volume 12, issue 3 march 2009 in this issue march’s main ... · the metrolina reia exists to...

InvestorMetrolina

MARCH 2009VOLUME 12, ISSUE 3

Metrolina REIA is Charlotte’s ONLY Non-Profit Real Estate Investor Association www.MetrolinaREIA.org

In This IssueSeller Financing to the Rescue . . . . . . . . . . . . . . 1

Support Your Vendor Members . . . . . . . . . . . 4

If I have to listen to one more real estate sales pitch... . . . . . . . . . . . . . . . . . . 10

Note this! . . . . . . . . . . . . . . . 11

Do the Hustle! . . . . . . . . . . . . 12

The Well Meaning Advice . . . . 12

PHP Saturday . . . . . . . . . . . . . 13

Events Calendar & Sub-Group Meeting Info . . . . . 15

March’s Main Meeting Presents Eddie Speed

Seller Financing to the Rescue!How Investors Can Profit from the Emerging Solution to the Real Estate Crisis. by W. Eddie Speed

As a real estate investor, you know all too well that the mortgage industry is suffering from a major meltdown. Lend-ing institutions are folding, foreclosures are reaching record highs, and sub-prime lending has caused a catastrophe for property sellers, buyers, and lenders alike.

As a result of today’s credit crunch, there’s only a limited pool of qualified buyers and a shrinking supply of conventional lending sources. In addition, there’s a grow-ing number of would-be buyers who can no longer obtain conventional loans—and an abundance of properties on the market at low prices.

Seller financing is coming to the rescue. It’s filling the void created by the mortgage crisis, offering an alternative to those hard-to-come-buy conventional loans. But seller financing can do more for the real-estate investor than just move property. For one, it can sell property more quickly and at higher prices. That’s because it offers a much larger pool of potential buyers.

With safe seller financing, you underwrite loans before they are made and then manage them thereafter. You mush learn how to identify and qualify capable buyers who are excluded from traditional mortgages as a result of today’s tightened under-writing standards and the diminishing umber of conventional lending institutions.

Seller financing is fast emerging as the solution to the collapse of many lending institutions and the shrinking supply of financing available from those that survive. For you, the real-estate investor, it could very well be the key to your survival in this business.

Seller Financing Goes Mainstream

After the high interest rates of the 1980s, seller financing became a specialty niche among real-estate transactions. The upheaval in the housing market, however, is now creating an extraordinary demand once again for this alternative funding source.

Consider this: Two years ago, seller financing accounted for about one in every 400 real-estate transactions. Today, it’s user in one in every fifty transactions. What’s more, some real-estate experts predict that seller financing will soon become the

continued on page 4

2 www.MetrolinaREIA.org

Metrolina Investoris a Publication of

Metrolina Real Estate Investors Association

122 W. Woodlawn Rd., Suite D-101Charlotte, NC 28217

(704) 523-1570www.MetrolinaREIA.org

Executive DirectorJC Underwood

President: Tom Latimer [email protected]

Vice President: Tim Spyridon [email protected]

Secretary: Sherry Fredenberg [email protected]

Treasurer: Ki Shin [email protected]

Board MembersDonna BordeauxCherrathee HagerLeon HumphreyTyler McCracken

Jay ParkerDoug Shields

Kimberly Shelton

Metrolina REIA Board is run by volunteers who are committed to the mission of the Metrolina REIA. Elections are held annually each November.

Newsletter Design and ProductionRaynell Swanson

[email protected]

The mission of the Metrolina Real Estate Investors Association (Metrolina REIA) is to actively promote wealth building with real estate through education, mentoring and networking. The Metrolina REIA is dedicated to helping it’s membership excel in the real estate investment arena in Charlotte, NC and the surrounding Metrolina area.

The Metrolina Real Estate Investors Association, Inc. is a professional organization dedicated to providing networking, and education programs for real estate investors.

The information presented at our meetings, on our website, and in our publications should not be construed as legal or tax advice. Legal advice should be obtained from an attorney. Tax advice should be sought from tax professionals.

The Metrolina REIA exists to expose its members to ideas that may be beneficial as they plan their business. We do not render legal, tax, or investment advice except in educational discussions and disclaim all liability for the actions or inactions taken or not taken as a result of communications from and/or to its members, officers, directors, and any employee.

The opinions expressed by the speakers and published articles are not necessarily those of Metrolina REIA.

