Prior to entering the note business, I was a landlord, owning a couple properties and renting them for about 12 years. I did everything myself, learned as I went along, and of course, made a lot of mistakes.

When I began my note business, I realized all the similarities to being a landlord. The basic mistakes are the same and doing things the right way are also the same.

Few years ago I came across an article from Scott Trench, CEO of BiggerPockets.com, where he outlined some key mistakes that new landlords make.

Here are 7 mistakes that new landlords need to avoid:

1. Not treating being a landlord as a business
2. Underestimating costs
3. Not valuing your time
4. No consistent screening process
5. Getting too friendly with tenants
6. Not keeping up with law changes
7. Know your neighbors

If you are on the verge of being a landlord for the 1st time, hope these ideas will help you avoid mistakes that could cost you a lot of money and grief. Being a landlord is a business and needs to be treated as such.

It does not matter what business we are in. We can always learn things from someone who is in a business that seems to have nothing in common with ours.

Enter Diane Fanning, author of 26 crime novels.

I was fortunate to be part of a Zoom meeting where she presented to us her Interviewing the Psychopath. Diane’s point was if we are in any business that involves interviewing people, the principles she uses in talking to psychopaths, serial killers, sexual predators and others with demented minds can be applied in our field as well.

How does a nice lady land up interviewing psychopaths? It began when she was 9 years old. She was walking alone when a car stopped, the driver opened his door, asked for directions, grabbed her arm, she wiggled away, he took off, she memorized his license plate number. Her parents reported the incident to the police and the next day they apprehended the man. In his car they found child pornography and were able to trace him to the sexual assault of an 8 year old the prior day.

A crime novelist was born. One of the most interesting and fascinating people I have come across in my lifetime.

Here are 7 tips from Diane you may want to consider:

1. Prepare a list of questions – but don’t engrave them in stone.
2. Know what you want to know – but be flexible.
3. Ask YES or NO questions ONLY with a special purpose in mind.
4. Save the tough questions for last.
5. Let rambling responses flow – they can be goldmines of information.
6. Don’t step on uncomfortable silence.
7. Believe everything – believe nothing.

You can find her at dianefanning.com.

And if you have questions about your note situation or are interested in some pricing options, you can reach me at dennystanz@verizon.net.

Many of the noteholders we buy notes from also own rental properties. Recent data from RentCafe is good news for these folks.

In 2024, developers completed close to 600,000 multifamily units, the highest level since 1971 and a 34% increase from 2023. New York City, Dallas and Austin were the top 3 cities in the number of new rentals.

The occupancy rate is holding at 93%+ with each available unit having an average of 7 applicants.

10 of the 20 hottest rental markets are in the MidWest, led by Chicago, Detroit, Lansing, Grand Rapids, Cincinnati and Milwaukee.

If you are interested in pricing options for your note, or have questions about carrying a note for the first time, please contact me directly at dennystanz@verizon,net, we are happy to help.

Rebecca Picciotto, writing for the Wall Street Journal on March 3, highlighted real estate activity in the communities ravaged by the recent fire. Here are some key takeaways:

• More than 80 new listings of scorched plots in Pacific Palisades and Altadena have hit the market since mid February.
• In Altadena, the first four lot sales closed at an average of $69 a square foot, well above the $22 average from 2023-2024. A recent parcel sale is closing at $99 a square foot.
• In Pacific Palisades, lots in escrow appear to have appreciated by more than 10% since the fires.
• One lot sale in the Palisades had 60 inquiries within 8 days of the house burning down. An investor paid $1.2 million, topping the asking price of $999,000.
• In Altadena, realtors see mom and pop builders looking at the land as an opportunity to grow their business.

I can’t help you sell a home or buy a lot, but I can give you pricing options for your note. Email me at dennystanz@verizon.net if you need help.

This Monday, November 11, is our nation’s federal holiday and a way to remember and honor America’s veterans.

For the past few years, I have written my humble homage to veterans – especially those who came home and carried wounds that no-one saw. Here is my homage:

Military Man

He came home safe back in 1945

Proud of himself, happy to be alive

Town threw him a parade, women kissed him too

“Hey son, come work for me, our country needs you.”

America Loves A Military Man

Forgotten man in a forgotten war

Friend says “Haven’t seen you at our local bar.”

He replies “I was fighting for the USA

You didn’t know I was away?”

