Clay Johnson: Hey, guys. Clay Johnson here with Castle & Cooke Mortgage, and I’m with the ever-energetic Cheryl Knowlton-
Cheryl Knowlton: Hi, guys.
Clay Johnson: … from Dynamite Productions. Hey, we wanted to do this kind of followup with you guys. We’ve been talking about interest rates, market, value, and increasing. The economy’s strong, jobs are good, jobs have been strong, so there are some really good economic indicators.
Cheryl Knowlton: Yes, and the stock market is great.
Clay Johnson: The stock market’s great, so it’s… When you get in this kind of market there are always these unique opportunities associated with real estate.
Cheryl Knowlton: That’s code for an idiotic idea.
Clay Johnson: And they’re sold very persuasively, so I was just talking to Cheryl about one. We wanted to share one in particular that we’ve been finding to be kind of prevalent a little bit here in Utah recently, and we realized this happens nationally as well. So, you’re going to see these things nationally, but Cheryl, tell us a little bit about what you’ve been seeing here.
Cheryl Knowlton: So, there are some investors who are teaching individuals to buy on contract as an investment opportunity, which can be done. I’ll tell you right now, the class that I wrote for this, years ago, 15 years ago, is five hours of the core because there is just so much to it. So, first of all, never enter into a seller financing situation without being fully and thoroughly versed in exactly what you’re doing and the underlying ramifications. In this particular situation, this investor was purchasing a property from the stressed homeowners, but there was an underlying Utah Housing law, and there is a provision in all of the paperwork that says you cannot rent the property out. If it’s Utah Housing, that is designed for the dream of homeownership.
Clay Johnson: That’s right, that’s right. Yeah, you have to be really careful with that, because it really is, like you say, set up to get that homeownership right there, and you’re signing something… There have been some exceptions, but you need to get permission from Utah Housing if you’re ever going to-
Cheryl Knowlton: Because they’re most likely not going to grant.
Clay Johnson: Yes. During the crash, we saw them grant that a few times, but yeah, it’s very, very rare that they do that.
Cheryl Knowlton: So, the belief out there is that Utah Housing will not call the note due. That is absolutely false. They can, they will, and they do, so don’t be fooled into thinking that’s not going to happen. So, definitely talk to somebody who knows what they’re doing. When it comes to seller financing a lot of lenders are brilliant and will help you, guide you through those decisions even though they’re not directly impacted in being able to help you facilitate getting that loan. I’m always happy to help if you have any concerns, and definitely always talk to your broker. Don’t do something stupid and irreversible. I do stupid things all the time, but most of the time they’re reversible. I have somebody smart like Clay protecting me from myself. So, yeah.
Clay Johnson: Yeah, very true. So, we’ll be talking some more in the future about some of these other things that are happening, some of these programs, or schemes, as we like to call them.
Cheryl Knowlton: I like that. Programs.
Clay Johnson: To be aware of. So, stay tuned, and we’ll catch you guys next time.
Cheryl Knowlton: I hope you’ve enjoyed this segment, and we’ll see you soon.
Clay Johnson: Buh-bye.