*Attention Realtors who want to make money with low risk and
virtually no effort*

“Discover How A Middle-Aged Realtor From Small Town Canada Stumbled onto an Insider (And Nearly Risk-Free!) Way to Use The Real Estate Knowledge That He Already Had to Earn Double Digit Returns in this Sideways Market.”

Don’t invest another dime until you discover how you can earn an OUTRAGEOUS INTEREST RATE with virtually no risk or effort. I’ve done it many times and can show you how, too!

Date:Thursday, November 10, 2011
From: Mark Hindley, Realtor Investing

Dear Fellow Realtor,

It sounds almost too good to be true but, in the past year, I’ve been quietly banking 14.34% in interest…and I’ve been making similar returns for the last 9 years! And in this sideways market there’s even more opportunity than ever — that I’ll explain in a moment. But first let me share with you my story (it might sound familiar).

Like many of you, I have invested in a variety of things over the years (real estate and otherwise), in an effort to stabilize my income (commission-based income fluctuates with the market, but my monthly bills sure don’t) and, given that I have no corporate pension plan to fall back on, earn the money I need to fund my future retirement. I am also a big believer in enjoying my life in the here and now…before it’s too late! That’s why I take lots of vacations, as well as enjoy my many hobbies such as fishing, hunting and flying my Cessna 172. However, these things take money (too much money, if you ask my wife ).

I started out by buying a number of rental properties that I have now managed for several years. If chosen carefully, this type of investment can be fairly lucrative in the long term, but all that glitters is not necessarily gold, and this investment definitely comes with its share of ongoing hassles (plugged toilets and tenant turnover are a couple of things that come to mind).
I have also renovated and flipped my share of properties, but the time, effort and money required to do this usually makes this investment option impractical, if not impossible.

Like much of the population, I have also held money in mutual funds and the stock market, but I was sick of nervously watching my retirement money go down in value and NOT HAVING ANY CONTROL over it.

Time to take control!

I needed some other way that I could use my real estate expertise to earn low-risk monthly income…and, this time, I didn’t want it to involve other people’s toilets or out-of-my-control stock markets! Furthermore, given that I already had a “day” job (more accurately, a day, night and week-end job), I needed something that would require MINIMAL EFFORT.

Calling all Realtors

That’s when I ran across a special kind of investing, perfectly suited to Realtors like you! One day, the Mortgage Broker where my Real Estate Office oftens sent our clients, asked me if I was interested in making some extra money every month.

The Broker said that he was looking for people to fund second mortgages and that he would love to work with Realtors, because of their knowledge of the market and their experience in the valuation of properties (this expertise made the process much faster and easier for both parties).

I as a rising realtor investing now was still a little sceptical, though…did I really want to loan my hard-earned money to someone that was so ‘financially challenged’ that they needed to take out a second mortgage in the first place? Wasn’t that too risky? I came to find out that this was a misconception…many solid, responsible individuals, due to a variety of situations (e.g. change to employment or relationship status), may find themselves temporarily in need of a second mortgage. The Broker confirmed that he dealt with people such as this on a regular basis, especially in these economic times where many commercial lenders have tightened up on their lending criteria, and that it could sometimes be a challenge for him to find enough private lenders to cover the mortgage needs of these good quality individuals.

But, what if the Mortgagor does go bankrupt and I lose my investment? I quickly dispelled this worry too, when I talked to a real estate lawyer who confirmed what I remembered from my real estate law course…in the case of bankruptcy, mortgages are protected by law! As long as I was confident of the property’s value, my investment would be 100% safe. I don’t know about you, but my stocks and mutual funds sure don’t come with this kind of security!

Now I was really interested, so I started researching second mortgages, to see what benefits it offered. I wish I had learned earlier about this great way to make money!

