Foreclosure Pain

"What about lease option or rent-to-own?" my state auditor asked me. "Are they for real?"



"of course they are!" I answered. "It all depends on the terms you can negotiate, and your ability to meet those terms....Why do you ask?"



Because, it turns out, my state auditor recently lost his Magnolia home of over ten years to foreclosure. His story is tragic and reflects the pain that foreclosure costs many homeowners in today's economy.



He and his wife were hardworking Philippine emigrants, she from Canada and he now a US citizen, believing strongly that ours is indeed the land of opportunity. Then his wife got breast cancer about five years ago. The chemotherapy and radiation therapy destroyed her heart. She almost died. She was fortunate to receive a heart transplant.



In the mean time, their medical bills mounted. She had made more money than he as a medical technician; he had a good state job. But now without her income, they could not pay her medical bills and make ends meet.



He applied for and received a loan modification on the house. He made the first two months payments, but was short on the third. He asked the bank if they could wait a week for the balance of the funds. The bank said no.



She lived. But they lost their house. In the process, he lost his faith in the United States (as did LuAnn Lavine in our previous post). They now plan to move to Canada when he retires in three years - but he was still wondering if maybe, maybe they could own a home again. Maybe, with rent-to-own?



Creative acquisition techniques may be the only option for future homeowners, given that so many people have been challenged in this economy. Lease purchase, rent-to-own, options and seller financing are some of the techniques that deserving buyers may use to purchase a home in a tight lending environment, where the banks are faceless, heartless corporate entities, and where 50% of all deserving buyers cannot get loans.



So yes, there are good deals out there on foreclosures. And while each foreclosure represents someone's heartache and pain, savvy buyers are jumping into the housing market where others can no longer go and providing new opportunities for someone else to have a home they can afford. Where one door closes, another opens....



And so yes, Mr. Auditor, rent-to-own is certainly an option for you and your wife. Just make sure that you are doing business with someone you trust, and that you are represented by someone who cares about giving you another opportunity to believe in the goodness of our country....

Obama and the Real Estate Broker

LuAnn Lavine of Re/Max Hometown Advantage in Henry County, Illinois caused quite a stir when she confronted President Obama at a recent presidential town hall meeting in that state. She politely asked a question of the President regarding real estate:



"Every week, I sit at the kitchen tables of families who are here today, and I listen to stories of lost jobs, being upside-down in their house, asking for help, (asking) what programs are out there," Lavine said to the President.



"In May and June, my phone was ringing, I was busier than all get-out," she continued. She told the President she thought she was seeing progress in the local housing economy.



But, she cautioned, "since the debt-ceiling fiasco in Washington, the phone has stopped. We have no consumer confidence. Interest rates are a record low. I should be working 15 hours a day, but I'm not."



Ms. Lavine wanted to know the President's plans to turn around the current housing situation.



Obama started to explain that his administration had made it a priority to set up programs to help families to stay in their homes. "We have been trying to push the banks, push the servicers to make loan modifications that will allow people to stay in their homes...."



Then Lavine politely interrupted the nation's chief executive.



"Can I please say something?" she asked. "The loan-modification system has been a nightmare; Short sales are a nightmare and the lenders are so tight and you have to be so perfect, and it's not a perfect world."



The president acknowledged the size of the problem, with a "couple million" home-loan modifications, but "...the housing market is so big."



A lot of banks have now recovered, he told her and the crowd. "They need to have slightly tighter lending criteria than they used to have, obviously, because that was a part of the reason that we had that housing bubble. Nonetheless," he said, "the banks need to be more willing to grant credit to individuals who are good risks."



In his opinion, "it will probably take this year and next year for us to see a slow appreciation in the housing market."



He thanked her for her "very good question," and moved on to others in the audience.

More Foreclosures in Seattle

RealtyTrac reports that there are 1million homes nationwide that should have received default notices or gone to foreclosure auction, which will be delayed into next year. In addition, the length of time it takes to foreclose on a home has increased. Some believe that this "shadow inventory" of foreclosures will forestall the housing market recovery until at least 2015.



Seven investors and homebuyers showed up for yesterday's Tour of Seattle Foreclosures to take a look at five 3BR foreclosed homes in nice North Seattle neighborhoods of Broadview, Green Lake, Greenwood and Ballard. A few of them are considering making offers on these homes. As mentioned in my previous post, there are not a lot of foreclosures in these nicer neighborhoods of Seattle -- but do they represent a significantly better deal than prices offered by private sellers?



