Make Money Buying Real E$tate

Handling Seller's Objections

2009-08-06T08:18:00.002-04:00

Lease Option Offer - when you can answer the seller's objections and make them feel comfortable, you've conquered 80% of the lease option business. You can then pick and choose the best prospects that produce the most profitable results for you.

What If The Tenant Tears Up My House? - Your response - There is no way I can guarantee you a tenant won't damage your house since I won't be living with them. However, I can promise if that were to happen I would repair it at my expense. My objective is to find a stable tenant who will eventually qualify for a loan. that kind of tenant is rarely a problem. Again, if it does happen, I'll fix it as per our written agreement. Will someone living in your house keep you awake at night?
Seller - Yes: Go to option only offer with no tenant. Would you like to hear about my option plan where no one will occupy your house? No: Proceed to close or answer other objections.

How Do I Know I Can Trust You? - Your response - I can understand that. We just met. Remember you called me in hopes I could create a solution that will work for both of use. I'm willing to devote my time and resources to our house, but only if you feel comfortable with that arrangement. If you don't, let's not do it. Is that fair? Seller - Yes: Proceed to close the offer. No: I just don't know if I can depend on you or not. Your response - Let's examine your alternatives. If I do what I'm telling you I'll do, your payment will be paid, your house will be maintained and hopefully sold for cash. If I don't I'm only leasing your house not buying with owner financing. You could simply evict and be no worse off than you are now. Sure, things could go wrong but remember I don't get paid unless I produce. Would you like some names and numbers of previous owners I've worked with in this fashion?

How Do I Know You'll Make My Mortgage Payments? Your response - We can handle that two ways. I'll pay you direct and let you make it yourself. (Only if seller has money coming when you sell), or I'll set up a third party escrow company to collect from me and pay it for you. This service will only cost you about $8.00 per month. Of course you can choose for me to pay your lenders direct. You'll know if I don't because a late notice will be sent to you by the lender. Which would you prefer? This is not a point that makes much difference to you. Do whatever makes the seller happy. If seller has no equity or money coming, never make the payment to them direct.

What Is Your Target

2009-07-11T15:31:00.004-04:00

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For Lease Options/Options?

Any seller with a house in good condition who is flexible enough to work with you to create a solution to their problem. The house should be in a price range of 75% of the medium price in your area and higher.

The house should not have any major problems with condition, layout, neighborhood, bad reputation or anything else that will make it a PROJECT.

It should be attractive well located and ready to occupy.

Example II

High Priced Houses
A seller calls you with a h ouse on the river worth $750,000. It belonged to her mom who recently passed away and left it to her and her brother. It's in excellent condition and free and clear. It's now vacant and has been on the market with a Realtor for six months at $699,000. The listing is about to expire and the sellers who live 1500 miles away are trying to decide whether to relist. They would take a deep discount for cash and tell you so in a motivated voice. In fact, before you can get off the phone she indicates any reasonable offer over $500,000 will get serious consideration but she doesn't want anyone living in the house.

You Offer
$500,000 Option only, 12 months, no risk, all cash
$ 100 Deposit

You Sell
$650,000 Run a "desperate seller" sale and attract attention from owner occupant bargain hunters.

Results
$150,000 Net profit to you with no risk, very little money and no credit

Lease Option Scenario

2009-07-08T11:56:00.004-04:00

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Example 1 - Seller Has Considerable Equity

A seller calls you with a house worth $100,000 in good condition. The loan balance is $72,000 at $710 per month. He is being transferred out of state in 2 weeks and hates the thought of listing with a Realtor again. He's asking $90,000 and wants someone to assume his loan or get a new one. You learn he isn't depending on the money from the house to move.

Asking

$100,000 Value
$ 90,000 Asking Price
$ 72,000 Loan Balance
$ 18,000 Cash

Your Offer

$85,000 Lease/Option, 1 year with the right to renew for 2nd year; monthly payment equals his ($710). 1st due in 60 days
$ 1,000 Deposit
$12,000 Cash due at time of sale
$ 72,000 Loan to be paid off or assumed at time of sale

Your Rent To Own

$105,000 Sales Price
$ 5,000 Non-Refundable Deposit
$100,000 Due at closing of sale
$ 995 Per month rent

Results

$4,000 Profit on deposit ($5,000 from tenant less $1,000 to seller)
$ 285 Per month on payment spread ($995 incoming less $710 outgoing)
$15,000 Additional profit from sale ($105,000 less $84,000 to seller less $5,000 collected from tenant)

Example II - Seller Has Very Little Or No Equity

A seller calls you with a house in good condition worth $125,000. The loan balance is $119,000 with a payment of $980 per month. The seller is getting a divorce and leaving town but is credit conscious and won't deed the house until the loan is paid off or assumed out of his name.

Asking

$125,000 Value
$119,000 Asking Price (His loan balance)

Your Offer

$119,000 Lease/Option, first payment due 2 months after vacated, 1 year term with right to renew for 4 terms. No deposit.

You Rent To Own

$135,000 Sales Price
$ 5,000 Non-Refundable Deposit
$ 995 Per month rent

Results

$ 5,000 Profit on deposit
$ 15 Per month payment spread
$11,000 Additional profit from sale ($135,000 less $119,000 loan less $5,000 deposit)

Letters

2009-07-04T05:14:00.006-04:00

My experience with postcards indicates they are the best used as a second, third or even fourth hit. the one big advantage of the postcard is you don't have to worry whether the envelope will be opened, which is always the case with a letter.

Nevertheless, a letter gives you the opportunity to tell a longer story. In print advertising, the more you tell, the more you sell. You may wonder sometimes how marketers can have the audacity to send you an 8 page letter. There's a reason for that. It gives more space for marketers to tell a story. The more space available, the better the chance to convince the reader that you're selling is worth a response.

There's an old saying I subscribe to, "there's no such thing as a letter that is too long, only a letter that is too boring".

The truth is, if the person reading your letter is interested in your product or service, they'll read whatever length piece you send them. If they're not interested, they're not going to read it regardless of what's in it. If it's boring you're not going to keep their attention long enough to give them a chance to read the rest. Don't worry about how long the letter is. In my opinion, the longer the better, as long as its not boring.

In the marketing I've done, I've found that longer usually sells more. A two-page letter is usually out-sold by a four page letter. A four-page letter is usually out-sold by an eight-page letter. An eight-page letter is usually out-sold by a sixteen page letter. Believe it or not, the best producing letters I've ever seen were thirty-two pages long!

Both postcards and letters can be used to target prospects from FSBO signs, FSBO magazines, cross-referenced newspaper ads, expired listings, etc.

Expired Listings -

How do you get your hands on expired listings? Any agent can pull up a list of expired listings from the MLS computer. A well-crafted letter to these sellers should produce calls from people looking for solutions. Mail the letters at least twice monthly and follow up with a second mailing to the same list two weeks later. If you still haven't received a call, send a post card two weeks after the second mailing.

You should mail the first letter immediately after the listings expires, or better yet, 30 days before the listing expires.

A little word of caution: You'll need a good relationship with an agent to get access to MLS listings. This service is paid for by licenses and meant for their use only.

Post Cards

2009-07-01T10:34:00.007-04:00

For example, I could send out a post card that reads...

"We buy houses. We've been in town a long time. We have a big beautiful building over on Maple Street. We have excellent service."

Or, I could send a post card with "Homeowners Trying To Sell Your Home!" on the front, and a "true life" story like this on the back:

"Just ask Staff Sergeant Will Parker and his wife, Kathy. There were in a tight situation. Will was career military. As often happens, without warning, he received notice he was being transferred in 90 days.

