Friday, July 15, 2011

Sub2 Financing About To Be The Only Alternative Financing Technique

I've been really busy lately....

LOTS of stuff coming down the pike regarding seller financing that will either make or break the seller financier.

By the way, I'm considering archiving this blog, since I will be using Word Press for all of my marketing in the future. Why?

Because there are more professional apps for it, and I'm now relying on Optimized Press for the structure, and it is not compatible with Blogger. Sooo....

Back to the point....

In the next few days, the most worst news for anyone attempting to seller finance their houses, is about to be realized, unless we protest with our congressman. The legislation is designed to focus ALL financing toward institutional financiers and away from any competing alternatives.

This doesn't effect sub2 deals, but it really impacts reselling our houses.

One of the really bad thing is that the contracts we offer can be rescinded by the buyer within 36 months of the initial term!

Another really bad thing is that there can be no balloon notes created; they must go for 30 years.

So, leases with options are going to get real popular as the main exit strategy for resale, unless something else is done here.

Stay tuned....

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