Let's take a look at the statistics for this particular area of North Seattle as an example.



According to the NWMLS, there were 28 sales of banked-owned 3BR single family homes in this part of North Seattle in the past six months. The median sales price of these homes was $332,500, and they sold on average in about 87 days.



During the same timeframe and in the same area, there were 354 sales of 3BR single family homes sold privately. The median sales price of these homes was $400,000, and they sold on average in about 47 days.



So while bank REOs represent only 4% of the total inventory, approximately 7% of all sales of 3BR homes in North Seattle in the past six months were REOs; they were sold at a discount of approximately 17% of other sales prices (eg. sold for 83% of the value of private sales); and they took 85% longer to sell.



So yes, REOs do represent an opportunity for investors and other buyers to get a home at a good discount. Patience and due diligence are key in finding the right bargains for homebuyers and investors.

Seattle Foreclosures

There are 265 bank-owned, foreclosed properties in Seattle currently listed for sale on the NWMLS. Tomorrow, we will be offering a FREE tour of five of those properties. The tour begins at 1 pm, at the first house on the tour: 12743 3rd Ave NW in Broadview.



Of the 265 bank-owned (or "REO") properties in Seattle, the average REO has three bedrooms and approximately 1346sf, and the current average list price is $226,000 (median price of $180,000 - which means half the REOs cost more and half the REOs cost less).



There are three REO properties with asking prices over $1million. The most expensive REO currently listed is a seven bedroom waterfront home with 4560sf that has been on the market for 831 days. It is offered at $1,329,000. Tax-assessed value on this home is $1,680,000.



There are 41 Seattle REOs with at least three bedrooms priced under $180,000. Virtually all of these are located to the south of Seward Park in the southeast end of the City; or south of White Center in the southwest end of the City.



Popular neighborhoods like Ballard have only four REOs currently listed; Fremont, Maple Leaf, Green Lake and Leschi each have one; Greenwood three; and Haller Lake four. Capitol Hill has two.



523 REOs have been sold in Seattle in the last six months, with an average size of 1500sf with three bedrooms and 1.75 baths. The average sales price was $239,000 (median $205,000). Median days on market was 76 (half sold faster, half slower).



There have been 82 sales of Seattle REOs in the last 30 days. In the last 30 days, most of the sales of three-bedroom REOs under $205,000 have taken place south of White Center in southwest Seattle.



Our tour tomorrow focuses on three bedroom homes in more desirable neighborhoods of Seattle like Broadview, Greenwood, Green Lake and Ballard. No reservations are necessary, and the tour is free. For more information, please call our 24/7 real estate recorded information line at 888-621-4999 x4.

Are your subcontractors covered by worker's comp?

Hey, investors!

Guess what? Those subcontractors you hire to fix your rental or flip your house may not be independent contractors. They may actually be employees, even if they are subcontracted through your general contractor. You may have to pay the Department of Labor & Industries to cover workmen's compensation, should they happen to be injured on the job and file a claim.



I was just audited by the Dept of L&I myself; just a "courtesy" audit to help me set up my real estate brokerage correctly, and to understand state laws and regulations as they apply to employees, broker associates, and subcontractors of my business.



I did have two brokers affiliated with my firm at the beginning of this year, and knowing that the State of Washington requires real estate brokers to be covered by L&I, I had signed up for coverage. I also elected to sign myself up for coverage, as virtually everything I do is work-related. At roughly $30/month, it is about the least expensive accident insurance I can buy!



But back to those subcontractors. Here are the qualifying questions the State requires to be answered in determining their status with regards to employment and L&I coverage:



1. Are you hiring someone for more than personal labor? or are they bringing heavy equipment?

2. Are you supervising?

3. Do they have an established business of their own? There are seven separate tests to determine the answer to this question.



I was surprised to find that MOST of the people I considered to be subcontractors, would in fact be considered to be my employees by the State. That means that I would need to be reporting their hours quarterly and paying L&I for workers compensation. They are probably also eligible for unemployment taxes and benefits.



For more information on this topic, see "A Guide to Hiring Independent Contractors in Washington State," or contact the Washington State Department of Labor & Industries.

FREE Tour of Seattle Foreclosures!