"Will and Kathy had just built their beautiful 2,500 sq. ft. home 2 years before, and they were facing the prospect of making double house payments if they didn't sell fast. They had no idea how to get interested buyers through the stringent banking rules for approval. They had no equity to pay a real estate agent's commission, and they'd been trying to sell for over 2 months when they responded to ad and contacted King and Queen Enterprise, LLC. When they agreed to buy their house for full value, Will and Kathy couldn't believe their ears! Their credit would be safe, they could buy a new house at their new location, and best of all, King and Queen Enterprise LLC even agreed to pay their mortgage payments until they closed.

King and Queen Enterprise LLC is a private investment company - not a Realtor or real estate agency - with sevral unique buying programs to allow homeowners to instantly sell their home without any of the usual time delays and hassles of traditional home selling methods. They aslo charge the seller no fees or commissions for their services. They have outlined their program in a new special report which you may order simply by calling 704-208-9454.

I ask you, if you were in a seller's position, to which postcard would YOU respond?

I've effectively used postcards in the past as a very inexpensive tool to attract calls from a neighborhood I've target. For instance, if you're interested in higher priced houses, why not put something in the hands of the people who own the higher priced houses. That's not possible using ads. Running ads is a shotgun approach; you put an ad in the paper hoping someone from the neighborhood you've targeted will read it. With post cards, you're using a rifle approach by targeting where you will send them.

You can acquire a list of homeowners in any zip code with presorted data to allow you to segment the list to narrow down your targeted prospects. You can select by length of ownership, age, marital status, price range, and various other criteria.

For the most effective use of postcards, mail to the homeowners in your targeted areas not just once, but two or three times. Don't mail more than 1,000 at a time to test. If you get no calls from the first 1,000 you most likely will get the same results from the rest; however, mailing 100 cards is too small a sample base for a valid test and may cost you a very profitable deal because you quit too soon.

Nintey-five percent of Americans sort their mail right over the trash. If it even smells like junk mail, it's going to hit the round file. I suggest you use postcards that stand out by using gaudy colors such as orange, It may eventually hit the trash, but they'll almost be forced to read it first.

High Prices Produce Bigger Profits

2009-06-29T15:25:00.004-04:00

When dealing in owner financing or in lease options, I deal only in higher priced houses. I don't want anything cheap, and here's several reasons why:

1) I get a bigger upfront profit on the down payment.

If you had a your choice of receiving 10% down on a $50,000 house, or 10% down on a $150,000 house, which would you choose? Do you think you'll have a harder time finding a buyer with $5,000 for a down payment on a $50,000 house, or one with $15,000 house? Surprisingly, it's easier to find buyers with $15,000 than with $5,000 if the price of the house increases accordingly.

One of the advantages of dealing in higher priced houses is you'll find buyers with more money. The higher priced the house, the more that's going to be true. The reason for this is that people who are looking for higher priced houses have more disposable income and know before they begin looking it will take at least 15% or more in cash to buy a house.

People looking for low priced housing have numerous loan programs available to them which require little or no money:

2) You get a larger spread on the monthly payment on houses in the higher price range. Common sense will tell you it's easier to get a bigger spread on $150,000 than on $50,000.

3) You get bigger back end profits. Obviously, there's a better chance of making a bigger chunk of money on the $150,000 than the $50,000.

4) The more of the buyer's money you get upfront, the less chance you have of buyer default and vandalism. When you're selling $50,000 houses to people and getting $5,000 down payments or less, you're dealing with people who are in a very low income bracket. It doesn't take much to go wrong in their lives before their worlds cave in and they're unable to make the payments. It's a segment of the population that's just prone to financial trouble.

Do people who buy $150,000 houses have unforeseeable problems? Yes, of course. It's usually a two income family with a larger monthly income. It takes more to go wrong in their lives before their world crumbles. They're usually more sophisticated buyers who are better financially trained and equipped.

In my experiences, more problems arise with cheaper houses. When you deal in the higher priced market, problems are far and fewer between.

5) You'll have a lot less competition from other investors because they are scared away from the larger numbers. Because other investors haven't been trained you'll be one of only a few choices in your city for your buyers to find quality houses with no-qualifying financing.

6) If you wish to keep some houses for growth their appreciation will increase much faster than lower priced houses. Doesn't it stand to reason that a $200,000 house appreciates faster than a $50,000 house, if not as a percentage, certainly in dollars?

7) You get bigger paydays when you discount bigger notes. The more you owe, the bigger the discount.

Why Sellers Agree To Accept Installments

2009-06-19T11:51:00.005-04:00

When you ask sellers to take back the mortgage or note on a property, the only way he's going to accept that is if he doesn't need the cash. If you're trying to buy a property from an owner/occupant by creating some seller financing, but he can't, or won't accept installments, if there's no other way to make the deal work, you should switch to the lease-option mode. but don't make that switch until you're certain the seller will not negotiate a deal any other way.

When I get a seller to take back a note, it's because I've asked the question we'll go through next time, and the seller's agreed he would consider it.

Sometimes there are tax consequences to a seller when he sells a house for cash. It's up to you to ask if he's checked with an accountant to see what the tax consequences of a sale would be. If it's his primary residence there probably isn't any. If it's not, there most likely is a tax consequence which he might not have thought through.

Some sellers like the monthly income. They like the idea of doing nothing while collecting a monthly income.

Some elderly folks don't want their children to get cash to squander. I've run across this quite often when buying a house from an elderly individual. They feel whatever proceeds they receive, they'll be leaving to their children. They'd rather set-up a schedule of monthly payments which allows their children a monthly income rather than one large payout which might not be spent well.

For some sellers, cash is less important to them than getting the house sold for any number of the following reasons and others:

1. They need relief from underlying debt.
2. They want to eliminate paying property taxes and insurance.
3. they want relief from maintenance responsibilities.
4. Selling will finalize a divorce settlement.
5. They want the house out of their name to avoid pending judgments.
6. They nee to sell the house to qualify for a loan on another house.
7. They need to prevent or cure a foreclosure
8. They're moving to another state.

Where Owner Financing Works

2009-06-18T05:13:00.006-04:00

Owner financing works everywhere people have homes for sale, but especially in markets where the media price range is $100,000 and up. It works best on properties that sell for at least $75,000 with no maximum price cap. The higher the price, the easier it will be to build in large profit centers.

I want you to be in a position where you can take anything thrown at you by a seller and create a solution based on the information provided by me, giving the seller an "out" and you a profit center. When you get to that point you'll have become a transaction engineer.

Creating No-Qualifying Financing

Advantages -
Anytime we can get a seller to take back a mortgage or a trust deed on their property which involves monthly payments, we always get a lower interest rate with lower monthly payments than if we go to the bank to borrow money. Of all the hundreds of loans I've given sellers, never have I ever come close to a bank's rate. Never. Most of the time, sellers don't expect bank rates, but when they do, it's very easy to talk them out of it. If the interest rate is the most important thing on your seller's mind, there's a very good chance you're in the wrong living room to begin with. You haven't prescreened your seller very well.

You always have lower closing costs when you're doing seller financing. There are no points involved, there's no processing fees, there's no surveys. There's none of the junk you waste money on when you go to the bank for a loan, so closing costs are always less.

Seller carryback loans do not show on your credit report. Even if you were to be dumb enough to buy one and sign the note in your own name, it wouldn't show on your credit report. I will teach you to use a Land Trust to by properties and originate notes, and you will learn how to eliminate personal risk along the way.

One of the biggest reasons I love seller financing is the flexibility of it. No matter what deal I create today with an individual, it can always be changed later if need be. If things change for me, I can change things with the seller. I can change the deal; I can change the terms. Anytime I'm dealing with a person, there's always room for change. Try that with banks. They're not very flexible.

There's no personal liability with seller financing. it solves negative cash flow if I'm buying properties I want to use as "keepers". If I'm looking for deals to turn into rental properties for long term growth, there's no better way in the world to do it than with seller financing. I can create a low enough payment when I've got the seller to work with by structuring several different kinds of financing plans to drive that payment down, insuring me a positive monthly cash flow.

