All Forum Posts by: Joel A.

@Ron P. 

Flat is not necessarily a bad thing.  I think the charts do show we are recovered.  Recover doesnt have to mean on its way back up again.

Now that all those bad mortgages arent being handed out to the masses, i dont see why there would be a huge jump in the market.  I mean im no expert or anything but wouldnt you say what caused the bubble to begin with was that all the joe schmoe's who could never get a house were buying houses which in turn leads to that spike.

Who is going to be buying all the houses now?  Just the people that qualify and investors which were the same people purchasing before the spike.

@Greg Rand 

Thanks for the upload.  Wow, i was not expecting to see that in Austin at all.  Really erratic behavior and for the most part, almost following the same trend as the rest of the US.  Very interesting!  I figured it would be a more solid line just going up.

As for indy, I actually really like what I see on that graph.  So much stability with it consistently increasing, albeit at a super slow rate but this only confirms what I expected and makes me happy im purchasing in Indy right now for long term cash flow.

Thanks again.  Ill check your site out.

@Greg Rand 

Would you be able to pull a graph like this on other areas that werent so impacted by the bubble?  Like Austin, TX.

I would love to see indianapolis also if you can.  Or point me in the direction where I can see this is fine also.

Thanks a bunch.  Love the post!

@Dion DePaoli 

That is a great idea.  Im writing up an email now for them.  In the past usually just once a year ill send an email about refinancing but I never actually threw numbers in it showing him how it would affect the payment. This could be the tipping point and maybe then I can find out exactly why he thinks he cant get one at this time.  With the rates being so low it would be shameful not to try at least.

@Dion DePaoli 

Hi Dion,

Wow that is great news for me to hear and coming from a note expert.  I really appreciate you taking the time to explain that.

I hadnt ever taken into consideration the fact that the owner could refinance at anytime as it pertains to me selling the note but that is because of the history I have with these people. Ive actually been trying to get them to refinance for the past 4 years.  They wont do it and wont even apply.  He feels he will never pass the credit requirements.

Overall I feel now that I am holding onto a good note im just not entirely happy with it because of the super high rate I got on the underlying mortgage.  If I was just cash flowing a little more off of it i would be really happy.

"A good loan Seller will not simply hand their loan away."  This is exactly why I never took the time to contact any of these note buyers for the fear of being low balled without really knowing what I have.  I have no way to compare if im selling at a good price or now because I just  didnt know what it was worth.

Based on your feedback though I now have a much better grasp of what im carrying.  At 89k I would highly consider selling it.

Thanks so much!

@Jim Farrell 

oh i see now okay thanks for clarifying.  Yeah it does look like there is an iTV also.   This might help.

"

Investment to Value or ITV

ITV shows how much a note buyer has invested in the real estate note. It answers:

“What is the likelihood the investor will get their money back if the buyer stops making payments?”

Calculating ITV takes the invested amount divided by the property value.

Example: An investor offers to pay $150,000 for the $160,000 note with a property value of $200,000.

• Step #1: Take $150,000 divided by 200,000, which equals .75

• Step #2: ITV is also expressed as a percentage so move the decimal two points to the right for a 75% ITV

• Step #3: If an investor says they will only invest up to 75% ITV then just reverse the calculation. Take the $200,000 value and times it by .75 to get a maximum investment of $150,000 (subject to yield and minimum discount calculations).

This example is for a first position residential note. ITV should also take into consideration any senior debt that will survive closing. If the purchase is for a second lien then you add the balance of the first lien to the investment amount and then divide by the value of the property. Second lien buyers may have additional restrictions and calculations when it comes to ITV."

taken from:

http://noteinvestor.com/notes-101/calculating-cash...

What you want to do is a great idea. If you think your returns are good on that quad then go for it. Just keep in mind most lenders want to see seasoned money be used for down payment. So that means you would have to use the HELOC, keep it in your bank account for at least 2 statements worth then use it.

Talk to your lender to confirm.

Do you really think you can sell your condo for more by staging?   It will probably be sold regardless super fast with or without staging.   Especially if its in a desired area.

What part of town is it?  If its in a not so hot area then staging might help out a little.  Either way,  i dont know of any companies that do staging but normally your realtor or whoever wil list it for you should be able to set this up.

@Jim Farrell 

i dont see anywhere on here other then your post of where lTV is.  I would imagine they just forgot to capitalize the L though and this is just a lowercase L

By the way, thanks for the response everyone.  Really appreciate it.  Definitely going to hold on to this note for now and only sell if i ever HAVE to.

I would do exactly as Jon Klause said above.  Be your own property manager first, try it out, if it doesnt work out, get a PM.