It was reported this morning on NPR that 60% of all homes sold nationally are foreclosures. Buyers and investors are looking for bargains, and bank-owned properties offer significant discounts over retail, private sales.



If you are looking for foreclosed bargains in Seattle, you are welcome to join our FREE Tour of Seattle foreclosures this Sunday. Just show up at the first house at 1 pm SHARP! (Please note that times are exact, so don't be late)!



The first house on the tour is located in Broadview, at 12743 3rd Ave NW. Here is the tentative schedule this Sunday:



1 – 1:15pm: 12743 3rd Ave NW $269,000

1:25 – 1:40pm: 9242 Palatine Ave Ct N $449,000

1:50 – 2:05pm: 701 N 86th St $299,000

2:15 – 2:30pm: 330 NW 75th St $350,200

2:40 – 2:55pm: 8537 19th Ave NW $499,900



You will pick up maps and detailed listing information at the first house.



No reservations are necessary; no sales pressure, no obligation. You drive your own vehicle, so you may stop at whichever homes you wish to see. As a part of a larger group, you will have opportunities to learn from the constructive comments of your fellow tour members.



For more information, please message me privately or contact our 24/7 recorded information hotline at 888-621-4999 x4.

Bank-Owned and Foreclosed Properties in N Seattle

Our final Tour of Seattle Homes this month features three-bedroom REO ("Real Estate Owned") or bank-owned properties. The Tour will be held from 1-3 pm this Sunday, August 28 - and no reservations are necessary. Just show up at 1pm sharp at the first house on the tour to pick up maps, directions, and more detailed information.



There will be five houses on the tour, each with a minimum of three bedrooms, ranging in list price from $269,000 to just under $500,000. These houses have an average size of 2112sf and have been on the market for an average of 95 days. Broadview, Greenwood, Green Lake and Ballard are the desirable North Seattle neighborhoods where these properties are located.



The first house on the tour is located in Broadview, at 12743 3rd Ave NW. A proposed schedule of homes on the tour will be posted on this blog tomorrow.



The Sunday Tours of Homes are led by myself, Wendy Ceccherelli, Designated Broker for Home Land Investment Properties, Inc. I am an experienced real estate investor, and the tour provides valuable guidance for first time home buyers, real estate investors and other bargain house-hunters.



To be notified of upcoming Sunday Tours of Homes, call our free 24/7 recorded real estate hotline at 888-621-4999 x4.

Update on Sunday Tour of Fixers

Our "Fixers" Tour of Homes today has been modified to include this home in Brighton, and to drop one which is still "attractive" enough for a drive-by ("attractive" when referring to fixers may be a bit of a misnomer).



Both houses are located in solid working-class neighborhoods, close to the up-and-coming Columbia City neighborhood. This one was added because it is vacant, has been on the market for more than five months, seller appears highly motivated, is a large (almost 9000sf) lot, zoned L2. This is definitely a fixer with potential.



Five houses on today's tour range in asking price from $200,000 - $300,000.



Maps, more information, and directions will be available to pick up at our first house on the tour, today at 1pm: 1014 E. Spruce Street. The tour is FREE and no reservations are necessary.

Spacious Six-Bedroom Leschi Rental OPEN TOMORROW!

Know anyone looking for a spacious view rental with plenty of bedrooms and parking in a nice Seattle neighborhood near parks, playgrounds and Lake Washington?



Look no further! This may be just what they need:



Fabulous remodel of this 1905 Dutch Colonial. Remodeled from the studs with all new systems. Open and light with views of the lake and mountains. Large top end VIEW kitchen w/pantry,sitting bar,office nook,granite counters,SS appliances,opens to family room. Gleaming hardwood floors, tall ceilings, recessed lighting and designer colors.



Upper level has 4 bedrooms and 2 full baths. Master suite features a view sitting room with deck, private bath w/jacuzzi tub,and gas fireplace.



Basement has 2 bedrooms, full bath, kitchen stubbed in and rec room.Possible MIL or nanny quarters.Separate entry.



Finished 600sq.ft.attic w/view. Great play area, hiding place or secret retreat!



Fully fenced corner lot. Convenient location two miles east of downtown Seattle, near Lake Washington, parks, buslines and recreational amenities in a quiet residential community.



Available Sept. 1. Owners packing to move, but Open House TOMORROW, Aug. 20, 2-4pm.



Wendy Ceccherelli

Home Land Seattle

(888) 621-4999

Fixers in Seattle on Sunday's Tour of Homes!

