OfflineI was reading about Greg M. success in "Dean Graziosi's STUDENT SECRETS!", what do you say to the sellers to get them to agree to contract for deed? How does contract for deed strategy actually work? Does this strategy work only on FSBO who have a free and clear title?
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
Contract for deed is a type of seller financing. It is usually used when the seller has an existing mortgage with favorable terms. The buyer and seller enter into a contract outlining the rights and responsibilities of each party. Buyer makes monthly payment to the seller. Seller uses the income to pay the existing mortgage on the property. The buyer benefits by getting terms from the seller he couldn't get any other way.
Example: Seller owes $100k at 5% on a property worth $140k. Seller's monthly payments are $1,000 per month. Seller does a contract for deed taking $4,000 down and buyer makes monthly payments on the remaining $136,000 at 6.5% at $1,500 per month. The seller is making money on the bank's loan and got the property sold on favorable terms for the buyer. The title to the property usually stays in the name of the seller until the contract is complete.
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Ok if the property's title stays in the seller's name than how did Greg get the seller to give him a warranty deed to sell to another buyer or investor (if he's creating a note) if he was going to finance the buyer's mortgage? Or does he just assign the whole contract to another buyer for a fee base on the fair market value for the property?
Example: Seller owes $100k at 5% on a property worth $140k. Seller's monthly payments are $1,000 per month. Seller does a contract for deed taking $4,000 down and buyer makes monthly payments on the remaining $136,000 at 6.5% at $1,500 per month. The seller is making money on the bank's loan and got the property sold on favorable terms for the buyer. The title to the property usually stays in the name of the seller until the contract is complete.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
I plan to copy Greg's leas option strategy. I understand that I will tie the property up with a lease option contract and then I will lease it to my buyer for some positive cash flow until we can get the end buyer financed.
My questions is what other contracts/forms do I need to do this legally? A quitclaim deed would make sense. But from what I've been reading it sounds like it would be easier to use a contract deed between me and the seller and then a lease option contract with my end buyer. Can anyone help?
Where can I go to get a more detailed step by step understanding of Greg's strategy?
Can someone please post a link? Thank you all for your help...
Cameron