Home Ownership after the Pandemic

Home Ownership Dream

That’s also why many move away from home and come to America: Home Ownership

Many end up keeping their dreams tucked away in a drawer, to go to them when they need comfort and hope.
In the US, many actually pursue them and make them happen, that’s one of the main reasons to come to America.
To fulfill those dreams and convert them into reality!

In America

There are many dreams that you can chase in this country, but one that is a staple of the American Dream is the dream of home ownership.
Rest assured, that during these extremely challenging times, people are still dreaming. They may be forced to use that drawer, but dreams will come out of that drawer with a big bang!

After the CoronaVirus Outbreak

People are going to pursue that dream with the same or maybe more energy.
It’s true that it’s also going to be more challenging than ever, but that’s what America is also about: working hard through the challenges, finding solutions.
That’s very promising for the near future of the real estate market, as it was strong before and it will be strong after these crazy times.

The driving power

The drive that comes from people who dream about owning a home which is perfect for themselves and their families, is powerful and will make the market bounce back.
With low inventory and low mortgage rates, the market is springloaded. Only much tougher lending requirements will prevent the market from running as fast as it could, but in some cases, it could actually be a big thing.

The Lending Industry

The lending industry is separate from the housing market, but instrumental to the success of most real estate transactions, so that would probably be the biggest challenge that lies ahead and is already impacting the market.
Adjustments and creativity will be required to have the funding for real estate purchase & sales and that’s where we are so relevant.


By picking from a broad range of legal and financial instruments, we, @ Proxima Investors, can create the opportunity for buyers to be in the position to buy and fulfill their dream of home ownership.
Since there are no sales without buyers, sellers also will have the opportunity to sell at conditions which are not punishing as they could be in such a market.

Investors on Terms

We are investors on terms and deals on terms will be one of the most viable solutions for sellers and buyers in the present real estate market and in the near future.
The ability to use many tools and methods to achieve the same result, sales for sellers and ownership for buyers.
Buyers will be further motivated by escalating rental fees and the appeal of the brick as a way to build and store wealth, while the stock market is so volatile and proves to be too difficult too read.

Deals on Terms

Dream of home ownership through a deal on terms is what we, at Proxima Investors, are about.

Proxima Investors: Buying homes from sellers who want to sell, turning around selling the same homes to buyers who have that big American dream of home ownership…

The future of the residential Real Estate Market

Many keep their dreams tucked away in a drawer, go to them when they need comfort & hope. In the US many pursue them and make them happen, that’s one of the main reasons to come to America.

The dream of home ownership: very promising for the near future of the real estate market!

And remember to practice SOCIAL DISTANCING! Like we do! 🙂

Mortgage Denied: The New Norm?

How CoronaVirus related Unemployment will impact Real Estate
and how are Proxima Investors going to offer solutions

Widespread unemployment applications are just the tip of the iceberg. Soon a large part of the workforce will not meet the requirements for a mortgage and it will get even worse as lenders tighten the rules. In this environment, we can help real estate transactions happen by using our everyday tools.

We’ve been helping homeowners sell, homebuyers buy and renters step on the property ladder and achieve the very american dream of home ownership for years. Agents and Brokers are going to be facing huge challenges getting listings that are going to sell and finding buyers who can secure the funds by obtaining a mortgage, to represent. Again, we have the tools to help brokers’ and agents’ clients sell their homes at great terms and assist buyers in becoming viable takers.

We don’t provide services, we cooperate with agents and brokers so they can help us get deals done. We guarantee the hard earned fees and establish a steady professional relationship that can bring more and more deals despite the challenging times.

We are Investors on Terms. We are not agents or brokers, we are not wholesalers or rehabbers, we are not landlords or buy & hold investors. We pay full fair market value and are transparent. We are A+ Better Business Bureau accredited and operating in real estate investments for decades.

Most are greatly surprised by the amount and type of options that we can present to overcome challenges that are not uncommon, like stale listings, quirky homes, failed inspections, high asking price, deferred maintenance and will soon be the new norm.

Buyers who won’t be able to buy because of the lending industry’s extremely tough requirements. They got tougher in 2008, and now, for a number of reasons including lack of capital and low interest rates, they will get tougher. Additionally, the job market is going to be impacted and revolutionized.

The bottomline is very few successful mortgage loan applications.

That’s why you should look into partnering with us to get real estate business done!

The first step is to contact us, schedule an introductory call or remote meeting. We can meet, get to know each other enough to then quickly find out if we can help.

If you’re in the minority who cannot be helped with our standard methods, we may still be able to help otherwise.

