OfflineBefore I Get Started, I Just Want To Stress How Important It Is To "Investigate Your Deal"- What Is The Sellers Main Objectives Or Motivation For Selling. That Allows You To Have An Idea Of What Approaches Are Going To Be Compatible With The Sellers Needs, Allowing You To Do The Deal.
1) PARTNERSHIP: Find A 50/50 Partner. It Dosen't Have To Be 50/50; It Can Be Whatever You Negotiate.
2) FLIP: The Best Way To Flip Houses Is To Find A Potential Buyer First And Then Find A Property.
3) LEASE OPTION: Many Times You Can Buy And Sell With A Lease Option. We Call This A "SANDWICH LEASE OPTION". I'm Not Going To Into Any Great Detail, You Can Find This Information All over this Web Site.
4) SELLER CARRY BACK: This Is One Of-If Not My Personal Favorite Way To Buy. Now The Best Way To Use This System Is To Do A Second Seller Carry Back In Order To Give The Seller Some Cash From The Deal. If Money Dosen't Exchange Hands, The Seller May Not Feel That They Consummated A Sale. Now, I'm Not Saying, You Couldn't Try To Get The Seller To Carry The Full Note, However, This Way Will Get More Offers Accepted.
EXAMPLE: You Find A House That Has A Small Balance On The First Mortgage. Let's Say The House Is Worth $100,000; The Balance Of The First Mortgage Is $30,000
If I Wanted To Buy This House For....Let's Say $80,000, I Could Ask The Seller To Carry Back $15,000 And Go To A HARD MONEY LENDER To Borrow 65% of ARV(after repair value), Which Is $65,000, And The Seller Carring $15,000 In Second Position, Would Add Up To $80,000
It Would Give The Your Seller $35,000 New Cash, And $125 Income On The $15,000 Loan That They Carried @ 10% Interest Only For 5 Years.
5) HARD MONEY: Hard Money Is An Equity Loan Made @ Approximatley 65% LTV(Loan To Value Ratio), Based On The Equity Of The Property Only. 50%-60% Of Hard Money Lenders Credit Is Not A Consideration.
6) HARD MONEY/SELLER CARRY BACK: Again, You Can Have The Seller Carry Back A Second And Refinance The First, Giving The Seller Some Money. You Can Do Variations Of This System.
7) SUBPRIME FINANCING: Many National Lenders Will Provide Financing @ 70% With Poor Credit And Won't Verify Money Down.
SUBPRIME/SELLER CARRY BACK: Again, This Combination Can Provide Money To The Seller, Rather Than Asking Him To Carry The Whole Thing. YOUR HERO, SULLY.
YOUR HERO, SULLY
Hi Sully
Thats some good info thanks. I just started and I been finding deals like crazy just looking myself here in atl. I don't fully understand everything but I think something is better than nothing. I even found a guy who has a 22 unit apartment complex. He wants to sell it to me for 1.1 mil it profits over $11,000 a month an its in a nice area. I'm like wow. I don't know how its going to work but I'm going to work it.
So Question Are still subprime lenders out there. and do you know of any hardmoney lenders that Credit Is Not A Consideration.
Develop Your Millionaire Behaviors
Listen to your instincts, Invest in yourself, Educate yourself, Compete against yourself, Raise your standards, Move past your fear, and Challenge yourself
Your ability to master your beliefs about money is your doorway to wealth!
Going Into Greater John 5:19'20