The Good Samaritan and the Vulture
--- A parable inspired by Luke 10:30-37
The Wall and the Streets shook and the tsunami devastated the villages. The bureaucrat came, shook his head and rushed by. The banker came and left, surprised at the extent of the damage while mumbling, “But I didn’t cause the tsunami.” The folks came, deeply saddened by the terrible sights, but moved along helplessly. The Good Samaritan looked across the wreckage and felt pain and compassion, while franticly the vulture pecked and devoured his prey.
The Good Samaritan looked at the vulture and said, “Hey, you are doing great. You must be elated that there is so much for you to feast on.” The vulture said, “Yes, I am really excited. This is the best in eighty years. I will not waste the crisis.” Looking more carefully, however, the Good Samaritan noticed that the vulture not only fed on carrion but also those still breathing and moaning. He yelled out, “Hey you over there, by eating carrion you gratify yourself and help clean up the environment. That’s very good. But spare the breathing ones. They are still alive and I will take care of them.” The vulture retorted, “They may be breathing now, but in no time they too will be dead.”
The Good Samaritan treated the wounded, gave them water, and moved them to a safer place. He did it one at a time; hard work made him sweat profusely. However, the banker came back with papers in his hands, because the wounded still owed him money on their houses. Also, the bureaucrat came back to halt the Good Samaritan and the vulture, to enforce regulations that were written in the name of protecting the people. The Good Samaritan stopped to talk to them, but the vulture shrugged, “Soon they will all be dead anyway…” The situation was awful.
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Dear Visitor,
More than three years after the bubble burst, the real estate market is still in distress. And it will remain in distress for several more years, according to most expert analyses. It is common to see sellers struggle but fail to sell, and buyers try but fail to get the loans needed to buy. Foreclosures and short-sales continue to weigh down on the market. The mood is somber, and those who really need to sell or buy feel frustrated or desperate. Conventional methods do not work well any more, or do not work at all. To succeed in solving today’s pressing problems, you need to think outside the box -- you need to learn and apply unconventional strategies.
What unconventional strategies? I am referring to seller financing, all inclusive trust deed (i.e., AITD or wraparound mortgage), taking title subject-to, installment land sale contract, lease-option, mortgage payment assignment…, etc. These strategies are by no means new; they have been around for decades. They are described in real estate texts, and even today’s CAR (California Association of Realtors) forms contain optional checkboxes/provisions for most of them. But these strategies are seldom used because misconceptions abound, most realtors do not understand them, and most real estate companies discourage their realtors from using them. However, they are legal, and if properly executed with full disclosures to all parties concerned, they can offer practical solutions to problems faced by many of today’s sellers and buyers. Obviously, seriously delinquent homeowners have no choice but to go through short sale or foreclosure, because they are too deep “underwater”. But for sellers whose situations are less dire and who are willing and able to think outside the box, these unconventional strategies may be just what they need to get out of their predicaments. And for buyers who cannot qualify for bank or other loans in today’s lending environment, these strategies may just be what they need to overcome the financing obstacles.
So if you are a seller who needs to sell but is unable to, or if you are a buyer who has been repeatedly turned down for loans, you may want to look into these unconventional strategies. Now you may ask: if most realtors don’t understand them or aren’t encouraged by their companies to practice them, how in the world can you expect yourself to understand and apply them? Or you may wonder who to trust, for there is no shortage of scam artists out there -- can you tell a “Good Samaritan” from a “vulture”?
Well, it is hard, and you should definitely seek help; but ultimately it comes down to your own judgment. For when you finally realize your realtor or lawyer cannot help and they tell you “I wouldn't do it; watch out for scams” (which is all too easy and safe for them to say), you still own the problem. You still have to live with it or solve it somehow. You know you don’t want to give up trying, because you want to spare yourself and your family the agony and future negative consequences of a short sale, and especially a foreclosure; or if you are a buyer, you don’t want to continue renting and indefinitely postpone the dream of owning your own home. So you pull yourself together, take a long and hard look at all of your options, and decide to step outside the box. You want to put in some hard work to learn about these unconventional strategies -- to see if any of them might work for you.
And that’s where I’ll meet you, be you a seller or a buyer. I will help you analyze your options (again), objectively and realistically. I will listen to you explain your situation (honestly!), and based on that I will discuss strategies that might be relevant to you. I will provide information to help you learn about these strategies. When you have gained sufficient understanding and decided to pursue a chosen strategy, we will then review and sign contracts, complete with full disclosures. Next, through a marketing (or searching) process I will assist you to sell (or buy) your property. The process and negotiation with unconventional strategies will work differently than with conventional ones, as you might expect. When you and your counterpart reach a meeting of the minds (i.e., buyer and seller come to an agreement), we proceed to the closing, and the closing will be done by an attorney or an escrow/title company familiar with these strategies.
My role in the transaction will be either as a broker or as an investor, depending on which best facilitates the transaction, and will be clearly disclosed in writing. I will not be a “foreclosure rescuer” and will not charge advance fees. In fact, my commission or fee will be just a fraction of what you would normally pay for a standard real estate transaction.
Why do I charge less? Here is my reason: I will turn age 70 this year (2011), and I have come to the conviction that the pursuit of happiness in life is fulfilled not by making lots of money, but by making some money plus helping people and making a positive contribution to society. So I am using what I know (and I continue to learn everyday) to help distraught sellers and buyers solve their problems, and by so doing I help alleviate the distress bit by bit for this post-bubble market. I expect to gain some satisfaction out of it.
Therefore, for my real estate business, I am focusing on:
1. Unconventional strategies and transactions, for sellers and buyers. As indicated above, these include mortgage payment assignment, seller financing, taking title subject-to, all inclusive trust deed (i.e., wraparound mortgage), lease-option, installment land sale contract…, etc. My fees will be a fraction of a regular real estate commission, and I will work with those who need help, are honest, and are willing and able to learn.
2. Conventional transactions: I value time, and I recognize that with the help of the Internet and various resources, today’s buyers and sellers can do a lot for themselves in the buying/selling process. I will take on buyers/sellers who can save me time and charge them only half of a regular commission (i.e., 50% commission rebate for buyers; 50% listing commission discount for sellers). But I will refer time-intensive cases to fellow professionals.
If we all make conscientious efforts, I believe we will get out of this mess sooner. So write me an email if you decide to communicate with me (please put either “unconventional” or “conventional” on the subject line). Thank you for visiting this website, and have a good day!