Our only limits are the prevailing laws of the moment at federal, state and local level, ethics, since we embrace the ethical purpose that we gave to our business model from the beginning, and of course, practical convenience, as all deals need to be put into the perspective of a business transaction.

Contact Us in a timely fashion to get on top of the real estate market of the near future.

Call or Text 617.921.9265 anytime to reach out.

We look forward to meeting new homeowners, renters, professionals and anybody involved in real estate and that we can assist to achieve their goals!

Job Losses and the CoronaVirus

How will job and income loss affect the Real Estate Market

Job losses and income reduction are already happening in most of the economy

Job losses and loss of income in general are scary, but they’re real and they’re happening all across the board. In the meantime, there are companies which are hiring, rather than firing.
E-commerce, delivery, shipping and trucking, healthcare of course, grocery stores and those involved in producing and supplying essential goods and others.

Aftermath

When the dust settles, jobs are going to be coming back, surely shuffling around with many career restarts and change of positions. Most jobs will likely be absorbed by a resurgent economy.

The Residential Real Estate Market
Some businesses are hiring and may absorb some redundancies, in the short term and, in part, in the longer term

In Real Estate this means that many who want or need to buy a home, will have to figure out how to fund a purchase without qualifying for a traditional mortgage for insufficient employment history.
Additionally, if they had reserves and burned through them to get by during these tough times, mortgages requiring a significant downpayment may be out of reach.
Even the modest downpayment requirements of 3.5% of an FHA loan may be tough to meet, especially when it’s on top of all the other criteria of eligibility.

Impact on HomeBuyer Activity

Will this impact the ability to sell? Will the pool of buyers who not only want to buy, but also are able to buy, dry up significantly?
It’s always a matter of price, if the price is appealing enough, then there will always be a buyer.
There may be many more cash investors who are already setting cash aside and quickly liquidating assets, including on the stock market, but soon also bonds, to take advantage of a difficult situation for sellers.

Cash Buyers
Businesses are forced to layoff or furlough

They buy at a discount and never at a premium, so sellers who need to sell may have to take a hit. Not ideal. It may work in extreme circumstances where the property is in physical distress and/or the seller is under intense pressure to dispose of the home and the selling price is not the main priority.

Rental

However, there are other options that sellers can entertain, including renting. It could mean income that could cover carrying costs until the market restores to better values, but they would have to be landlords. For good reason, many don’t want to be involved in rentals, nor do we.
Alternatively, they can sell in one of the many more ways that the law and the market allow.
That’s when we come into play, as investors on terms.

Proxima Investors are Residential Real Estate Investors on Terms
Investors on Terms

We use any method which federal, state and local laws and regulations allow to achieve the sellers’ goals by buying the property at full or close to market value.
At the same time we sell the same property primarily on a lease-option or owner financing deal. We therefore allow time for the buyer to get in position to obtain a traditional mortgage or any other way of financing the formal purchase; or we may finance them.

Opportunity for Sellers


Sellers relinquish all responsibilities and headaches from carrying the property to us, they don’t have to sell at a discount and get it done with professionals like us involved. They can move on without any burdensome debt which hits hard month after month. They will have no more worries or miss out on market opportunities.

If sellers want a head start in this fluid market they should get in touch and find out about the details.

Real Estate Agents & Brokers

Agents are also encouraged to reach out and get accustomed to our model; our options would allow agents a powerful marketing tool for all sellers. We have homeselling solutions where there isn’t an easy one, as in a home in preforeclosure.

Listings hard to Sell
Get listings and get them sold no matter how hard the sale is

We can buy many of the homes that are hard to move. Agents would earn a commission, get credit for a sale, and with little or no work as we can handle the whole transaction.

Guaranteed Brokering Fee

If there’s any doubt that sellers may have issues paying the facilitating agent, we GUARANTEE any shortcoming or the full payment at the closing table. We understand that agents should get paid fairly and timely so we can get generate business and establish a steady relationship.

Sellers, Listing Agents, Buyers’ Agents
Any Real Estate Agent can assist us in completing deals on terms, buying and selling residential real estate

So sellers and sellers’ agents, CONTACT US to find out if and what solution we may have for you and your client; buyers’ agents also, if you have a buyers with any lending challenges, especially if they already failed to qualify upon application, ask us how we can make them successful home buyers.

All Over the USA

We team up with other investors on terms like us or agents and brokers when making deals outside of New England. We are therefore not restricted geographically and buy and sell all over the US.
We look forward to getting the ball rolling with anyone who needs to get a deal done!

Based in New England, we create deals in all states, albeit partnering with local investors and/or agents.

Home Buyers and the CoronaVirusOutBreak

Home buyers in the coronavirus outbreak
If you’re on the brink of making your dream come true, don’t hesitate any further!

