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Arizona Anti-Deficiency Overview – An Asset Protection Road-map

March 19, 2012 By Leave a Comment

As we have discussed often in this forum, Asset Protection NOT just about lawsuits, it’s increasingly about any source of loss, risk or exposure to your hard earned wealth.

In some cases your assets themselves, like real estate, create the liability we are concerned about. Given the carnage in the real estate market over the last few years, especially in the Southwest, knowing what you are signing and which of your assets are affected is half the battle. Think of all the wealthy peoplel you may know that lost some or all of their assets over the last few years and the need for this education become even more clear.

This article summarizes Arizona’s mortgage deficiency protections for residential property owners. It provides a description of the foreclosure process, real estate security instruments, and the types of properties and loans that may qualify for deficiency protection.

 

Attorney Gregory Hague, Phoenix

It was authored by attorney Gregory Hague, who’s name you may recognize from his many successful years in the real estate business in Phoenix, Scottsdale and Paradise Valley. Greg has combined that invaluable experience with his legal practice and now handles a variety of real estate related legal issues as a partner at the Phoenix Arizona law firm of Stinson Morrison Hecker, LLP. – Ike Devji

Read Greg’s Article: http://www.jdsupra.com/post/documentViewer.aspx?fid=506b99dc-f20e-4c3b-9b63-cfe9c32e53af

Learn more about attorney Greg Hague and his firm or get his contact info here: https://www.stinson.com/GregHague/

Filed Under: arizona anti-deficiency statutes, arizona bankruptcy, arizona economy, arizona forclosure, arizona real esate, Asset Protection, financial literacy, financing, homeowner's liability, Strategic Default Tagged With: , , , , , , , , , , , , , ,

Short Sale Time Bomb Affects all Buyers and sellers as Mortgage Debt Relief Act Expires – 2012

March 2, 2012 By Leave a Comment

Asset Protection is increasingly broadening in what people want from it, it’s not just about litigation and must include an analysis of ALL risks to our clients’ wealth including those posed by debt, investments, taxes, insurance gaps and most notably over the last 5 years, real estate. Below, Realtor Alex Goldstein, who has helped many navigate the most treacherous business waters in America, the real estate market in the Southwest, shares some startling details on a clock that’s ticking that even most lawyers don’t know about. – Ike Devji

Real Estate Time Bomb Affects ALL Buyers and Sellers in 2012

by Alex Goldstein, LuxeAZ.com

There is a ticking time bomb in the real estate market that’s going to blow up at the end of 2012, and this looming deadline will make a major impact by mid-year. Nobody is talking about it because it’s so big, everyone just wants to bury their heads in the sand,and pretend it’s going to go away. But this major shift is coming on December 31st, 2012, like it or not.

 The problem lies, as many problems do, in Washington. In an effort to reduce thesuffering of underwater homeowners, the politicians passed the Mortgage Forgiveness Debt Relief Act in 2007.

 This law has eliminated the tax burden associated with short sales and foreclosures for most homeowners. Prior to this law, if you were forgiven debt, you owed tax – the forgiven debt is counted as income. But thanks to the enactment of this law, income tax liabilities are extinguished for the vast majority of short sales and foreclosures.

This law, which is critical to distressed sales throughout the country, is set to expire on December 31, 2012. Expect to see the chaos begin by mid year. This change affects everyone, buyers and sellers alike. In Maricopa County in 2011, 60% of the homes sold were distressed properties. So what would happen if all short sales went away? What would happen if the number of bank foreclosures dropped dramatically as well? Both buyers and sellers are soon going to have a dramatically reduced set of options from what they have today.

There is no credible plan to extend the Mortgage Forgiveness Debt Relief Act. This is an election year, and there’s a huge budget crisis. So there is a very real and likely chance the year will end without any extension of this law.

That means that anyone who is short selling a home, or who is foreclosed upon, starting in January 2013, will be looking at a huge tax bill. Now, don’t you think the banks are going to use this to their advantage? You can expect the already crazy roller coaster of short sales to get crazier and crazier as we get closer to this deadline.

The banks have been playing hardball on short sales as much as possible, and they will soon have an 800 pound gorilla in their pocket. It’s a very simple proposition that the banks will be making: pay us now, or pay the IRS a lot more later. As much as people loathe the banks, they surely fear the IRS more.

Buyers: If you are planning to buy a home this year, there is a 35% chance that the home you want will be a short sale. Short sales are already treacherous and time-consuming. As we near this deadline, expect to see them get vastly more difficult, with banks making tough demands that neither buyers nor sellers will like.

