North American Realty Services, Inc.

Find the Benefits of Helping Others with NARS

The economy is ready. You have been waiting and now your time to help others is here. Many miss the underlying beauty of the trust because they get caught up in, "how can I make money?" Bill Gatten's NEHTrust is much more than that, although it does have those advantages. It is a magical tool that can really help people: Sellers are looking for ways to sell before they lose their credit, displaced home owners want the chance to live in a house where they feel ownership, and buyers want to qualify for a chance at their dreams. This month is another great month for the newsletter and the NARS family. Special thanks goes to all that contribute.

It's another month of great contributions: NARS members, this is your newsletter. Let us know what you want. Click the feedback link in the top nav and tells us what you like and don't like. Are we are missing something? Let us know!
- jeff @ NARS

SPECIAL EVENT NOTICE

by Bill Gatten - NARS

Get My Strategies for Investing in Today’s Historic Market

Join me at a special wealth-building conference

The ability of the general public to buy and sell homes today is way down, which means there’s an enormous group of sellers willing to pay big money to rid themselves of unwanted real estate.

Investors can buy property, make no payments, have no management fees or upkeep costs, and never need to apply for, or qualify for, a single loan. Plus, many can get paid upfront by the sellers of the real estate for taking their burden away, and also get paid up-front and... Click Here to Read Entire Article

SPECIAL EVENT NOTICE

by Rosie Nieto - PACRats

Los Angeles Pacrats

Los Angeles Pacrats will be having their April meeting this Wednesday, April 30^th in Culver City, Ca.

Go to http://justrosie.typepad.com/pacratsla/ for more information.

For those who are who may not know, The Pacrats, is a mastermind/training group started as a way for NARS members to get together to receive ongoing training and... Click Here to Read Entire Article

FROM BILL'S DESK

by Bill Gatten - NARS

THE LAW OF SYNCHRONICITY

HOW TO LIVE WITHIN IT…AND USE IT.

Click Here to Read Entire Article

BLUEPRINT FOR SUCCESS

by Roberta Standen - Equity Holding Corp

What’s Around You – Is You

When you start something new, begin a new job or embark upon a new venture, it’s just plain unfortunate how FEW people will encourage you by saying “Go for It - you’re gonna’ be Great.” It never ceases to amaze me, when you finally decide to step up and away from the ordinary, how few there are who will say “You can do it!” More than likely what you hear is “It won’t work”. Even when you have a small measure of success, they are all too quick to tell you that “It won’t last”. We prefer to call them “the destroyers in life”. All too often we find they are people closest to you - a friend, a relative or a business associate. They probably tried something once and things just didn’t work... Click Here to Read Entire Article

MEMBER'S CORNER

by Scott Moyes

Keeping the Main Thing, the Main Thing.

So who am I to talk about “Keeping the Main Thing the Main Thing”? I mean, I’m the guy who seems to come up with these unlimited and creative ways to... Click Here to Read Entire Article

IT'S IN THE DOCS

by Mark Jones - NARS

Pro-what Rational? Sounds like a gimmick, I know, but prorations are an important aspect to assess when determining how much money it will take to set up an Equity Holding PAC or NEHTrust. Most are familiar with the term proration and even what it means to prorate a payment. In short, a prorated amount occurs when you have use of a resource for less time than the normal time-unit-price (TUP) and is calculated as a fraction of the normal TUP. Yes, I did just invent that TLA (Three Letter Acronym), but don't fret. Let's look at an example to illuminate:

You decide to jump on the smart-phone bandwagon with your first PIM (Personal Information Management) integrated and Internet enabled phone. After all, not only can it keep track of your schedule, contacts, and to-do list, it can also help you navigate with Google Maps using real-time, location specific traffic information at your finger tips. Sounds cool right? It is. Of course all that is irrelevant. What's relevant is: since you're starting a new contract, you have your first month's bill prorated. The shiny new bill for that shiny new phone is due on the 1st of the month, but you're starting your service on the 21st and you certainly don't want to pay for 20 days of service that you did not receive. No problem, the extremely sharp, highly educated sales person at your local mall kiosk says they'll prorate your first month so that you only pay for 10 days. Thus your bill has been prorated and you pay approximately 1/3 of the normal time-unit-price for your first month.