Each individual should consult their own counsel, accountant, and other advisors as to legal, tax, investment, and economic matters concerning

real estate and other investments.

REIACharlotte, NC

Declaration of Metrolina REIA

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financing vehicle for one out of every ten real-estate transac-tions. Not since the 1908s have I seen the extraordinary in-crease in, and necessity for, seller financing.

What does this mean to you? Seller financing provides you the opportunity to sell your properties to quality buyers, at the full retail property values, and more quickly, for a substantial and steady income stream. The smart real-estate investor will become adept at using this method. Indeed, your level of suc-cess will likely depend on how well you sue seller financing.

For Quality, Qualify

Qualifying for a conventional mortgage today is much more difficult than it was just a few years ago. As a result, there are many more quality candidates for seller financing than there were in the past. These are people who have been rejected by conventional lending institutions, in part, because less money is available. More restrictive underwriting criteria are in effect, which disqualify countless candidates who have both a willing-ness and ability to meet the requirements of the loans. In ad-dition, many other would-be buyers have had hardships that they’ve since overcome.

Together, these factors contribute to a startling fact: as many as 50 percent of the people who would have qualified for a con-ventional mortgage just two years ago no longer would. True,

Seller Financing con’t from page 1

there had been much reckless lending to risky borrowers in recent years. But since the shakeout in the lending industry, many good candidates are now being denied the opportunity to borrow money.

Seller financing is the ideal solution for these people and investors alike. To avoid the same pitfalls that brought down many lending institutions, however, the investor much weigh the risk of each load and proceed only with those that present a high likelihood of success. That means being meticulous about qualifying the buyers and lending only to those of the highest caliber.

From This Day Forward…

Most people enter into seller financing contracts with the same enthusiasm with which they enter into marriage. They’re as happy at closing as newlyweds at the altar. Everybody’s eat-ing the cake and tossing the rice. But if the commitment is based solely on blind faith, the relationship may dissolve faster than ice melts in the punch bowl. No investor finances his prop-erty for a buyer with the belief that the arrangement will turn sour. At most, it’s considered a remote possibility with toler-able consequences. If the buyer defaults on the loan, the inves-tor assumes that he can simply annul the deal, repossess the property, and avoid any loss. continued on page 6


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Seller Finance: con’t from page 4

But this assumption is flawed. The buyer has occupied the property for months, perhaps years. What condition is it in now? Have the taxes been paid? Are the insurance premiums up to date? Has the buyer kept up with the routine maintenance and repairs? Or, as in the case of some foreclosures, has the buyer trashed the place and fled? With falling prices in the housing market, even the equity might be reduced. The seller/lender gets stuck with unpaid bill and costly repairs. The honeymoon is over.

Like fiancés, borrowers are emotionally involved with the transaction and might not view their situation objectively. Even well-meaning buyers might believe they can afford to commit to a long-term loan without realizing all the responsibilities and expenses they will incur, nor what it will take to meet those obli-gations. Equally excited about closing the deal, the seller might be blind to the potential risks in doing business with a particu-lar buyer. Other investors recognize the risks but believe they can sidestep a foreclosure action by having the buyer pre-sign a deed back to them at closing. That would be an invalid deed because the buyer cannot waive his future rights. But there is no protection for the seller in case the arrangement goes sour. Seller financing doesn’t come with a pre-nup.

Clearly, the smart approach is to learn all you can before you’re heavily invested in the relationship.

A Safe Bet

How risky is seller financing? Much less than it used to be. In the past, would be borrowers paying on seller-financed mort-gages were, as a group, much riskier than they are today. That’s because it was easy, too easy, to obtain a conventional loan. People who failed to qualify for traditional mortgages were, by definition, the riskiest borrowers.

Lending institutions have since tightened their criteria, mak-ing it far more difficult for would-be buyers to borrow money. As a result, more people are now purchasing property with seller financing. Squeezed out of conventional lending, formerly quali-fied applicants are increasing in number and anxious to buy property. This raises the quality of the typical seller-finance can-didate.

Many are “just missed” borrowers who now fall narrowly out-side the newly tightened criteria of lending institutions. These are reliable, low-risk prospects who show every intention of meeting the terms of their loans, and they have the ability to do so. They would have easily qualified for conventional mortgages in the past but no longer “measure up” on paper.

What the savvy investor must do is differentiate between those deserving buyers and the obviously risky ones. Your suc-cess will depend on the thoroughness with which you investi-

gate each prospect and then use sound judgment when decid-ing whether to offer seller financing.