Sellers: the bottom line is that if you’re thinking about selling your home, and you are underwater, you had better do it now or plan to hold for the very long term. If you have to sell after the expiration of the Mortgage Forgiveness Relief Act you could be making an enormous financial mistake.

In sum, you do NOT want to be starting a short sale in the 2nd half of 2012, not as a buyer nor as a seller. If there is even a modest chance that you want to buy a home this year, start writing offers and negotiating now.

 If you are “thinking about selling” then get a proposal from an experienced agent today. The longer you wait, the greater the risk. The only thing they could change this scenario is if Washington decides to extend this law past the end of 2012. It is very difficult to imagine them doing this before the election. So that means that any relief, if it comes at all, would not be until the 11th hour. Thus, even if the law is eventually changed, expect pandemonium in short sales in the second half of this year.

Furthermore, if the law isn’t extended, there will be a lot of people who will be forced to hold onto their properties much longer than they wanted to do so. While they would like to sell, it will be more expensive for them to pay the taxes than to just hang in there.

That would mean a major decrease in inventory – both short sales and foreclosures would be dramatically reduced. The whole foundation of “strategic default” – walking away from a home and letting the bank deal with the problem – is about to go away. This has been a major driver of the real estate market for the past several years, and thus the absence of these transactions will represent a major shift.

In conclusion, whether you’re a buyer or seller, your options may be changing dramatically as we approach year end – and even more dramatically next year, if the status quo remains in Washington.

Alex Goldstein is with Realty One Group, and represents buyers and sellers of luxury real estate in Paradise Valley, Scottsdale, Arcadia, and the Biltmore. He can be reached at (480) 442-7325 or via email at alex@luxeaz.com or you can learn more here: www.LuxeAZ.com

Filed Under: arizona anti-deficiency statutes, arizona economy, arizona forclosure, arizona real esate, Asset Protection, financing, foreclosure, homeowner's liability, real estate investing, recession survival, Strategic Default, tax deductions, taxation, taxes Tagged With: , , , , , , , , ,

From Success to Significance – A Holistic CEO Approach for Your Business

November 29, 2011 By Leave a Comment

We’ve featured articles on a variety of business and legal issues including many on dealing with the current realities of the market and the economy and what those realities mean for our many business owner and executive clients. In this multi-part article two expert management and organizational development consultants, Charlie Tombazian and Dean Newlund share some of the ideas they implement for successful businesses and their leaders. – Ike Devji 

Charlie Tombazian, Principal, S2S Leadership

These days everyone seems to be talking about “the new normal.” We see it in blogs, business journals and newspapers. We hear the chatter in executive forums, networking meetings, and around boardroom tables. Common questions that define this new business environment are: 

  • How has the recession changed the rules of business?
  • Have my customers’ expectations shifted?
  • Are my employees looking for jobs elsewhere?
  • How can we avoid missteps from the past?

  

The events of 2008 and 2009 shook U.S. businesses at their very core. And, it’s natural to focus on who to blame for this pervasive mess. We might as well admit we have all played some role in this country’s problems, and focus on how to avoid missteps in the future. We each must come to terms with our “new normal.”  

  

Next, let’s take the perspective that business, more so than any other social institution (religious, political, civic), is the driving force for advancing and evolving human behavior. As business owners and leaders we can determine how our customers, markets, supply chains, and employees have permanently shifted, and then adapt accordingly. We all know that adapting well will only guarantee survival. Identifying new, innovative strategies based on the new rules of the game will propel our businesses beyond survival to Success and Significance. As futurist Joel Barker said, “Our past success will guarantee nothing in the future. We must challenge old rules and paradigms, and create a new path to the future.” 

Startling Data Sheds Light  

Up until now, U.S. businesses, spurred by Wall Street’s mantra for quarterly growth, measured success primarily in economic terms. Most often success was defined by profit, return on investment, market share or economic value. Economic success can be influenced by hidden factors. Recent studies, such as from Gallop and IBM, clearly show economic success, employee engagement, and community connectedness are interconnected to one another. 

Note these startling statistics: 

  • Sick days at an average salary result in a $200 loss in productivity/day
  • 28% of employees are engaged, and they are twice as likely to thrive in their lives overall compared to disengaged employees.
  • The U.S. ranks first in productivity of its labor force measured by GDP per capita but 9th in productivity per hour worked. Today Americans work an average of 163 more hours per year than they did two decades ago!
  • Disengaged employees are twice as likely to experience depression, heart attack, and other stress-related maladies as engaged employees.
  • People with high quality friendships are 7 x more engaged in their work.
  • Total shareholder return is 19%- 22% higher in companies with high employee engagement vs. companies with low engagement.

