"Boater" wrote in message
...

moneybox
The Subprime Good Guys
These mortgage lenders loan to poor people, strengthen communities, and
are still making a profit. How do they do it?
By Daniel Gross
Posted Saturday, Nov. 15, 2008, at 7:42 AM ET



There are other ways too.

We are in the process of finalizing the sale of our old "Farmhouse" (the
one my mother lived in until recently).

The buyers are a young couple who Mrs.E. met through her horse activities.
They are great, hard working people in their early 30's who have been living
in an apartment, trying to save up to buy a house.

Long story short, we are selling them the old Farmhouse for $300K which is
$65K less than what we paid for it 7-8 years ago. But, we are being the
"bank", holding the mortgage. We backed into the agreed price by first
determining what they could comfortably afford in terms of monthly payments,
including taxes, insurance, utilities, etc.

It sounds crazy, but it works out fine for them and for us. The interest we
will earn (6%) over the 30 year mortgage term more than covers the "loss" of
65K plus any future appreciation of the house value.
We have a penalty clause for early payoff to protect us that will guaranty
at least $400k net to us.
They don't have to come up with a downpayment .... I'd rather they keep
their savings as emergency funds ... nor do they have to pay finance fees,
or mortgage insurance fees to a bank.

Other than that, it's exactly like they went to a bank and got a mortgage.
They can sell it, refinance it, do whatever they want.

When I called our accountant recently (also a "financial planner" who's
services we've never used) to set up the paperwork, he started to comment
that we'd be better off selling it outright, take the proceeds and invest it
..... and then he stopped and chuckled. He acknowledged that the current
economic climate was probably not in his favor to convince me to allow him
to invest our money.

Anyway, this is the second time we have done this with property we bought a
while back. The first one, done about 5 years ago has worked out perfectly
for both the buyers and us. Adding this one provides additional income for
us in our retirement years as well as affords home ownership to a young
couple who otherwise would have a hard time getting a bank mortgage in this
day and age. And *we* make the interest, not a bank.

They are all excited and it's fun to witness:

http://stevenmcnally.net/

Eisboch

On Nov 15, 8:43*am, "Eisboch" wrote:
"Boater" wrote in message

...



moneybox
The Subprime Good Guys
These mortgage lenders loan to poor people, strengthen communities, and
are still making a profit. How do they do it?
By Daniel Gross
Posted Saturday, Nov. 15, 2008, at 7:42 AM ET

There are other ways too.

We are in the process of finalizing the sale of our old "Farmhouse" *(the
one my mother lived in until recently).

The buyers are a young couple who Mrs.E. met through her horse activities..
They are great, hard working people in their early 30's who have been living
in an apartment, trying to save up to buy a house.

Long story short, we are selling them the old Farmhouse for $300K which is
$65K *less than what we paid for it 7-8 years ago. *But, we are being the
"bank", holding the mortgage. * We backed into the agreed price by first
determining what they could comfortably afford in terms of monthly payments,
including taxes, insurance, utilities, etc.

It sounds crazy, but it works out fine for them and for us. *The interest we
will earn (6%) over the 30 year mortgage term more than covers the "loss" of
65K plus any future appreciation of the house value.
We have a penalty clause for early payoff to protect us that will guaranty
at least $400k net to us.
They don't have to come up with a downpayment .... I'd rather they keep
their savings as emergency funds ... nor do they have to pay finance fees,
or mortgage insurance fees to a bank.

Other than that, it's exactly like they went to a bank and got a mortgage..
They can sell it, refinance it, do whatever they want.

When I called our accountant recently (also a "financial planner" who's
services we've never used) *to set up the paperwork, *he started to comment
that we'd be better off selling it outright, take the proceeds and invest it
.... and then he stopped and chuckled. * He acknowledged that the current
economic climate was probably not in his favor to convince me to allow him
to invest our money.

Anyway, this is the second time we have done this with property we bought a
while back. *The first one, done about 5 years ago has worked out perfectly
for both the buyers and us. *Adding this one provides *additional income for
us in our retirement years as well as affords home ownership to a young
couple who otherwise would have a hard time getting a bank mortgage in this
day and age. * And *we* make the interest, not a bank.