“I Do” Diligence

Returning to our marriage analogy, approving your seller-fi-nance candidate is a lot like choosing your life partner. Few people enter marriage without having first gathered consider-able information about their mate. It starts with that first en-counter, when your date presents himself or herself in the best possible light. He appears honest; she seems responsible. As you get to know each other, you like what you see and you want this to work. You make plans.

Smart couple approach the altar having already discov-ered and judged their fiance’s background, character, values, strengths, and weaknesses. The conduct their own due dili-gence before their “I do’s”. Many singles even hire a private investigator to do an independent background check on their potential mate before proceeding with the romance. It’s smart with dating; it’s smart with lending.

Likewise, real-estate sellers should evaluate their seller-finance candidates with this same level of scrutiny. Yet too of-ten, they fail to conduct due diligence. This careless approach results in countless defaults and has created the impression that seller financing is riskier than it should be.

The savvy investor will ensure good underwriting, not only to achieve a smooth and successful transaction but also to maximize the cash value of the note. Most note holders don’t realize that the number-one variable that affects the cash value of their note is the buyer’s credit. So not only does disciplined underwriting mean a more trouble-free loan, you also create a more saleable loan in the future, and one that’s worth more.

To help ensure a profitable relationship with your borrower, then, you must perform due diligence. The independent inves-tigation will assess the accuracy of your buyer’s statements re-garding assets, income, employment, debt, and so forth. Due diligence allows you to make sound decisions based on solid facts, not subjective impressions. It allows you to distinguish the quality borrower from the risky one. And you can then cre-ate a more valuable loan. Ronald Regan said it best with his signature phrase, “Trust but verify.”

You Can Bank on it!

Using another analogy, imagine that you’re considering buy-ing stock in a bank. Despite the bank’s history of solid per-formance, let’s say it now decides to relax its due-diligence procedures. This saves both the time and expense of verifying the loan applicants’ statements and examining other sources of pertinent information. With less stringent requirements, the

continued on page 8


Seller Finance: con’t from page 8

bank is now able to qualify more borrowers and process more loans. Risky loans. Now here’s the questions: Would you want to own stock in that bank?

Unfortunately, many property owners enter into seller-fi-nance contracts with that same careless approach. They don’t pull a credit report, verify income statements, examine the employment history, or investigate the buyer’s liabilities. It’s like eloping on the first date. When you seller finance, you’re buying stock in your won bank. Make sure you can bank on your decisions.

You can be extremely successful in this business, if you use a methodical approach that calculates the risk and weighs the benefit. (Trust me, I know.) In addition, it’s much more profitable than sitting on an unsold property. But seller financing does re-quire that you understand some fundamental principles—and that leads us to our next analogy.

Playing Your Cards Right

Let’s take this concept to Las Vegas. You certainly wouldn’t play blackjack without first understanding the rules of the game. With that knowledge, for example, you wouldn’t take a hit if you have 18 and the dealer shows a 4. Otherwise, what stays in Vegas is your money.

Yet a lot of people who offer seller financing are gambling with their own assets. That’s because they don’t understand the basic principles involved. Rather than analyze the risk and then judge wisely, they unwittingly close deals with high-risks buyers.

Smart seller financing is profitable. There are plenty of aces in the huge and growing pool of potential buyers. All you need to do is find them.

The Basic Basics

During my twenty-eight years in seller financing, the question I’ve been most frequently asked by property sellers is this: At what point should you make a very aggressive underwriting de-cision?

The answer depends entirely on how much you’ve invested in the asset. If it’s worth $100,000 and you’ve invested only $25,000, you have “low basis.” With a low basis in a property, you can better tolerate a default risk.

In a way, you’re like a pawn-shop owner. You’ve taken as collateral an item whose value is far greater than the money

you’ve loaned. If the transaction proceeds as planned, your customer repays the loan with interest and you make a profit on your loan to him. If your customer defaults, you take pos-session of the collateral. Having invested only a fraction of its retail value, you can then sell it to someone else for a healthy profit.

That’s why the higher the percentage of your investment in the property (your basis), the less risk you can afford to take. Let’s say you’ve invested $75,000 in the $100,000 property. You’re now at a greater risk of losing more, if delinquency and default occur.