Should #HomeBuyers wait it out?

First, let’s remember that:
There HomeBuyers who want to buy and HomeBuyers who need to buy.
There are HomeBuyers who want a new home to move into and live there, then there are Investors who want an investment property rather than their home.


Now, assuming homebuyers have not made a definite and enforceable commitment, because that would have to be completed or there could be negative consequences regardless of the outbreak;
assuming also that they’re buying a home that would work perfectly for them and their families,

then absolutely go ahead and don’t lose the deal!

If they wait, it’s going to be difficult to get back in. The discounted price they’re hoping for isn’t guaranteed to be available with low inventory and low rates, which now, can’t go much lower for them anyway.
Some other buyers may be able to get in more quickly and secure that house that worked so well.
Sure, many homebuyers are going to lose their jobs and spend their cash reserves, but there are so few homes available for purchase and not that many more after the virus outbreak and possible disruptions in the supply chains. Low inventory is going to outlast the virus!
Even if there are going to be fewer buyers, there’s going to be more cash because of the lower rates and possibly what was taken out of the stock market. Bonds are safe, but when things settle, they are going to be too dull and boring for investors. They are going to eye the traditional solidity of the real estate market.
Other investors are setting cash aside to jump in later and actively look for rehabs, upgrades, rentables and so on.
That would mean competition, and if it’s strong enough (it will be for good homes), there could be bidding wars that will soon drive prices back up to where they were, with the added hassle of going through a much more stressful process, especially for non professional homebuyers. Avoid getting caught in the middle of a war when things normalize and all buyers jump in. Non pros are at a disadvantage anyway.
Conclusion: “Buyer! If you’re on the fence, about to jump, but have one last moment to think and stop, don’t.

Home buying opportunities after the corona virus pandemic
Don’t put your dream at risk, go ahead and make the decision you really already made.
Don’t get distracted and regret it.

Buy!

If it’s NOT an investment and instead you’re moving in, BUY!

In a few years you’ll understand why it was a good idea.
If you’re hesitating because it may not work for you, then yes, it makes sense to wait, but don’t be cheap, don’t be greedy, don’t be opportunistic because it could come back to bite you and you could regret it. It could be a home that you will never be able to buy again…

PS: Given the circumstances, there may be delays in the process, as professionals, authorities, institutions deal with the outbreak, so don’t be impatient either.

Investors on Terms: Definition

This entry is part 3 of 3 in the series Investors on Terms

PROXIMA INVESTORS are Investors on Terms!

Mansions in Sterling, Massachusetts. Right on golf courses, satisfying saltwater pools, luxurious wine cellars, comfortably large saunas, professionally equipped exercise rooms, multiple car garages, pristine level grounds, numerous and ubiquitous fireplaces, huge rooms and spaces, areas for all needs and purposes

Our primary objective in the course of our real estate investing business is to leverage deal terms to achieve a solution for Sellers, Buyers and all parties involved in our deals, getting them DONE!

Meaning of Investors on Terms

There doesn’t appear to be ANY official definition of Investors on Terms or Deals on Terms (which are made by Investors on Terms) in general or in detail, nor are they specifically mentioned in public documents or recognized by public authorities or entities, as Purchase & Sales and Rental transactions are (“Subject To” deals are marginally acknowledged). The only deals that the general public may be aware of and can be included in Deals on Terms made by Investors on Terms, are Owner Financing and Rent to Own deals. However, these alone do not explain the concept that characterizes Investors on Terms.

Description as “Investors on Terms”

Hadley, MA: Home for sale on terms, lease-option or seller finance
Hadley, MA: Single Family Home for Sale on Lease-Option

“Investors on Terms” is a popular way of describing a certain type of real estate investors, albeit it’s mostly used in the industry and almost lingo of the defined community of professionals, investors and operators active in real estate. It’s a very broad and diverse category which includes many different investors with different, often unique, business models, practices, standards and so on.

Individual real estate investors

Sterling, MA: Home for sale on terms in lease-purchase, owner finance, or straight conventional sale
Sterling, MA: Single Family Home for Lease-Option

Each and every investor may attach a slightly different meaning to “Investors on Terms“. When dealing with investors, the claim should be taken with a grain of salt and the investors’ model examined to determine the exact type of approach to real estate investment.

Unlike other professionals, investors operate more on a smaller, individual scale and with different business models.

Proxima Investors

Real Estate is a solid investment with many ways to monetize and always on demand

For us, Proxima Investors, investing on terms means that we partner with sellers and buyers to find an effective solution to the challenges that they otherwise expect to overcome with a regular sale, with representation from an agent or by handling the deal by themselves.