The number of companies with declining employee engagement is on the rise. What are we doing to ourselves? Isn’t there more to life than an endless grind for economic success? 

 Redefining What We Measure  

Many now are redefining “Success.” Profit is critical for every business—it is the fuel that enables our companies to operate and grow. A car needs fuel to run, just like a business. But does the car exist for gasoline? No. Nor do our businesses exist for Profit. The purpose of a business is to provide a product or service people need or want. 

It’s easy to see that our single-minded focus on profit is at least partially responsible for the mess we are in today. We don’t suggest leaders substitute other worthy goals for profit. But we do suggest you include more than profit in your definition of success. 

Consider what a growing number of companies are doing by focusing on profit AND two other worthy goal categories—People and Planet. We propose incorporating a broader approach, using a “triple bottom line” of People, Profits and Planet. When we shift to a more “balanced scorecard” in defining and measuring business success, building a company becomes more significant. Why not create a company that is committed to: 

  1. Meaningful work
  2. Sustainability
  3. Business Social Responsibility
  4. Work-life balance

From Success To Significance  

It’s all about taking the journey beyond economic success to significance (S2S) through this triple bottom-line approach. The journey requires a willingness to change, openness to new ideas and models, commitment, discipline and perseverance. Once on this journey, you will develop new skills, inspire others, create significant impacts with and for your people, customers, community and the planet at large. Personally, you will take the new normal and build something successful and significant. 

Dean Newlund  

As CEO of Mission Facilitators International Inc., Dean Newlund is passionate about individual, team and organizational transformation, and therefore, spends most of his time conducting strategic planning sessions, facilitating team discussions on their leadership and redesigning their culture, and coaching executives on their leadership. Dean speaks and trains internationally and his monthly column “Leadership Exchange” can be found in AZ Magazine. www.missionfacilitators.com  

Charlie Tombazian 

Charlie is President, Innovative Strategies LLC, a Scottsdale, AZ-based management consulting firm specializing in customer experience improvement, differentiating strategy creation and leadership development. From 2000-09, Charlie was VP, Voice of the Customer Office, and Director, Global Strategic Planning at Avnet, the Fortune 150 technology distributor. www.myinnovativestrategies.com 

Dean Newlund, CEO of Mission Facilitators International Inc

Filed Under: arizona economy, business survival, CEO, closely held business, economy, family business, Leadership & Management, marketing and reputataion management, recession survival Tagged With: , , , , , , , , ,

Post-Judgement Discovery – When a Creditor Want To See Your Assets

November 9, 2011 By 1 Comment

If a creditor successfully obtains a judgement against a debtor, the next step in the legal process is for post-judgment discovery to occur.  This is also sometimes referred to as discovery in aid of execution, and it is through this process that creditors typically get a glimpse of the assets owned by judgement debtors.  Such assets usually include liquid assets like cash, stocks and bonds, interests in business entities (e.g. corporations, limited liability companies, or family limited partnerships), retirement plans (e.g. IRA accounts), asset protection trusts, and real estate.

See the whole story by my associate Douglass Lodmell here: http://www.lodmell.com/post-judgement-discovery-creditor-want-to-see-your-assets

Filed Under: arizona economy, Asset Protection, lawsuit awards Tagged With: , , , ,

How to Motivate and Retain Employees During Uncertain Economic Times

October 19, 2011 By Leave a Comment

Deanna Hagan

Michael LaVance

By Deanna Hagan and Michael LaVance

The U.S. Department of Labor recently announced that employers added only 18,000 new jobs in June, the fewest in nine months and far below the 100,000 predicted by analysts. The unemployment rate remained just over 9 percent, with more than 14 million people unemployed.

 This disappointing news may point to a slowdown or stall in the country’s economic recovery, with gas prices, natural disasters and local government layoffs compounding the issue.

 In this current environment of continued economic uncertainty, employers may be searching for ways to motivate and retain employees that go beyond bonuses and raises. There are a variety of tactics that employers can implement, including:

Strong leadership

Employees rely on company leadership for guidance and strategic direction. Key executives should clearly communicate the company’s goals, challenges, achievements, and other noteworthy information in order to best foster employee engagement. Employees want to know what is happening in their workplace, and how they can help make a positive contribution. Sharing this information with employees is an important part of fostering an environment of engagement, leading to greater employee productivity and retention.

