In-House financing for customers???

[GrassMaster]

Lets tell the facts (Discuss), give info on how to do in house financing...

and don't be singling others out on correct or incorrect info. Give the info or don't discuss it any further!

[Phil Nilsson]

The Uniform Commercial Code explains ... "security interests and secured parties" ... see article 9 ... http://www.law.cornell.edu/ucc/ucc.table.html

[Scaper-S2k]

I was just trying to give first hand experience with carrying loans. All I was saying was that if you have a lien, many other debtors at the point of bankruptcy probably have them too, on the same home. You will be standing in line, IF you get money at all.

Good luck with getting them to sign a Mortgage position, or taking out a second mortgage with a landscape company instead of their own bank.






BladeRunner, if none of the above sounds good, go to your bank, get a Business Line of Credit. Like $100,000. You are only charged intrest on the amount you use. And it is usually .5% - 1% over the prime rate. You simply charge the client 3% over prime. Make 2.5%, and just pay off the line of credit as the client pays you.

Good luck.


P.S. I'm now going to go lock myself in the "bomb proof, bullet proof, rubber room".

[BladeRunners]

I have a phone call out to American General Finance, and am looking into the John Deere Financing as well.

Thank you all for your info.

[Phil Nilsson]

Blade ... that's a good idea ... when you examine the John Deere application ... take a look at the credit qualifiers that they use. At various levels of the total financed ... what security is sought by the lender (John Deere)? Generally, as the risk gets greater for the creditor due to credit standing, etc. the interest rate rises and or the amount of collateral increases. The banking system is controlled by the Federal Reserve Board ... subject to a different set of rules to keep the "integrity" of the money system safe and secure throughout the system ... but ... "second and third world lenders" have far less restrictions on the kind of loans they make and the security positions sought. Often times what you see is that you yourself would not be at any more risk than a bank would be had you yourself decided to finance the job.

This is why I suggest having your CPA take a look at your own personal financial position to see if indeed you are a "candidate" to earn some interest money ... and if so or if not, why or why not?

If you are not going to be at high risk ... why not make those extra interest dollars if you can afford to? Your CPA can answer that question and one final thought ...

If (IF) you are going to be getting a secured deal by issuing a note receivable on any type of real estate or "financial instrument" with stated value like stocks, bonds, or substantial or measureable value (like gold) for example ... LOL ... then those are assets not at risk AND ... these can be traded and sold should you yourself decide to get out from under a secured receivable position.

In other words ... you can greatly reduce risk, make some easy money by self financing if you do it right ... might as well be you making those easy bucks instead of the bank ... as long as you are covered and by the way ... if a bank decides to finance your deal ... you are almost guaranteed to be at little if no risk because banks are regulated by The Federal Reserve System and live by a set of tight rules ... they very rarely lose because of those rules. Obviously the closer you get to a first mortgage position the farther you get away from potential loss positions ... so that in essence what you have is an almost risk free deal ... in fact IMHO ... it's almost a crime in my book how consumers get "raped" (interest wise) when certain lenders are placed at so low risk they virtually can't lose but nevertheless charge very high interest rates ... anyway ... well what can you do ... it's the "system".

See your CPA first.

[outdoorspace]

do it the easy way. John Deere Landscapes offers many programs for the customer and you are charged a 3% fee and get your money within 48 hours of submitting the paperwork.

[Phil Nilsson]

That's 3% of the gross sale charged to the contractor? ... what interest rate is charged to the customer?

Phil

[BladeRunners]

Spoke with my CPA today, and he suggested that we go with John Deere Financing.

So that's the plan for now.

[Phil Nilsson]

I haven't seen a John Deere Financing Contract ... yet ... so I don't know what to recommend to my "clients". If anybody has a copy, please forward to me by snail mail or email to nilsson.assoc@snet.net

Phil Nilsson
374 Hart St
Southington, CT 06489