Sunday Tour of Homes

Interested house-hunters are invited to Seattle’s Sunday Tours of Homes this month, which will feature properties of special interest to investors, cash-buyers, and first-time homebuyers. The tours are free, and sponsored by Home Land Seattle.

Our next tour will focus on “fixer” properties listed for sale in central areas of Seattle from Beacon Hill to Leschi to Columbia City, for under $300,000. The tour is scheduled from 1-3pm this coming Sunday, August 21.

Tour participants will meet at 1 pm sharp at the first house on the tour. You will pick up detailed maps, directions and information of the featured houses at the first house.

Here is the tentative schedule this Sunday:

1 – 1:15pm: 1014 E. Spruce Street $279,950

1:25 – 1:40pm: 123 24th Ave $300,000

1:50 – 2:05pm: 1534 Sturgus Ave S $219,000

2:15 – 2:30pm: 5042 35th Ave S $199,999

2:40 – 2:55pm: 4220 49th Ave S $239,950

The remaining tours are scheduled as follows:

8/21 - Fixers

8/28 - REOs, Foreclosures



No reservations are necessary; no sales pressure, no obligation. You drive your own vehicle, so you may stop at whichever homes you wish to see. As a part of a larger group, you will have opportunities to learn from the constructive comments of your fellow tour members.

The Sunday Tours of Homes are led by Wendy Ceccherelli, Designated Broker for Home Land Investment Properties, Inc. She is an experienced real estate investor, and the tour provides valuable guidance for first time home buyers, real estate investors and other bargain house-hunters.

To be notified of upcoming Sunday Tours of Homes, call our free 24/7 recorded real estate hotline at 888-621-4999 x4.

Working with Cash Buyers

As so many new investors are interested in wholesaling, this article focuses on working with cash buyers and investors.



Some wholesalers (or “bird dogs,” as they are also known) have a Buyer questionnaire or spreadsheet identifying the criteria that their cash buyers need or want in a property. Having a detailed list of specifications, the wholesaler can negotiate in confidence with a seller, knowing that there is already a buyer lined up (assuming, of course, that the price is right).



Use your real estate investor association to network with investors who are already buying a large number of properties. Who is buying? And what are they buying?



Here are some of the questions you might want to know from these buyers, if they are focused on residential properties:

What cities, markets, or neighborhoods are of interest?

What are the demographics of those markets?

What are the minimum number of bedrooms and bathrooms they will consider?

Minimum square footage?

Price range?

Any style of architecture they particularly want, or don’t want?

Age and condition of the house?

Any deal killers? (eg. Busy streets, power lines, foundation issues, etc.)

Any required amenities? (eg. Basements, garages, etc.)



If they are buying commercial property, here are some of the questions a wholesaler may need to know:

Local or out-of-state markets?

What type of commercial properties? Class A, B or C?

Minimum/maximum units or square feet?

Price range?

Lowest acceptable CAP rate?

Minimum building age and/or amenities?

Demographic preference if any (i.e. rural vs. urban)?



What does the wholesaler do for the buyer?

Some wholesalers just provide leads, and the buyer does all the negotiation with a seller. Some wholesalers begin discussion with a seller, then let the buyer take over when a promising prospect seems apparent. The best wholesalers will handle all negotiations, get the property under contract, and then assign the contract to their cash buyer. Any model can work. Start wherever you are most comfortable, and discuss the details of your business arrangement with a buyer you can trust. Make sure your buyer will honor the commitment to compensate you for the work you have done. An assignment contract usually prevents a buyer from cutting the wholesaler out of the deal.



Where else can I find cash buyers?

Aside from your real estate association, anywhere that cash is required to buy a house! Check out the foreclosure auctions and other auctions. Chat with people you see bidding. Guru Tony Youngs suggests mentioning to them that you might be interested in buying that house they just successfully bid upon!



Pass out business cards and flyers on any properties you are trying to wholesale.

Network, network, network!



So how many cash buyers would a wholesaler need to get started?

Probably just one or two serious cash buyers can keep a wholesaler pretty busy. It is always nice to have more, but once you start finding really good deals, you will find it easy to expand your cash buyer list. A good deal for a cash buyer has everything to do with price.



So how does a wholesaler determine a good price to negotiate with a seller? Stay tuned to this blog for a future focus on Pricing It Right, which will help the wholesaler negotiate with confidence!