We do not buy houses with bank loans so we have the privilege of becoming a landlord. We buy houses without using banks so we can become landlords if we wish, retire rich without grief and personal liability, or we create solutions with sellers to eliminate some personal liability and have flexibility. Later I'll give you some examples of that flexibility.

There should be no "due on sale" clause or balloon when you're creating notes and mortgages to sellers, unless of course you have to yield on the balloon to make the deal happen. If a seller insists on a balloon, I don't have any problem with it. I'll show you how to give the seller a balloon and still make it attractive for a buyer by putting the balloon far enough away when it's not a problem.

I find very little resistance to selling houses with balloons, as long as they're not due a week from Friday. It has not stopped me from selling or buying.

As far as "due on sale" clauses, I'll show you how to leave them out most of the time and how to put them in if the seller insists, and still make it a no-qualifying loan.

No-qualifying financing sets you up for future profit centers by discounting. When you understand the true value of discounting, it is one of your biggest profit centers.

Also, when you're dealing with seller financing it helps you close quickly.

Disadvantages -
You must deal with the seller, face-to-face. You cannot negotiate deals through Realtors because in this business, we don't use them because we have to get in light; if there's a commission to be paid, the money must be paid at closing.

There are exceptions to the rule, but for the most part you'll be dealing directly with the seller. That means you'll need to learn to talk to people. If you're shy, timid and bashful, it'll be just a little bit more difficult than wholesaling houses and buying junkers. If you're not, of if you're willing to improve, it's not difficult to talk to people.

You won't learn any magical negotiation secrets from me. You'll learn to "lay it on the line" with the seller. Tell the truth. Tell the like it is. Tell them why you can or cannot do what they request, and let the chips fall where they may.

This business requires a higher level of knowledge of structuring offers that the wholesaling business or the lease/option business. There are so many ways to create deals and so many kinds of financing we can do, it will take a while to learn them all. It takes more thought, more creativity, and more experience to create different types of offers.

Glossary Of Real Estate Terms, T-W

2009-06-11T07:39:00.006-04:00

Tax Sale: Sale of property after a period of nonpayment of taxes

Tenancy In Common: An ownership of realty by to or more persons, each of whom has an undivided interest, without the right of survivorship.

Tenancy By The Entirety: An estate that exists only between husband and wife with equal right of possession and enjoyment during their joint lives and with the right of survivorship.

Tenancy At Will: A license to use or occupy lands and tenements at the will of the owner.

Testate: Where a person dies leaving a valid will.

TPA: Third party Administrator; one who is approved to administer funds from a retirement program. You must use a TPA in order to access money from your retirement accounts for self-directed activities.

Title Company: A firm that examines title to real estate and/or issues title insurance.

Title Insurance: An insurance policy usually issued at the time of closing insuring against any title defects which could render the title unmarketable.

Title Report: A document indicating the current state of the title, such as easements, covenants, liens and any other defects. The title report may not describe the chain of title.

Title Search: An examination of the public records to determine the ownership and encumbrances affecting real property.

Transfer Tax: A tax charged on the property upon transfer of title.

Trust Deed: Conveyance of real estate to a third party to be held for the benefit of another. It is commonly used in some states in place of mortgages that conditionally convey title to the lender.

Trustee: One who holds legal title to property in trust for the benefit of another person, and who is required to carry out specific duties with regard to the property, or who has been given power affecting the disposition of property for another's benefit. 2. Loosely, anyone who acts as a guardian or fiduciary in relationship to another, such as a public officer toward his constituents, a state toward its citizens or a partner to his co-partner.

Trustor: One who creates a trust, often called the settlor.

Undivided Interest: Ownership of real estate by joint tenants or tenants in common under the same title.

Usury: the lending of money at a rate of interest greater than that permitted by law.

VA: Veterans Administration; see VA loan.

VA Loan: Mortgage loan insured by the Veterans Administration.

Variance: the authorization to improve or develop a particular property in a manner not authorized by zoning.

Warranty Deed: A conveyance of land in which the grantor guarantees the title to the grantee.

Without Recourse: Words used in endorsing a note or bill to denote that the future holder is not to look to the endorser in case of nonpayment.

Wrap: See Wraparaound Loan

Wraparound Loan: A new loan encompassing any existing loans. The new usually bears an incoming payment larger than the outgoing payment on the existing loan.

Glossary Of Real Estate Terms, Q-S

2009-06-10T15:34:00.003-04:00

Quiet Title Suite: A suit in court to ascertain the legal rights of an owner to a certain parcel of real property.

Quitclaim Deed: A deed that conveys simply the grantor's rights or interest, if any, in real estate; generally considered inadequate except when interests are being passed from one spouse to the other.

Real Estate Board: An organization whose members consist primarily of real estate brokers and sales persons.

REO: See Real Estate Owned.

Real Estate Owned: Property acquired by a lender through foreclosure and held in inventory; commonly referred to as REO.

Real Estate Syndicate: A partnership formed for a real estate venture. Partners may be limited or unlimited in their liability.

Real Property: Land and generally whatever is erected upon or affixed thereto.

Realtor: A term used to identify active members of the National Association of Realtors. This term is commonly used to refer to anyone licensed to sell real estate, however, the term "Realtor" only applies to those dues paying members of NAR.

Recording: The act of writing or entering, in a book of public record, instruments affecting the title to real property.

Recoarse: the right to claim against an owner of a property or note.

Red Lining: the refusal to lend money within a specific area for various reasons. This practice is illegal because it discriminates against the credit worthy who happen to live there.

Release Clause: a clause found in a blanket mortgage which gives the owner of the property the privilege of paying off part of the debt, and thus freeing part of the property from the mortgage.

Repo: A shortened or slang version of repossession.

Right of Redemption: Right to recover property transferred by a mortgage or other lien by paying off the debt either before or after foreclosure; also called equity of redemption.

Right of Survivorship: Right of the surviving joint owner to success to the interests of the deceased joint owner. This right is a distinguishing feature of a joint tenancy or tenancy by the entirety.

RTC: Resolution Trust Corporation. An organization set up by the government to market houses from the inventory of federally insured, defunct banks and other lending institutions.

Sales Contract: A contract by which the buyer and seller agree to terms of sale.

Second Mortgage: A mortgage made by a home buyer in addition to an existing first mortgage. The order of recording determines the seniority of the lien.

Seller Financing: Refers to the owner of a property who agrees to carry a mortgage on the property that he/she is selling, so that they buyer doesn't have to obtain any or all of the financing from another source or lending institution.

Specific Performance: A remedy in a court of equity compelling a defendant to carry out the terms of an agreement or contract.

Split Funding: a technique whereby an investor offers a small amount of cash to close the deal with the balance due at a later date in a form other than extended monthly payments.

Statute of Frauds: Law requiring certain contracts to be made in writing or partially compiled with in order to be legally enforceable.

Subject to: A term used to denote the existing loan is not being assumed by the buyer.

Subordination: See Subordination Clause.

Subordination Clause: A clause in a mortgage that gives priority to a mortgage taken out at a later date. The seller agrees to go into a second, third or fourth position allowing you to obtain new financing senior to their lien without paying them off from the proceeds.

Substitution Of Collateral: Taking an existing mortgage on one property and transferring it to another.

Survey: the process by which a parcel of land is measured and its area ascertained; also the blueprint showing the measurements, boundaries, and area.

Glossary Of Real Estate Terms, M-P

2009-06-08T11:50:00.003-04:00

Marketable Title: A title that the court considers to be so free from defect that it will enforce its acceptance by a purchaser.

Mechanic's Lien: A claim made to secure the price of labor done upon and materials furnished for uncompensated improvement.

Moratorium: An emergency act by a legislative body to suspend the legal enforcement of contractual obligations.

