2. Your PresentersYour Presenters
Jax PetteyJax Pettey
Real Estate Attorney 801-208-0025Real Estate Attorney 801-208-0025
President of 1President of 1stst
National Title Jax@1stNationalTitle.comNational Title Jax@1stNationalTitle.com
George AndersenGeorge Andersen
Mortgage Banker 801-550-1382Mortgage Banker 801-550-1382
Credit Education george@solaruslending.comCredit Education george@solaruslending.com
Rob AubreyRob Aubrey
Associate BrokerAssociate Broker 801-694-4762801-694-4762
Resident GeekResident Geek rob@aubrey.netrob@aubrey.net
3. Discussion TopicsDiscussion Topics
Seller Financing…Seller Financing…
Just a short term “Bridge Loan”?Just a short term “Bridge Loan”?
How does theHow does the BANKBANK look at it?look at it?
The Long Term SolutionThe Long Term Solution
How does theHow does the LAWLAW look at it?look at it?
The Legal and Board of Realtor SideThe Legal and Board of Realtor Side
4. Not Cover Today
Cover Today
Real Estate Principles, Contracts,Real Estate Principles, Contracts,
Mortgages, Credit, LawMortgages, Credit, Law
5. The Reality…The Reality…
1.1. 43 Million Americans (25.5%) with FICO43 Million Americans (25.5%) with FICO
scores of 599 or belowscores of 599 or below *www.247wallst.com 07/13/2010*www.247wallst.com 07/13/2010
2.2. Feeder population of “un-banked”Feeder population of “un-banked”
3.3. Over supply of housingOver supply of housing
4.4. Tighter credit standardsTighter credit standards
Just a blip???Just a blip???
6. Where is Contract for Deed?
What is the 4155?
Is this something new?
Will it stick around?
Magna Carta
What are overlays?
7. Where is the resistance?Where is the resistance?
The home owner The listing agent
Visual Acuity - Test #1
8. DDyynnaammiiccaallllyy structured seller financingstructured seller financing
Uniform Real Estate Contract (Contract for Deed)Uniform Real Estate Contract (Contract for Deed)
Can write over an FHA or a VA loanCan write over an FHA or a VA loan
Buyer may use combinations of cash and hard costs ofBuyer may use combinations of cash and hard costs of
improvements to satisfy down paymentimprovements to satisfy down payment
Seller retains titleSeller retains title HUD Circular Letter 7 - 90HUD Circular Letter 7 - 90
Buyer holds enforceable “Equitable Interest”Buyer holds enforceable “Equitable Interest”
www.realestate.utah.gov
9. Direct substitutes for a CA$H down payment
1. Roofing
2. Windows
3. Insulation/weather stripping
4. HVAC systems
5. Solar and wind systems
Fun things you can do with FHA loans
• Negotiated with other sales concessions
1. Carpet and decorating allowance
2. Plumbing and electrical fixtures
• 3 ways to borrow money for down payment
10. The Role of the Lender
1. Identify the Road Block
2. Prescribe the Remedy
3. Set time frames
4. Get commitments
5. Structure the final close
On the hook, and get paid LAST!
11. Fico, the big 3, and big business
bankruptcydischargesettlement.com (2008)
In June of 2004, the Public Interest Research
Group revealed that (79% or more) have
significant errors in their credit profiles. These
errors affected credit scores by 50+ points.
10th
Circuit Appeals Court ruled that E-Oscar is
not a reasonable validation method (2010)
12. Government bail out for
credit scores?
Credit
Education!!!
You cannot play the seller finance game
without this relationship…
13. Approved in all 50 states
Personalized credit coaching
Education and self-help library
12-month credit restoration service
24/7 web access
Money back guarantee
Refer 5 and the service is FREE
www.united-www.united-
credit.orgcredit.org
14. Banks, we don’t need no stinking Banks
Possible Titles for the
SELLER FINANCE
SYSTEM
15. How To write the OfferHow To write the Offer
REPCREPC
May need to cross out certain sections.May need to cross out certain sections.
Seller Finance AddendumSeller Finance Addendum
Select Appropriate TermsSelect Appropriate Terms
For Contract for DeedFor Contract for Deed
Select OtherSelect Other
Write “Contract for Deed/UREC”Write “Contract for Deed/UREC”
16. More items to chew on…More items to chew on…
#1#1 Sales are entered on the MLSSales are entered on the MLS
#2 Transaction is eligible for a 1031 Exchange
Paradigm Shift – it’s the decade of the Realtor
17. Benefits to the Transaction?Benefits to the Transaction?
HUD1 settlement statementHUD1 settlement statement
Owner’s policy of title insuranceOwner’s policy of title insurance
Closed with 3Closed with 3rdrd
party legal adviceparty legal advice
Payments made to, and “trigger” documentsPayments made to, and “trigger” documents
flow through, a 3flow through, a 3rdrd
party escrow companyparty escrow company
…Looks, feels, and acts like an institutional closing
18. Make a bigger net
Haul in ALL the
fish
Sift and Sort
Policy
Revised Sales Strategy
19. What is the Objective?What is the Objective?
1.1. Share the information and educateShare the information and educate
2.2. Set up regularly scheduled classes for:Set up regularly scheduled classes for:
a. Our peers and co-workers who
will attend this class
b. Our Sphere of Influence who will
attend a Consumer Oriented class
Seller Finance Education
Website, coming to a computer near you!
21. Just do it!
You retain on
average only 7% of
what you hear.
To learn, you
must DO.
22. Catch a tsunami and you’re
sitting on top of the world.
DYNAMIC
FINANCE
EDUCATION
23. First thing: write it down
Legal advice must be given in each of these
transactions.
You should not give it:
24. Or you can Have An Attorney do it
Your Broker
Your Team
Leader
Your Owners
25. Seller Finance Options
1. Lease Option
2. Contract for Deed
3. A.I.T.D.
Strong For Mo. Legal You
Seller 2 $500
Both 2-7
$1,500Buyer 7
$500
to
$1500
26. In order to have a successful
transaction, you must:
Customize Contracts to Meet the Specific
Needs of each party to the contract
Correctly Educate all parties to ensure
Creditability and Comfort
Indemnify, Indemnify, Indemnify
Close the Transaction
30. CROA and the Financial Reform ActCROA and the Financial Reform Act
As a federally-chartered
credit union
As a credit union services
organization
As an operating subsidiary
of a federally-chartered
credit union
United-Credit.org
Sift and sort your prospects while the law
sifts and sorts your strategic partners
Monetary acuity - test #2
32. Three Types of People
1. Those that don’t get it and do it,
They will be SUCCESFULL
2. Those that get it and do it
They will be VERY SUCCESFULL
3. Those that don’t do it
Learn the script, “Would you like fries with that?”
Next Class in….???