Fixers on Sunday's Tour This Week

Investors love fixers!



And why is that? It is because an investor is not afraid to do the work necessary to "add value" to a house that has been neglected, needs updating, or has lots of deferred maintenance. In any housing market, a "fixer" usually commands a respectable discount, enough to allow for at least the costs of fixing up the property. Most investors will be looking for an even steeper discount, in order to minimize their risk, such as unforeseen fix-up costs, changes in the marketplace, holding costs,etc.



Fixers tend to be snapped up fairly quickly in high demand neighborhoods, where inventory tends to be lower and houses are generally kept in top condition. When they do come onto the NWMLS, they are gone quickly.



For my upcoming tour this Sunday, Aug.21, I will be focusing on fixers in the $200K - $300K price range, in nice central neighborhoods like Leschi, First Hill, Beacon Hill and Columbia City. These are still fairly desirable neighborhoods, close in to downtown Seattle, with good sales activity - and where the supply of fixers are more plentiful.



So stay tuned to this blog, where I will post the schedule of houses to be featured on this tour by Thursday, at the latest.



For more information on our Sunday Tours of Homes in Seattle this month, please call 888-621-4999 x4. Or send me a private message. The tours are FREE and I look forward to meeting you there!

Sunday Tour of Free and Clear Homes in N Seattle

A couple of houses scheduled for our FREE tour of homes tomorrow have received offers. Our revised schedule is:



1pm- 11724 9th Av NW

1:25p- 9822 Linden Av N

1:50p- 11531 Corliss Av N

2:15p- 6630 19th Av NE

2:40p- 5503 6th Av NW



In addition, there are a couple of open free and clear houses that may be toured from 1-4pm. Detailed maps and information will be given at the first house on the tour.



Please contact me directly for additional information on our FREE Tour of Free and Clear Homes in N Seattle tomorrow, August 14. Our next tour on Aug. 21 will focus on fixers for under $300,000.

Mortgage Rates to Increase Soon!

Inventory of homes for sale is up, prices are down, and interest rates are near record lows. The end of summer means more sellers will be motivated to entertain offers below their asking price or for creative terms (hence, our FREE Sunday tour of free and clear homes in Seattle. See previous posts).



So should you buy now? or wait for prices to come down?



Well, here's what happens when mortgage rates rise, as they are expected to do in the near future:



What a difference an interest rate increase can make!



Example:



Sales price: $400,000

Loan amount: $320,000 (20% down = $80,000)

Mortgage rate: 4.50%

Mortgage payment: $1621.39

Total paid: $583,700.40



Now say home prices fall 10 percent over the next year or two, while mortgage rates rise from 4.50 percent to 6.00 percent, which isn't necessarily unlikely.



Sales price: $360,000

Loan amount: $288,000 (20% down = $72,000)

Mortgage rate: 6.00%

Mortgage payment: $1726.71

Total paid: $621,615.60



Hmmm...maybe it is time to buy after all....give me a call and I'll send you automatic email updates of homes that meet your buying criteria, as soon as they hit the market (or before!).

North Seattle Free and Clear Homes on Tour Sunday

I have re-designed my Sunday Tour of Homes to focus on the North Seattle neighborhoods that appeal to my colleague and fellow investor Arliss. Actually, the North Seattle neighborhoods that we will visit on Sunday held the most appeal for everyone who showed up for the tour last week.



These neighborhoods are quiet residential communities, with easy access to downtown Seattle, interstate 5, and bus lines. They are walking distance to really cool shops, restaurants, community centers, libraries and grocery stores. They are close to parks and beaches of Puget Sound, Green Lake, and Lake Union. These are high-demand, desirable Seattle neighborhood locations, so it just makes sense to focus my FREE tour of free and clear homes here.



Here is how the tour will work:

Tour participants will meet at 1 pm sharp at the first house on the tour, 11724 9th Avenue NW (specific locations for the tour were posted on the previous Seattle Real Estate Investor blog). You will pick up detailed maps, directions and information of the featured houses at the first house.



There will be 5-7 houses on the tour, most located in the Ballard and Greenlake neighborhoods of Seattle. Information will be provided on additional free and clear houses hosting open houses in the area that day. Houses planned for the tour (at this point) range in price from $270,000 - $450,000; with three bedrooms, and an average size of 2213sf.