With a low basis you can lower your underwriting standards. I’ve known and even consulted with real-estate investors who maintained a fairly liberal underwriting practice. These transac-tions succeeded because the investors had a low basis in their properties. With an inordinately low investment in the property, say 20 or 30 percent, you can tolerate the additional risk. This strategy, however, is riskier and more challenging. It demands greater attention to detail and requires more time and resourc-es to service the portfolio. But if you have a low basis, you can apply lenient qualifying criteria and still be successful.

Seller Financing: It’s a Good Thing

Having purchased more than 30,000 seller-financed notes, I’ve seen a pattern of success and failures. These aren’t just theoretical concepts. They’re the result of actual experiences involving a range of variables. With due diligence, good judge-ment, and some common sense, you can become very suc-cessful with seller financing. And the timing couldn’t be better.

Today there are plenty of quality people who deserve the op-portunity to own their own homes. They can afford to buy your property, and they will make their payments on time. In addition to your own success in this business, you can provide a much-needed service that will help others. Are you ready to say, “I do”?

About the Author

Eddie Speed, Founder of Note School®, has purchased more seller-financed

notes than anyone else in the business. With a lifetime volume of seller-

financed notes topping half a billion dollars, Eddie has seen just about every

scenario. He is also an acclaimed instructor, mentor, and recipient of the

industry’s most prestigious award.


March Landlord Association Meeting presents

Ryan Stanton on Leases, Clauses, and Forms

Landlord Association meets 2nd Wednesday of each month at the Metrolina REIA Conference Center!

Come on out and help us examine leases, rules, forms and the other paper work that goes with be-ing a landlord. As usual your registering will be appreciated! Ryan Stanton, a recovering attorney, will lead the discussion and help as we look at the Realtors Lease and the Charlotte Apartment Association lease. These are 2 that have been vetted by North Carolina Attorneys. You are invited to bring copies of your documents for distribtion.

Skeeter Askey recommends 2 books for your consideration. 1. The Wall Street Journals Complete Real Esate Investing Guidebook. 2. The ABC’s of Property Management by Ken McElroy, a Kiyosaki protege. Comments or questions to Skeeter at [email protected].

Our 2 forms for this month are:

• Roach control: Have your tenant control and treat infestation

• Tenant Maintainence requirements.

Please remember to register online at www.Metro-linaREIA.org! Also, please wear your membership badges. Guests are asked to observe our request to join once they have exceeded their 2 introductory visits.

• Full Service Property Management & much more! • Competitive Rates • Residential & Commercial

Contact us today for details!

CLT PROPERTYM ANAGEMEN T

704-529-RENT (7368)[email protected]

122 W Woodlawn Ave, Ste D108 • Charlotte, NC 28217

Have you taken advantage of your

Metrolina REIA Membership Discounts?

Log on to the Member’s Area &

start saving money!

www.metrolinaREIA.org

IS YOUR PROFILE UP-to-DATE on the Metrolina REIA Website?

Your membership is important to us. To get the most out of the Metrolina REIA, please to log on to our website and update your profile. Go to www.MetrolinaREIA.org and here’s the instructions:

1st click on Members on the left side of the page in the grey area - the one on the bottom. That will take you to the log in page. Update your information and add your photo.

It is very important for us to have up-to-date info on each and every one of our members so we can communicate with you on all of the upcoming events and news.

If you don’t have your log in info email Kimberly Shelton at [email protected].


If I have to listen to one more real estate speakers sale pitch... by Lou Gimbutis, Education Director

Coordinating the speaking schedule for the REIA can be a tough business. In each chair within a crowd-ed meeting room sits an individual with a very different background, skill-set, knowledge base, and set of experi-ences from the person sitting next to him.

In one chair sits Nancy Newbie, who’s never done a deal but finds real estate investing fascinating, and is looking for the knowledge, techniques, and, most impor-tantly; the confidence to inspire her to do her first deal.

Next to Nancy sits Bobby Beginner. Bobby’s done a few deals, screwed them up to some extent, and is look-ing to learn to refine his techniques, increase his knowl-edge, and move forward at a faster pace.

Not far from Bobby, in the front row, sits Harry Home-buyer. Harry is a full time investor, and makes his living completely from real estate investing. Harry is here be-cause he knows that one single technique, learned and properly applied, could be the difference between him getting or losing a deal in the next year. One bit of infor-mation, put into effect in the right way and at the right time, could cause him to structure his next transaction to build in an additional $5000 in profit for the exact same amount of work, all other things being equal. One small tidbit could allow Harry to change his marketing and in-crease response rate by 25%, thereby either increasing his income by 25% or cutting his marketing budget by the same amount.

