Sun, Nov 08, 2009
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8 Reasons to Buy OverFinanced Properties
| | Friday, September 06, 2002 @ 05:00 AM EDT
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Contributed by: Derrick Ali
Derrick Ali Properties
Read more archived articles about Squeezing More Profit
1. Existing Equity:
(if there is some SWEET!!!; If NOT, then go to steps 2 -8)
2. Bumped (created)Equity:
(when the buyer has bad credit and minimal cash, or has no trouble
with a higher price)
3. Up-Front Cash:
(upside down/or not the up front $ from your R/B* is spendable/really
nice to have)
4. Cash Flow:
(a free house with monthly income created after calculating PITI!**)
5. Principal Reduction:
(Paid over time, each month, by the R/B and it eats away your over
encumbrance!)
6. Appreciation/future value:
(it's saleable, even if there is to be none today)
7. Tax Deductions:
(use it or sell it to your tenant)
8. Leverage
(Use the last No Eq home to give owner of the next 1 Comfort
: Performance Deed on the 1st)
*-Resident Beneficiary is a "Tenant-Buyer" who buys a % Interest a Land Trust
Agreement.
**-PITI: (P- Principle borrowed, I-Interest on the loan, T-Taxes and I-Insurance)
Note: Derrick Ali is Director and Chairman of Consumer Mortgage Loan Advocates. He is the author of The Quick Start Real Estate Investing Guide. Derrick specializes in Land Trust Transaction Engineering for Equity Holding Trusts(tm) and/or PACTrusts (tm)
methods. You can also hire him to consult you on the set up of these Land Trusts for you.
Word Cloud:
properties (upside monthly some t-taxes principal i-insurance) have) owner (it's deed (paid front (when home today)
7. time, last eats steps cash, give next reduction: reasons 1st)
*-resident r/b* with interest flow: "tenant-buyer" minimal income existing equity: cash: buyer principle (created)equity: higher trouble
with leverage each buys even cash loan, after free (use month, then overfinanced piti!**)
5. spendable/really
nice away borrowed, house bumped calculating sweet!!!; over
encumbrance!)
6. down/or appreciation/future trust
agreement.
**-piti: performance price)
3. i-interest deductions: beneficiary not, up-front value: saleable, sell there land over comfort
: created tenant)
8. credit none -8)
2.
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