The Tours are scheduled as follows for the month of August:

8/14 - Estate Sales and other Free & Clear Properties in N Seattle under $450,000

8/21 - Fixers

8/28 - REOs, Foreclosures



No reservations are necessary; no sales pressure, no obligation. You drive your own vehicle, so you may stop at whichever homes you wish to see. As a part of a larger group, you will have opportunities to learn from the constructive comments of your fellow tour members.



The Sunday Tours of Homes are led by me, and the tour provides valuable guidance for first time home buyers, real estate investors and other bargain house-hunters.



To be notified of upcoming Sunday Tours of Homes, call our free 24/7 recorded real estate hotline at 888-621-4999 x4.

Schedule for Sunday Tour of Homes

Here is the schedule for this Sunday's tour of free and clear homes in North Seattle, below:



1 - 1:15pm: Meet at 11724 9th Av NW, $415,000

1:25 - 1:40pm: 9822 Linden Ave N, $269,888

1:50 - 2:05pm: 11531 Corliss Ave N, $349,000

2:15 - 2:30pm: 8245 Corliss Ave N, $350,000

2:40 - 2:55pm: 6530 19th Ave NE, $369,950



Possible sixth house to visit: 5503 6th Ave NW, $349,950



Other free and clear homes that can be visited between 1-4 pm on Sunday include the following:

14052 3rd Ave NW, $299,950

12501 2nd Ave NW, $350,000

2508 N 39th St, $449,950



Pick up maps, directions and more detailed information at the first house. For additional information, please contact me directly at 206-355-1706 or at HomeLandInvestment@gmail.com, or by calling 888-621-4999 x4 for pre-recorded information on our Sunday Tours of Homes in Seattle.

Sunday August 14 Tour of Free and Clear Homes in Seattle

This coming Sunday's tour of homes is focused on North Seattle properties owned free and clear, and priced at less than $400,000. At least one-third of all homes in the United States are owned free and clear, so there are quite a few that a buyer might find on the Multiple Listing Service.



Our tour homes are priced from just under $200,000 and up to $370,000. They have from 2-4 bedrooms, and an average size of 1735sf. We will post details on where to meet for the tour on this blog by Thursday of this week, so check back for more details.



Investors are interested in free and clear properties because at least the possibility exists that sellers may be able to carry financing.



For more information about our Sunday Tours of Homes in Seattle, please call my recorded information hotline at 888-621-4999 x4. Or message me for more details.

Sunday Tours of Homes in Seattle

What did we see on yesterday's tour of seller-financed homes in Seattle?



Well, I would love to tell you about the Ballard house in a great residential location close to Shilshole beach, a sweet little 2-bedroom that backs up to a green belt. Or the large five-bedroom West Seattle house with a second kitchen on a corner lot and views of the Puget Sound near Lincoln Park. Or the least expensive house on our tour, which has three bedrooms, very nicely remodelled, that comes with very attractive lease-purchase terms. Or perhaps our last stop on the tour, which offers very flexible financing terms from an experienced (and motivated!) REAPS investor.



Unfortunately, I can't tell you about any of these properties, because NONE of them allow blogging!



The NWMLS recently added a field to address blogging. The default value is to PROHIBIT blogging, so most agents just check this box automatically without thinking about how helpful it might be to their marketing and promotion efforts.



I ALWAYS encourage my seller clients to ALLOW blogging. So brokers like myself can help promote their listings! On blogs like this, for example.



Oh well. To find out more about any of these houses you missed on our tour yesterday, you will need to contact me directly....

Listings Fall! Come See Inventory on our Homes Tour Today!

A scan of inventory on the NWMLS shows that the number of listings in Seattle has fallen, perhaps because there is a bottleneck in processing foreclosures. Our Sunday Homes Tours this month will focus on inventory for both foreclosures and other opportunities for investors, cash-buyers, and other house-hunters.

The first tour of the month will be today at 1pm, and focuses on seller-financed listings. The tours are free, and no reservations are required. Just show up at 8818 30th Ave NW in Ballard, for maps and directions. I will be leading the tours.

Our tour the last Sunday this month will focus on foreclosures and bank-owned properties. There is plenty of inventory for the tour! But for more details on the recent news story about falling inventory, please click here.

For more information on our Sunday Tour of Homes in Seattle this month, call our 24-hour recorded real estate information hotline at 888-621-4999 x 4.