I’ve been a member of my local REIA since I first strapped on my seatbelt and boarded this incredible ve-hicle called Quick-Turn Real Estate in 2004. Since then, I’ve filled the shoes of Nancy Newbie, Bobby Beginner, and now Harry Homebuyer. In all 3 situations, I’ve gotten something of value from every single speaker that I’ve ever listened to, from local to national speakers.

Local speakers give us a perspective on what’s go-ing on in our own backyard, as well as the confidence to know that the methods and techniques we’re studying do indeed work where we live. Local speakers are also better able to present information in a straightforward, nonbiased way, as they have no motive of self interest in delivering information (no course to sell you).

National speakers are a very important component of any REIA’s lineup. A large portion of the proceeds from their sales of materials and seminars goes directly back into the REIA, to cover hard costs and to provide funds to allow for strong member benefits. They tend to be bet-ter, more polished speakers, and better able to move us emotionally and motivate us to action. They expose

us to new ideas, fresh concepts, and a different way of doing things. That some portion of their presentation contains a pitch to sell their products is a necessary evil at worst and a strong benefit at best. These fine individu-als are unlikely to travel the country at their own expense and use their valuable time to speak to organizations of strangers without some motive of self interest. The bene-fit is that many of our members want, need, and are very willing to pay for this information, the quality and nature of which would be unknown to them without the ability to hear the speaker’s detailed presentation.

I think a REIA without either of the two on their sched-ule would be a sad animal indeed, and more unbalanced than a 3-legged camel. There are only so many local speakers with valuable knowledge and a willingness to share their knowledge in front of a room full of people. Not only would we grow tired of seeing the same people speak month after month, but we would eventually begin to suffer from what marketing genius Dan Kennedy calls “Intellectual Incest”. When we are not exposed to fresh and new concepts from different areas around the coun-try, our intellectual growth is naturally “stunted”.

On the other hand, a REIA with only national speak-ers giving presentations would be equally lacking, and would begin to give the unsuspecting investor the sink-ing feeling that while these concepts may look great on a PowerPoint, they probably don’t work here in the local area.

I remember driving from western Michigan to Chicago to attend a 3 day “Sellathon”. You know the kind, where 30 speakers each get an hour or 2 to speak, thereby forcing the inevitable sales pitch to take up a large per-centage of their available time. The “pitch” takes about 20-30 minutes, whether the speaker has all day on a Saturday, or 60 minutes total. One of the speakers was Mike Butler, covering the topic of landlording. Mike didn’t get much time to speak, but one thing that he said will always stay with me, and has shaped and molded a large part of my property management philosophy.

To paraphrase Mike (it’s been 3 years, I sure can’t quote him), he said that 99% of all the emotional knots that uneducated landlords tie themselves in, almost all of the stress and anguish that landlords put themselves through, is self-inflicted and very easy to cure. When you’re flying by the seat of your pants with no firm set of policies and a tenant calls and says the rent will be late because (terrorists broke into my house and seized

continued on the next page


If I have to listen to one more sales pitch... con’t from page 10

my refrigerator, I lost my car, works been slow, . . . ), you have a decision to make. The thought process behind that decision is the root of almost all the stress most landlords face. When you have a firm set of policies that you never deviate from (rent is due on the 1st, late on the 2nd, eviction notice goes in the mail on the 2nd), you free up a huge amount of focus and emotional energy, and also “train” your tenants to pay on time.

Folks, my very first tenant kicked my butt emotionally. The rent was never there on the first, there was always some stupid excuse, and I’d always have to make mul-tiple trips to the house to pick it up myself. Time after time I put this lady in the passenger seat of my car and drove her to the liquor store to get a money order so she could pay me in documentable funds. That was before I listened to Mike Butler’s “Pitch”. Since then, I’ve prob-ably had around 20 different tenants or tenant/buyers. The other 20 combined have caused me less stress than the first one, because I followed Mike Butler’s advice to the letter.

I didn’t buy Mike Butler’s course. I didn’t pay a nickel to see him speak. But how much was it worth to me in terms of peace of mind, restful nights, smooth prop-erty management, and literally thousands of dollars in enforced late fees collected over the last 3 years, to see his “pitch”? This is but one of many, many examples.

So in closing, If I have to listen to one more real es-tate speaker’s sales pitch. . .

