Did you ever wonder how to not only get your own business off the ground, but to launch it into the stratosphere? On January 14th at 6pm MST, Ohana Homes will be welcoming the owners of Forward Momentum, LLC (Which owns the web businesses GnomeFrenzy.com and UltimateSportsDecor.com) to a special one-time webinar event. You already know that these guys are involved with numerous non-profits and charity organizations like The National Breast Cancer Foundation, Inc. and The Caring House Project Foundation. Now find out how they grew their business from selling a few garden gnomes from a basement into a booming E-Commerce business selling highly sought-after products in two short years!
Forward Momentum's owners Andrew Nadler and David Culver will share with you how they increased Forward Momentum's revenue by over 700% in one year. They will also cover one of the biggest challenges that entrepreneurs face when they are starting out - when and how to raise capital! Come learn how they decided how much they needed to raise to fund their tremendous growth, and how they were able to make it a great deal so that everyone could share in Forward Momentum's out of this world success!
Location: https://www2.gotomeeting.com/join/124580474
Date: Thursday, January 14th
Time: 6pm MST
Meeting ID: 124-580-474
Dial 805-309-0011
Access Code: 124-580-474
Audio PIN: Shown after joining the meeting
You can use your microphone and speakers (VoIP) - a headset is recommended. Or, call in using your telephone.
Wishing you a 2010 filled with incredible success!
Ohana Homes
Office/FAX: 888.827.7037
Cell: 917.716.1801
Email: info@ohana-homes.com
www.ohana-homes.com
www.ohana-homes.blogspot.com
Wednesday, January 6, 2010
Tuesday, January 5, 2010
Installment 1 - The Complete Guide to Seller Financing: Seller Financing in a Nutshell
NOTE: This blog is for informational use only. Before acting on any of the information provided on this blog, be sure to seek proper legal counsel.
Let’s look at all the key players in a conventional property purchase. To start, you have the buyer & the seller. The seller wants to sell their property at a certain price. The buyer typically doesn’t have the money necessary to buy the property in cash, but she does have some money that she would like to use towards the purchase of the property. In order to bridge the gap between the buyer’s available funds and what the seller wants for his property, the buyer typically asks a bank, mortgage broker or other retail lender to help her pay for the property. Before the lender will help the buyer, the lender requires the buyer to apply for a loan and provide proof that she has a sufficient credit score, and that she earns enough income to pay the lender back the amount that she needs to purchase the property over time. If the application process is successful, the lender agrees to use their money now to help the buyer acquire the property, and in exchange, the lender expects the buyer to pay back the borrowed amount plus interest over a set period of time.
Of course there are usually realtors, title companies and other parties involved in the process of buying and selling a property, but for our purposes, let’s focus on the buyer, the lender, and the seller and their respective needs. The buyer wants the property but only has a given percent of the purchase price in cash. The seller wants to receive what they believe the property is worth. The lender wants to lend money now and earn interest on the funds over time.
If any one of the 3 parties is not involved, this transaction may fail. Or will it? If the banking industry, arguably the most lucrative industry in the world of business, has built a business model around lending money in exchange for interest over a payback period, might it be worth a minute of the seller’s time to examine how they may be able to leverage a similar business model to generate income for themselves?
When a seller decides to assume the role of “the bank” and expects the buyer to pay all or part of the purchase price over a set period of time, this is essentially seller financing. If the seller has no mortgage on the property they wish to sell, then the options available for structuring payment terms are virtually unlimited. If there is an underlying mortgage on the property, then there is still a wide range of options available to structure a mutually agreeable transaction. However, the sale comes “subject-to” the pre-existing mortgage. This means that no matter what type of transaction the buyer and seller put together, the underlying mortgage terms and conditions must also be fulfilled.
A subject-to transaction is a legal technique used to acquire property without the buyer securing a new mortgage. The buyer purchases the property from the seller “subject-to” the existing mortgage. At closing, the seller deeds the property to the buyer, and the buyer takes over the seller’s mortgage payments.
