My name is Wilder Wheelwright. I’ve spent the past 35 years in the financial services industry. From 1978 thru 1993 I sold municipal and government bonds for NASD and New York Stock Exchange firms. In the late 80’s I became licensed in Real Estate. As interest rates subsided in the early 90’s I taught myself how to process and complete Real Estate loans. I probably originated 500 loans between 1992 and 2007.
Since the early 80’s I’ve been buying and selling California real estate for myself. However, in the roaring 2000’s I borrowed close to $2,000,000 under the same terms as the loans I arranged for others and ultimately ended up minus a million or so on the balance sheets.
Like so many others, my situation is a work in progress, but I’m ahead of even, which isn’t bad. I have one permanent modification completed, another in progress, and have completely averted foreclosure. I’ve been able to purchase a few properties since 2008 and things are looking good overall for me and the economy at large at the moment.
The Real Estate market is making a comeback that I think will likely go flat as interest rates drift up, inventory disappears and Mortgage Lenders continue to deny loans to all, but the few that meet FNMA’s strict guidelines.
The rise in the market has been fueled by low interest rates and low end homes selling for affordable prices. The percentage increases are obviously unsustainable. If we’ve learned anything at all over the past decade that ought to be obvious. However, it is a great time for sellers to get top dollar for their properties if they’re willing to carry a loan, or write a lease with an option to buy.
There are many ways, in which sellers can use creative techniques to attract well qualified buyers willing to pay a little more for a property if the owner is willing to carry a loan.
For the past five years I’ve been mailing post cards to property owners indicating I’d be interested in buying their properties if they are interested in selling. I offer to pay all of the closing costs so the seller can actually net more and still give me a good deal.
Every time I mail 1000 cards, I get a big response from sellers, who want to sell and have the buyers pay the closing costs, and every time I mail I find a deal. The issue for me has been that I don’t have the time, money, or inclination to buy more than a few properties a year to fix up, sell or keep.
From 2008 thru the middle of 2012 the MLS was full of bank owned inventory and prices were slashed. Not so anymore. These days it’s more of a sellers’ market in the sense that the MLS is offering so little inventory. Couple that with the fact that many sellers are have such thin equity they can’t pay anyone a commission because the appraisal is too low.
Sellers who have equity are in the catbird seat. They can easily get 8% monthly secured by creating a new first mortgage or holding a second. Compare that to a 2% CD at a bank and becoming the Lender by carrying a mortgage is a great option.
As we prepare to launch our site the MLS has so few listings in Monterey County that multiple offers are the norm right now. Rates have increased almost a full point in the past 6 weeks. The writing is on the wall. Five years ago we almost went under because of overinflated real estate prices , which, in my opinion was caused by unfathomable greed.
Hopefully, this website will address the lack of inventory on the MLS and wherever possible take the banks out of the picture with good owner financing.
There is no charge for the use of this site. As members we will all get to see properties that aren’t available elsewhere just like everyone else. As principals we have affiliate agreements with Legal Zoom and other companies that we find appropriate for what we’re all doing.
Thanks for checking us out,