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Financial Consultants Carrollton GA

The Seller Finance trap begins with a seller who is having trouble finding a buyer. Maybe the park’s vacancy is too high, maybe the location is too rural or in obvious decline. Whatever the cause, the seller can either sit on the park for an eternity, or find a creative way to attract a buyer. And what can be more attractive to a buyer than an easy to qualify, below market interest rate loan.

Mr. John L. Grillo, CFP®
(770) 214-0714
205 Lee St
Carrollton, GA
Firm
Grillo & Associates
Areas of Specialization
Asset Allocation, Comprehensive Financial Planning, Education Planning, Estate Planning
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: $100,001 - $250,000

Profession: Self-Employed Business Owners

Data Provided by:
Mr. Richard Earl Prince, CFP®
(404) 376-9243
128 Newnan St
Carrollton, GA
Firm
MassMutual
Key Considerations
Average Net Worth: $1,000,001 - $5,000,000

Average Income: $100,001 - $250,000

Profession: Self-Employed Business Owners

Data Provided by:
Wells Fargo - Carrollton
(770) 834-2265
848 Bankhead Hwy
Carrollton, GA
Type
Branch
Office Hours
Mon-Thu 09:00 AM-04:00 PM
Fri 09:00 AM-05:00 PM
Sat 09:00 AM-02:00 PM
Sun Closed

SunTrust Bank
(770) 258-5561
102 West College Street
Bowdon, GA
Type
ATM, Branch, Investment Center, Drive-Thru, Weekend Hours
Office Hours
Monday: 9-4
Tuesday: 9-4
Wednesday: 9-4
Thursday: 9-4
Friday: 9-6 Weekend: Sat 9-12
Drive Up Hours
Monday: 9-4
Tuesday: 9-4
Wednesday: 9-4
Thursday: 9-4
Friday: 9-6 Weekend: 9-12

SunTrust Bank
(770) 456-2265
1849 Villa Rica Highway
Villa Rica, GA
Type
ATM, Branch, Commercial Center, Mortgage Office, Investment Center, Drive-Thru
Office Hours
Monday: 9-5
Tuesday: 9-5
Wednesday: 9-5
Thursday: 9-5
Friday: 9-6 Weekend: Sat 9-12
Drive Up Hours
Monday: 9-5
Tuesday: 9-5
Wednesday: 9-5
Thursday: 9-5
Friday: 9-6 Weekend: 9-12

Mr. Steven L. Holmes, CFP®
(770) 832-6837
1606 Maple St
Carrollton, GA
Firm
Holmes Financial Group
Areas of Specialization
Asset Allocation, Business Succession Planning, Comprehensive Financial Planning, Divorce Issues, Education Planning, Estate Planning, General Financial Planning
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: Not Applicable



Data Provided by:
SunTrust Bank
(770) 834-2374
1371 South Park Street
Carrollton, GA
Type
ATM, Branch, Mortgage Office, Investment Center, Drive-Thru, Weekend Hours
Office Hours
Monday: 9-4
Tuesday: 9-4
Wednesday: 9-4
Thursday: 9-4
Friday: 9-6 Weekend: Sat 9-12
Drive Up Hours
Monday: 9-4
Tuesday: 9-4
Wednesday: 9-4
Thursday: 9-4
Friday: 9-6 Weekend: 9-12

Bank of America - Maple Street
(770) 832-9662
600 Maple Street
Carrollton, GA
Type
Banking Center
Services
Banking Center Services: Change Order, Commercial Deposits, Night Deposits, Drive Up
Indoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Deposit Image
Outdoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Multi-Check Deposit, Drive Up, Deposit Image
Languages
English, Spanish, Chinese, Korean, French, Russian, Portuguese
Office Hours
Monday 9-4
Tuesday 9-4
Wednesday 9-4
Thursday 9-4
Friday 9-6
Saturday 9-1
Sunday Closed
Drive Up Hours
Monday 9-4
Tuesday 9-4
Wednesday 9-4
Thursday 9-4
Friday 9-6
Saturday 9-1
Sunday Closed

Wells Fargo - Mirror Lake
(770) 456-4915
1997 Mirror Lake Blvd
Villa Rica, GA
Type
Branch
Office Hours
Mon-Fri 09:00 AM-05:00 PM
Sat 09:00 AM-12:00 PM
Sun Closed

J. Brian Preston
Preston & Cleveland Wealth Management, LLC
(770) 898-4235
1611 S. Zack Hinton Parkway
McDonough, GA
Expertises
Ongoing Investment Management, Planning Issues for Business Owners, Estate & Generational Planning Issues, Advising Medical Professionals, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, CPA/PFS

Data Provided by:

Beware of the Seller Finance Trap

BEWARE OF THE SELLER FINANCE TRAP
Sat 08/15/09 08:48:07 pm
by Frank Rolfe

There are few things more attractive about the mobile home park business than seller financing. Non-recourse seller financing allows the buyer to escape the hassle and scrutiny of bank lending, while at the same time offering some degree of insurance against fraud (you have not yet paid the seller in full), the ability to give the park back and walk clean in the event of catastrophe, and often includes a below-market interest rate and longer loan term.  

That being said, there is a trap often used by sellers that is baited with seller financing, and it is important to always be aware of, and stay clear of, this danger. 

The trap begins with a seller who is having trouble finding a buyer. Maybe the park’s vacancy is too high, maybe the location is too rural or in obvious decline. Whatever the cause, the seller can either sit on the park for an eternity, or find a creative way to attract a buyer. And what can be more attractive to a buyer than an easy to qualify, below market interest rate loan. 

Of course, there’s nothing wrong with a below-interest rate seller note. But not when it is used as a trap. And many times, that’s exactly what is being set. 

You see, the seller knows that the park will never hold up to the scrutiny of a bank – the appraisal, the independent review of the numbers, even the negative logic of the loan officer. To keep you from finding out that the park is overpriced, Do the Search or in a bad neighborhood, or basically completely unable to be financed, the seller offers to carry the loan and cuts the bank out of the loop day one. That’s the first leg of the trap.

The second part of the trap is to bait the deal with a super low interest rate to make the park look like it is a profitable investment, even though it could never carry a regular bank debt load of the same size. If a park is a 4% cap, then what better way to disguise the poor performance than with a 2% interest rate on the mortgage? The seller is effectively cooking the books with the buyer’s blessing. When you accept a cash-on-cash return that is spiked by ridiculously low interest rates, then you may be getting into trouble.

The final part of the seller trap is to offer only a short loan term, maybe two to five years, and the below-market interest rate for only the first year or so. What this does is to put the buyer in a negative cash- flow situation almost immediately, and force the round of bank loan requests that normally end in nothing but rejection. Faced with the loan coming due, and no bank loan prospects, the buyer often gives the park back to the seller, less his 20% down payment. There are sellers out there who have sold the same park two or three times under this framework, garnering 60% of their purchase price in down payments, and still owning the park. 

So how do you avoid ...

Click here to read the rest of the article from mobilehome.com

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2018 American Economic Association Annual Meeting
Dates: 1/5/2018 – 1/7/2018
Location:
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