That’s the core meaning of the term for most investors and their goal, no matter how they distinguish themselves from all the others in the details.

Achieving the goals

In Real Estate Buying and Selling is a challenge and it's different for everyone. That's why a customized solution is to be considered.
Every Home Seller and Buyer has a different situation and challenge; we address it with a custom deal that provides the best solution

Deals on Terms represent an alternative to the mainstream method of buying and selling, especially when they allow to achieve and often overachieve the goals set by sellers and buyers.

In these deals, we don’t focus on the property and its price and/or market value as the only or primary deal point. When we look at a deal, the property is important, but we also dive deep into the whole situation; we dissect all the possible aspects and details of the situation. We look at the big picture and include the sellers or buyers, their personalities and their needs, desires and expectations. We can overdeliver in satisfying the priorities as they are set and expressed by sellers and buyers, if we can leverage effectively all the items of the deal. We create, design and provide a custom agreement which addresses and resolves all the issues of our partners specifically.

In these deals, we don’t focus on the property and its price and/or market value as the only or primary deal point. When we look at a deal, the property is important, but we also dive deep into the whole situation; we dissect all the possible aspects and details of the situation. We look at the big picture and include the sellers or buyers, their personalities and their needs, desires and expectations. We can overdeliver in satisfying the priorities as they are set and expressed by sellers and buyers, if we can leverage effectively all the items of the deal. We create, design and provide a custom agreement which addresses and resolves all the issues of our partners specifically.

Goals and Tools

An “Investor on Terms” looks at the goals of sellers and buyers, proceeds to find the most effective method of achieving such goals by using all the tools that the law, federal, state and local, allow and support in real estate.’

“Investors on Terms” DEFINED:

DEFINITION: In residential Real Estate, “INVESTORS ON TERMS” study and analyze the homeowners’ goals situation, looking deep into the details of the property, and/or of buyers’. Then, they design a deal that leverages as much and as many deal points as possible to achieve the ultimate goal of the sellers and/or buyers.
REMEMBER investors on Terms do business by making Deals on Terms, but each investor has a different interpretation and implementation, style and approach, so no 2 deals are all different!

Conclusion

Hand people are paying the dollar with other hand holds the keys.
Many Buyers are caught out in these days of challenging lending conditions, making Deals on Terms an appealing alternative to get on the property ladder.

That’s the essential traits of “Investors on Terms” and most certainly of Proxima Investors.

Thanks to the tools that the law makes available today, we have much greater flexibility than other professionals in real estate; we can find solutions that work for all parties when a satisfactory solution wasn’t available by mainstream methods.

The downside is that these deals can be intricate and complex. They can prove to be a challenge too hard to face for many who are better off with a simpler, yet risky and/or expensive mainstream alternative.

For all the rest, these deals are not always simple, but indeed always WORTHWHILE!

For this reason, by far most of our deals, are on terms. Therefore, Proxima Investors are “Investors on Terms” indeed!

NEXT: Examples of Investors on Terms

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Investors on terms
Proxima Investors Buy and Sell Homes on Terms throughout New England and Beyond
Creative deals that effectively address challenges that make the sale of a home difficult or the process purchasing a home longer than the market changes and never happens…

Hadley, MA: Rent-to-Own Great Single Family Home

This entry is part 1 of 1 in the series 22MountWarnerRdHadleyMA
rent to own homes in massachusetts by proxima investors
In Hadley MA: Rent to Own homes by Proxima Investors

Listed for Lease with Option to Purchase this great home! It’s great because it’s very spacious, with 5 Beds/5 Baths/4544 Sq.Ft., 3 car Garage and on a private, yet not secluded 1.12 acre lot abutting untouchable conservation land. It’s also great because it was designed skillfully and there’s great use of the square footage available. This home has the perfect space and room for many different purposes and a great family home. Yes, it’s just great!

The Deal

The deal allows qualified Buyers to move in and enjoy the benefits of ownership, while taking care of the home as if it was theirs and positioning themselves to secure any funds necessary to close the formal Purchase & Sale transaction on a flexible timeframe.

After the quick screening process, a Downpayment will get you in and then just a monthly fee will get you to the finishline. No bank approval necessary to secure this deal, our Buyers will have the appropriate amount time to do what’s required to shop around for the best terms, apply in time and qualify for a traditional mortgage and be able to exercise the option to purchase. Call 617-999-0269 to get all the details about this deal.

