their website at: http://www.mortgagenotecash.com
MORE RESOURCES: Real Estate - Google News TEXT: S&P: Nomura Real Estate Residential Fund Bonds Rated 'A' - Reuters
Apple Valley real estate developer rejects offer in San Bernardino County ... - San Bernardino Sun
Asia real-estate bull turns bearish - MarketWatch
Rogue Valley Commercial Real Estate In Upswing - KDRV
Real estate market likely to see an increase in M&A activity - China Daily
Real estate developer says he plans to make cash bid for Philadelphia's 2 ... - Washington Post
Real estate market rebounding - Park Record
Alexandria Real Estate Q4 FFO Rises - Quick Facts - NASDAQ
REAL ESTATE: Refinancing expanding for Fannie/Freddie borrowers - Press-Enterprise
|
 |
|
|
RELATED ARTICLES
Secrets of Making Money from Real Estate - Part 2 Leverage: With real estate, people and companies will lend you money to invest. How much real estate can you buy with $20,000? Probably between $100,000-$300,000, depending on the lender. 10 Home Purchase Abroad Tips For Success Are you seeking your little corner of sun drenched heaven on earth? If you are you're certainly not alone!Many Northern Europeans, Americans and Canadians are looking overseas for investment real estate or for a holiday bolt hole and if you're considering buying a second home in the sun, a home from home abroad or an investment property overseas and you're in a hurry to get started, these top 10 home purchase abroad tips for success should set you off in the right direction.1) Legal AdviceLegal systems differ from country to country so never assume that you understand how exactly the entire house purchase process is going to work, and never expect things to necessarily go exactly your way! To be assured of the fact that your personal interests are being looked after and that you, your money and your property are 100% secure, legal and legitimate it's essential to seek independent legal representation in the country you're considering buying property in. Real Estate Bubble Adding Price and Risk to Location, Location, Location Mantra Real estate investors familiar mantra location, location, location are nervously replacing the second and third locations with price and risk. As home prices rise to new levels daily and worries that some markets homebuyers are jumping into might start to loose air, their appetite for risk is creating some sleepless nights. Buying A Home - Zoning and Architectural Review Board Restrictions When you buy a home, you need to be aware of the various things that can limit your control over the property. This is as true for finished lots and single family homes as it is for townhouses, condos, and apartments. 5 Things to Look for in a Property Appraiser Homeowners who are seeking a property appraiser often ask "How should I choose which real estate appraiser to use?" When selecting a property appraiser, keep the following in mind:Always make sure a property appraiser is licensed or certified by the state to perform real estate appraisals. While state licensing and/or certification isn't always an indication of quality, it ensures that an individual is has met certain standards and been authorized to perform property appraisals. The Many Benefits Of Lease Purchasing Lease Purchasing affords wonderful benefits and opportunities to sellers, buyers, investors and those who would like to operate a home-based business. Lease Purchasing allows you to control property without ownership which has benefits for all. How to Price Your Property? A house properly priced is half sold. But there are plenty of ways to price it improperly. The Many Ways To Profit From O.P.P.s Multiple Cash Streams In a previous article we introduced you to the concept of O.P. How to Build Your Free House What if you could "place an order" for the construction your Dream House (made either for your family, or for monthly rental income) and have it built for you in only a few months, or maybe weeks?!What if you could get other people to do all the work.. Where is Florida Investment Property Florida Investment Property - Why Investing is a Wise DecisionThere are many reasons to purchase investment property in Florida, the foremost being value appreciation. Property values generally rise while debt decreases; making real estate purchases a good investment. Selling Your Home - What Can Go Wrong With Title and Lenders If you're selling your home, there are going to be difficulties at some point in the transaction. Some problems can't be fixed. Practical Advice for Finding Irish Castles for Sale Have you ever wondered what it would be like to live in a castle?Have you ever dreamed of dancing in a grand ballroom that at one time was filled with princes and other nobility?If you find yourself dreaming of this lifestyle, you're not alone. Celtic castles, and all things medieval for that matter, have gotten very popular in recent years. Dont Sell Your House--Ever! Keeping your existing house when you buy a new one could be THE most profitable financial decision you could make. Consider the following:1. Making a First Impression When Selling Your Home So you've decided to take advantage of the booming real estate market and put your house up for sale. As you know, buying a house is the most important purchase a consumer can make. How to Achieve Financial Freedom with Your Home The secret disclosed on how you too could achieve financial freedom through property (and tell the pension companies just where to stick their measly, worthless 'pensions') Geoff Morris is a self-made property millionaire who made it in less than 18 months even with a hectic 'day job'. He has written a series of articles to help people like you achieve the same levels of success - as long as you are willing to 'Go For It!'Many people these days are getting more and more concerned as they approach retirement age. How to Make a Home for Sale Flyer Using Marketing Psychology Want to sell your home right away, for the highest profit to you? Discover how to improve on the Realtor's number two sales tool--right after the sign--your sales flyer.Most real estate agents use a sales flyer template which showcases their listings using out-of-date marketing strategies. What We Do To Sell Your Property! Once you have contracted us to sell your property we go to work for you to bring you the most money and best price for your property as quickly as possible. Some properties are faster selling than others based on the location, condition, size, price, of course, and type of the property. Making it affordable: Nine tips for first time home buyers It seems that everyone loves a good real estate story. The media is filled with reports about soaring property values and home owners of modest means becoming instant millionaires when they sell. Real Estate: The Consumers Will Have The Final Word! "The first step toward change is awareness. The second step is acceptance". Jacksonville Real Estate Listings With over 30,000 residents, Jacksonville in central Arkansas is a thriving city that offers many opportunities for both longtime residents and newcomers alike. About 20 miles from the state capital of Little Rock, the city is expanding in many ways.
|
|
Looking For Royalty Free Photos for your Website, Business or Advertising?
List4Sale Domain Is For Sale - $10,000 For Enquiries eMail Us © www.List4Sale.biz 2011 |
|
