Saturday, October 13, 2007

What is it that I do?

Starting Monday, Oct. 15th I am going to be posting a few times a day as I run across interesting tidbits of information, post about the details of a transaction I am currently working on, tips for buyers and sellers, info for real estate professionals (Realtors, Mortgage Brokers, and so on) and my thoughts on Real Estate and related areas. However, I thought it would only be appropriate to give a description of what it is I do exactly so, lets get on with it already!

All-State Housing Solutions is based in Davison, MI. We work with buyers, sellers, Realtors, Mortgage Brokers, investors and others in the Real Estate field throughout the U.S. however. Where we excel is putting together transactions when a seller needs his property out of his hair sooner rather than later and would-be buyers who either can't or don't want to get traditional financing.

We are willing to give a seller Full Price (or More!) for his property if he is willing to hold any equity he may have in it for a couple of years at which point it will be paid in full. During our agreement with the seller there will be no landlord responsibilities, no maintenance, repairs or upkeep to worry about and we even take care of the taxes and insurance. We will also provide the sellers new Lender with documentation allowing them to give 100% credit for the payment being covered instead of the typical 60-75% for a rental. We are able to do so through a tried, true, safe and legal (although vastly underutilized) process called the EHTrust Transfer. (We will talk more about it in a later post, for now get an overview at the link provided). Going this route is beneficial to any seller who wants to get out of the responsibility of making the payments and upkeep immediately. It is also probably the best option for those with little or no equity in their property and even up-side-down. Anyone, regardless of their situation be it behind on their payments or what have you, if they are willing to carry their equity for a few short years we are willing to work with them. We also purchase homes outright as well but in order to do so we need to get a good price.

Would-be buyers get all the benefits of homeownership without the necessity of a new loan, no down payment and no credit check. We qualify someone automatically if they can cover 3 payments plus the closing costs. After a couple years of on time payments we can qualify roughly 90% of those in our houses for a refinance loan instead of a new mortgage. The reason we require 3 payments is we place 2 in a contingency fund with our 3rd party bill paying service to ensure on time payments and 1 for the first months payment. The closing costs are the costs of the transaction which we will get into in a later post. At the end of our agreement we also refund the full amount of the closing costs and the payments from the contingency fund.

So what are the benefits of homeownership that one is able to obtain without traditional financing? During the term of our agreement you are allowed the income tax deductions for mortgage interest and taxes as well as a share of the equity build up through appreciation and principle pay down. Since our transactions are structured the way they are you are also able to claim more exemptions on your W-4 at work, possibly bring home hundreds of dollars more each month (I am not qualified to give tax advice so please speak to a CPA) All that is required is the payments made on time and that the property is refinanced within a couple years.

Now that is a rather general overview of what we do for buyers and sellers. Most of our transactions also involve Realtors and other real estate professionals. For the mean time if you want more information on how we are able to provide the benefits we do the "buyers" and "sellers" please visit North American Real Estate Services for an overview of the property transfer process we utilize. As the days pass we will get into the details.

Have a great rest of the weekend and I look forward to sharing myself with anyone who may be reading.

Eric West