The Home
Master Suite
Hadley, MA rent to own - lease-option single family home  2nd floor giant master bedroom
Giant master bedroom with unobstructed views of the sunset through large windows

5 Bedrooms include a 2nd floor giant master suite, softly carpeted, rare in size and amazing in the possibilities to arrange so much space. It’s beautifully overlooking the approach and facing West, where fantastic sunsets are a feature of this house only enhanced by the large windows. Perched high up above the surroundings, this home enjoys castle like views of the beautiful area of Hadley, Massachusetts.

Hadley, MA rent to own - lease-option single family home large master bathroom
Double doors from the master bedroom to the full master bathroom

Accessible through a double door and off the master bedroom is a full bathroom, tiled, with Jack and Jill sinks, private toilet, separate shower and jacuzzi bath tub naturally lit and brightened by lying below a large window. Like in the rest of the house, storage is not an issue here either.

A walk-in closet is a room per se, and the amount of storage to service just the master bedroom is perfectly proportional to the size of the master bedroom.

Hadley, MA rent to own - lease-option single family home jack and jill bathroom
Full wall length Jack & Jill sinks in the large master bathroom

This upper floor master bedroom is accessible through double doors making it incredibly easy and convenient, especially if you plan on moving in furniture proportional in size to the giant master bedroom.

Bedrooms
The bedrooms are all very spacious and have lots of natural light.

There are another 4 bedrooms, with hardwood floors and the large windows that can be found throughout the house, all on the 2nd floor. Just outside the Master Suite, is one, of generous size, facing West and enjoying the Western views. Other bedrooms located on the 2nd floor include one large bedroom with tiled full en-suite bathroom facing East, where the sun rises above the hill which is conservation area, the Connecticut River Parkway State Park. This bedroom also features extra storage. The last 2 bedrooms of 5, are on the South side of the building. Opposite the Master Suite, they share a full bathroom conveniently placed right between the 2 rooms. They both face South, with Sun and natural light pouring in, one with views of Western sunsets and Hadley, the other Eastern sunrises and the state park. Floors are in great shape and of quality hardwood flowing into each other and over the hallway. Aside from the laundry, there are no other rooms on this floor, which is also the top floor. Attic, usable for overflow storage if what’s available around the house isn’t enough, is accessible through a ceiling door. The top floor opens up as a gallery to an open view of the bright foyer, with an arched window above the entrance door to the West to bring in natural light.

Full bathrooms on the 2nd floor for all bedrooms

All bedrooms enjoy full bathrooms. They are all spacious with the master bathroom being proportional to the giant bedroom it serves. A private toilet, jetted bathtub below oversized window with views over the very green surroundings, wall-to-wall Jack & Jill sink setup with storage, separate shower, are the features of the master bathroom. Another bedroom has its own en-suite bathroom overlooking conservation land to the east. There is also another full bathroom shared by the other bedrooms and conveniently positioned between two of them and within easy reach of the other.

Laundry

One of the great features of this house is the laundry. It’s very conveniently located on the 2nd floor and right next to the Master Suite. It’s a large room in itself and easily fits washing machine and dryer. It also has plenty of storage and a countertop for laundry tasks. Even with all of that fitted in, there’s room left for much more. No trips to the basement or even just the 1st floor!

Foyer
A distinctive arched window and a beautiful drop chandelier add character to the home in a 2 storey high ceiling foyer

A welcoming foyer opens upon entry and offers access to the front room that could be used as an office or maybe for formal entertainment, accessible through french doors. Further into the home a half bathroom is conveniently located within easy reach of the entrance and the main living areas of the 1st floor, including the kitchen and the entertainment area. You can flow right into the kitchen and entertainment area, through an obvious opening. A closet serving the foyer is positioned under the staircase which leads to the upper floor. To the left is a room that could serve well as a formal dining room with direct access from the kitchen as well. The foyer is naturally lit especially by a beautiful arched window above the front door, and a drop chandelier that fits nicely in the 2 storey foyer.

Front Office
A clearly defined room and space seems perfect for a clearly defined purpose

On the South side of the Foyer is a room which looks West through the windows onto the balcony. It’s accessible form the Foyer through beautiful french doors. The red hardwood floors break from the rest of the rooms and spaces clearly defining the room. An opening allows access, through the wet-bar room, to the main entertainment area, guaranteeing a continuous flow throughout the 1st floor. The room could have many uses, but a formal office could be ideal for a professional or any other formal use seems perfect; location, right near the entrance, and the luxurious touches with french doors, beautiful windows, red hardwood floor. The direct access to the wet-bar area makes it even more interesting, while the 1st floor bathroom is within easy reach.