When a seller understands that he has the ability to effectively “become the bank” in a property sales transaction, it gives the seller leverage to generate profit or ease the loss of the sale of their property in ways that may be much more attractive. Correspondingly, if a buyer realizes that there are other ways to purchase a property besides cash or applying for a new mortgage, she can now explore additional ways to make an offer to buy that property. In summary, by taking the bank out of the transaction, buyers and sellers can often create much more mutually agreeable transaction terms.
We’ll explore how to structure such transactions in our next post so keep an eye out for an update email from Ohana Homes soon!
Let’s look at all the key players in a conventional property purchase. To start, you have the buyer & the seller. The seller wants to sell their property at a certain price. The buyer typically doesn’t have the money necessary to buy the property in cash, but she does have some money that she would like to use towards the purchase of the property. In order to bridge the gap between the buyer’s available funds and what the seller wants for his property, the buyer typically asks a bank, mortgage broker or other retail lender to help her pay for the property. Before the lender will help the buyer, the lender requires the buyer to apply for a loan and provide proof that she has a sufficient credit score, and that she earns enough income to pay the lender back the amount that she needs to purchase the property over time. If the application process is successful, the lender agrees to use their money now to help the buyer acquire the property, and in exchange, the lender expects the buyer to pay back the borrowed amount plus interest over a set period of time.
Of course there are usually realtors, title companies and other parties involved in the process of buying and selling a property, but for our purposes, let’s focus on the buyer, the lender, and the seller and their respective needs. The buyer wants the property but only has a given percent of the purchase price in cash. The seller wants to receive what they believe the property is worth. The lender wants to lend money now and earn interest on the funds over time.
If any one of the 3 parties is not involved, this transaction may fail. Or will it? If the banking industry, arguably the most lucrative industry in the world of business, has built a business model around lending money in exchange for interest over a payback period, might it be worth a minute of the seller’s time to examine how they may be able to leverage a similar business model to generate income for themselves?
When a seller decides to assume the role of “the bank” and expects the buyer to pay all or part of the purchase price over a set period of time, this is essentially seller financing. If the seller has no mortgage on the property they wish to sell, then the options available for structuring payment terms are virtually unlimited. If there is an underlying mortgage on the property, then there is still a wide range of options available to structure a mutually agreeable transaction. However, the sale comes “subject-to” the pre-existing mortgage. This means that no matter what type of transaction the buyer and seller put together, the underlying mortgage terms and conditions must also be fulfilled.
A subject-to transaction is a legal technique used to acquire property without the buyer securing a new mortgage. The buyer purchases the property from the seller “subject-to” the existing mortgage. At closing, the seller deeds the property to the buyer, and the buyer takes over the seller’s mortgage payments.
When a seller understands that he has the ability to effectively “become the bank” in a property sales transaction, it gives the seller leverage to generate profit or ease the loss of the sale of their property in ways that may be much more attractive. Correspondingly, if a buyer realizes that there are other ways to purchase a property besides cash or applying for a new mortgage, she can now explore additional ways to make an offer to buy that property. In summary, by taking the bank out of the transaction, buyers and sellers can often create much more mutually agreeable transaction terms.
We’ll explore how to structure such transactions in our next post so keep an eye out for an update email from Ohana Homes soon!
Thursday, December 31, 2009
Wednesday, December 30, 2009
Increasing Cash Flow By Not Collecting Deposits
This is a great little video posted by Investors Workshops, one of our business partners. Many people are scared to not collect deposits from their tenants, but Shawn explains why this is a great strategy if done correctly.
Friday, December 4, 2009
Thursday, November 19, 2009
New Ohana Homes Rental
Just closed on another great rental with a new investment partner. Ecstatic that our service model is gaining more and more popularity!
Monday, September 21, 2009
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