I’ll almost certainly get one or more solid ideas that I can use to propel my business forward. We tend to find what we search for, and if you’re searching for value, you can’t possibly find more of it than you will with the Metro-lina REIA’s speaking lineup.

Lou Gimbutis, Education Director, Metrolina REIA, Charlotte NC, www.123EscapeForeclosure.com, www.MetrolinaREIA.org

When was the last time you received a handwritten note? Unless you’re a bank teller involved in a robbery, it’s likely been ages.

There was a time when handwritten notes were commonplace. Then along came the mass-produced greeting card, the typewriter, and now the computer. Even preprinted names on holiday cards have become acceptable substitutes for handwritten signatures. Photocopied holiday letters are gaining such popularity, there might soon be a central production source for those, as well.

All these timesavers have reduced the handwrit-ten note to near extinction. That’s a shame, because nothing stands out like a handwritten note. And nothing gets remembered like it, either. After all, Hallmark does pretty and witty, but it doesn’t do personal. Neither does your keyboard—not like a pen gripped between your fingers.

For your business mailings, you might lack the time and the digital stamina to handwrite messages to all your prospects. Still, you should at least consider

writing a brief thank-you note to the few people who respond. You might also handwrite addresses on your envelopes. (Did you know that 60-70% of direct-mail envelopes are tossed, unopened? That’s because they’re so impersonal!)

Even a Post-It® note with a hand-scribbled word or two (“Thanks” or “Call me!”) can add a simple yet personal touch to your computer-generated, mass- produced letter. At the very least, hand sign your letters—or make them appear to be hand signed.

Make note to handwrite your notes! You’ll more likely be remembered by the note owners on your list. In return, they’ll hand it to you—their business, that is—for paying special attention to them!

Eddie Speed, President of Colonial Funding Group, LLC

Founder of NoteSchool™, www.NoteSchool.com

[email protected], (817) 410-4103 x104

(817) 410-4106 (fax)

P.S. Don’t write off this tip…the handwritten note speaks volumes about you and your services!

Note This!


“Things may come to those who wait, but only the things left by those who hustle.” – Abraham Lincoln

Are you a hustler? In the note business, that can be a good thing. If you’re seeking substantial success, it can be a necessity.

Hustlers chase after notes. The really good hustlers chase after the really good notes—those with the right loan size, collateral, lien position with a qualified payor, and a motivated seller.

The operative word is chase. Not attempt. Not in-quire. But chase. Chasing means both perseverance and speed. When chasing after that note, you don’t give up after your initial contact, nor do you wait weeks for your prospect to return your call or respond to your mailing. You move quickly and persistently. You chase each note until you’ve closed the deal—or the owner closes the door on you. (Figuratively speaking!)

It’s becoming increasingly important to hustle after notes. That’s because owners are turning to seller financ-

Do the Hustle! by W. Eddie Speed

ing like never before. Just two years ago, 1 in 400 homes were sold through seller financing. Today, it’s 1 in every 50. With the continuing upheaval in conventional lending, there’s every reason to believe this trend will continue. With even more opportunities to create, broker, and/or invest in notes, why would you need to hustle? In a word: competition.

Realtors, mortgage specialists, and real estate in-vestors are beginning to recognize seller financing as a viable business model, especially compared to their tradi-tional professions. As a result, they’re entering this field in growing numbers. Yes, there will be more notes—but there will be far more note specialists vying over them.

Now’s the time to kick-start your note business. Mar-ket more aggressively. Pursue quality prospects more persistently. Follow up more diligently. Go hustle or go bust!

Have you heard the one about the blonde who stops off at a library, goes to the front desk, and says, “I’d like a burger with fries.” The librarian replies, “Can’t you see this is a library?!” The blonde looks around and is startled by her surroundings. She then turns to the librar-ian and whispers, “I’d like a burger with fries!”

With apologies to blondes, including my own wife (sorry, honey), this story illustrates that understanding what’s said is not the same as understanding what’s meant. And that leads to this week’s lesson.

Do prospects understand you when you offer to buy their notes? When you explain the numbers, the discount, the payment schedule, and so forth, do they understand what you’re saying? Or are they confused by the industry jargon and the complex calculations?

Too often, the only message note owners understand is this: They’ll get less money if they sell their note now than if they hold onto it. Some deal, huh? If they only un-derstand the bottom line, they’ll likely say “no.”