1st floor bathroom and closet
1st Floor Bathroom is centered in the floorplan

Very conveniently located is the 1st floor bathroom. A spacious half bathroom that is positioned right in the center of the floorplan. The 1st floor hardwood flooring flows right into it. Neutral in colors and modern fixtures make it a very welcoming room of the house. It can be easily accessed from the entrance and foyer, from the 1st floor office and formal dining room. It’s also right off the main entertainment area and within easy reach of the deck, therefore serving most areas with the most activity. Your guests will be able to have a handy option wherever they are entertained, summer or winter.

Just opposite is the closet that serves the 1st floor, under the staircase and logically placed between the foyer/dining room/office and the kitchen/entertainment area.

Investors on Terms: Context

This entry is part 2 of 3 in the series Investors on Terms

PROXIMA INVESTORS are Investors on Terms!

Mansions in Sterling, Massachusetts. Right on golf courses, satisfying saltwater pools, luxurious wine cellars, comfortably large saunas, professionally equipped exercise rooms, multiple car garages, pristine level grounds, numerous and ubiquitous fireplaces, huge rooms and spaces, areas for all needs and purposes

Our primary objective in the course of our real estate investing business is to leverage deal terms to achieve a solution for Sellers, Buyers and all parties involved in our deals, getting them DONE!

Real Estate Investors Today

In the real estate world, there are investors of all kinds; small and professional landlords, rehabbers and flippers, wholesalers, note investors and the list goes on. There are also “investors on terms“. We, at Proxima Investors, are exactly that, “investors on terms“.

Investors on Terms and Awareness

Rent to own in Sterling MA
Sterling, MA Rent-to-Own: “Contemporary Mansion”

While it’s a quick and easy way to describe what we do, it may be a little more complicated to give the right idea to those who have never heard of “investors or terms”, even within the industry.

Home owners who may buy and sell properties 2-3 times max in the course of their lifetime (pretty much American Homeowners‘ average), are probably the least likely to have done business or heard about an “investor on terms“.

Our actual Sellers and Buyers, now have a good idea. However, with so many different types of deals that we can make, they probably have only a partial understanding of our whole business of “buying and selling real estate on terms“.

Even professionals in real estate may have never heard of what a “deal on terms” and what it entails.

Real estate agents are generally busy listing homes in the ordinary way and closing only conventional deals.

Real estate attorneys may be trained and experienced in conventional closings only. Even many other investors like landlords are not aware of the concept of a residential real estate “terms deal. They are all so ubiquitous and mainstream that anything different for them is difficult to comprehend as they have no experience with Investors on Terms.

Other sectors and times of Real Estate

Norwell, MA Rent-to-Own Homes: “Custom Cape”

If you look into other niches and fields of the vast real estate market, you may find many more instances of “Investments on Terms“. In the commercial sector, much more valuable real estate properties and complex transactions make it worthwhile to negotiate in detail and design sophisticated “deals on terms”.

You don’t have to look far to find “deals on terms“, you can just look at the real estate world in America in the 1970s. “Investments on terms” like Subject To purchases were common and very popular, in the context of interest rates that were very unstable and growing out of control from week to week.

The 2008 Downturn

More advanced and creative deals are needed today to purchase a home with mortgages that are so tough to get, especially for some categories

The 2008 downturn put an end to the easy loans and mortgages that inflated and destabilized the real estate market. The ever rising prices suddenly ended bursting and crashing down heavily, determining the need for tighter regulations. These are now seriously affecting a wide range of the population now needing alternative ways to finance the purchase of a home. This situation brought back some techniques from the past, as the mentioned Subject To deals, from other sectors of the market, just one example would be Lease-Options, or new and innovative, like some unexpected combination of techniques as in a Wrap-around Mortgage, or a classic Owner Finance deal which is pretty intuitive in concept, but a lot of work and expertise is necessary to define the details to make it a solid deal. Those are just a few types of deals that many Investors on Terms can create and manage.

Resistance to competing models

Real Estate Agents in the residential market: they specialize in straight Purchase & Sales and Rentals only.
There are around 2 million active real estate agents in the USA (source: ARELLO) with a population of 327 million, that’s 1 agent every 163 people. And that’s why everyone has an agent within easy reach, at all times.

These transactions are becoming more known and a more frequent choice as the industry, professionals and consumers, learn or relearn about them. The recent history of easy mortgages and refinancing lead to easy transactions with lots of equity. These easy deals shaped the industry into a predominantly intermediated one because the luxury of hiring an agent appeared very affordable while netting inflated prices. Despite the crash, the industry players still dominate, thanks to the stronghold position they acquired. They are able to dictate their only transaction models, supported by collective efforts organized by large bodies like the NRA. They are in control and mount a strong resistance to anything that may disrupt the present order and threaten their dominance. That’s why sometimes, not always, we find real estate agents uncooperative and failing in their fiduciary duties towards the sellers and buyers who hired them.