Mortgage: An instrument in writing duly executed and delivered that creates a lien upon real estate as security for the payment of a specified debt, which is usually in the form of a bond.

Mortgage Broker: One who is paid to match borrowers with lenders.

Mortgagee: The party who lends money and takes a mortgage to secure their payment.

Mortgagor: A person who borrows money and gives a mortgage on his or her property as security for the payments of the debt.

Mouse: A person who has little or no money to invest, but has the time and skill to locate good deals. A mouse will normally team with an elephant who will supply the money or simply sell the contract for a fast profit.

Multiple Listing: an arrangement among members of the Board of Realtors whereby brokers bring their listings to the attention of the other members. If a sale results, the commission is divided between the broker providing the listing and the broker making the sale.

Non-Qualifying Assumption: A mortgage or deed of trust that does not contain a due-on-sale clause thereby allowing transfer of title freely without permission from the lender.

Obsolescence: Loss in value due to reduced desirability and usefulness of a structure because its design and construction become obsolete; loss because of becoming old-fashioned and not in keeping with modern means with consequent loss of income.

Open Listing: A listing given to any number of brokers with commissions payable only to the broker who secures the sale.

Open Mortgage: A mortgage that has matured or is overdue and therefore is "open" to foreclosure at any time.

Option: A right given for a consideration to purchase or lease a property upon specific terms within a specified time; if the right is not exercised, the option holder is not subject to liability for damages; if exercised, the grantor of option must perform.

Pay Off Letter: A letter from a lender stating the current balance due on an account; also referred to as an estoppel letter or certificate.

Performance Bond: A bond used to guarantee the specific completion of an endeavor in accordance with a contract.

Personal Property: Any property which is not real property.

Plat Book: A public record containing maps of land showing the division into streets, blocks, and lots and indicating the measurements of the individual parcels.

Points: Discount charges imposed by lenders to raise the yields on their loans. One (1) point equals 1% of the loan amount.

Prepayment clause: A clause in a mortgage which gives a mortgagor the privilege of paying the mortgage indebtedness before it becomes due, either with or without prepayment penalty.

Proration: Allocation of closing costs and credits to buyers and sellers.

Purchase Money Mortgage: A mortgage given by a grantee or any other lender in part payment of the purchase price of real estate.

Glossary Of Real Estate Terms, J-L

2009-06-04T12:17:00.003-04:00

Junior Mortgage: A mortgage second in lien (subordinate) to a previous mortgage.

Landlord: One who rents property to another.

Land Contract: In reality, a land contract is a promise to pay. In other words, if you buy a house under a land contract, you promise to pay an agreed upon amount on or before a specific date. Once the terms have been fulfilled, the seller will then deed the property to you.

Land trust: A means of taking control of a property anonymously. The only name that will appear on public records will be the name of the trust and usually the name of the trustee. The land trust provides some asset protection in that it requires a good deal of digging via legal channels to discover if you are the beneficiary of a trust.

Lease: A contract whereby for a consideration usually termed rent one who is entitled to the possession of real property transfers such rights to another for life, for a term of years, or at will.

Leasehold: The interest given to a lessee of real estate by a lease.

Lessee: A person to whom property is rented under a lease.

Lessor: One who rents property to another under a lease.

Lien: A legal right or claim upon a specific property that attaches to the property until a debt is satisfied.

Life Estate: The conveyance of title to property for the duration of the life of the grantee.

Lis Pendens: A legal document filed in the office of the county clerk giving notice that an action or proceeding is pending in the courts affecting the title to the property.

LTV: Loan to value ratio refers to the amount of money loaned on a property relative to its actual value. For example, a loan of $20,000 on a $40,000 house would be a 50% LTV ratio.

Glossary Of Real Estate Terms, G-I

2009-06-02T09:54:00.006-04:00

Grace Period: Additional time allowed to perform an act or make a payment before a default occurs.

Grantee: The party to whom the title to real property is conveyed.

Grantor: The person who conveys real estate by deed; the seller.

Habendum Clause: The "to have and to hold" clause that defines or limits the quantity of the estate granted in the deed.

HUD: Department of Housing and Urban Development. This agency has a very broad mission in the entire housing industry. The specific area of interest to you, as an investor, is their involvement in subsidizing rents for low income housing and the marketing of repossessed houses. Many of the HUD repo's provide EXCELLENT investment opportunities.

Hypothecate: To use something as security without giving up possession of it.

Incumbrance: Any right to or interest in property interfering with its use or transfer or subjecting it to an obligation. In connection with foreclosure property, the most likely encumbrances are mortgages and claims for unpaid taxes.

Installments: Parts of the same debt, payable at successive periods as agreed; payments made to reduce a mortgage.

Intestate: A person who dies before making a will, or whose will is defective in form.

Irrevocable: Incapable of being recalled or revoked; unchangeable; unalterable.

Joint Tenancy: Ownership of property by two or more persons, each of whom has an undivided interest with the right of survivorship.

Judgment: Decree of a court declaring that one individual is indebted to another , and fixing the amount of such indebtedness.

Junior Mortgage: A mortgage second in lien (subordinate) to a previous mortgage.

Glossary Of Real Estate Terms, D-F

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Debt Service: Annual amount to be paid by a debtor for money borrowed.

Deed: An instrument in writing, duly executed and delivered, that conveys title to real property.

Deed Restriction: A restriction imposed in a deed to limit the use of the land. A deed might include clauses preventing the sale of liquor or defining the size, type, value or placement of improvements.

Default: Failure to fulfill a duty or promise or to discharge an obligation; omission or failure to perform an act. In property foreclosure, usually the failure to pay loan installment repayments when they become due.

Defeasance Clause: The clause in a mortgage that permits the mortgagor to redeem his or her property upon payment of obligations to the mortgagee.

Defendant: The party sued or called to answer in any lawsuit, civil or criminal.

Deficiency Judgment: When the security for a loan is sold for less than the amount of the loan, the unpaid amount (the deficiency) is held by law (the judgment) to be the liability of the borrower unless the new owner has assumed the debt.

Due-On-Sale: See Alienation Clause; link below

Earnest Money: Down payment made by a purchaser of real estate as evidence of good faith.

Easement: A right that may be exercised by the public or individuals on, over, or through the property of otheers.

Elephant: A person with money to invest, but without the time or inclination to seek out the good deals. He/she should team up with a mouse who has the time and talent to find the deals but, no money. A mouse/elephant combination is a very beneficial partnership for both of them.

Eminent Domain: A right of the government to acquire property for public use; the owner must be fairly compensated.

Encroachment: A building, part of a building, or obstruction that intrudes upon the property of another.

Equity: In real estate, the difference between the value of the propery and the amount owed on it. Also called the owner's interest.

Equity Loan: Junior (subordinate) loan based on a percentage of the equity.

Escrow: A written agreement between two or more parties providing that certain instruments or property be entrusted to a third party to be delivered to a designated person upon the fulfillment or performance of some act or condition.

Estate: The degree, quantity, nature and extent of interest (ownership) that a person has in real property.

Estoppel Certificate: An instrument executed by the mortgagor setting forth the status of and the balance due on the mortgage as of the date of the execution of the certificate.

Eviction: A legal proceeding by a landlord to recover possession of real property.

Exclusive Agency: an agreement to employ one broker only. If the sale is made by any other broker, both are enttitled to commissions.

Exclusive Right To Sell: An agreement to give a broker the exclusive right to sell for a specified period. If a sale during the term of the agreement is made by the owner or by any other broker, the broker holding the exclusive right is, nevertheless, entitled to compensation.

Executor: A person or a corporate entity or any other type of organization named in a will to carry out its provisions.

Fee (fee simple, fee absolute): The absolute ownership of real property. This type of estate gives the owner and his or her heirs unconditional power of disposition.

FHA: Federal Housing Administration. See FHA Mortgage Loan

FHA Mortgage Loan: Mortgage loan insured by the Federal Housing Administration.