5 Reasons Why Funding Second Mortgages might be
the Best Investment Choice for Realtors…

1. You are uniquely qualified. Realtors already have the knowledge and skills required to fund second mortgages…no need for expensive and time-consuming training. Realtors also have the contacts (Mortgage Brokers, personal clients and other Realtors) required to find excellent second mortgage opportunities (rest assured, there are plenty of safe and solid borrowers who need private money due to such life circumstances as self-employment, relationship breakdown, or a previous isolated financial setback). All you need to get started right away is my quick and easy step-by-step process for funding second mortgages…and I’ll provide that!

1. You are in control. You determine the risk, then set the interest rate, lending fees and term as you see fit (or turn down the investment if you are not totally comfortable with the level of risk). Walk away with your original principle amount at the end of the mortgage term…use this money to invest elsewhere or to fund another second mortgage!

1. Stabilize your income. You can stop being a victim to income that goes up and down like a kid’s yo-yo. Earn a steady passive income every month to pay bills, save for retirement, go on vacation…or just use it to enjoy life!

1. Minimal effort and hassles. You’re too busy to spend your time chasing tenants, renovating houses to flip them, or anxiously watching the stock market. With second mortgages, spend a few hours upfront, then just sit back and collect your money every month (some of my second mortgages I’ve had for years). Oh, and did I mention, there is practically no paperwork for you to do, since I provide you with easy fill-in-the-blank templates that can be completed in a matter of minutes (did I hear cheering?).

1. Minimal investment required (no maximum). You decide how much you want to invest, from as little as a few thousand dollars to ‘the sky’s the limit’. Choose to fund second mortgages out of your RRSP (new or existing contributions) and enjoy great tax savings while making above average returns towards your retirement. If you don’t personally have any funds available, use other people’s money to invest in second mortgages and still make an excellent profit.

Why take my word for it?

I have been providing funding for second mortgages for 9 years and have actually funded 33 mortgages, ranging in amount from $7,500 to $45,000. Over the course of this time, I have made a considerable amount in passive income from second mortgages.

Currently, I am funding eight mortgages totalling $156,850, with interest payments of $1,873.64 per month and an average interest rate of 14.34%. Of this total, $100,166.44 of this is funded through my registered retirement savings plan (RRSP), earning me tax-deferred interest of $1185.45 each month, or $14,225.40 annually (don’t take my word for it…see below for a copy of a recent RRSP statement). Is your retirement fund making these kinds of steady returns?

Realtor Investing

Selling a house or other  real estate with owner financing may be unfamiliar territory for many, but anyone who plans to sell property against the current background of tough lending conditions may want to brush up on the basics.

Understanding the concept of owner financing is easy: the seller assumes the role of a bank and finances the buyer’s purchase.

The decision to provide owner financing, however, can be much more difficult; although providing owner financing could mean the difference in being able to sell a house, it could also mean a great amount of risk for the seller if the buyer eventually defaults on the loan.

As the U.S. struggles with a sluggish real estate market, owner financing presents a way for buyers and sellers to close deals that might not be possible with conventional financing.

There are some deals that just simply cannot get done (with conventional lending) because the credit markets are too tough for a particular buyer to qualify or because the type of transaction is perceived to be too risky.
There could also be a situation in which a buyer may not have sufficient capital for a down payment. Partial owner financing, in that case, can help fill in the gaps in closing a deal.

In addition, the benefits of owner financing can appeal to sellers who are trying to unload property. Closing a deal on a house, for example, may take considerably less time with owner financing than with conventional financing. While a conventional lender will scrutinize the collateral property to determine the level of risk, a seller who is already familiar with their property can form his or her own risk assessment relatively quickly.

Owner financing may also be an attractive choice for investment, potentially offering high rates of return. A seller can negotiate an interest rate that the buyer will pay them that is more favorable than would be available for other sorts of investments.

Furthermore, seller financing can provide some tax benefits by spreading out a large gain over time (check with your accountant or CPA).

If the seller structures the loan as an installment sale, there can be certain tax advantages to the seller as well in terms of the timing of recognition on the capital gain. The seller would need to discuss the details with a tax advisor.
Seller financing can be used to pay for a property either in full or in part. The terms of a full loan look similar to those of a conventional loan; however, a seller has a great deal of freedom in setting the terms, such as the interest rate and the duration of the payment period.

