Watching our politicians in action is like watching a dysfunctional family disintegrate before your eyes. Are our elected officials actually intelligent, mature adults who care about the country’s problems and want to try to solve them?
A lot of us think the answer is a resounding “No.”
One thing appears certain at this point – we still have a lot of uncertainty. Potential tax hikes, high unemployment, poor housing and jobs recovery in many cities, businesses unwilling or unable to commit to expansion, tighter lending standards hurting small business and individual consumers, etc., etc.
To those of us in the real estate industry, commerce must continue. No matter the economic conditions, somebody will always want to sell their property. Somebody will always want to buy that property. If the buyer can’t get the money from a lender, what are his options? Family, friends, private money, seller carryback.
If seller carryback is chosen, both parties must protect themselves. What do I mean? The buyer must commit to the purchase – make a sizeable downpayment, live in and take care of the property, make timely payments, exhibit pride of ownership. The seller must demand a sizeable downpayment, a higher than market interest rate, shorter rather than longer amortization period. He must know what his buyer does for a living and his credit score and history. Just because the world of seller carryback is referred to as “The Wild, Wild West” does not mean the parties should be careless and reckless in their agreement. They need to be businesslike, prudent and smart.
Call me if you have questions. Check me out on Linkedin. If you are learning something, tell your friends.
Thank you.