That’s why your prospects should learn what it could mean to them if they sell their notes. They could pay

The Well Meaning Advice By: W. Eddie Speed

down their debt, saving considerable interest over time. They could splurge on something of personal value, e.g., a grandchild’s education, a new vehicle, or a vacation. They might invest in something that will increase in value over time. Have they considered that the declining dollar means that their buyers’ monthly payments will be worth less over time? All these have meaning.

Discover what matters personally to your prospects, and then help them understand how their notes can be transformed into something of real value to them.

Translate facts into meaningful benefits. And if it helps, add a side of fries!

P.S. The old saying “a bird in the hand is worth three in the bush” makes a lot of sense when you’re explain-ing payments vs. a lump sum of money. A substantial amount always gets you closer to your big dreams soon-er!

Eddie Speed, President of Colonial Funding Group, LLC, Founder of NoteSchool™, www.NoteSchool.com


Saturday MARCH 7th 8:30am–1:00pm

“ Wealth through Knowledge”

To Attend Register online in advance at MetrolinaREIA.org

A n I n v e S t o R t R A I n I n g e v e n t :

P H P S A T U R D A Y • M A R C H 7 T H

Metrolina REIA Conference Center 122 W. Woodlawn Road, Suite D-101

Members: $25.00 – Non-Members: $50.00

9:00 am–1:00 pm — Wendy Sweet presents “Getting the Deal Financed in TODAY’S Market”

In recent months and years, we’ve seen lending standards and guidelines change 180 degrees, and then

change again, and again, and again.

In this intensive workshop, Wendy focuses on how to still get deals financed in today’s market: how to make

lemonade out of lemons.

Lease options are a viable tool many investors are turning to for properties that aren’t selling on the open mar-

ket, but there are some very important issues that need to be addressed if you have any hope of these eventually

cashing out:

* How do you qualify you prospective buyers: what things on their credit will prevent them from

getting financing in 1-2 years, and which are easy to overcome or fix?

* How do you set up your paperwork to fly through underwriting like a “greased pig”?

* What is the best way to keep records?

* What steps do you need them to take to clean up/build credit while they’re living in your house?

Retailing has become a TOUGH strategy in today’s market. Those investors who are still successfully making a

go of it have a thorough understanding of financing, and how to use financing to entice those elusive qualified

buyers to buy their house, rather than the myriad of other house on the market.

Wendy Sweet is a former Metrolina REIA Board of Directors Member, as well as serving on the panel for the SC

Department of Consumer Affairs on their Mortgage Professional Education Services Committee. She has over 18

years experience as an investor, landlord, and rehabber, and has worked for years as a traditional mortgage broker

as well as a hard money lender. Wendy brings to the table a wealth of knowledge and insight into the tools and

techniques that we will need to master to continue doing business in today’s tough lending environment.

Counts for 4 PHP Credits in Finance


“Wealth through Knowledge”

Banks are going under at an unprecedented rate. Bank financing is starting

to become, as Earl Nightingale would have put it, “more difficult than trying to

juggle 2 skunks and a bobcat”.

With the current credit freeze, buyers can’t buy, and sellers can’t sell;

effectively grinding real estate transactions to near halt, and forcing properties

into the already overloaded foreclosure system. When you’ve gotta sell, you’ve

got to sell, so what’s the solution in these times of chaos?

“Seller Financing to the Rescue”

Eddie Speed is an industry-acknowledged expert in creating and brokering

seller-financed notes. Over the last 25 years, Eddie has purchased more than

30,000 seller financed notes, with a lifetime volume of over half a billion dollars!

This is not the first “credit crunch” Eddie’s seen, and he’s perfected a

system to allow buyers to buy, and sellers to sell, without the need for bank

approval!

Eddie is an authoritative investor, note broker, and author. When

HomeVestors needed advice in structuring their seller financing system, they

turned to Eddie Speed. Now, he’ll be right here in Charlotte to teach us these

sorely needed tips, techniques, and strategies.

All DAY SATURDAY EDUCATIon EvEnT

Registration is $30.00/members, $55.00 / non-members: Includes Lunch At the door the cost will be $40.00 / members and $65.00 / non-members.

Name____________________________________________________________ Email: ___________________________________________________________ Address:___________________________________________________________ How Many Attending: ____________ Total: ____________

Register online at www.metrolinareia.org

SPACE IS lIMITED. REGISTER ToDAY!