They are all excited and it's fun to witness:

http://stevenmcnally.net/

Eisboch

Harry can't understand that, he's never had anything except his lies.

wrote:
On Nov 15, 8:43 am, "Eisboch" wrote:
"Boater" wrote in message

...



moneybox
The Subprime Good Guys
These mortgage lenders loan to poor people, strengthen communities, and
are still making a profit. How do they do it?
By Daniel Gross
Posted Saturday, Nov. 15, 2008, at 7:42 AM ET
There are other ways too.

We are in the process of finalizing the sale of our old "Farmhouse" (the
one my mother lived in until recently).

The buyers are a young couple who Mrs.E. met through her horse activities..
They are great, hard working people in their early 30's who have been living
in an apartment, trying to save up to buy a house.

Long story short, we are selling them the old Farmhouse for $300K which is
$65K less than what we paid for it 7-8 years ago. But, we are being the
"bank", holding the mortgage. We backed into the agreed price by first
determining what they could comfortably afford in terms of monthly payments,
including taxes, insurance, utilities, etc.

It sounds crazy, but it works out fine for them and for us. The interest we
will earn (6%) over the 30 year mortgage term more than covers the "loss" of
65K plus any future appreciation of the house value.
We have a penalty clause for early payoff to protect us that will guaranty
at least $400k net to us.
They don't have to come up with a downpayment .... I'd rather they keep
their savings as emergency funds ... nor do they have to pay finance fees,
or mortgage insurance fees to a bank.

Other than that, it's exactly like they went to a bank and got a mortgage..
They can sell it, refinance it, do whatever they want.

When I called our accountant recently (also a "financial planner" who's
services we've never used) to set up the paperwork, he started to comment
that we'd be better off selling it outright, take the proceeds and invest it
.... and then he stopped and chuckled. He acknowledged that the current
economic climate was probably not in his favor to convince me to allow him
to invest our money.

Anyway, this is the second time we have done this with property we bought a
while back. The first one, done about 5 years ago has worked out perfectly
for both the buyers and us. Adding this one provides additional income for
us in our retirement years as well as affords home ownership to a young
couple who otherwise would have a hard time getting a bank mortgage in this
day and age. And *we* make the interest, not a bank.

They are all excited and it's fun to witness:

http://stevenmcnally.net/

Eisboch

Harry can't understand that, he's never had anything except his lies.

What Harry will never understand is that both parties in a contract can
come out winners.

"Eisboch" wrote in message
...

"Boater" wrote in message
...

moneybox
The Subprime Good Guys
These mortgage lenders loan to poor people, strengthen communities, and
are still making a profit. How do they do it?
By Daniel Gross
Posted Saturday, Nov. 15, 2008, at 7:42 AM ET



There are other ways too.

We are in the process of finalizing the sale of our old "Farmhouse" (the
one my mother lived in until recently).

The buyers are a young couple who Mrs.E. met through her horse activities.
They are great, hard working people in their early 30's who have been
living in an apartment, trying to save up to buy a house.

Long story short, we are selling them the old Farmhouse for $300K which is
$65K less than what we paid for it 7-8 years ago. But, we are being the
"bank", holding the mortgage. We backed into the agreed price by first
determining what they could comfortably afford in terms of monthly
payments, including taxes, insurance, utilities, etc.

It sounds crazy, but it works out fine for them and for us. The interest
we will earn (6%) over the 30 year mortgage term more than covers the
"loss" of 65K plus any future appreciation of the house value.
We have a penalty clause for early payoff to protect us that will guaranty
at least $400k net to us.
They don't have to come up with a downpayment .... I'd rather they keep
their savings as emergency funds ... nor do they have to pay finance fees,
or mortgage insurance fees to a bank.

Other than that, it's exactly like they went to a bank and got a mortgage.
They can sell it, refinance it, do whatever they want.

When I called our accountant recently (also a "financial planner" who's
services we've never used) to set up the paperwork, he started to
comment that we'd be better off selling it outright, take the proceeds and
invest it .... and then he stopped and chuckled. He acknowledged that
the current economic climate was probably not in his favor to convince me
to allow him to invest our money.

Anyway, this is the second time we have done this with property we bought
a while back. The first one, done about 5 years ago has worked out
perfectly for both the buyers and us. Adding this one provides
additional income for us in our retirement years as well as affords home
ownership to a young couple who otherwise would have a hard time getting a
bank mortgage in this day and age. And *we* make the interest, not a
bank.

