What category of borrowers sees Syndicate Equity Financing as a good opportunity?
Small investors
.
What is no longer a popular financing instrument in California?
5 of 10 – Why are
sales contracts
no longer a popular financing instrument in California? It is very difficult for the seller to remove a buyer that is in default. The buyer is at risk because he holds no immediate title to the property. Court battles involving both the seller and buyer could be lengthy and costly.
What category of investors sees syndicate equity financing?
What category of borrowers sees Syndicate Equity Financing as a good opportunity?
Small investors
.
What is the financing instrument favored in California?
The security instrument most often used in California for real estate transactions is a ____sometimes called
a deed of trust
. trust deed.
Why would a contract for deed?
A contract for deed is an agreement for buying property without going to a mortgage lender. The buyer agrees to pay the seller monthly payments, and the deed is turned over to the buyer when all payments have been made.
What is the most important difference between a syndicate and a joint venture?
In a joint venture, because
all business partners are involved, they are not relying on a third party for the venture to be successful
. In a syndication, passive investors rely on the sponsor or management team to realize an ROI.
Are syndicates partnerships?
Real estate syndication (or property syndication) is
a partnership between several investors
. They combine their skills, resources, and capital to purchase and manage a property they otherwise couldn’t afford. There are usually two roles in property syndication: syndicator and investor.
What Lien has the highest priority?
A general rule in property law says that
whichever lien is recorded first in the land records
has higher priority over later-recorded liens. This rule is known as the “first in time, first in right” rule.
What is the major difference between an estate for years and an estate from period to period?
An ESTATE FOR YEARS is a
lease
for a fixed period of time, agreed to in advance. An ESTATE FROM PERIOD-TO-PERIOD is a renewable agreement to rent or lease a property for a period of time, where the rental or lease amount is fixed at an agreed to sum per week, month, or year.
What is the real estate regulatory body in California?
The California Department of Real Estate
exists to serve the real property market and protects the transactions occurring in the real estate field. The DRE grants licenses to Real Estate Brokers and Salespersons.
Which type of listing is least attractive to a broker?
| What happens if the broker cancels the listing or otherwise defaults? the client may sue the broker for money damaes | Which type of listing is least attractive to a broker? Open |
|---|
Are Trust Deeds a good idea?
Trust deeds can be a valuable aid to financial stability, but they are not right for everybody. They are
best suited to people who have a regular income and can commit to regular payments
.
Why do lenders in California prefer deeds of trust over mortgages?
A deed of trust is needed when a traditional lending service (i.e., a bank) is not being used or when certain states require deeds of trust instead of mortgages. Whether you have a deed of trust or a mortgage, they
both serve to assure that a loan is repaid
, either to a lender or an individual person.
What are the disadvantages of a contract deed?
A disadvantage to the seller is that a contract for deed is frequently characterized by
a low down payment and the purchase price is paid in installments instead of one lump sum
. If a seller needs funds from the sale to buy another property, this would not be a beneficial method of selling real estate.
Who holds the deed in a contract for deed?
A contract for deed is a legal agreement for the sale of property in which a buyer takes possession and makes payments directly to
the seller
, but the seller holds the title until the full payment is made.
Who owns the property in a contract for deed?
In a contract for deed sale,
the buyer
agrees to pay the purchase price of the property in monthly installments. The buyer immediately takes possession of the property, often paying little or nothing down, while the seller retains the legal title to the property until the contract is fulfilled.
