OfflineOn p.71-2 of "Right Now" one of Dean's students describes how he used a down payment from his prospective purchaser to, among other things, fix up a property he had under contract. Since he doesn't explain how this occurred I am not understanding that.
What prospective purchaser would allow his down payment to be used at all for anything other than closing the transaction? What happened to the escrow in this case? How did he convince the prospective buyer to allow use of the down payment?
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I am not real sure, but I think if someone gives you a down payment on a property it is now your money to do with what you want. So, if you use it to fix up the property that person is buying then you both would win. Maybe someone else will have a better explanation though.
Brian
Respectfully, that is generally not the case. When you give someone a downpayment, it typically has some strings attached to it. For example, Dean talks about occasions where you tie up a property using a deposit that is refundable. It is unusual, in my commercial real estate experience, for downpayments (deposits) to be "hard" (nonrefundable) without some other offsetting responsibility. In the case referenced in the book, I am trying to find out how the student managed to get his hands on that downpayment because the book doesn't offer any explanation.
Thanks for your response, however.
He probably marketed and found a buyer that probably couldnt get financed through his bank and he probably did owner financing for that buyer asking him for a certain amount of money for a down payment upfront.
Corpus Christi, Tx
hey guys Merry Christmas
when i read this post i went and got the book and read over it twice
very vague for sure
perhaps we can get Greg M to explain how it works or we could call the coach and ask
Sound very interesting though as to how he can use the money before the close I do believe that a down payment has to go to escrow
Later Fred E
Have a prosperous 2010
Build your buyers list first. (Repeat that first sentence 10 times!) Then when a deal presents itself you already have people who want what you have to offer. You present a lease with option to buy to the owner and first offer the least amount for a down payment you can to be paid by a certain date; 30 days out. Then you get busy and find the right person that is already on your buyers list to lease the house from you. You collect their deposit and hand over what you need to the owner of the property and hopefully pocket the difference. So some searches on Sandwich Sublease Options. There is some good information I found of the web.
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
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