The Right Program

Problem - Unsalable Properties and Unqualified Buyers

Many owners have properties where the listing price has been repeatedly lowered. The listing may have expired after an extended period - 4-7 months. A poor situation can be made worse by the lack of a “spread” between what is owed and the last listing price. There may be insufficient equity to retire the mortgage and pay a full commission. This can create tension.

The listing may have become an “Unsalable Property”

Alternative solutions all poor:  1. Short a sale (agent gets a commission; owner gets a credit issue); 2. Renting (agent gets a rental commission; owner gets rental headaches and negative cash); 3. A lease-option - owner gets same problems as renting still wi9th negative cash.

Selling a home on on price, not terms, is ineffective when the listing has become “stale”.

Re-listing at a higher price AND INCLUDING the favorable terms of equity sharing benefits the Seller and attracts potential Purchasers from, a large and growing new group of buyers has emerged. We call them “Unqualified Buyers”.
           

They have most or all of the requisites to be a homeowner – cash, income, stability, etc., but they cannot qualify for a loan at present. Many are divorced professionals (physicians, attorneys, dentists, etc.), business owners even real estate agents! They require time (1-2 years) to mend their situation and become able to qualify.

Big factor -  the underlying loan. It would be used in the event of renting or a lease-option. So too, it could be used in an equity-sharing transaction as well while providing  greater benefits than either renting or a lease option.

Solution – Equity Sharing

Agent re-lists “Unsalable Property” and Restic markets it to an “Unqualified Buyer” (“Parties”) seeking an “Equity Sharing” relationship - a far better solution.

1. Generates large traffic increases in weeks not months
2. Produces pre-qualified Tenant Investors with the same goals as the Homeowner;
3. Has tax benefits available to the seller whether homeowner or investor and the Tenant Investor
4. Allows seller to participate in market recovery and advance

Equity Sharing has been approved for use by the California Assn. of Realtors and the IRS.