For instance, a seller might wish to provide owner financing as a short-term arrangement of five years, after which the borrower is expected to refinance the loan, presumably with conventional financing.

While sellers can be more flexible than banks in considering prospective buyers, they should nevertheless think like a bank when reviewing potential buyers. Examining documents and reports such as tax paperwork, proof of employment and credit history is prudent in determining a buyer’s ability to pay off the loan.

A seller who provides owner financing will need to get the mortgage recorded in accordance with the specific execution and acknowledgement requirements of the State of Texas. Sellers should also work with a title insurance company to perform a title search and purchase title insurance to secure the right priority for the mortgage.

A title insurance company can also serve as a good resource for understanding how much it will cost to record the mortgage. In Texas, the cost to record a mortgage or deed of trust is minimal, consisting of a basic administrative fee added to an amount that varies according to the number of pages.
Generally, the overall cost to seller finance will depend on how many documents are involved and how sophisticated those documents need to be. The size of the property and the intensity of due diligence procedures factor into these costs.

If it’s a simple scenario, such as a small little residential deal, it might be under a thousand bucks. If you provide seller financing for a sophisticated apartment building or strip center it can be multiple thousands of dollars. If you’re in the Austin, TX area, Forte Properties is your #1 choice for owner financed home transactions.

Documentation is perhaps the least of a seller’s worries. For most sellers, the initial decision to provide owner financing can be the most significant hurdle they encounter.

Documentation-that’s not a big deal. It’s done all the time, there are a lot of good lawyers that do it. It’s deciding to do it, and deciding on how to manage the risks inherent in providing owner financing when you’re a casual seller-that’s the biggest difficulty. Again, if you are interested in owner financing whether you are a home buyer or seller, Forte Properties in Austin, TX can help you every step of the way.

In most cases, sellers prefer to have cash instead of a promise by the buyer to pay them later. In addition, sellers who consider owner financing need to understand the risk that the buyer might not pay you in whole or in part, or might have financial distress situation arise down the road, where after a year or two the payment stream to you is disrupted by their financial distress.
Because sellers do not have the same resources as conventional lenders, financing a buyer can be even more intimidating. While banks can absorb the risk of nonpayment by spreading it across their entire loan portfolios, an individual seller isn’t typically able to do that. Furthermore, it’s more difficult for a seller to choose the best loan terms in accordance with the perceived risk/return.

There’s no science to that because you’re not a conventional lender. Because of the serious risks involved with seller financing, sellers should do their homework ahead of time and decide whether it is an option within their level of risk tolerance. Preferably, a seller should make this decision early in the process of selling a property, well before any offer is on the table.
You need to decide that up front so that you can package your materials in contemplation of what you’re willing to do relative to seller financing.
Lawyers who are familiar with financing and financial documents can be critical resources in the time preceding and immediately after making the decision to offer owner financing. A lawyer can help a seller understand the ramifications of owner financing and design the appropriate paperwork.

Sellers just need to be prepared for what happens if the deal goes south. Sellers can then adjust the language and terms in their loan documents accordingly, such as setting a higher interest rate that’s reflective of the higher risk, or requiring personal guarantees and other forms of credit enhancements.

As the popularity of owner financing has increased, the Texas Association of Realtors has witnessed an increase in the use of its promulgated “Seller Financing Addendum”. If you are considering a Austin, TX purchase involving owner financing (either as a buyer or seller), you should consult Forte Properties. They have a team of real estate professionals in various facets of the real estate market and are very familiar with the Seller Financing Addendum and all other documents required when buying or selling homes with owner financing.

Article Source = “http://www.articlesbase.com/business-articles/how-does-owner-financing-work-owner-financed-homes-for-sale-3151785.html”

Owner Financing

We call it “the only trend that matters.”It is the most important financial idea we could ever give to you.