Increasing Awareness and Market Share

Despite all that, the percentage of deals on terms concluded is constantly growing and so is awareness. Mostly replacing For Sale By Owner transactions, as they typically involve a professional at no cost, they also represent a strong and threatening alternative to hiring real estate agents who charge Sellers a good amount of equity in fees.

When you hear that deals on terms are dangerous, illegal, immoral or anything along those lines, you're hearing the desperate voice of those who just stop short of admitting unawareness, lack of knowledge and no expertise in the field. 

BEWARE of those who make derogatory remarks about their business competitors without any in depth knowledge or experience!

Investments on Terms For Buyers:

Hand people are paying the dollar with other hand holds the keys.
Many Buyers are caught out in these days of challenging lending conditions, making Deals on Terms an appealing alternative to get on the property ladder.

The need for alternative financing and the difficulty in getting it within established models, like the ordinary home purchase through real estate agents, make these deals a very viable option for Buyers. They need to buy in a transaction which needs to take their specific challenges into consideration. That’s what “Deals on Terms” do! That’s also why Buyers compete strongly for any deal available, as it’s often the only quick path to ownership and avoid renting, while housing market prices fly by to sometimes unreachable heights.

Investments on Terms For Sellers:

Many Sellers find themselves left out of the market for no fault of their own or their house. Just too few Buyers. We market the property to many more qualified Buyers.

They are effective for Sellers also because many times without fault of their own or of their home, they are stuck with a property sitting in the market with nothing in sight. The market itself is constantly described as a Sellers market, because there are so many Buyers who want to close on a home. However, many conventional deals fall through because of the way the lending industry processes applications, Deals on Terms restore confidence in home-selling by opening up the market to a much larger pool of strong, worthy and motivated Buyers. Not all applicants pass our Buyer-quality screening process, but the market offers so many better and faster opportunities. That’s what you can correctly call Deals on Terms a Sellers’ market.

NEXT: Definition of Investors on Terms

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Investors on terms
Proxima Investors Buy and Sell Homes on Terms throughout New England and Beyond
Creative deals that effectively address challenges that make the sale of a home difficult or the process purchasing a home longer than the market changes and never happens…

Investors on Terms: Introduction

This entry is part 1 of 3 in the series Investors on Terms

PROXIMA INVESTORS are Investors on Terms!

Our primary objective in the course of our real estate investing business is to leverage deal terms to achieve a solution for Sellers, Buyers and all involved in our deals getting them done!

Hadley MA: Rent to Own homes by Proxima Investors

by Proxima Investors of Northborough, MA

Homes get sold and Sellers succeed. Buyers are able to Purchase. Everyone gets what they want and need, are paid and everyone is happy and able to move on.

Not many know exactly what a deal on terms is; it seems useful and maybe even necessary to clarify what we mean by being Investors on Terms.

A small series of articles as posts in this blog will attempt to explain how Investing on Terms works. Keep in mind that it may widely differ from what and how other investors use similar methods; they may be in different niches, states, deal with different properties and types of Sellers and Buyers.

This is just the INTRODUCTION so you know what it’s about.

We will start by describing the CONTEXT which is important to define the role and the activity of Investors on Terms.

Then we will go straight to our own DEFINITION of Investors on Terms with details about the meaning of the term.

Some EXAMPLES in the following blog post will be very useful to understand the concept of Investments on Terms in practical terms to see what it’s like in a realistic environment.

What do Investors on Terms mean for Sellers, Buyers and their properties and how they affect the situation of all investment PARTIES.

PROXIMA INVESTORS, Deals on Terms and how they fit in our business model of real estate investing in the residential niche.

Our FINAL THOUGHTS about Investors and Investments on Terms will follow to go back to the whole picture and conclude our explanations.

Finally, space for QUESTIONS and COMMENTS, which are a great way to get a better understanding of the idea of Investments on Terms and its applications in individual situations.

As a bonus, we will progressively compile a GLOSSARY of the Investors on Terms niche for quick reference with useful links to more info.

NEXT: Context of Investors on Terms

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Investors on terms
Proxima Investors Buy and Sell Homes on Terms

Selling haunted homes in Massachusetts

Disclose or not disclose?

Since it’s Halloween, let’s see what the law says about haunted homes, murder, suicide, paranormal activity, which happened or, allegedly, are happening in the building in Massachusetts.

Stigmatized properties for sale in Massachusetts and Sellers’ disclosures

When Selling a home, a Seller has to abide by many rules and guidelines. Some of these are pertinent to facts that may affect the building, and in turn the transaction, and that the law may or may not require a seller to disclose.