Fiduciary: A person who transactions business or handles money or property on behalf of another. The relationship implies great confidence and trust.

First Mortgage: Mortgage that has priority as a lien over all other mortgages. In cases of foreclosure, the first mortgage will be satisfied before other mortgages are paid off.

Foreclosure: A procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default in payments or terms.

Glossary Of Real Estate Terms, A-C

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Affidavit: A written statement or declaration sworn to or affirmed before an authorized person.

Agreement of Sale: A written agreement in which the purchaser agrees to buy and the seller agrees to sell. Terms and conditions are included in the agreement.

Alienation Clause: Also known as a "due-on-sale" clause. This is a provision that allows a lender to demand payment of the balance of a loan in full if the collateral is sold.

Amortization Mortgage: A debt of which the periodic repayments are used to reduce the principal outstanding as well as paying off the current interest charges.

Apportionment: The adjustment of the income, expenses, or carrying charges of real estate that is usually computed to the date of closing of title so that the seller pays all expenses to that date. The buyer assumes all expenses from the date on which the deed is conveyed to the buyer.

Appraisal: An estimate of a property's value made by an appraiser who is usually presumed to be an expert in this work.

Appraisal By Comparison: An estimate of value made by comparing the sale prices of other similar properties.

Assignment: The method or manner by which a right or contract is transferred from one person (the assignor) to another (the assignee).

Assumption Of Mortgage: This occurs when a person takes title to property and assumes the payment of an existing note or deed of trust.

Balloon Payment: A final installment payment, larger than previous installments that pays off a debt.

Beneficiary: The person who receives or is to receive the benefits of a certain act.

Bird Dog; Bird Dogger: One who looks for houses that potentially fit the guidelines of the properties that you prefer to purchase. the bird doggers will bring the information that you require and you will reimburse them for their efforts on whatever basis you have agreed upon.

Bona Fide: In good faith; without fraud.

Capital Gain Or Loss: The difference between the basis price (cost plus purchase expenses) of a capital asset and its sales price.

Caveat Emptor: Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk.

Claim Of Title: A history of the conveyances and encumbrances affecting a title from the time the original patent was granted or as far back as records are available.

Client: The Principal; the one by whom a broker is employed (the principal) and by whom the broker will be compensated.

Closing Date: The date upon which the buyer takes over the property.

Cloud On The Title: An outstanding claim or encumbrance that, if valid, would affect or impair the owner's title.

Codicil: An addition to or amendment of a will.

Collateral: Additional security pledged for the payment of a debt.

Commission: A fee charged for brokerage services.

Commitment: A pledge; a promise; an affirmation agreement.

Complaint: In civil law, the initial statement of the facts on which a complaint is based. In criminal law, the preliminary charge made against the accused.

Comps: See Appraisal by Comparison.

Condemnation: The acquisition of private property for public use with fair compensation to the owner.

Conditional Sales Contract: A contract for the sale of property stating that although delivery is to be made to the buyer, the title is to remain vested in the seller until the conditions of the contract have been fulfilled.

Consideration: Anything given as an inducement to enter into a contract, such as money or personal services. Any contract, lease, obligation or mortgage may subsequently be modified without consideration provided that the change is made in writing and signed.

Contract: A legally enforceable agreement.

Covenant: Agreements written into deeds and other instruments promising performance or nonperformance of certain acts or stipulating certain uses or restrictions on the property.

Protection Clauses

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Due on Sale Clause (Put in mortgage)

Lender shall have the right at its opinion, to declare any indebtedness and obligations secured hereby irrespective of the maturity date specified in any note or agreement evidencing the same, due and payable within 30 days after such declaration if: (a) Borrower or any successor in interest to Borrower in interest to Borrower in such property sells, enters into a contract of sale, conveys or alienates such property, or any part thereof, or suffers his title or any interest therein to be divested, more than 3 years, or changes or permits to be changed the character or use of the property, or drills or extracts or enters into a lease for the drilling for or extracting of oil, gas or other hydrocarbon substance or any mineral of any kind or character on such property; or (b) Borrower is a partnership and the interest of a general partner is assigned or transferred; or (c) Borrower is a corporation and more than 25% of the corporation stock thereof is sold, transferred or assigned during a 12 month period; or (d) Borrower is a trust and there is a change of beneficial interest with respect to more than 25% of such property or (e) Borrower had made any material misrepresentation or failed to disclose any material fact in those certain financial and other written representations and disclosures made by Borrower in order to induce Lender to enter into the transaction evidenced by the promissory note or notes or agreements which this mortgage secures.

Optional Due on Sale Clause

The property described herein shall not be assigned sold or otherwise transferred to any party not a party herein, without the express written consent of the mortgagees. Should mortgagors sell, assign, or otherwise transfer without the mortgagees' written consent, the entire amount owing hereunder shall become immediately due and payable.

Collateral and Late Fee Clause (Put In Note)

If an installment called for under the terms of this note is not made within five (5) days after its due date, a late charge amounting to ten cents for each dollar or fraction thereof of said installment shall be paid by the makers. The makers hereof also agree to pay any and all set-up fees and collection charges and escrow account charges issued by an institution employed to collect and/or receive the payments due hereunder.

Attorneys Fee Clause (Put In Note)

If any attorney is employed to institute collection action on this note the attorney fee will be equal to 10% of the unpaid balance or $4,000 whichever is greater.

CONTINGENCY CLAUSES

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1. Subject to adequate appraisals to buyer's satisfaction within 15 days of acceptance.

2. Buyer reserves the right to enter and repair property upon acceptance in order to obtain new financing. Buyer releases all claim on repairs or materials installed if purchase not completed by time set here within to close.

3. Buyer will be granted a 30 day extension on this contract with a ______ cash payment.

4. Seller agrees to accept from buyer for payment of the "additional payment" described in paragraph 1B a certain mortgage on ______ described as follows:

5. All plumbing, electrical, heating, A/C and sewer systems to be in working order at closing or repaired by Seller.

6. The buyer reserves the right to substitute collateral securing the purchase money mortgage, said collateral to be of equal or greater value of owner's equity. Seller shall execute all documents necessary to do so and those documents will be held in escrow by closing agent until released by Buyer.

7. In the event seller should elect to sell the purchase money mortgage at a later date, buyer (maker) shall have the right of first refusal on any bona fide written offer.

8. This transaction is subject to Buyer's inspection and written acceptance of all the legal financial records and data of the seller on the property (including, but not limited to all leases, rent records, expense records and tax returns regarding the property) for verification of representations of income and expenses.

9. This transaction is subject to complete inspection of the property for compliance with the building, health and fire codes and Buyer's written acceptance of the condition of the premises. Seller shall correct all code violations.

10. Seller warrants that all personal property, building structure, wiring, appliances, electrical fixtures, plumbing, hearing and air conditioning devices are in good operating condition and that the roof is in good repair and free of leaks, all will be so at closing and for one year after the date of closing. These warranties shall survive and extend past delivery of deed.

11. Seller warrants there are no leases on the property for a period longer than six (6) months and no leases containing an option to renew on like terms.

12. This transaction is subject to Buyer's inspection and written approval of terms of existing mortgages. This transaction is contingent on existing mortgages not having clauses providing for a balloon payment, balance due on sale or assumption or interest increase on sale or assumption or prepayment penalty.

13. Buyer has the right to immediate possession of the property for purposes of making improvements and/or showing said property.

14. This transaction is subject to an inspection by my partner within 3 days of the seller's acceptance of the offer.

15. The seller agrees to hold a purchase money mortgage and further agrees that the maker of the promissory note reserves the right to miss one payment per loan year and failure to make such payment shall not be a default of the said note.