The fate of millions of Americans rests in a single market, where justone financial instrument trades, and…This market is collapsing. Its downfall began, as we predicted atthe time, in the fall of 2008.This single market determines our standard of living, our role inthe world, and our prestige as a nation. It directly influences the priceof food and oil. And that’s not all…

Most of the world’s other markets depend on this market, too.The price of every fixed-income security in the world is based directlyon this market. The prices of U.S. stocks depend on this market. Notdirectly, but strongly in comparison.

Most important, the U.S. dollar depends on this market.

You see, foreign investors own trillions of this asset. As the marketcollapses, foreign investors will sell. As they sell, they will also unload dollars. This market is the key to thefuture value of bonds, stocks, and the U.S. dollar. That’s why the decline of this market is the only trendthat matters.We’re talking about the collapse of the largest bond market in theworld – the market for U.S.Treasurys.The best illustration of this trend is the chart on the next page.

We urge – no, we beg – our readers topay attention to this chart. Put a copy of it on your refrigerator. Update it weekly. Keep your eye on it. Andmake sure you truly understand what it means. The chart compares the value of long-dated U.S. Treasurybonds (TLT) to the price of gold (GLD). When we say “long-dated,” we mean U.S. government debts thatdon’t come due for more than 20 years. What this chart shows you is the value of the bond market comparedto gold since December 2008.1The Only Trend that STILL MattersFebruary 2011Inside This Issue• The Greatest Trick theFed Has Played on Us• Slipping into ChinaThrough Russia• Buying  into a RussianAdventure• A Word AboutControversy____________________        Editors: Braden Copelandand Porter Stansberry

Financial

Whenever someone tells you he believes we are exaggeratingthe risks of our government’s debt load and itsdependency on “quantitative easing” (aka printingmoney), show him this chart. This chart demonstratesthe collapse of the purchasing power of our currency, asgold (GLD) rises. And it shows the corresponding collapsein the credit of the U.S. government, as bonds(TLT) fall.Just to be clear about this… We are not rear-lookingexperts. We have been warning about these issues frequently(almost continuously) since December 2008.Here’s what we wrote back then

:None of the government’s bailout plans will solveany of the problems. The government can onlyshift the burden of the failures. Instead of bondholdersand shareholders being wiped out, taxpayersare put on the hook. These actions willtemporarily resuscitate the economy – but cause apermanent decline in the value of the dollar…inflation will wipe out much of the value oflong-dated U.S. government bonds, causing theirprices to plummet.

In that issue, we told folks to “buy as much gold bullionas you can reasonably afford.” And we explained whyyou’d never have a better opportunity to buy gold stocksagain in your entire life. (We recommended the goldstock exchange-traded fund, GDX). We reiterated theseviews and explained these trends again in our January2009 issue… and in our January 2010 issue. If youhaven’t read these issues, please go back and reviewthem… today. If you don’t find our End of America predictions

We’re repeating these warnings again today because the market for U.S. Treasurys recently “broke down”through an important level. The decline seems to beaccelerating. World food prices soaring offers still moreevidence that something unusual is happening. Foodprices and the market for U.S. Treasurys are negativelycorrelated (as you can see in the chart below). That is, asfood prices rise, U.S. Treasurys fall. We know there’s afundamental reason for this: food, around the world, ispriced in U.S. dollars. As people begin to fear inflation,they buy food and sell U.S. Treasurys. Judging by foodprices, the market for U.S. Treasurys is about to collapse.

When we began writing about the looming collapse of the bond market and the risks to the U.S. dollar, a lotof people called us “right-wing nutjobs” or “gold bugs.”That’s not the case. This letter was founded (in 1999) onthe idea the Internet would change our lives in a profoundway. We write about the biggest financial trendswe can understand – whatever they happen to be. Wehave always strived to understand the facts and allow thefacts to dictate our view. Now, three years after we firstpredicted the collapse of the Treasury market, more andmore people have discovered these facts. They can lookaround and see with their own eyes what’s happening.Our ideas have gone from fringe to mainstream.(Interestingly, we tried to run a television ad warning

Debt Load