Hello all, I would like to start by saying that I’m not offering specific business information to avoid breaking reiclub’s rules, but I really value reiclub members’ opinions.
That being said, my business partners (A Mortgage Broker, A National Mortgage Servicer, A Title Attorney and Real Estate Investors) and I have spent the last 4 months developing a company and a very powerful website which we are launching in the next several days. The business model is to help buyers, sellers, investors and real estate professionals market/list properties offering some sort of seller financing. It is membership based and can be cancelled anytime and starts at $9.95 per month. We are bringing buyers and sellers together and help facilitate real estate transactions without the need for banks. We saw a growing need for this because of the credit crisis/mortgage meltdown and have joined forces to offer our combined expertise to guide people through the process. The company offers a full service option by bringing buyers and sellers together, offering state specific agreements and closing services and servicing/payment processing of the loans by a 3rd party loan servicer to protect the buyer and seller.
Is this a service you find potentially valuable to your success? Please ask any questions. Thanks
Hi,
I can only own 10 properties with mortgages in my name, with that said if I was inclined to sell a property with owner financing I have escrow companies with big names like Fidelity, Lawyers, Ticor,
First American, Chicago, Liberty, Security, etc.
All these companies have vast professionals with high levels of experience, liability insurance, a huge track record and legal knowledge of title and escrow documents.
All of these companies have servicing agreements available for about $9.95 per month and will prepare documents and record.
How or why would a buyer even know you exist and why would they entrust there documents or payments to you, there is a lot on the line for real estate transactions and one professional responsible to oversee state law and prepare documents for 50 states is way to sketchy for me!
I think you have a lot to think about and I imagine there are a bunch of state licenses involved here that require fudijicary responsibility within that state?
I am not going to trust sending money or rely on proper documents for real estate transactions from some company online!
Good luck,
GR
Although I like the concept in theory, i already have little trouble finding owners offering financing, because obviously many people recognize the same thing you do, that banks are making it darn near impossible to finance investment properties without jumping through all their hoops. I’m not going to pay $9.95/month to you when I can hop on craigslist and do a search for “owner finacing” and come up with about 100 results every day! and since I know what I"m doing, I can structure these deals with a bit of smart negotiating and little to no money up front!
Hi Guys,
Like I said, I am not trying to promote the company on this forum so I can’t go into all the name/brand specific details. This is a startup, but we are far from amateurs. The attorney in our partnership has been in business since 2000 and has offices and is licensed in 19 states where his firm has closed over 44,000 loans in the last 4 years. The Mortgage Servicer is a National Mortgage Servicer who has been in business since 1985 and has a servicing portfolio valued right at $3.4 Billion. They service, master service and subservice for private investors, community and state banks, credit unions, savings and loan organizations, fortune 500 banks and various government entities. The reason I know this is because I am also Executive Vice President of that company. The mortgage broker has been in business since 1998 and has originated over 10,000 loans. They are FNMA, Freddie Mac, FHA, and VA approved and originates loans in the upper 48 states. And the real estate investors have bought and sold several hundred properties using many different approaches. I personally have been focusing on buying sub2 and selling on LO with a long term hold strategy since early 2008.
GR, To answer your questions
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“How or why would a buyer even know you exist and why would they entrust their documents or payments to you”…. It is a startup, comprised of very qualified business owners, I am sure you have used companies that at some point in time nobody knew existed, Ebay, Amazon.com, Google, Craigslist, First American, Liberty, etc… Somebody was the first to use them.
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“I imagine there are a bunch of state licenses involved here that require fiduciary responsibility within that state.” Yes. You are right. Over the last 4 months we have been setting up partnerships with affiliate law firms in the other 31 states my partner does not have offices in. In fact, we have been partnering with law firms in the 19 states my partner has offices as well and it is mostly their responsibility to insure they have the knowledge and expertise of the laws in that state as well as keeping up with the changes in the respective state laws.
We have set the marketing budgets and will brand our new company to the masses in the coming months. We have held 2 test seminars, the first about 22 people showed up (only 1 real estate investor) the second seminar we held, about 35-36 showed up (just a few investors showed), out of those 55 or so people who attended, we have closed 4 deals and have 16 registration forms ready to go. (only 1 investor signed up and another just wanted our servicing company to collect for him)
In all honesty, please don’t take this the wrong way, I posted this pole and question to you guys because most of you are experienced and informed and some of the cheapest, most skeptical and brutally honest people on the face of the earth and I respect that and value your opinions as well as criticisms.
Thanks, and keep the comments coming.
Hi Great Homes,
REI Club does allow you to set up a signature with a URL at the bottom of all your postings and from time to time I do check some of my fellow investors websites to see if I can use there good's or services.
Please send me the link to your website to me in my PM box at my invitation so I can check out your site.
GR
GreatHomesBR,
A very interesting post. So if I had a 4-unit property for sale with owner financing I could contact your new company and it would be advertised online nationally for $9.95 a month?
Since these will be owner financing sales, the Mortgage Brokerage and Mortgage Servicing is for subject to loans, or for handling the monthly payments?
Can you give me a scenario for how you propose to market, sell, and service my little 4-unit property?
Furnishedowner
gain credibility at the same time gain trust of your members, along the way you might gain us…