16. Purchase money mortgage is to be paid as per the attached amortization schedule.

17. Seller(s) understands Buyer(s) or assigns will be getting a first mortgage of a maximum of the appraised value less the purchase money mortgage to the Seller(s). Seller(s) hereby acknowledge that they understand that the purchase money second mortgage that they will hold is junior to the above mentioned first mortgage.

18. LIMITATIONS ON LIABILITY: The liability on the part of the Buyer(s) to satisfy the terms and conditions of the note(s) executed in favor of the Seller(s) as part of this agreement shall be limited to the property securing such note(s) and shall not extend beyond this. There will be no personal liability to the maker of the note.

19. Seller(s) understands that the interest on the purchase money mortgage will not begin for ______ months to give Buyer(s) time to repair property and/or find an occupant and that this means the first payment to the Seller(s) will be ______ months after closing.

20. If the house is vacant at the time of acceptance of this offer the Seller(s) hereby gives permission for the Buyer(s) to retain a key and show the premises to contractors and prospective occupants. The Buyer9s) agree that no change will be made to the property until after closing without the Seller(s) written permission.

21. The purchase money mortgage shall be payable at $______ per month for a period of ______ months until the total sum of $ ______ is paid in full.

Standard Purchase and Sales Agreement

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Parties ___________ (Buyer) and ___________ (Seller) which terms may be singular or plural and will include the heirs, successors, personal representatives and assigns of Seller and Buyer, hereby agree that Seller will sell and Buyer will buy the following property, upon the following terms and conditions if completed or marked. In any conflict of terms of conditions, that which is added will supersede that which is printed or marked.

The property is in _________ County, and is described as follows (If lengthy, attached legal description): ___________ Address _______ Zip_________

It is understood that the Property will be conveyed by General Warranty Deed (unless otherwise required) subject to taxes, existing zoning (unless otherwise specified in paragraph 16) covenants, restrictions and easements of record.

1. Total Purchase Price to be paid by Buyer is payable as follows:

A. Binder deposit which will remain as a binder until closing unless sooner forfeited or returned, according to the provisions in this Agreement $______

B. Additional binder deposit due within ____ days after date of this agreement $_____

C. Balance due at closing (not including Buyer's closing costs, prepaid items or prorations) in U.S. cash or locally drawn certified or cashiers check approx. _____ exactly ______ $______

D. Proceeds of a new loan to be executed by Buyer to any lender other than Seller $______

E. Purchase money loan to Seller on terms set forth in Paragraph 2C $______

F. Other financing _________________________ $______

G. Existing mortgage balance encumbering the Property to be assumed by Buyer (approximately) $______

H. Total Purchase Price approx. _______ exactly ______ $______

2. Financing: If buyer does not obtain the required financing but otherwise complies with the terms hereof, the binder deposit less sales and loan processing costs incurred, will be returned to the Buyer.

A. { } Application: The application for the mortgage described in paragraph 1D will be made with lender selected by { } Seller or { } Buyer. Unless such mortgage loan is approved without continued contingencies other than those elsewhere covered in this agreement within days of the date of acceptance of this agreement, Seller and Buyer will have the right to terminate this agreement, and Buyer will return to Seller all the title evidence and surveys received from Seller. Buyer will make application for financing within ____ days of the date of acceptance of this agreement and in a timely manner furnish any and all credit, employment financial and other information required by the lender. Int he event the original loan application is denied, Buyer, if requested by Seller, will reapply within ____ days of such request at an alternate institution.

B. { } Loan Assumption: Buyer understands that interest { } will { } will not escalate and is { } variable { } fixed rate. Buyer will within ____ days make required application and timely provide qualifying information as required by lender. Buyer's obligation to close is contingent on lender's approval of the assumption within ____ days of the date of acceptance of this agreement.

C. { } Seller: The balance due to Seller will be evidenced by a negotiable promissory note of Borrower secured by a valid purchase money ___ mortgage or Trust Deed on the Property and delivered by Buyer to Seller dated the date of closing, bearing annual interest rate of ____% and payable $____ per ______ for { } ______ years { } ______ months. Privilege of prepayment { } does apply { } does not apply. The loan will be ________ due on sale ______ not due on sale of Property.

3. Buyer Will Pay:

A. Closing Costs {} Recording fees {} Note stamps {} Intangible tax {} Credit reports {} Loan transfer and assumption charges {} VA funding fee {} Loan origination fee {} Loan insurance premium {} Loan discount not to exceed ______ {} Transfer Tax {} Wood Destroying Organism Report {} Appraisal {} Survey {} Title Insurance Policy ______ {} Other ______

4. Seller Will Pay:

A. Closing Costs: {} Transfer tax {} ______ Title insurance policy {} ______ Attorney's fee {} Real estate brokerage fee {} Loan discount not to exceed ______{} Satisfaction and recording fee {} Repairs or replacements, in addition to those in paragraph 9, not to exceed $______. {} Wood destroying organism report {} Appraisal fee {} Survey {} Other ______

B. All other charges required by lender which Buyer is prohibited from paying by law or regulation.

C. All mortgage payments or condominium and association fees will be current at Seller's expense at the time of closing.

5. Payment of Expenses: If buyer fails to perform, all loan and sale processing and closing costs incurred, whether the same were to be paid by Seller or Buyer will be the responsibility of the Buyer, with costs deducted from binder deposit. If Seller fails to perform, all loan, sales processing and closing costs incurred whether same were to be paid by Seller or Buyer will be the responsibility of Seller, and Buyer will be entitled to the return of the Binder deposit. This will include, but not be limited to the transaction not being closed because Seller is unable to complete the transaction for a qualified Buyer, or because the property does not appraise for an amount sufficient to enable the lender to make the required loan, or because Seller elects not to pay for the excess amount in paragraphs 4 (with respect to repairs)m 9 or 11, or because the zoning is not as required in paragraph 16 or because Seller cannot deliver marketable title.

6. Prorations: All taxes, rentals, condominium or association fees prepaid hazard insurance premiums (if assumed) monthly mortgage insurance premiums and interest on loans will be prorated as of the date of closing.

7. Title Evidence: Within ______ days {} after acceptance {} after date of satisfaction of all conditions in paragraph 19, Seller will deliver to Buyer or closing attorney. {} Title insurance commitment for an owner's policy in the amount of the purchase price. Any expense of curing title including but not limited to legal fees, discharge of liens and recording fees will be paid by Seller.

8. Within ______ days {} after date of acceptance {} after date of satisfaction of all conditions on paragraph 19, Seller will deliver to Buyer or closing attorney: {} A new staked survey dated within 3 months of closing showing all improvements now existing thereon and certified to Buyer, lender and the title insurer. {} A copy of a previously made survey of the Property showing all improvements now existing thereon. {} No survey is required.

9. Wood destroying Organism Report: "Wood Destroying Organism" means any anthropod or plant life which damages a structure. Buyer may have property inspected by a Certified Pest Control Firm to determine whether there is any visible active wood destroying organism infestation or visible existing structural damage from wood destroying organisms to the improvements. If Buyer is informed of either or both of the foregoing, Seller will have seven (7) days from receipt of written notice thereof within which to have all such wood destroying organism damages whether visible or not inspected and estimated by a licensed building or general contractor. Seller will pay costs of treatment and repairs of all structural damage up to one percent (1%) of the purchase price. If such costs exceed the amount agreed to be paid by Seller and Seller declines to treat and repair, Buyer will have the option of (a) terminating this Agreement or, (b) proceeding with the transaction, in which event Seller will bear costs equal to one percent (1%) of the purchase price.

10. Title Examination and Time for Closing:

A. If title evidence and survey, as specified above, show Seller is vested with a marketable title, subject to the usual exceptions contained in title insurance commitments (such as exceptions for survey, current taxes, zoning ordinances, covenants, restrictions and easements of record), the transaction will be closed and the deed and other closing papers delivered on or before {} ______ {} ______ days after the date of acceptance {}______ days after date of satisfaction of all conditions in paragraph 19 unless extended by other conditions of this Agreement or this agreement is canceled by the Buyer.

