WeChat ID :
Posted on 6 ต.ค. 2567
16471
Been in the real estate industry for many years
Especially in the area of sale with right of redemption
Normally, I send deals directly to investors without middlemen
These days, many may wonder
Why brokers, old investors, or even new investors
Have no deals coming in?
.
The reason isn’t because properties have all been seized
Or that people don’t know where to invest
But because real estate leasing companies are popping up everywhere
On every corner
Customers now walk straight into leasing offices
They no longer look for brokers
The system has cut us out completely
We’ve been sterilized from the cycle
.
But what many don’t know
Especially customers
Is that borrowing money is the easy part
Submit the right documents, hold the deed, and get the money
But the real issue begins
At redemption
.
If the customer has cash to redeem
There’s no problem
Just pay off the loan at the leasing office
Wait 5–14 days
Then pick up the deed and the transfer documents
And go to the land office to process the transfer themselves
But if the customer has no cash
That’s when the real trouble starts
.
Because the question becomes
Who will pay off the loan balance?
.
The answer is
They’ll need a new investor to take over
This is what we call a "transfer of hands" in the industry
When the redemption date arrives and the customer can’t pay
They seek a new investor to buy time
Debt increases, of course
As long as the property still has enough value
.
The usual custom
Is that the new investor sends a cashier’s check to the old one
The old investor brings the deed to the land office
They perform the legal transaction
And update the registry
All sides win
.
But the issue arises
When you deal with some large leasing companies
That exploit consumers
They require the customer to pay the full cash amount first at the office
Then they prepare the transfer documents
And the customer must process the land office transaction on their own
This takes 7–14 days after payment
.
From the outside, it might seem fine
But people in the real estate business know
This creates a huge problem
.
Who will be willing to pay off the balance in advance?
.
Certainly not the new investor
Why would they pay without the deed in hand?
Who would dare?
The one who suffers is the property owner
The consumer
They never asked about the redemption process when borrowing!
.
The only solution
Is to find a private investor who’s willing to cut out the deed from the leasing company
They’ll charge 5–10% of the payoff balance for this service
Once the deed and transfer documents are in hand
The customer must then pay entry fees to the new investor
Usually another 5–8%
.
In total
The customer bears unnecessary costs of 10–15%
All because the system is not built for win-win
And because they lacked knowledge of the redemption process
.
I want to warn fellow brokers
If you’re working on a mortgage or redemption deal
Always ask about the redemption steps from the start
Especially if the investor or leasing company
Doesn’t bring the deed to the land office for a hand-to-hand exchange
If you can avoid them
Do it
.
This really happens
Often
Especially with leasing companies that look big and fancy
But operate under strange rules
They ignore brokers
They disregard consumers
They’re like the devils of commercial buildings
.
Any business
That doesn’t create a win-win for all sides
Won’t last
And worse
The ones who suffer
Are consumers who never got warned
.
join the discussion at
