Dean Dretske » D3TV

D3TV – Just Do It!

Dean Dretske — Thu, 01 Jul 2010 18:56:30 +0000

The paralysis of analysis can keep us from accomplishing our goals! It is really just a manifestation of fear – like other methods of delay, avoidance, and procrastination. We fear that we might do it wrong or that it might end up bad for us.

The problem is that we need experience to know if these fears are unfounded and we won’t get the experience without doing.

I am big on education. I think we don’t need to suffer every mistake ourselves – we can see the mistakes of others and take precautions.

However, we have to convert the knowledge into our own experience. If the knowledge stays as just a theory, it won’t change our lives.

Just Do It!

D3TV – Can We Help These Sellers?

Dean Dretske — Fri, 14 May 2010 17:31:27 +0000

Case studies of 2 sellers who are motivated to sell their houses. Can we help them out?

The second case that I talk about is a seller who bought a house to rehab it 2 years ago. She has not done any of the work and now needs to sell since she is going to move to another town. The problem is that there is not much margin in the deal.

In the past, I did not have enough lead generation working for my business. When you have few leads, it is easy to get fixated on deals that are difficult and not very profitable. The key is to focus on lead generation so that you see more situations and can find the better deals.

Anybody else have this problem?

D3TV – What is a Closing?

Dean Dretske — Tue, 02 Mar 2010 01:18:39 +0000

In this video, I explain what a ‘closing’ is, the major players involved and some different types of closings. This video came about because I had to do some explaining about how a double closing should work – I thought that it would be useful to share the concepts to a wider audience.

D3TV – Update on Seller Financing

Dean Dretske — Sat, 13 Feb 2010 13:30:23 +0000

This video contains some new information about seller financing. It includes some background on how often seller financing is being used and new information about how HUD is trying to limit it.

As I mentioned in the video, I want to provide some more information about the SAFE act and how HUD interprets this regarding seller financing. You can read HUD’s complete interpretation here.

HUD is taking comment on their interpretation of the SAFE act through February 16, 2010. Please tell them that they need to exclude all seller financing from the regulation! Click here to submit a comment

What Should You Say in Your Comment
Say what you feel, but say it politely! The message should include that you would like the definitions in the proposed rules to be changed so that private individuals can originate and service loans on properties they personally own. Some ideas from others:

bank loans are not available on some types of properties
the tight lending climate has made bank financing “out of reach” for many
seller financing is an “age old” tradition based on private property rights
these rules would prohibit even partial seller financing – i.e. a “seller second”
according to HUD’s “Residential Finance Survey” in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear
an estimated 6 million Americans own a property other than their own primary residence
an estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties
40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing
approximately 5% of homes in US are for sale or for lease… seller financing may be key to liquidating this inventory

Here is some background:

The Housing and Economic Recovery Act of 2008 (Pub. L. 110–289, approved July 30, 2008) (HERA) constitutes a major new housing law that is designed to assist with the recovery and the revitalization of America’s residential housing market—from modernization of the Federal Housing Administration, to foreclosure prevention, to enhancing consumer protections. The SAFE Act is a key component of HERA designed to improve accountability on the part of loan originators, combat fraud, and enhance consumer protections.

HUD has stated that they read the SAFE act as having a broad requirement for licensing ‘loan originators’. They perceive that a large number of folks will need to be licensed – basically, if they deal with a loan ‘application’, they need to be licensed. In their PDF file, on page 5, they do include the following exclusion:

The SAFE Act encourages States to establish minimum standards for the licensing and registration of State licensed mortgage loan originators and encourages the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) to establish and maintain the NMLSR for the residential mortgage industry for the purpose of achieving the following objectives:…

To me, this means that you will need to have a loan originator’s license if you offer seller financing on anything other than an owner occupied residence. You will need a license for vacation homes, vacant land, inherited property (unless you move in), rentals (from single families to fourplexes), etc.

The commercial context implied by the taking of an ‘‘application’’ is also absent where an individual seller provides financing to a buyer pursuant to the sale of the seller’s own residence. The frequency with which a particular seller provides financing is so limited that HUD’s view is that Congress did not intend to require such sellers to obtain loan originator licenses. Accordingly, this rule would provide in § 3400.103(e)(5) that such individuals are not subject to State licensing requirements.

Please add a comment now!

Thanks to the folks at MetroREIT who brought this to my attention.

D3TV – Overview of Land Trusts

Dean Dretske — Fri, 12 Feb 2010 08:43:08 +0000

In this video, I describe what a Land Trust is, the roles involved, and talk about why it is useful when owning real estate. Land Trusts do not provide asset protection but are useful for camouflage

D3TV – Sandwich Lease Options And Other Details

Dean Dretske — Wed, 10 Feb 2010 04:11:40 +0000

This video describes the sandwich lease option. I also discuss details about how to structure the lease option to avoid some costly mistakes.

D3TV – Do You Want to Buy Foreclosed Property?

Dean Dretske — Sat, 06 Feb 2010 07:52:37 +0000

I discuss the 3 stages of foreclosure and talk about investing in each of those stages. Also discuss the relationship between short sales and foreclosure. I give some valuable advice on dealing with the pitfalls of foreclosure investing.

D3TV: How To Determine Value

Dean Dretske — Thu, 04 Feb 2010 04:40:37 +0000

Describes 3 different approaches that are used to determine the value of a piece of real estate. Focuses on the most common methods used for single family residences and for commercial properties.

D3TV: 3 Things Every Real Estate Investor Needs

Dean Dretske — Wed, 03 Feb 2010 05:03:57 +0000

The 3 things that every successful real estate investor must have to succeed. I talk about the importance of each and how they together make it possible to succeed as a real estate investor.

D3TV: Overiew of Lease Options

Dean Dretske — Tue, 02 Feb 2010 06:39:57 +0000

In this video, I give an overview of what a lease option is and for what types of properties it is useful. Please leave a comment – or a question that you would like answered in a future video!