A stigmatized property is a property in which paranormal activity is reported or suspected, or where heinous events have occurred, such as murder, suicide or both. The law also considers an association of the property a certain illness, but that has lost much of its impact nowadays, so it’s more about the former occurrences.

Each individual, seller or buyer, has a different sensitivity to the issue of stigmatized homes and for many it’s not an issue at all. The issue of disclosure of these events and situations could add uncertainty in a transaction if not clear.

Scary ghostly figures in haunted building..

There are already so many hurdles, like inspections, appraisals, concessions, fees, assists, waivers, endless negotiations and other disclosures that having to reveal a “paranormal presence” in a house could jeopardize a done deal by spooking even very motivated buyers.

The creaky floors could be something easy to fix and not likely to hold up a Purchase & Sale, but should they be thought to be due to paranormal activity and not having been disclosed by the seller, it could create an insurmountable issue. If it emerges after signatures have been exchanged it could provide a solid reason for legal claims based on lack of disclosure.

MASSACHUSETTS LAW

Unlike California, where you can go back 3 years and more for psychologically impacting events on the property, it’s not the case in Massachusetts! The law clearly states that, as it doesn’t fall in the category of material facts which have to be disclosed, it’s unnecessary “to disclose the fact that the property was the site of “…felony, suicide or homicide” or “…that the real property has been the site of an alleged parapsychological or supernatural phenomenon.”

HOME SELLERS AND LANDLORDS

No disclosure of any stigma on a property for sale is legally necessary in Massachusetts for a Seller, but for a Landlord or Lessor also.

Buyer Beware and due diligence

HOME BUYERS AND INVESTORS

The general “Caveat Emptor” (Buyer beware) rule applies here for home buyers and buying investors, who are expected to perform their due diligence in general, but especially with regards to this specific issue if they’re sensitive to such a property. If you’re a buyer, it would be advisable to talk to neighbors, research public records, and just ask clear and direct questions, especially if there’s a doubt, maybe rumors, maybe a feeling.

If home buyers ask clear questions about any stigma on the property, the seller cannot misrepresent or make false statement without giving cause of action, with half-truths also providing an opportunity for a successful lawsuit.

CHOICE TO DISCLOSE

What sellers can do, is to provide information voluntarily. If they so choose, it’s their prerogative, but NOT obligation and buyers can’t claim it as a right to have that information disclosed.

REAL ESTATE AGENTS

If the seller is represented by an agent, in the same way no disclosure is necessary. Due to the fiduciary nature of the relationship between agent and seller, the agent cannot provide the information voluntarily, unlike the sellers, and unless the sellers themselves authorize or instruct the agent to do so. The agent can always decline to represent the seller or terminate an agreement already in place if the information emerges after establishing the contractual relationship.

REAL ESTATE INVESTORS

If an investor, like us at Proxima Investors, is involved in the sale, depending on the type of underlying deal, the investor is subject to the same disclosure rules as the seller, holding equitable interest in the property.

PROXIMA INVESTORS

At Proxima Investors we have not come across a situation of stigmatized properties where it was a concern. However, since Massachusetts and New England in general, are old states with many antique and beautiful homes which have witnessed a lot. Homes can have a long and known history and the creaks and noises of old homes can be unsettling and inspire stories passed down over centuries, and sometimes made more “interesting”. Think about Salem in the 1600s when Massachusetts was a very populous state with lots going on. It’s only a matter of time that we will run into this issue. We already have invested in old and antique homes, which can be difficult to sell in this market, and we love them. Should the issue at some point arise, we believe that it should be dealt with on a case-by-case basis, as property stigmatizing events and situations have a different psychological impact depending on their uniqueness and the specific circumstances.

The bottomline for us is that we don’t have to disclose, but if there’s a particularly unsettling story linked to the house, we would probably not invest in it anyway…

Proxima Investors of Massachusetts are not attorneys and we do not provide legal advice and only state our opinions. Check with your attorney of choice before making any decision based on the content of this article. A useful resource can be found by clicking the link below to the relevant section of the state law: Real estate transactions; disclosure; psychologically impacted property.

Massachusetts Law Reference: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93/Section114

Home exterior, front yard with spookie Halloween decorations in the front yard

 

PhotoVideo of Rent to Own Single Family Home in Sterling, Massachusetts

This PhotoVideo will give you a good feel for the mansion-like home that we’re offering on a rent to own sale contract (we call it lease-purchase, which is short for lease-with-option-to-purchase, rather than just a less sophisticated rent-to-own), the great spaces and many rooms, the upkeep and style, the neighborhood and surrounding grounds, easily by watching a quick 2 minute video…Enjoy!