B. If title evidence or survey reveal any defects which render the title unmarketable, Buyer will have 7 days from receipt of title commitment and survey to notify Seller of such title defects and Seller agrees to use reasonable diligence to cure such defects at Seller's expense and will have 30 days to do so, in which event this transaction will be closed within 10 days after delivery to Buyer of evidence that such defects have been cured. Seller agrees to pay for an discharge all due or delinquent taxes, liens and other encumbrances, unless otherwise agreed. If Seller is unable to convey to Buyer a marketable title, Buyer will have the right to terminate this agreement at the same time returning to Seller all title evidence and surveys received from Seller, or Buyer will have the right to accept such title as Seller may be able to convey, and t close this transaction upon the terms stated herein, which election will be exercised within 10 days from notice of Seller's inability cure.

11. Loss or Damage: If the property is damaged by fire or other casualty prior to closing, and cost of restoration does not exceed 3% of the assessed valuation of the improvements located on the Property, cost of restoration will be an obligation of the Seller and closing will proceed pursuant to the terms of this Agreement with cost thereof escrowing at closing. In the event cost of restoration exceeds 3% of the assessed valuation of the improvements and Seller declines to repair or restore, Buyer will have the option of either taking the Property as is, together with either the said 3% or any insurance proceeds payable by virtue of such loss or damage, or of cancelling this Agreement.

12. Seller agrees to deliver the Property in its PRESENT AS IS CONDITION except as otherwise specified herein. Seller does hereby certify and represent that Seller has legal authority and capacity to convey the property with all improvements. Seller further certifies and represents that Seller knows of no latent defects to the property and knows of no facts materially affecting the value of the property except the following. Description of problems: _____ Buyer has inspected the property and HAS NOT RELIED UPON ANY REPRESENTATIONS MADE BY ANY REAL ESTATE AGENT in describing the property, and Buyer accepts the property in its PRESENT AS IS CONDITION, except as otherwise specified herein.

13. Occupancy: { } Seller represents that there are no parties in occupancy other than Seller; Buyer will be given occupancy at closing unless otherwise specified herein __________ { } Buyer understands that property is available for rent or rented and the tenant may continue in possession following closing unless otherwise agreed in writing. Deposits will be transferred to Buyer at closing.

14. Personal Property: included in the purchase price are all fixed equipment including ceiling fans, drapery hardware, attached lighting fixtures, mailbox, fence, plants and shrubbery as now installed on the property and these additional items: ______. Items specifically excluded from this agreement: ______

15. Default And Attorney's Fees: If Buyer defaults on this agreement, all deposits will be retained by the Seller as full settlement of any claim, whereupon Buyer and Seller will be relieved of all obligations under this agreement. If Seller defaults under this Agreement, the Buyer may seek specific performance or elect to receive the return of the Buyer's deposit(s) without thereby waiving any action for damages resulting from Seller's breach. In connection with any litigation arising out of this Agreement, the prevailing party will be entitled to recover all costs including a reasonable attorney's fee.

16. { } Zoning and Restrictions: Unless the Property is zoned ____ and can be legally used for ___ use, or if there is notice of proposed zoning changes, deed or other restrictions that could prevent such use at time of closing, Buyer will have the right to terminate this Agreement. Buyer will have 10 days from acceptance to verify the existing zoning and current proposed changes, and deliver written notice of objections to Seller or be deemed to have waived objections under this paragraph.

17. The offer of Buyer shall terminate if Seller has not indicated his acceptance of this Agreement by signing and delivering same or telegraphing acceptance to Buyer or submitting agent before ____:01 {}am {} pm, date ______.

18. Additional Terms, Conditions or Addenda (lettered A, B, C, D, etc.)

19. Timing: the timing of paragraphs 7, 8, 9 and 10(A) will become operable after satisfaction of paragraph 2, if applicable, and those additional conditions lettered in Paragraph 18.

20. There are no other agreements, promises or understandings between these parties except as specifically set forth herein. This legal and binding agreement will be construed under ______ Law, will not be recorded and if not understood, parties should seek competent legal advice. Seller and Buyer give real estate agent authorization to advise surrounding neighbors who will be the owner of this property. TIME IS OF THE ESSENCE IN THIS AGREEMENT.

21. Signed, sealed on the date herein stated

________________ ____________ ________________
Buyer Date of Offer Buyer

________________ ____________ ________________
Seller Date of Acceptance Seller

{ } Agent { } Seller by the signature below, acknowledges receipt of $ ______ { } cash { } check, as binder deposit, which is the amount mentioned in paragraph 1A of this Agreement. It will be deposited and held in escrow pending disbursement according to terms hereof, together with all additional binder deposits escrowed by terms of this agreement.

________________ ________________
Agent Seller

Broker's Fee: (Check and complete the one applicable)
{ } IF A LISTING AGREEMENT IS CURRENTLY IN EFFECT:
Seller agrees to pay the broker named below, including cooperating subagents named according to the terms of an existing, separate listing agreement. Cooperate Commission:
or
{ } IF NO LISTING AGREEMENT IS CURRENTLY IN EFFECT:
Seller will pay the broker named below, at the of closing from the disbursements of the proceeds of the sale, compensation in the amount of (COMPLETE ONE ONLY) ______% of gross purchase price or $_____, for broker's services in effecting the sale by finding the Buyer ready, willing and able to purchase pursuant to the foregoing Agreement. If Buyer fails to perform and deposits are retained 50% thereof, after deduction of costs assessed against the deposit, (but not exceeding the broker's fee above provided) will be paid broker as full consideration for broker's services including costs expended by broker, and the balance will be paid to seller. If the transaction does not close because of refusal or failure of Seller to perform, Seller will pay the full fee upon demand, in any litigation arising out of the Agreement concerning the broker's fee, the prevailing party will recover reasonable attorney's fees and costs.

__________________ ______________________ ______________________
Firm Name of Broker Name of Cooperating SubAgent Seller

By: _______________ ________________________ ______________________
Authorized Signatory Authorized Signatory of SubAgent Seller

What Happens If The Lien Holders Won't Cooperate?

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You have several choices:

1. Rent the house out for a positive cash flow until you can renegotiate with the lien holders later, or their lien expires. You should bring any back payments current at this time. You own the house! You can do with it as you see fit. What have you got to lose?

Or

2. Let the mortgagee file foreclosure and negotiate again with the foreclosure papers in hand.

Or

3. Buy superior lien and foreclose yourself.

Or

4. Let it go into foreclosure and go milk another cow.

Profiting From Defaulted Paper

Buying Defaulted Paper

What is it?
A mortgage, lien, judgment or any other debt instrument that contains the right for the holder to foreclose if in default.

Criteria:
Your purchase price plus costs of foreclosure should put you in the property at a low LTV. Buying at a discount is recommended but not mandatory. Never buy without checking the title first. Make sure you get an assignment not a satisfaction. Take the assignment in a paper trust.

Where To Find It:
All banks, mortgage companies, credit unions and finance companies
Individuals who sold and took paper back
Private lenders
Realtors
Mortgage brokers
Title companies
Attorneys
Appraisers
Run ads
Foreclosure services
Courthouse
Financial Newspapers

How Do I Profit?
Restructure and sell off
Get owner new financing
Foreclosure

How To Make Money With Liens and Judgments

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1. Buy the lien and force collection
2. Get an agreement to collect the lien and do so for a share of the gross
3. Buy the property with the liens and negotiate a release of lien.

Release of Lien Example

Seller Calls with a house in good condition worth $100,000; Seller has a 1st mortgage of $50,000 at $500 per month. He's 2 payments behind ($1000). Seller has a credit card judgment of $20,000 plus a mechanics lien of $20,000 and an IRS lien of $20,000, totaling $110,000.