They are all excited and it's fun to witness:

http://stevenmcnally.net/

Eisboch



How big is the land that goes with that 'farmhouse'?

Don White wrote:
"Eisboch" wrote in message
...
"Boater" wrote in message
...
moneybox
The Subprime Good Guys
These mortgage lenders loan to poor people, strengthen communities, and
are still making a profit. How do they do it?
By Daniel Gross
Posted Saturday, Nov. 15, 2008, at 7:42 AM ET


There are other ways too.

We are in the process of finalizing the sale of our old "Farmhouse" (the
one my mother lived in until recently).

The buyers are a young couple who Mrs.E. met through her horse activities.
They are great, hard working people in their early 30's who have been
living in an apartment, trying to save up to buy a house.

Long story short, we are selling them the old Farmhouse for $300K which is
$65K less than what we paid for it 7-8 years ago. But, we are being the
"bank", holding the mortgage. We backed into the agreed price by first
determining what they could comfortably afford in terms of monthly
payments, including taxes, insurance, utilities, etc.

It sounds crazy, but it works out fine for them and for us. The interest
we will earn (6%) over the 30 year mortgage term more than covers the
"loss" of 65K plus any future appreciation of the house value.
We have a penalty clause for early payoff to protect us that will guaranty
at least $400k net to us.
They don't have to come up with a downpayment .... I'd rather they keep
their savings as emergency funds ... nor do they have to pay finance fees,
or mortgage insurance fees to a bank.

Other than that, it's exactly like they went to a bank and got a mortgage.
They can sell it, refinance it, do whatever they want.

When I called our accountant recently (also a "financial planner" who's
services we've never used) to set up the paperwork, he started to
comment that we'd be better off selling it outright, take the proceeds and
invest it .... and then he stopped and chuckled. He acknowledged that
the current economic climate was probably not in his favor to convince me
to allow him to invest our money.

Anyway, this is the second time we have done this with property we bought
a while back. The first one, done about 5 years ago has worked out
perfectly for both the buyers and us. Adding this one provides
additional income for us in our retirement years as well as affords home
ownership to a young couple who otherwise would have a hard time getting a
bank mortgage in this day and age. And *we* make the interest, not a
bank.

They are all excited and it's fun to witness:

http://stevenmcnally.net/

Eisboch



How big is the land that goes with that 'farmhouse'?


really big, Donny. Really big.

"Don White" wrote in message
...




How big is the land that goes with that 'farmhouse'?


Not much anymore ... 2 acres.

Back when it was built (in 1800) is was the "Farmhouse" for a fairly large
cattle farm, believe it or not.
Probably 100 acres or more. Over the years sections were sold off, some to
private parties, some to the town until 1996 when it consisted of about 20
acres. A developer bought the house and remaining land and broke it up into
three lots. The house we live in is on one of them (up behind the old
Farmhouse). Another house was built on another lot and the Farmhouse land
was reduced to 2 acres. There are still about 5 acres of undeveloped land
across the street from the house that was originally part of the farmland.

Eisboch

On Sat, 15 Nov 2008 08:43:02 -0500, "Eisboch" wrote:

Anyway, this is the second time we have done this with property we bought a
while back. The first one, done about 5 years ago has worked out perfectly
for both the buyers and us. Adding this one provides additional income for
us in our retirement years as well as affords home ownership to a young
couple who otherwise would have a hard time getting a bank mortgage in this
day and age. And *we* make the interest, not a bank.

You know - when you told me about your first experience with financing
a house, Mrs. Wave thought that was a great idea for the last
apartment house we couldn't sell due to market conditions. And she
had a candidate (or candidates) - young couple, married for 10 years,
two little ones - he's a mechanic with his own repair business, she's
a surgical nurse.

We talked with them and did the homework. Our long time friend and
attorney worked his butt off getting the whole deal set up. We had
the house appraised ($183,000) and told them they could have it for
$170,000, 30 year fixed at 6% and if interest rates fall below 6%,
we'll adjust the rate automatically to .25% below prevailing rates
until it hits 4%. We did the insurance thing too - backed up the
mortgage with insurance which didn't cost us a freakin' thing really.

Cost them $1,000 in attorney fees - theirs and ours. We looked at it
like you did - let them keep their money and build for the future.

The best thing is that we don't have to handle anything - it's all
automatic to our bank.

I want to publicly thank you for giving us the idea.