Using Financial Judo Series (Part 1 of 2)
| | Monday, April 08, 2002 @ 08:35 AM EDT
|  Printer Friendly Page
 Send this Story to a Friend |
Contributed by: Bill Young
Bill Young Properties
Read more archived articles about Squeezing More Profit
Sometimes, you will blow a deal because the owner needs some or
all of the equity from the sale of his property in cash.
You may feel a little inadequate if you don't happen to have
the cash on you that day. Don't fold up your tent and slip away
into the night so fast.
A little Financial Judo might just save the deal.
There are a many different moves you can make. I will review a
couple we have used successfully, including one we used this
very morning. We will take a look at others in a subsequent
article.
Remember, you can never be too thin or too rich or have too
many moves.
First, let's examine equity. What exactly is it? Equity is
defined as the difference between the value of the property and
the amount of the mortgage(s).
Another way of looking at is the amount of the house you own,
as opposed to the bank.
For instance, if the value of the property is $100,000 and the
mortgage is $85,000 the equity is________? If you said $15,000
you are right.
The first "Jujitsu Move" is to "Counsel the Equity" Like most
martial arts strategies, it uses your opponent's strengths
against themselves.
Here we talked to a motivated, pre-foreclosure seller. They had
an equity of $15,000 in a house worth $160,000 with a mortgage
balance of $145,000. The couple generously allowed that they
would agree to take only $10,000 of their $15,000 equity if we
could close quickly, leaving the balance to cover the 2
mortgage payments they were behind.
We were certainly willing to buy their house quickly. It was a
nice 3 bedroom, 2 bath in excellent condition in a great area.
You could almost see the house appreciating from the picture!
We knew that they desperately wanted to move across the
country to Ohio to buy a house near to her parents because she
was expecting in 2 months and had no support in the community
they lived in.
He had also lost his job 2 months ago. They had had the house
on the market for 6 months. They wanted the $10,000 for the new
house.
This Seller is willing to sell. Find out how we finish the deal and close it up next week in part two of Using Financial Judo.
Note: Bill is a former bank loan officer. He is currently a personal financial consultant and offers assistance to those facing foreclosure. Find out about more of his Foreclosure Seminars here
Word Cloud:
exactly parents instance, community will />
they couple others months. house (part feel ohio expecting $85,000 motivated, />
country />
as owner used strategies, tent many ago. uses morning. slip willing with />
on $160,000 have across difference great area. seller. subsequent deal. $100,000 "counsel next />
could months />
an bedroom, $10,000 could bank. payments save support quickly, generously equity" equity pre-foreclosure different equity. own, allowed seller only never find away leaving wanted almost />
defined />
first, />
article. financial judo />
here needs />
all might fast. take cash deal because thin happen />
remember, sometimes, moves />
couple themselves. move" most move little also />
for don't opposed mortgage review finish is________? blow strengths $15,000 day. />
another agree knew just rich what first appreciating mortgage(s). right. />
you />
the />
a sell. let's />
balance some look />
would make. looking />
martial $145,000. />
very certainly judo. using talked desperately successfully, cash. this cover value amount property />
we series />
there near week behind. />
he part inadequate sale picture! worth close />
into lived night />
was market />
this />
house. />
nice />
against they balance examine arts lost bath like />
mortgage condition said "jujitsu moves. were fold quickly. opponent's />
many between including excellent
|
|
| |
|
