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This newsletter covers: (detailed articles follow below)
1. New FREE service. Now your phone number can be your email address. http://www.thisnumber.com.
2. What effect will rising interest rates have on home prices?
3. Your own professional note broker web site for just $139 a year including design and hosting!
4. Why won't people lend you money?
5. Note brokers! Market your notes quickly and effectively.
6. Is it worth $5 a month to give your ad a priority position on our site?
1. Ever have to give out your email address to someone who has phoned you? Or wanted to leave it in a phone message?
Chances are that it was a struggle. Now there is an easier way. Just sign up for a
trial FREE email account with www.thisnumber.com
You can use any Internet computer to check and reply to your email or even set up the service to forward to your regular, hard to spell, email address.
Then all you have to do is ask your caller to email you at: your phone number (including area code) at thisnumber.com.
You can register landlines, cell phones or even pager numbers.
2. What effect will rising interest rates have on home prices?
As you probably know, interest rates have recently risen from a historical low by about 1 percentage point.
While this might not seem like a lot, it reduces the mortgage that a buyer can qualify for by about 10-15% with the same mortgage payment. To buy the same price home they will either need a bigger down payment or will have to spend a larger proportion of their income on their mortgage payment (assuming this will even be allowed by the lender who mostly have set maximum income to payment ratios).
A difference of 1% in interest rates will probably have little effect on home prices, but what if they were to go to 8 or 9% again?
Another effect has been to reduce the number of people re-financing their mortgages. Why re-finance if you are going to be paying a higher rate?
Another effect will be for people to stay in their homes longer rather than buy a new home and have to pay a higher interest rate on a new loan.
3. NEW FOR NOTE BROKERS! Your own professional web site for just $139 a year including design and hosting!
* Choice of two domain name styles, www.yourname.buysnotes.com or www.yourname.buyscashflows.com.
* Choice of over 100 different themed backgrounds for a totally different professional look.
* On line forms for real estate notes, business notes, auto /boat paper, viaticals, lotteries etc.
* Your unique site, no links to competitors.
* Set up in 10 minutes or less, no need to know any programming.
Find out more about www.buysnotes.com.
Find out more about www.buyscashflows.com.
4. Why won't people lend you money?
Lenders greatest concern will always be to get their money back. Their next concern is the yield. Let's look at two recent ads placed on our web site. And if the advertisers
recognize themselves, please don't think I'm picking on you.
One recent ad was placed for a business loan to start a limo service. The borrower wanted to borrow $100,000 and was investing $5,000 of their own money. Unfortunately they do not have good credit.
Nor do they mention any previous experience in this business. Why would a lender take such an incredible risk and basically provide all the financing for a new business?
Now let's improve the borrowers chances a bit.
How about if they had had 5 years experience in this business in another state (if this is true)? They would of course need to offer liens against all the limos, but limos are not the most saleable of assets and lose value quickly. So more collateral will be essential.
Whst if the borrower owned their own home worth say $200,000 and there was a $100,000 first mortgage on it. As additional security for this business loan they also offer a second charge against their home. They also are willing to invest $20,000 of their own money in the business. Now the loan might be doable.
Next example. A recent advertiser wanted to borrow $259,000 for 30 years with a $10,000 down payment. They want to pay 2.9% or less in interest!
The day they placed this ad I checked 30-year US treasury rates. They were paying 5.2%.
Why would someone lend any borrower at 2.9% or less when they could get over 2 percent more lending it to the US federal government?
So the keys are: Remove the lenders risk as much as possible.
Have your own money at risk too, the more at risk, the more likely you are to get the loan.
Provide adequate assets as collateral.
Have decent credit, pay your current bills on time.
Offer lenders a fair and reasonable yield on their investment.
5. Not only is our web site a great place to find notes for sale, it is also a great place to sell the notes you already have under contract as there are many note investors looking to purchase your note here.
Click here to place an ad.
6. Is it worth $5 a month to give your ad a priority position on our site?
Lets look at the numbers. Our ads appear in date order. If your ad is always close to the top of the list you will obviously be seen more often. Let's say you earn $2,000 on an average deal. Let's say you choose Gold priority, $20 a month or $240 a year. Just one extra deal every 8 YEARS will breakeven the cost of your priority placement.
You can give your ad Gold, Silver or Bronze prominence for just $20, $10 or $5 per month. Please note that our basic ads remain free.
Give priority listing to your ad or create a new ad.
The way it works is that all Gold ads appear first, in date order, then Silver, Bronze and then free ads.
For many useful tools you may not have known we have, go to: Click
here for resources.
