Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › Are We Missing The Boat?
April 15, 2010 at 12:42 am #6207
It occurred to me this afternoon that we might be missing the boat. We are working with short sales, but we are doing nothing with the sellers who are moving out.
Shouldn’t we be arranging PACTrusts for them so they have someplace to go?
Given that they probably have no cash for the cash consideration or closing costs, how might we go about this? Could we bring in a cash investor?
Ideas? It just seems like we’re ignoring a potential profit center.
AmyApril 15, 2010 at 12:51 am #31859
I would think they need skin in th game. I would not want to end up like the banks and have renters move into my property.
What type of folks did you have in mind?April 15, 2010 at 2:10 am #31860
I don’t know. That’s why I posted this. Seems like if they could afford the monthly payments or more than the monthly payments,something ought to be able to be done. Even if the new house was less than what they lost.
I just want to figure out if there isn’t additional profit in this.
AmyApril 15, 2010 at 2:39 am #31861
Amy, were you on the Tuesday night call? Brian briefly discussed that. He is working with his Temecula CA agents to find PACTrust for anyone that cannot get a loan right now. I’ll bet the short sale sellers will be worked into that.
Rick, keep in mind that a short sale seller is not your typical renter. They have tasted the benefits of ownership and the misery of the Real Estate down turn. I would think that most of these sellers would make perfectly good RBs. I’ll bet you will find that many sellers have some money saved up.
Most of the short sale properties that I have encountered (and that isn’t many at this point) the Agent is doing all they can to hold off the banks. The sellers are not making payments. If they can afford a smaller place under an EHT, then they should be putting some money away. It can’t be much or the banks will have a fit with the short sale. As far as I know, the bank wants to see the sellers bank statement to prove hardship.
Get them into a EHT with minimal up front. If possible, get a small enough monthly that they can contribute to more to your cash flow. That is the method Scott uses right now.April 15, 2010 at 2:43 am #31862
No, some of us are not missing the boat. And believe me, these people have plenty of money. For hell sakes, they haven’t made a mortgage payment in months if not years. But, are these the ones you really want in your EHTrust properties?
Hey, if they can afford the monthly payments and closing costs, you bet.
If they don’t pay on time, evict their butts and get a new resident.
Almost 90% of all my RBs are former homeowners.April 15, 2010 at 2:48 am #31863
Scott, you have such a great way of saying what I am trying to say in so many shorter words, most of the time. 8)
I always look forward to your posts.April 15, 2010 at 3:17 pm #31864
Which direction does the wind blow? What works? What doesn’t? We all want to know. We all need to know. We need definitive answers soon or we will all be looking for a new hobby. Is mortgage settlement based on lender fraud viable or is it a pipe dream? In light of today’s real estate market not currently lending itself to appreciation, (not necessarily true in all areas of the country), does the EHT work in today’s economy or is an occupant (potential RB) more cautious, more comfortable and more inclined to occupy solely as a renter until values increase? Generally speaking, as an investor, is property ownership today an asset or is it a liability? If it is a liability, when will that change? Lot’s of questions. Very few dependable answers.
Regardless of the circumstances in which we live, I, for one, will not be a potted plant. I will do what I can to get to the bottom of this mess and find out what works and what doesn’t. If it is LFC, great. If it is an EHT, terrific. If it is something else, wonderful. Whatever the results may bring, we must collectively report the good, the bad and the ugly. I am neither a critic nor am I an apologist for the various and sundry strategies discussed in this forum, that at this stage are equally praised and maligned. I’m just glad that ideas are being exchanged.
For my part, if it works, I will say so. If it doesn’t, I will do the same. I am not ready to throw in the towel on anything at this point. Success is an interesting thing. Sometimes it comes quickly. Sometimes it takes time. I hope we can all remain patient, pragmatic and hopeful. I believe our collective synergy will play a valuable role in any upcoming success. Let’s keep moving forward until we can take advantage of a good report by any contributor.
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