Does Buying or Selling a Home have to be so DIFFICULT?
(Honolulu – Hawaii) The nationwide credit crisis may have turned the “American Dream” into an extended nightmare for many Hawaii home buyers and sellers.
Banks and mortgage lenders (who are not going out of business) have tightened their lending requirements to the point where many home buyers can no longer qualify for a mortgage.
Record foreclosures, rising unemployment, losses in the financial markets and the current credit crunch have not only reduced the numbers of buyers who can buy, but have also increased the number of houses that sellers need to sell.
Prices are under pressure as home sellers lower their asking price to attract a buyer, and as lenders resell their foreclosed homes below market value.
And it’s turning into a vicious cycle — as many buyers need to sell their current home first — and many sellers (unless they plan to rent) need new financing to get into their next home. As a result, a sea of real estate agents, mortgage brokers and home builders are going out of business. These professionals are in the business of serving buyers and sellers. But that’s hard to do during the current credit crisis, when the entire real estate industry traditionally relies on mortgage lending to finance buyers and get houses sold.
What can homeowners do to sell their homes? How can buyers get financing if they can’t meet the tougher lending criteria on credit scores, income verification, down payment amounts and debt ratios?
There’s one local real estate professional who has found a way to make things work even in the present banking crisis. Courtney Brown of Pacific Rim Financial has been buying houses throughout Hawaii without ever relying on banks.
Pacific Rim Financial takes over existing mortgages or brings in private lenders allowing, paying homeowners all cash for the properties. Pacific Rim then sells the properties, rents them or sets them up with a “lease option” for the renter to buy sometime down the road.
Most sellers are unaware of the options we offer. What they need most is a qualified buyer. We can buy houses in as-is condition, pay top dollar and close in 48-72 hours, or whenever the seller is ready. By taking a long term approach and never relying on banks, business has never been better for Courtney Brown and his company.
Many people who haven’t used our service think that it is only for people who are desperate. This is certainly not the case. In fact, people who try us just to have another option, frequently find us to be the best option for their sale. In fact, price is not an issue for Mr. Brown. As an investor, what’s important to him is the determination of income the property can produce. “It is easy to determine. I also do an appraisal and look at the recent comparable sales. Then I do whatever I can to offer a seller up to full price today — or about what they might net sometime in the future pursuing a more conventional route. What I can pay depends on the condition, location and financing options available for that type of property. It only takes about 10 minutes to prescreen a property over the phone and to set an appointment. For about half of those I have purchased, the seller pursued their other options and then came to realize that my offer was the best all along. “
Why ISN’T my house selling?
There are three primary reasons why houses don’t sell, and they aren’t location, location, location.
The main reasons houses do not sell is that they are: 1) overpriced, 2) poorly marketed and, 3) not fixed up to present well. “I can pay fare price on a home that needs work. You can increase the value or marketability by adding minor improvements such as new carpet and paint. I understand that sometimes a seller may not have the time, inclination or the financial resources to remodel a home… just to get it sold. We solve that problem for sellers.”
Over pricing a home could be the biggest mistake.
The biggest challenge is setting a fair price for today’s market. Sellers don’t want to let their property go too low and lose money. Real Estate Agents sometimes want to please their seller and get the account, and are afraid to push for a lesser price. But a property priced too high will sit on the market and make people wonder what’s really wrong with it. You know the current marketplace is very competitive, and it’s a buyers’ market. Starting with the right price is critical. If you price high to leave yourself room to negotiate, maybe no one will want to give you a starting bid.
Listing agents sometimes suggest (or a seller might decide) to ask for a higher price than needed. This might be to test the market or leave wiggle room to negotiate. However, this can backfire if the seller wants (or needs) a quick sale, or when the “days on the market” stack up.
Is marketing that important?
If the marketplace doesn’t know about your wonderful treasure, again it won’t sell. Marketing is the way we get people to come take a look. We’ve been at this for a while and know how to drive traffic. Whether it’s by using our electronic buyers/investors list, or creating the drama of a 7-day sale, we have a variety of approaches which we combine to create the best atmosphere for good sale. It’s a lot harder to do this if you are only selling one house. Pacific Rim Financial has these programs in place and ready to go.
