OfflineI just finished watching disc 1, and I actually got an idea on putting an offer on a property using notes. This can help out with a house you would like to buy and hold but have no credit. I have a house I have been looking at that has been on the market for a few years. The seller has it listed over total view value, but would be willing to accept $20,000 less than totalview value but even that is an amount I couldn't get a loan to buy at, especially when HML or Private lenders want to only lend 60-70% of the arv. But I could offer the seller asking price with a nice interest rate around 7-8%, if they would be willing to work with terms that work for me. The seller can make a note for 70% of the asking price ( or price we agree upon ) and hold that in 1st position, and then take the 30% down payment in the form of a note in 2nd position. They gat monthly payments instead of making payments, and I get a property I want to own. Of coarse the first note would have a balloon due in anywhere from 2-10 years, but the second would continue as agreed. You can even ask the realtor, if there is one, to carry their commission in a note as well. Perfect little or no money down tecnique. I would't have thought of that one. I actually just emailed the realtor to see if the seller may be interested in that option. Of coarse if they would like some of the 30% down payment in cash, I could always find a tenant buyer with the down payment.
Using the new Set 4 Life System To Make Offers
Posted on: Thu, 09/02/2010 - 03:33
Using the new Set 4 Life System To Make Offers
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- by rbailey1962
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I like the creativity and structure of the deal, I have structured deals like that with FSBO's and they have worked well. I am sure that it can work with listed properties as well. Good Luck!
using this strategy, I told the realtor I know how the seller can get full asking price, and start receiving payments instead of making patyments. The house has been up for about 4 years now, and the owners have moved into a new house, so he really needs to sell. Hopefully it goes well. I'll let you know if it works.
I hadn't heard from the realtor since I sent the offer so I was thinking maybe he though it rediculous, but I received an email from him earlier. He said he is presenting the offer to the seller tomarrow, so it must have not been so rediculous after all. He wanted to know if I would have anyway of putting 10% down, I told him I can try and see if I can get a loan for it, but I also told him if the seller really wanted cash there are people who will by the notes now because they like having payments, and they usually pay cash for them. We will see what happens tomarrow. Keep this deal in your prayers for me. Can you imagine how awesome it would be for this to work? It opens up a whole new possibility of financing.
The realtor came back after the seller has been considering it for about a week and, the seller decided at this time he didn't want to carry the financing. Then the realtor told me they dropped the asking price. It's now about 6 or 9 k over total view arv. It's getting closer to workable. I am still thinking of a way to work this deal. The house is nice, and I could see living in it after renting it out for a couple of years.