Encouraging company leaders to meet with employees at all levels, not just those in management positions, can lead to enhanced morale and engagement as well. Whether it is face-to-face meetings or video chats, providing one-on-one time helps unify managers and their teams.

Effective communication

While some companies think employees should be protected from less favorable news, this often paves the way for rumors to disseminate throughout the organization.  This can lead to mistrust, which often results in top performers making the decision to leave the company.  According to a 2010 poll conducted by the Society for Human Resource Management (SHRM), 47 percent of HR professionals found that open communication demonstrated by leaders is one of the most effective tactics for retaining and rewarding employees.

Business owners can avoid workplace apprehension by openly communicating with employees and inviting them to contribute ideas and voice concerns.  Not only does this open dialogue, but it also helps employees to feel valued.  Business owners may also uncover good suggestions that may have otherwise gone unnoticed.

Competitive benefits

According to the 2010 Employee Benefits Survey Report conducted by SHRM, 72 percent of HR professionals reported that the benefits offerings at their organizations have been affected in some way by the economic recession.  The poll shows that organizations are looking for ways to manage costs while at the same time deal with the escalating expenses of employee benefits.  With the current economic climate, employers should consider that offering competitive benefits to employees is a key factor in retaining staff.

Career development

Providing employees with opportunities to broaden their skill sets and enhance their abilities is another way to foster engagement, including in-house training and external education programs.  These opportunities demonstrate a long-term commitment to employees that can translate to greater retention rates. For example, additional training courses can help employees boost their current performance and also allow them to acquire new skills that can help the company stay ahead of the competition.  Businesses should also consider leadership training as part of a comprehensive career-development program. 

Rewards and recognition

There are many effective incentive programs that demonstrate the value placed on employees, yet do not focus solely on huge raises, big bonuses or expensive prizes.  A weekly lunch drawing or casual dress workday can prove to be just as powerful when it comes to aligning employees with company goals. 

Recognizing individual achievements on a weekly or monthly basis can also help communicate an employee’s value.  Whether it is highlighting an employee at a company meeting or publishing an article on the company intranet, acknowledgement from company leadership has a long-lasting impact on the individual and the entire organization.

Now more than ever, business leaders need to retain their best employees to ensure the long-term success of their companies.  One way to do this is to make sure employees feel valued and know the company is dedicated to helping them achieve their personal goals.  Companies that invest in their employees by cultivating an open environment with opportunities to thrive will find that employees are more motivated, and more likely to stay with them for the long term.  

Deanna Hagan is a regional manager with Insperity for the Denver and Phoenix sales offices.  Michael LaVance is a business performance advisor with Insperity in one of its Phoenix sales offices.  Insperity (NYSE:  NSP), a trusted advisor to America’s best businesses for more than 25 years, provides an array of human resources and business solutions designed to help improve business performance. Insperity Business Performance Advisors offer the most comprehensive Workforce OptimizationTM solution in the marketplace that delivers administrative relief, better benefits, reduced liabilities and a systematic way to improve productivity.  Additional offerings include MidMarket SolutionsTM, Performance Management, Expense Management, Time and Attendance, Organizational Planning, Recruiting Services, Employment Screening, Retirement Services, Business Insurance and Technology Services. Insperity business performance solutions support more than 100,000 businesses with over 2 million employees.  With 2010 revenues in excess of $1.7 billion, Insperity operates in 55 offices throughout the United States.  For more information, call 800-465-3800 or visit http://www.insperity.com.

Filed Under: arizona economy, business survival, CEO, Employment law, family business, HR, recession, recession survival Tagged With: , , , , , , , , , ,

Asset Protection & Investing; What’s Your Defensive Position?

September 27, 2011 By Leave a Comment

I’m not a financial advisor but I work with some of the best ones in the United States because they often have clients that understand the finite and fragile nature of wealth and that we must take proactive steps to protect it. 

One of the top financial advisors I regularly turn to for solutions and answers on insurance and investment issues is my friend Jeff Christenson of Christenson Wealth Management in Phoenix Arizona. Jeff has been an exceptionally important part of the planning of many of my clients, and many more who are not, and works with a very demanding group of people that like all those we work with are substantially more concerned with loss than growth.  Jeff is one of the people that for years insisted that even his HNW clients save for a rainy day, protect their assets and use strategies that limit losses – the last ten years have made his clients loyal believers… many of them survived the losses of their income and businesses by using these assets.