Courtney Brown cautions for sellers – “Be diligent with research, and sometimes seek legal advice when being approached by anyone who wants to charge an upfront fee for helping you get your loan modified. At Pacific Rim Financial, there are absolutely no fees to the seller.”
Presentation can be everything.
Curb appeal is critical – If it doesn’t look good, prospects won’t even stop.
We’ve all seen “Sell This House” on TV and wondered what were owner’s thinking when they had dishes in the sink, clutter everywhere, pet odors and dirty walls knowing that prospective buyers were scheduled to come by. Keep these things in mind when you’re the seller.
When we sell a house we’ll do the basics and then offer it “as-is.” If we don’t get any immediate action, we’ll take it to the next level. Bring in a staging expert, get out the paint, make any repairs, replace the carpet and do any other immediate fixes that make a difference. We’re investors and we don’t mind spending the right money to fix up a property.
What does a real estate investor like Courtney Brown do with the houses he buys each month?
Simple, he rents them out or resells them. These properties are commonly, sold at wholesale prices to other investors (and sometimes at retail). Some properties may be kept as rentals for their income generating potential.
“If you can afford a first month’s rent, last month’s rent, and security deposit, then I can probably sell you one of my houses”
With a reasonable down payment, Courtney Brown says he can sell you one of his properties using his popular owner financing programs – even if you have damaged credit or a short job history.
His most popular owner financing program includes the opportunity to build “sweat equity”. Before repairing or remodeling a newly acquired house, Mr. Brown offers in “as-is” condition to his buyer’s list. This allows his clients to do the work (to suit their own preferences) in exchange for all or part of a down payment. “This enables buyers to get into a property at a great value, and enables them to customize their home as they would like to have it. But, if a home does not go under contract agreement over a specified period, I will hire my contractors to go in and fix it up.”
His next popular program is a down payment assistance plan. Many buyers turn to Courtney Brown with Pacific Rim Financial because they don’t have the down payment required by today’s cautious lenders. Mr. Brown helps buyers build up equity or a down payment over time with his rent-to-own (or lease with the option to buy) program. In this program you can rent the property you’ve decided to buy, but have the option to close anytime over the next 1, 2… or even 5 years. A portion of the rent each month is credited toward buying. Additional amounts can be paid monthly for more rapid equity build up plus other promised amounts can be made later, for instance, proceeds from the sale of another property or a pending tax refund.
Once the buyer has enough “skin” in the deal, Mr. Brown can close with owner financing at the predetermined, mutually agreed upon price and terms. Or the buyer can close with a new bank loan. “There are so many reasons my buyers like some time before qualifying for a mortgage. They may need to sell their house, work on their credit, establish more time on-the- job or establish two years of provable income on tax returns when self-employed. All our buyers are put in touch with a sharp mortgage broker who creates a plan for them. We can recommend an affordable credit repair company that can do unbelievable things given even a short 6 to 12 months to work on a file. This also helps out some sellers who have found themselves in over their heads.”
“We do everything we can to get our buyers permanent bank financing. It’s a win-win because we pay sellers all the cash and fund our deals with private lenders. Our lenders are mostly local individuals seeking alternatives to low bank CD rates. These investors usually want to reinvest allowing us to buy even more houses.”
Unfortunately, many of the mortgage programs once available are now gone. It’s reported that 75% of the available lending disappeared when FHA changed their rules last October and again earlier this year. But, if you have money to put down and can prove your income, there are still loans available now. In fact, some rural development loans and VA loans still allow qualified buyers to borrow with no money down.
Does buying or selling a home have to be so difficult? Maybe not!
Interested in selling your property quickly and easily? Looking to buy a new home without bank qualifying? It may be worth checking in with Courtney Brown and his staff at Pacific Rim Financing. They are in a unique position to help buyers and sellers overcome the new challenges created by the recent mortgage market meltdown and credit crisis. And if you’re looking for a conservative way to earn 7-10% interest on your idle cash savings or retirement funds, call and asks for information on becoming one of their private lenders.
Take the time to have experience and expertise to work for you.
For further information or questions, please feel free to call Courtney Brown directly at: 808 780-9000 or email: firstname.lastname@example.org