How to Find Sellers Who Will Give You Their Property!
| | Tuesday, May 21, 2002 @ 05:00 AM EDT
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Contributed by: Bill Young
Bill Young Properties
Read more archived articles about Buying
Now, you can profit from little equity, no equity foreclosures and make between 30 and 50% of our purchase price on them in 3-5 years!
We use a "technology" that allows us to make money on no equity or even negative equity deals other investors run from!
The answer to first, make sure you are
dealing with a truly Distressed Seller. (See the Calendar Notice on our up coming Telementoring Session, "How to Find Sellers Who Will Give You Their Property!"
May 22 and 23, 2002)
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Then:
1- Find out how much the bank wants to reinstate the mortgage
2- Buy the property "Subject to" the existing mortgage
3- Put the property into a Land Trust for the owner
4- Find a Motivated Buyer, have the trust sell the property to him on a lease purchase for 3-5 years at a price 10-20% more than you are buying it for!
If the buyer is truly Motivated, he will be so thrilled to be able to buy a house at last, despite not being able to qualify for a bank mortgage under ordinary circumstances he will gladly pay a higher purchase price, which of course means higher monthly payments.
Just choose someone who has enough cash for a 5-10% downpayment in order to cover these items:
1- Pay the mortgage arrears to reinstate the mortgage
2- Pay to set up the trust
3- Cover escrow, closing cost
4- Pay your upfront fees!
5- Downpayment
You will also make positive cash flow every month on the difference between the mortgage payment the bank gets and what
your buyer is paying.
You will also make backend cash when the lease terminates, usually 20% or so of the properties purchase price.
There are also additional profit centers:
1- You will also collect a fee from the owner for your services
2- You will make 50% of the equity buildup during the lease period
3- You will also make 50% of the appreciation, if any during the lease period
4- You will also get the write off for depreciation during the lease period
Notice with this approach, you have not used any of your own money, you have not had to qualify or even undergo a credit check, you have no legal liability for the mortgage payments (although you do have an ethical obligation to make the payments or you will hurt the original seller and the new buyer!)
In fact, you have gotten this property for free! How many of these deals could you do?
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
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