Below is a recent commentary on the markets that Jeff shared with me. His position is honest, open and frankly brave given the very strong opinions many people have on these issues. I hope your investment strategy and advisors have taken these issues into account. I’ve shared Jeff’s message in its entirety. If you’d like to know more about him or receive his updates directly, see his firm’s contact information below. – Ike Devji 

Jeff Christenson, President Christenson Wealth Management

Dear Friends and Clients, 

I have moved, or will be moving, most portfolios to a defensive position. 

We seem to be skating on thin ice, with our economy, our government, and our national deficit. 

This can be viewed as a “contrarian indicator” (for markets) but I think it is actually just ….. bad. 

It is my opinion that the Fed and the President don’t know what to do about the economy, jobs, entitlements, and the staggering debt that could DOUBLE in less than 10 years. 

We were downgraded as a COUNTRY for our own borrowing purposes.  This has never happened.  The short term results can be neutral to unthinkable… 

There are many people and businesses that are just barely hanging on, month to month. 

Gary Shilling believes home values will FALL another 10-20% to simply regress to the MEAN.  Many homeowners are living in their homes without paying their lender.  I have 4 good friends who just went bankrupt.  Who will pay for that?  How many more? 

Gold…..be careful, too many people interested in it right now.  It may also double again, but it is indeed speculative    

The middle class has shrunk, and there are now fewer people with more money, than ever before.  These people are currently sitting tight on that cash. 

Inaction is the wrong thing as a country and as an investor. 

There are things you should be proactive about, asset protection and conservative financial strategies are certainly 2 of them.  

I feel we are EXACTLY where the FED and the President were hoping we would NOT be 3 years after the financial meltdown.  

I recently came across an interesting article* that simply illustrates our government’s fiscal problems by comparing the 2011 Federal Budget to a typical middle-income household’s budget.  Here are the results: 

U.S. Tax revenue:     $2,170,000,000,000 

Fed budget:                 $3,820,000,000,000 

New debt:                    $1,650,000,000,000 

National debt:             $14,271,000,000,000 

Recent budget cut:    $38,500,000,000 

Let’s remove 8 zeros and pretend it’s a household budget: 

Annual family income:                                      $21,700 

Money the family spent:                                 $38,200 

New debt on the credit card:                         $16,500 

Outstanding balance on the credit card:    $142,710 

Total budget cuts:                                               $385  

The harsh reality is that our current level of productivity (or lack thereof) requires revenue (tax) increases, AND spending (entitlement) cuts BOTH.  Politicians get voted OUT for doing these things.  Our household financial woes in this example, have become a popularity contest – not what’s prudent. 

I urge you to Google and do your own research on our national debt.  If we do NOT do this, and FAST, our lenders may soon just stop.  There is no contingency for that.  We are addicted, and Washington has given everyone what they want – when they want it – and the “Physics of Money” simply won’t allow it to continue.  Something has to (and will) give.  It is like giving your kids everything they want and wondering why they grew up to be spoiled and lazy. 

TO BE CLEAR!  I am in favor of raising taxes ONLY if there is a cut in spending.  We have to PAY AS WE GO.  Ask an economist that is NOT a politician or lobbyist.  

When you factor in the demographic shift (Social Security, Medicare, Medicaid etc) and our current low productivity, it is sobering to think of where this money will magically come from in the future….   It is like watching two trains heading toward each other on the same track. 

9-11 should have taught us to be prepared and conservative, but Washington kept taxes low and spent out of control.  

The DOW is currently at about 11,000.   The market is in denial, apparently because these companies are “profitable and cash rich”.  

Consumer confidence is low and the mood of the working and (middle) class is pessimistic.  President Obama (and W too) wrote a bigger check than he could cash, I think.  He (they) made promises to the masses that can’t be kept. 

We are in a period of deleveraging, and asset values can (and I believe) will go lower.  The Pontiac Silverdome was recently purchased for $583,000.   

We MUST prepare. 

There are opportunities RIGHT NOW, and there will be many more for the prepared. 

I reserve the right to be wrong, and maybe the stock market (Dow) might shoot straight up and make me look too conservative and over-concerned. 

But I doubt it.  

Call me for specific strategies. 

Jeff Christenson 

P.S. Please see the attached commentary I emailed out on September 17, 2008.  Interesting to note that at the time, the Dow was at 11388, followed by a market low of 6507 on March 9, 2009**. 

P.P.S.  Times of adversity can yield amazing things.  

