How Owner-Finance Of Real Estate Can Get America Out Of The Mess And Prevent It From Happening Again
The obvious answer to not letting a bank, a mortgage broker, or a real estate agent/broker turn Americans into fools again is to not use their “services” again. Can this be done? How can this be done? The answers are quite simple. This article will elaborate.
What would the world look like if ordinary Americans stopped acting and thinking like SHEEP and started acting and thinking for themselves? Remember, sheep get slaughtered or sheared. So why not start taking charge of one’s own interests directly, whereby the buyer & seller enter into real estate transactions interactively with each other – without involving a middleman? Would there be a banker devising various junk fees? Would there be an appraiser to phony-up a value? Would there be a realtor to build up hopes for pie in the sky?
The intention would not be to eliminate the attorney or the title and escrow companies. Neither is it necessary to do away with the real estate agent – “IF” that rare agent can be found who really understands how simple his/her job SHOULD be. That job of course, SHOULD be 1.) to bring buyer and seller together in an atmosphere whereby both buyer and seller can interact with each other DIRECTLY, and 2.) to understand that the second part of his/her job is to bring both buyer and seller to an official closing at either a title company or attorney’s office.
Homes sell much faster and easier if there is owner financing involved. No question! Any seller who does not need the money should consider owner financing, for either all, or some part of the purchase. The seller can charge an interest rate if he chooses, that would easily outdo what he could get if he/she were to park the money at the bank. Plus, the seller has the security of the property itself to back the loan. What security does the bank provide for parking money in THEIR bank? It’s a piece of paper that says the money is safe. An owner who carries back the financing has the backing of his/her OWN property for safety by way of the “note and deed of trust,” or “mortgage” that he/she holds. Thus, the banker, whenever, and wherever possible, can be eliminated. Owner financing, either in part, or in whole can once again become the common way of financing real estate in America.
The reader might ask, how would prices for properties be determined? That is quite simple! The internet has some excellent sites whereby the seller (and buyer) can determine what similar properties are selling for in their immediate area, e.g., within one/half mile, same size, same construction, same age, same design, same landscape, and last sold within the past 3 months. A good, honest real estate agent (honest intellectually as well as otherwise) could also help with this; however, that agent’s comps will only be based on those properties that have been listed and sold in the “MLS” system; in other words not all the properties sold in the area will be represented.
Thus those middlemen – who have a vested interest in running up prices – will have a muffled power to ever again put America into the kind of mess we are now in.
Enjoy your day – stay happy! Don’t let anyone talk you out of it.