This is what most people mean by a proration or prorated amount. Here at NARS, proration takes on a slightly different meaning. The Trustee needs to account for all the bills involved in an Equity Holding Trust. If taxes and insurance are not impounded (escrowed) with the lender, the Trustee will escrow the funds in the monthly payment. Calculating what is due each month on an annual bill is a simple matter of taking the payment and dividing it by twelve. Our new Trust Origination Engine (TOE) system not only adds this amount into the monthly payment obligation, it also calculates the prorated amount for the payments that the Trustee will not have collect monthly.

Time for another clarity giving example:

We're setting up a new PACTrust where the insurance payment is due annually on May 1 (May Day, Insurance ... get it?) and is not included in the monthly loan payment. It's currently the beginning of June and the Trustee will begin regular bill collection and disbursement with the July payment. How many months will the Trustee be short next year when the Insurance payment is due? Two months (the number of months between May and July). Here's another way to look at it: If the Trustee begins collecting 1/12th of the Insurance premium each month beginning with July, how many months will the Trustee have collected before May? Ten months, leaving the Trustee two months short of the annual payment.

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2008
2009

	- Collected payments
	- Uncollected payments

This is what we mean by "proration" and is important because it has caused some sticker shock and questions when looking at how much money it takes to start a PAC or NEHTrust. While it isn't essential that you know how to do the math, it is important to be aware of this "hidden" cost so that you can factor in the proration startup costs into your closing estimates. Unexpected costs can be a source of major problems and even cause a transaction to fail. There's nothing quite like suddenly realizing it's going to take an additional $3,000 in property tax and insurance prorations to get the Trust started.

Congratulations! Now you know how and why we include prorated amounts in the setup costs of Equity Holding Trusts but if the lender is collecting taxes and insurance as part of the monthly payment, you don't need to know any of this. :)

Mark Jones <mark@landtrust.net>

Documentation Specialist

Documentation

North American Realty Services, Inc.

ON THE BOARD

by Joe Cain - NARS

"Acronym-ity"

Greetings to all NARS Network Members, Non-Members, Real Estate Professionals, Gurus, Wanna-be’s, Looky-loos, Roadies, Rock Stars, hangers-on, and all interested others who may be lurking anonymously out there in the ether.

We at NARS know that many new parties arrive in the “Realm of Creative Real Estate” (that we NARSonians and PACRats dwell in), but find that they do not fully... Click Here to Read Entire Article

MEET OUR STAFF

by Linda Roberts - NARS

In my past life, I was a newspaper publisher and I am used to speaking out in print. So when I came to work for NARS in December I was looking for a nice quiet little niche that would allow me to just do accounting work – a change of pace from the hustle and bustle of a small newspaper where I had to wear many hats, sometimes... Click Here to Read Entire Article

INSIDE TECH

by Jeff Hatcher - NARS

WHEN CLARITY MEETS OPPORTUNITY, SUCCESS WILL FOLLOW

Opportunity... Click Here to Read Entire Article

OFFICE UPDATES

by Ed Kawakami - NARS

It's a flurry of activity here as usual, but what's fantastic, is that there isn't a hint of "Oh, $*&#! What's happening?!?!"

Ever been a part of team where everyone is just working their butt off for the same goals? It feels good doesn't it?

That's us here. Whether it be generating documents, making it easier for you to enter the transaction information on our website, making the seminars more educational, more entertaining and in your neighborhood,... Click Here to Read Entire Article

Thanks again,
The staff of NARS, Equity Holding Corp (Tom and Thomas) and Roberta Standen, and Scott Moyes