Makena Wailea Properties Blog

If you are considering buying or selling a home, condo or land in the South Maui areas of Makena, Wailea or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

What is a Purchase Money Mortgage?
* Technically any mortgage on real property executed to secure the purchase money from the buyer is
   considered to be a Purchase Money Mortgage
* Commonly referred to as a mortgage that is taken back by a seller from the buyer in lieu of purchase
   money
* Can be either a single-financed debt, or it can be used to fill a gap between the buyers down payment
   and the new first mortgage

Advantages for the seller
* In a financially stressed market, seller financing may be more attractive to a buyer, resulting in a
   quicker sale   
* The sale usually closes quicker
* You may be able to defer income tax liability
* Interest rates provide a great yearly return

Advantages for the buyer
* You may be able to buy property you can not qualify for if relying
   on conventional financing
* Closing costs are usually lower
* The down payment required is usually smaller
* You may not be required to purchase mortgage insurance
* Flexible payment terms may be available
* Unlike an Agreement of Sale, you obtain legal title to the property

If you don't currently qualify for a conventional mortgage, you might consider a Purchase Money Mortgage. It can help a seller realize a high rate of return, and make it easier for a buyer to obtain financing. As with all contracts, it is strongly recommended you consult with an attorney familiar with real estate law.

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If you are considering buying or selling a home, condo or land in the South Maui areas of Makena, Wailea or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

What is an Agreement of Sale?
* An agreement of sale is a contract of sale between the seller (vendor) and buyer (vendee) for the
   purchase of real property.
* The purchase price may be paid in installments by either: 
        Principal and interest or
        Interest only, with the balance due at maturity
* The seller retains legal title to the property
* The buyer is given possession and equitable title to the property
* The seller is obligated to deliver good legal title when the buyer
   completes the required payments

Seller Advantages
* Seller retains legal title to the property until the buyer is able to
   perform
* Can provide a higher rate of return on interest rather than placing
   your money in an interest bearing account
* Installment sale enables the seller to defer payment of the large
   capital gains tax

Buyer Advantages
* If the buyer is unable to qualify for an institutional mortgage this is an alternative means of financing
* Benefits:
        Reasonable financial terms
        Buyer could benefit from property value appreciation

If you don't currently qualify for a conventional mortgage, you might consider an Agreement of Sale. As with all contracts, it is strongly recommended you consult with an attorney familiar with real estate law.

**********

If you are considering buying or selling a home, condo or land in the South Maui areas of Makena, Wailea or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

The former Diamond Resort & Spa is remaking itself this week into
the botique Hotel Wailea Maui. General Manager Henry Perez said
the hotel will still be unique, with an exceptional staffing level of 2.9 employees for each of its 72 units.

The hotel has a spa, restaurant and meeting facilities for small
groups. It also offers exclusive beach club privileges for guests 
emphasizing privacy and discreet service.

Black Diamond Hospitiality Investments took over the resort last year and have updated the public areas and is now renovating the guest rooms one by one. That work is expected to be finished in October.

The entire article can be found here: Hotel strategy to offer very, very good service

**********

If you are considering buying or selling a home, condo or land in the South Maui areas of Wailea, Makena or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

If you are considering buying or selling a home, condo or land in the South Maui areas of Makena, Wailea or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

If you are considering buying or selling a home, condo or land in the South Maui areas of Wailea, Makena or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

If you are considering buying or selling a home, condo or land in the South Maui areas of Wailea, Makena or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

If you are considering buying or selling a home, condo or land in the South Maui areas of Wailea, Makena or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

If you are considering buying or selling a home or condominium in the South Maui areas of Kihei, Wailea or Makena, or would just like to learn more about owning real estate in Hawaii, give us a call. We are your South Maui experts! Call now for a free consultation!

Mike Eddy    REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  B.A., REALTOR® (S)
Mike   (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
www.SoldOnParadise.com