I challenge the people reading this letter to one or more of the following: 

  • If you can, hire someone.  If you can’t, MENTOR someone.  You are reading this because you are a successful person, and were handpicked by me to receive it.  SHARE your genius.
  • Ask your neighbor if you can help them with anything.
  • Invent / improve / innovate something.
  • Find something of value that you have that would be of much greater value to someone else, and give it to them.  Help someone less fortunate.
  • Stop complaining about the government and start DOING something about it.  (purpleletter.org)
  • Treasure things money cannot buy.
  • Stay positive, some great things are coming your way! 

*Source:  Federal Budget: http://www.usgovernmentspending.com/ and Federal Revenue: http://www.usgovernmentrevenue.com/#usgs302a  

**Source: http://finance.yahoo.com/echarts?s=%5Edji+interactive#symbol=^dji;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=; 

The views are those of Jeff Christenson and should not be construed as investment advice.  All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.  Investor cannot directly invest in indices.  Past Performance does not guarantee future results.  

Securities offered through Multi-Financial Securities Corporation, Member FINRA/SIPC 

Christenson Wealth Management and Multi-Financial Securities Corporation are separate companies. 

Please consult with a qualified tax advisor prior to implementing any tax related strategy. 

For more information on Jeff, Christenson Wealth Management or to receive future economic commentary please visit www.HabitsOfWealth.Com or call (602) 808-5580.

Filed Under: arizona economy, Asset Protection, economy, investing, investment exposure, Jeff Christenson, recession, recession survival Tagged With: , , , , , , , ,

Seller Financing in Today’s Luxury Home Market

September 22, 2011 By 4 Comments

 Buying and selling homes in AZ right now is tough for most people. Sure, the speculators with cash are out there outbidding you on the courthouse steps to protect their rentals and market share, but what if you are trying to buy or sell a fine home and are NOT a cash buyer?

One way many successful people are solving this problem is by exploring seller financing and carry back options. Simply put, since banks aren’t making loans, people are cutting them out, with good results in many cases. For more information I turned to Arizona Realtor Alex Goldstein, who is doing a tremendous amount of work in this area with great results. – Ike Devji

Seller Financing in Today’s Luxury Home Market 

The jumbo lending market is a mess today.  Standards for jumbo loans have gotten to such lofty levels that many 7 figure earners are shut out for the flimsiest of excuses.  Even if you can qualify for financing, the process is so gut-wrenching that it can suck the joy out of buying a new home. 

On the other hand, paying cash for a luxury home doesn’t make a lot of sense when there are so many fantastic opportunities in this “cash is king” environment.  Why tie up a million or more dollars in a home when you could expand your business, acquire a new business, or invest in cash flow real estate?

So if you want to buy a home and neither bank loans nor cash makes sense, what do you do?  The answer is to purchase a home with seller financing.  It’s a technique that’s as old as real estate itself, but fell by the wayside in the go-go days of liar loans and easy credit.

Here are some of the facts about seller financing:

  • The selection is much greater than most people realize.  There are over 1,000 homes offering seller financing in Maricopa County right now, in every neighborhood and price range.
  • Seller financing is often within 2% of the cost of bank financing.  So, at 6.5-7% and a tax deduction for primary home interest, that’s not a very high bar for the business or cash flow real estate you acquire.
  • It’s becoming more common than ever to negotiate seller financing packages in the luxury market.  Sellers have “gotten the memo” that jumbo loans are virtually dead, and they need to be creative to sell.  So even if it’s not being offered, it’s more likely than ever that when you ask you will get a positive response.
  • Seller financing is only limited by your creativity, you are not limited to the cookie cutter structures of a bank.  Whether you want the option to buy down your interest rate, or no due on sale clause, there are a lot of things you can get from a seller that no bank would even discuss.
  • It’s a very good time to buy now, but it probably won’t get better.  Inventory market-wide is now half of what it was just a year ago — from 8.7 months inventory down to 4.4.  Luxury is lagging the overall market, but the overall trend is strong, so if you’ve been sitting on the sidelines it makes sense to start looking sooner than later.

Alex Goldstein is with Realty One Group and is the author of the book The A to Z of Buying a Seller Financed Home in AZ.  Visit SellerFinanceAZ.com/Luxury to receive a free copy of the book, or call Alex at (480) 442-7325 to learn how you can buy or sell a home using seller financing.

Filed Under: Arizona, arizona anti-deficiency statutes, arizona economy, arizona forclosure, arizona real esate, real estate investing, recession, recession survival, Scottsdale Tagged With: , , , , , , , , , , ,