America Loves A Military Man

Don’t remember his name or where he was from

Three days in Vietnam and he was done

Went home in a box to his Mom and Dad

Feelings pushed deep down inside

No time to be sad

Young soldier walks through an airport parking lot

Small crowd approaches and starts to shout

“Hey you, baby killer, welcome home”

Spit at him – dazed and confused – he is all alone

America Loves A Military Man

I am working out at my local gym

When I find myself being drawn to him

Young kid in a wheelchair flipping some weight

Friend watching, a guard at the gate

I introduce myself and we start to chat

IED blew him up, then flat on his back

I shake his left hand and walk away

Without a warning I feel this sway

I am choking up, tears on my face

Get myself together, I’m in a public place

I am whole but less than this young man

He left an arm and leg in a place called Afghanistan

America Loves A Military Man

The holiday season is approaching and tax season is just a few months away. Some noteholders will be looking for cash during this time. A possible source for that cash might be to sell PART of their note – NOT all of it.

If you find yourself in this situation and are looking for options, we may be able to help. Give me a call and let’s give you some pricing alternatives to consider.

Let’s say you are carrying a note for the first time. Payments are coming in, it’s working well. You just learned that a market exists where professional note investors buy seller carry notes, just like the one you hold. You also learn that notes are bought at a discount, which does not make you happy but you are intrigued. Turns out you are in need of some cash. So, if you talk to one of these folks, how should you prepare? What are they looking for?

Remember that like any business, note buyers will have their decisions driven by their experience and preferences. Most of them will keep their notes till term. So if you have held your note for a few months or maybe a year, you will be talking to someone who is looking at the long term, and the risks associated with that decision. Some may ask you a few key questions then allow their due diligence to drive them. Others may ask many and detailed questions. Everyone is different. But, let me highlight some key areas you should be prepared to discuss:

The Property

1. When did you buy the property?
2. Do you live in the home or is it an investment property?
3. How much did you pay for the home?
4. If you made renovations, can you provide receipts confirming the expense?
5. How would you describe the neighborhood?
6. Are property taxes and hazard insurance payments current?

The Buyer

1. How did you find your buyer?
2. How much do you know about him?
3. What does he do for a living? How long?
4. What is his credit history?
5. Would he qualify for a conventional mortgage? If Yes, why seller carry? If No, why?
6. What kind of car does he drive?
7. Who lives in the property with him? What is their relationship?

The Terms

1. Is the sales price equal to, greater than or less than market value at the time of the sale? If more or less, why?
2. If the down payment is small, why were you willing to accept it?
3. How does the note interest rate compare to current mortgage rates?
4. Did you try to negotiate the shortest term possible?
5. Was the note drafted by an attorney or your local Title Company?
6. If your note has a balloon payment, why? How confident are you that your buyer will pay the balloon when due? If he can’t, how will you handle that situation?
7. Do you collect the payments or do you use a servicing company?

Remember, a note buyer is making a decision on deploying cash – where and how much. You may be asked a few questions as above or he may ask you many more, detailed questions. Be prepared to discuss your situation in an honest, professional and non-judgmental manner.

Hope this helps, feel free to contact me with your questions.

We always say we are a “niche business.” It is true, very few people know we exist and most folks in the real estate industry could not explain what we do. Let me share some statistics that prove the point:

In 2023, over 4 million homes were sold. Take a guess – how many seller carry transactions closed last year?

89, 773!

Would you agree we are niche? Here is a breakdown:

Top 5 States

1. Texas 22,301
2. Florida 8,270
3. California 7,220
4. North Carolina 4,500
5. Georgia 4,055

Property Type

• Residential 63%
• Commercial 17%
• Land 16%
• Unknown 4%

Average Loan Amount

• Residential  $248,523 LTV 74%
• Commercial $613,077 LTV 72%
• Land $269,872 LTV 70%

If you carry a note, look how unique you truly are. If you are contemplating carrying a note, look how unique you may become.

Please call with your questions or pricing options for your note.

Source: Scott Arpan, Advanced Seller Data Services, www.notesellerlist.com

Last week, the National Association of Realtors reported that the median existing-home price in May 2024 was $419, 300, a new record. Low inventory continues to spur bidding wars among home buyers in some markets.

High prices coupled with elevated mortgage rates have limited the number of sales this spring, normally the busiest season for home buying. The adjusted annual rate of home sales is 4.11 million, the third straight monthly decline and 2.5% down from a year ago.

Meanwhile, these factors have combined to elevate high priced homes and keep out of the market folks interested in lower price point homes.

Noteholders sell their note for a wide variety of reasons. But after years in this business and talking to hundreds and hundreds of people, I find that folks are driven by 5 key events in their lives. In no particular order:

1. Opportunity. The person wants to buy a business or make a once in a lifetime investment.
2. Payoff. The person wants to eliminate a burdensome debt or pay off a mortgage.
3. Buy. The person wants to buy a new home or purchase land on which to build their dream home.
4. Change. A life changing event has occurred – death of a spouse, retirement, moving out of state, selling a business, simplifying life.
5. Pay. Uncle Sam has presented a big tax bill.

Whatever your reason may be, if you are considering a sale of your note, let us give you some options. We are here to help.