Lease-Purchase Homes Tour in Seattle

Three of the five houses on our FREE Sunday Tour of Seller-Financed Homes for sale in Seattle tomorrow are rent-to-own, or lease-purchase options. These houses can always be bought with cash or a conventional mortgage, but the sellers have also agreed to consider offering this creative form of seller financing.

Here are ten reasons a seller may consider offering this type of financing:

1. The seller can receive top sales price for her property without haggling.

2. There is large market available at all times of the year.

3. Higher quality of tenants because these are REALLY buyers who plan on someday owning this property.

4. Higher rent than usual for the market area.

5. Non-refundable down payment, which is the seller's to keep.

6. Tenant/buyer is responsible for all minor maintenance.

7. Seller remains on the deed. It’s still the seller's property until the option is exercised.

8. Seller retains tax shelter.

9. Seller continues to enjoy all of the tax advantages (check with tax advisor for details).

10. No lengthy vacancies. Have a new tenant buyer in the home in weeks, not months!

For more information on Sunday's Tour of Seller-Financed Homes in Seattle tomorrow, call 888-621-4999 x4.

Five Seller Financed Homes on Tour Sunday

Interested house-hunters are invited to Seattle’s Sunday Tours of Homes this August, which will feature properties of special interest to investors, cash-buyers, and first-time homebuyers. The tours are free, and sponsored by Home Land Seattle.

Our first tour is scheduled from 1-3pm this coming Sunday, August 7.

Tour participants will meet at 1 pm sharp at the first house on the tour, 8818 30th Avenue West.

There will be 5 houses on the tour, approximately half located in north Seattle, and the other half in West Seattle. Houses planned for the tour (at this point) range in price from under $200,000 - $349,500; with two – five bedrooms, and an average size of 1900sf.

Here is the tentative schedule for Sunday:
1-1:15pm 8818 30th Ave W $275,000
1:25-1:40pm 2148 N 88th St $315,000
2-2:15pm 1613 SW Austin St $199,975
2:25-2:40pm 8304 California Ave SW $349,500
2:50-3:05pm 3763 SW 100th St $289,900

An updated schedule will be available at the first house on the tour, or leave a message with me to confirm, if you would like to meet us later on the tour.

Seller Financed Homes for Sale in Seattle

There are currently 73 residential properties, houses and condos listed on the NWMLS for sale in Seattle that advertise seller financing, or lease-purchase terms. Please contact me for a free list of owner-finance properties with photos, or sign up for automatic email updates as new homes come on the market.

PS. This photo is from one of the property listings....

Top Reasons to Lend Private Money

Our first two tours of homes in August will feature properties that are or can be financed by the seller. In these cases, the seller acts as a private lender.

Here are some of the top reasons why someone might want to lend private money, secured by tangible real estate:

Totally passive income: A private lender makes a loan to an investor, but does not have to acquire the property, fix it up, manage tenants, monitor a budget, or market it for sale. A private lender is given a fixed rate of return, regardless of the ups and downs of the marketplace.

Higher Rates of Return: A real estate investor can typically offer 2-3X greater rate of return than the best interest rate a lender can earn through the bank, in stocks, bonds or CDs.

Low Risk: A private lender’s investment is secured by a tangible asset as collateral, unlike stocks and bonds which are unsecured (why do they call them securities, I wonder?). This investment is secured with a promissory note and deed of trust; and lender’s insurance also protects the lender. The lender is named as additional insured on the insurance policy.

No cost to the lender: There is no cost to have your investment managed for you, unlike your typical financial advisor or funds manager who takes 1-2% in management fees off your securities investment portfolio.

You can drive by your investment: Your investment as a private lender is secured by tangible real property. You may decide which property you wish to collateralize your private loan. You may visit the property as an investor works on fixing it up to see what they are doing with your investment.

Unique opportunity: A private lender’s investment is highly localized, typically in neighborhoods and properties with which the lender is intimately familiar.

Real World Investor: Typically, the private lender has met and knows the real estate investor securing the loan. The investor is personally accountable to the lender. In addition, the lender can check references and credit histories from the investor.

Educational: A private lender has the opportunity to learn from and study real estate investing, by observing the entire process as an investor in it.

Community Involvement: The private lender has the reward of knowing that s/he has helped in improving and revitalizing a neighborhood, offering affordable housing for an end-buyer, and played a small role in saving the world…one house at a time….