HARTSHORN PROPERTIES, INC.
ST PETE BEACH, FLORIDA

Does Buying or Selling a Home have to be so Difficult? (LEWISTON, IDAHO) The nationwide credit crisis may have turned “the American dream” into an extended nightmare for many Idaho home buyers and sellers. Banks and mortgage lenders (who are not going out of business) have tightened up their lending requirements to the point where many home buyers today can no longer qualify for a mortgage. Record numbers of foreclosures, rising unemployment, losses in the financial markets and the current credit crunch have not only reduced the number of buyers who can buy but have also increased the number of houses that sellers need to sell. Prices are under pressure as home sellers lower their asking price to attract a buyer, and as lenders resell their foreclosed homes below market value. And it’s turning into a vicious cycle — as many buyers need to sell their current home first — and many sellers (unless they plan to rent) need new financing to get into their next home. As a result, a sea of real estate agents, mortgage brokers and home builders are going out of business. These professionals are in the business of serving buyers and sellers. But that’s hard to do, with the credit crisis, when the entire real estate industry traditionally relies on mortgage lending to finance buyers and get houses sold. What can homeowners do to sell their homes? How can buyers get financing if they can’t meet the tougher lending criteria on credit scores, income verification, down payment amounts and debt ratios? is the president of Hartshorn Properties, LLC. Since 2001, his private investment / management company has been buying houses throughout the Lewiston Valley region without ever relying on banks. Tim’s company takes over existing mortgages or brings in private lenders allowing him to pay homeowners all cash for the properties. He then offers his properties for rent or “for sale by owner” using a variety of unique seller financing programs. By taking a long term approach and never relying on banks, business has never been better for Tim and his company. “Most sellers are unaware of the options we offer. What they need most is a qualified buyer… and we might just be that buyer. We can buy houses in as-is condition, pay top dollar and close in just a few days… or whenever they’re ready.” “It’s a very common misconception. But until I look at a house and do some research, I won’t know my game plan for the property or what I can offer. But after a single visit to the property and meeting with the homeowners I can let them know exactly what I can do. My offer is good for 7 days and it’s only at that point, with my offer on the table, that a seller can decide if I’m going to become their buyer.” “It’s easy to determine. I also do an appraisal and look at the recent comparable sales. Then I do whatever I can to offer a seller up to full price today — or about what they might net sometime in the future pursuing a more conventional route. What I can pay depends on the condition, location and financing options available for that type of property. It only takes about 10 minutes to prescreen a property over the phone and to set an appointment. We typically buy 1 out of every 4 properties we see. In fact, for about half of those I have purchased, the seller pursued their other options and then came to realize that my offer was the best all along.” Tim believes the three biggest reasons a house doesn’t sell are: “I can pay a fair price on a home that needs work. I might even plan to increase the value or marketability by adding a bedroom or bath, finishing a basement or installing a new heating system. Brand new carpet and paint will go a long way to attract a qualified buyer. But I understand that many sellers don’t have the time, inclination or money to remodel a house… just to get it sold. We solve that problem for sellers.” Listing agents sometimes suggest (or a seller might decide) to ask for a higher price than needed. This might be to test the market or leave wiggle room to negotiate. However, this can backfire if the seller wants (or needs) a quick sale, or when the “days on the market” stacks up causing buyers to wonder what’s wrong with the property. Another misconception about how Hartshorn Properties, LLC buys houses is the idea that they are probably looking for sellers in financial distress. “Look, when a seller is out of time or out of options, then I’m usually their best solution — if their property is not over-financed. But most people headed for foreclosure are either overleveraged or actually looking to save their house. If I buy the house the seller must move. They really need to get into a more affordable home… but sometimes I can help by swapping properties.” “Recent laws have been passed in several states that apply to any business and investor who targets people in foreclosure. Be cautious, do your research and perhaps seek legal advice when anyone wants to charge you an upfront fee for helping to get your loan modified, or… if they’re promising to lease the home back to you. That rarely works out like the borrower expects and can lead to accusations of fraud. Perhaps rightly so.” What about the houses his company has bought throughout the Lewiston Valley over the last 8 years? Simple. He rents them out or resells them. With a reasonable down payment, Tim says he can sell you one of his properties using his popular owner financing programs — even if you have damaged credit or a short job history. “If you can afford a first month’s rent, a last month’s rent and a security deposit, then I can probably sell you one of my houses.” Many buyers turn to Tim because they don’t have the down payment required by today’s cautious lenders. Tim helps buyers build up equity or a down payment over time with his rent-to-own (or lease with the option to buy) program. In this program you can rent the property you’ve decided to buy, but have the option to close anytime over the next 1, 2… or even 5 years. A portion of the rent each month is credited toward buying. Additional amounts can be paid monthly for more rapid equity build up plus other promised amounts can be made later… like proceeds from the sale of another property or a pending tax refund.