Seller’s Credit is Often Improved or less damaged
Often, we buy from sellers with a troubled payment record. They frequently have loan arrearages they cannot pay. In some situations, foreclosure is imminent. When we step in to buy these properties, we pay the arrearage and reinstate the loan.
Many times we use this strategy to wholesale the property to another investor, or an end buyer. When doing so the lenders win when they are paid off in full from a potential troubled asset. The seller wins by having what could have been a foreclosure on their credit now being a loan that was paid in full. This does not always improve the sellers credit, however it can have minimize the damage already done.
Once we reinstate the loan, we begin to make regular monthly payments to the seller’s account. From the lender’s point of view, the account has “miraculously” improved. From the seller’s point of view, their troubled credit “magically” begins improving as their delinquent account and arrearage disappears and the account becomes and stays current. Over a 12-month period, having a mortgage loan that is current goes a long way to improving the seller’s credit score and borrowing power.
And as part of our negotiations, we often tell our sellers about this particular benefit. Not only do they sell their property quickly but also they get their credit scores and credit records improved because of it.
Lender Losses are Minimized
Lenders are helped by “subject to” the existing mortgage transactions. By creatively utilizing this technique, we often save properties and loans from foreclosure action.
Foreclosure action is generally a very expensive process where many parties lose. The borrower would clearly vacate the property and suffer a foreclosure record. But the lender often takes business losses by paying fees on foreclosing and managing vacant properties that have little or no equity.
Additionally, when they do finally resell the properties, they often do not fully recover the monies they originally loaned out. These costs are passed on to future loan customers.
By doing our part to “save” the properties and the accompanying loans, lenders suffer fewer losses from foreclosure action. More importantly, they continue to have a performing account with ongoing loan payments.
As Investors
We understand the concept, advantages, and process of purchasing property subject to the seller’s existing financing. Understand the goals of prescreening sellers. Identify key points in negotiating a purchase subject to existing financing. Identify points of analysis when considering the subject to deal. Understand lender motivation factors and learn how to address those factors. Know how to present offers to motivated sellers and how to gain ownership of property without qualifying for new financing and without using much, if any, of their own money. Evaluate the existing financing, the seller, and the market. Always look for a win win scenario for all parties involved.

Entrepreneurs – the fastest growing area of our economy. What makes these strange people, risk takers and wealth generators tick? Why do entrepreneurs take risks, endure pain, fatigue, and embarrassment? What makes them run? Is it money, fame, rock and roll or sex?

None of the above!

Entrepreneurs might want and enjoy those rewards but what drives them and what distinguishes them from an overachieving employee or salesperson is the desire to create. That’s it. Are you an entrepreneur? Do you pass the test? Many overachievers are not entrepreneurs.

Leonardo Da Vinci, Thomas Edison and the Wright Brothers were entrepreneurs. They had dreams to create new horizons for humanity. A vision, inspiration and most importantly the belief that, “I can do that”, is the defining image of an entrepreneur.

How do you motivate an entrepreneur? Tell them, “It can’t be done”. Entrepreneurs love an impossible challenge. They will prove you wrong. It took Edison 10,000 attempts to create a light bulb that burned for several seconds. That persistence is the essence of an entrepreneur.

Not everyone who starts a business is an entrepreneur. Some do it out of desperation, or until they get a real job. They might become entrepreneurs one day, but they must move their mind set from ‘I can’t do that’ to one of ‘can do’.

What does it take to succeed as an entrepreneur?

The ability to learn what is needed to make your dream come true – and to acquire and apply those lessons and skills. Successful entrepreneurs go past the dream stage. Many have the potential to be successful. They have dreams, great ideas and they may even be right. But imagine if Edison quit after 1,000 attempts. He could rightly rationalize that it couldn’t be done. After all who would expect him to try 1,000, 2,000 or even 5,000 times? It took 10,000. Nobody cares about the failures. The results count. We now have light bulbs.

George Cohon, senior Chairman of McDonalds Canada & McDonalds Russia, endured 14 years of negotiation and posturing to open the first McDonalds restaurant in Russia. It was the most successful grand opening they ever had. They served over 30,000 customers that first day. But it took 14 years of running around, being nice to Soviet bureaucrats and pleading with his board to get there. Cohon had no idea it would take so long but he knew he could do it. I suspect that Bill Gates was not motivated by money. The power of effecting change and growth is more intoxicating. Money is only a wonderful by-product. That is what sets entrepreneurs apart.

Entrepreneurs are dreamers. They see things that others can not. They want to create change and growth. They believe in themselves. They want to control their destiny. Successful entrepreneurs seek out, acquire and practise the skills they need to succeed. Successful entrepreneurs do what they have to, to get to where they want to be.

©AD George Torok is an entrepreneur, radio show host www.BusinessinMotion.ca and bestselling author of “Secrets of Power Marketing”. He delivers inspirational keynote speeches and practical seminars to organizations who want to grow by showing them how to improve their thinking and communication skills. You can contact him at 800-304-1861 or visit www.Torok.com
www.PowerMarketing.ca

Article Source: What Makes an Entrepreneur?