Seller Financing to the Rescue withEddie Speed

Saturday, March 21st 8:30am–5:00pm

Advanced registration: Members: $30 non-Members: $55

Price includes lunch

Metrolina REIA Conference Center122 W. Woodlawn Rd. Suite D-101, Charlotte, NC 28217

Advanced InvestorMeets Every Thursday – 9:00 amJonathan’s Restaurant10630 Independence Pointe Pkwy., Matthews, NCContact: Chuck Wiedenhoeft 704-236-1130

Charlotte Landlord Assoc.Meets 2nd Wednesday – 6:00 pmMetrolina REIA Conf. Center122 W. Woodlawn Ave., Char-lotte — Turn in between IHOP & Tres PesosContact: Allon Thompson 704-364-8966

HickoryMeets 3rd Monday – 6:00 pmHickory Elks Lodge356 Main Ave. NW, Hickory, NCContact: David Meier828-962-7946InternationalMeets 2nd Thursday – 6:00 pmMetrolina REIA Conf. Center122 W. Woodlawn Ave. Charlotte— Turn in between IHOP & Tres Pesos Contact: Fran Arce704-607-1502

Lake NormanMeets 1st Tuesday – 6:30 pmAcropolis Restaurant 20659 Catawba Ave. Cornelius, NCContact: Mitch Young704-421-5950

ConcordMeets 1st Thursday– 6:00 pmLogan’s RoadHouse I-85 & Dale Earnhardt Blvd. Exit 60 off of I-852431 Wonder Dr., Kannapolis, NCContact: Cherrathee HagerTwinOakProperties4U @yahoo.com 704-490-2001

Gaston CountyMeets 2nd Monday – 6:00 pmRyans Restaurant2900 E. Franklin Blvd. Gastonia, NCContact: Candy Tashiro704-691-0591

* Please note: Dates & Times of Sub-Groups meetings are subject to change. Confirm with Sub-Group leader prior to the meeting. Dates and times are correct at the time the newsletter is printed.

MatthewsMeets Every Tuesday – 6:00 pmJonathan’s Restaurant10630 Independence Pointe Pkwy., Matthews, NCContact: Tom Amann 704-668-1157

New Member Orientation5:30pm, prior to the Main MeetingHilton Hotel5624 Westpark Drive Charlotte, NC — I-77 at Tyvola Contact: Kimberly Shelton 704-877-8777 or email:[email protected]

SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

1 2 3 4 5 6 7

8 9 10 11 12 13 14

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22 23 24 25 26 27 28

29 30 31 28

March 2009 Events Calendar

Hickory – 6pm

Gaston Co – 6pm Matthews – 6pm Charlotte Landlord – 6pm

Advanced – 9amInt’l – 6pm

Matthews – 6pm Advanced – 9amMAin MEEting

6:00PMnew Member – 5:30pm

Sonrisers – 7am

Matthews – 6pm Advanced – 9am

Matthews – 6pm

Advanced – 9am

Rock Hill – 6pm

Concord – 6pm

Sub-Groups are a great way for you to learn more about real estate investing in a smaller group and network. As a guest you may attend two meetings and on the third you must join the association to continue attending meetings. *

Matthews – 6pm

Lk. Norm – 6:30pm

PHP Saturday Wendy Sweet Presents: “Getting the Deal Financed in TODAY’S Market”

All Day Event with Eddie Speed Seller Financing

Rock HillMeets 1st Thursday – 6:00 pmFireBonz BBQ & Grill2445 Cherry Rd., Rock Hill, SCContact: Grady & Susan Denton – 704-905-8469

SonRisersMeets the 3rd Friday – 7:00 amLight Rail Family Restaurant8045 South Blvd. Charlotte, NCContact: Leon Humphrey 704-460-4933

n e W M e M B e R P R o g R A M g I v e S Y o U

f A S t S t A R t t o S U C C e S S

Metrolina Real Estate Investors Association122 W. Woodlawn Road, Suite D-101Charlotte, NC 28217

This New Member Program is designed to get each and every new member off to a good

start. After completing a few basic requirements, each new member will be recognized and

awarded a certificate.

The “Fast start To Success” steps are: • Attend the New Member Orientation • Attend a

main meeting • Attend a subgroup meeting • Volunteer at an event • Register and attend a

PHP Saturday • Complete the member profile on the website.

RSVP to Kimberly Shelton at 704.877.8777 or [email protected]. The “Fast

start To Success” is held each month prior to the Main Meeting from 6:00–6:20pm.

volume 12, issue 3 march 2009 in this issue march’s main ... · the metrolina reia exists to...

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