Your objective is to get the deed for very little money ($500 in our example) and negotiate a release of liens for a fraction of the cost to discount and pay off the same liens.

RELEASE OF LIENS

Step 1. Look for properties which are over loaded with liens and judgments. The mortgage should be low loan to value (60% or less), because you will not negotiate a release of mortgage. Your only profit center is building equity by making existing liens go away, not mortgage. These properties should have sellers who are ready to move or have moved and will take little or nothing for a deed. If they are in foreclosure be sure you want the property even if all the inferior liens weren't present.

Caution:
If the first mortgage balance, plus the cost of foreclosure, plus the cost of bringing the loan current, plus a few thousand for release of lien fees, plus repairs is more than you'd pay for the house... you don't have a deal with chasing. Be sure you have enough time left to negotiate release fees before a foreclosure takes place.

Step 2. Negotiate the purchase of the property from the seller for little or no money. This should be easy if the house is over leveraged and the seller is motivated because there is little or no equity and he/she is moving regardless.

Step 3. After a contract is signed by all owners, have the title checked.

Step 4. Pay the seller and get the deed to a trust signed by all owners before a notary. You may choose to pay the seller even before checking the title if you're risking hundreds, not thousands.

Don't lose a good deal because the seller is in a hurry and you're not.

Step 5. Contact mortgagee and get a status letter on back due amount and balance. Verify mortgagee will allow loan to be brought current.

Step 6. Locate all lien holders except the mortgagee and negotiate a release of lien. Get a written agreement signed from all liens before paying any. If you feel comfortable with the amount agreed upon by the lien holder and you feel time is against you, you may choose to go ahead and pay it now. The superior liens may warrant doing so. The inferior liens should not be paid until you clear the way with the others. This process may take awhile if you run into resistance or can't locate the lien holders.

Step 7. Record the release of liens and the deed when you're sure your path is clear and you're ready to proceed with the rental or sale of the property. There's no reason to incur closing costs by recording the deed until you know you have a deal.

Protect Yourself When Selling

2009-05-20T09:23:00.004-04:00

Wraparounds

Collection clause
Due on sale
Late Penalty
Have buyer sign personally
Get enough down or additional collateral or Lease/Option until you do

Land Contract/Agreement For Deed

Leave the non assignable clause in the agreement
Take out the recording clause if your state will permit non-recording
Late penalty
Collection clause
Deed in escrow
Get enough down or lease/option

Lease Option

Use lease agreement and separate contract to purchase
Late penalty
The deposit is earnest money not a security deposit. It is non-refundable
Do not make the lease or contract recordable
Contract subject to the terms of the lease agreement being met
Get Quit Claim deed in escrow
Be aware that when you give an option to purchase there is always a chance of your tenant claiming an equitable interest.

Protection Clauses
Due on Sale Clause (Put in mortgage)

Lender shall have the right at its option, to declare any indebtedness and obligations secured hereby irrespective of the maturity date specified in any note or agreement evidencing the same, due and payable within 30 days after such declaration if: (a) Borrower or any successor in interest to Borrower in such property sells, enters into a contract of sale, conveys or alienates such property, or any part thereof, or suffers his title or any interest therein to be divested, whether voluntarily or involuntarily, or leases such property, or any part thereof for a term of more than 3 years, or changes or permits to be changed the character or use of the property, or drills or extracts or enters into a lease for the drilling for or extracting of oil, gas or other hydrocarbon substance or any mineral of any king or character on such property; or (b) Borrower is a partnership and the interest of a general partner is assigned or transferred; or (c) Borrower is a corporation and more than 25% of the corporation stock thereof is sold, transferred or assigned during a 12 month period; or (d) Borrower is a trust and there is a change of beneficial interest with respect to more than 25% of such property, or (e) Borrower had made nay material misrepresentation or failed to disclose any material fact in those certain financial and other written representations and disclosures made by borrower in order to induce Lender to enter into the transaction evidenced by the promissory note or notes or agreements which this mortgage secures.

Optional - due on sale clause

The property described herein shall not be assigned sold or otherwise transferred to any party not a party herein, without the express written consent of the mortgagees. Should mortgagors sell, assign or otherwise transfer without the mortgagees' written consent, the entire amount owing hereunder shall become immediately due and payable.

Collateral and Late Fee Clause (Put in Note)

If an installment called for under the terms of this note is not made within five (5) days after its due date, a late charge amounting to ten cents for each dollar or fraction there of said installment shall be paid by the makers. The makers hereof also agree to pay any and all setup fees and collection charges and escrow account charges issued by an institution employed to collect and/or receive the payments due hereunder.

Attorneys Fee Clause (Put in Note)

If an attorney is employed to institute collection action on this note the attorney fee will be equal to 10% of the unpaid balance or $4,000 whichever is greater.

Land Installment Contract

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This Agreement made and entered into by and between ____________ hereinafter called the Vendor and __________ hereinafter called the Vendee.

Witnesseth: The Vendor, for himself, his heirs and assigns, does hereby agree to sell to the Vendee their heirs and assigns, the following described real estate ___________________________ together with all appurtenances, rights, privileges and easements and all buildings and fixtures in their present condition located upon said property.

1. CONTRACT PRICE, METHOD OF PAYMENT, INTEREST RATE: In consideration whereof, the Vendee agrees to purchase the above described property for the sum of $___________ , payable as follows: The sum of $___________ as down payment at the time of execution of the within Land Installment Contract, the receipt of which is hereby acknowledged, leaving a principle balance owed by Vendee of $________________ together with interest on the unpaid balance payable in consecutive monthly installments of $_____________ beginning on the ___ day of ______, 20__, and on the ______ day of each and every month thereafter until said balance and interest is paid in full, or until the ____ day of _____, 20___ whichever event occurs first. The interest on the unpaid balance due hereon shall be ____% percent per annum computed monthly in accordance with a ____ month amortization schedule during the life of this Contract.

Payments shall be credited first to the interest and the remainder to the principle or other sums due Vendor. The total amount of this obligation, both principle and interest, unpaid after making any such application of payments as herein receipted shall be the interest bearing principle amount of this obligation for the next succeeding interest computation period. If any payment is not received within ____ days of payment date, there shall be a late charge of _____% percent assessed. The Vendee may pay the entire purchase price on this contract without penalty. The monthly installments shall be payable as directed by the Vendor herein.

2. ENCUMBRANCES: Said real estate is presently subject to a mortgage and the Vendor shall not place any additional mortgage on the premises without first obtaining the written permission of the Vendees. In the event the Vendor should become delinquent in payments on the mortgage, the Vendee may pay the same and credit said payment to the contract price.

3. EVIDENCE OF TITLE: The Vendor shall be required to provide an abstract or guarantee of title, statement of title, title insurance, or such other evidence of title at Vendor's expense.

4. RECORDING OF CONTRACT: The Vendor shall cause a copy of this contract to be recorded in the ________ County Recorder's Office within a period of twenty (20) days after the execution of this Contract by the parties hereto.

5. REAL ESTATE TAXES: Real estate taxes shall be prorated to the date of the closing using the short term method of tax proration being those becoming due and payable on ______, 20__. When the real estate taxes become due and payable, the Vendee shall pay same directly to the _____________ County Treasurer and provide proof of payment to the Vendor within 180 days.

6. INSURANCE AND MAINTENANCE: The Vendee shall keep the premises insured for at least _____ thousand ($ ) dollars against fire and extended coverage for the benefit of both parties, as their interest may appear, and provide a copy of the said policy to the Vendor or any mortgagee.

7. POSSESSION: The Vendee shall be given possession of the above described premises at Contract execution and shall thereafter have and hold the same subject to the provisions for default hereinafter set forth.

8. DELIVERY OF DEED: Upon full payment of this contract, Vendor shall issue a General Warranty deed to the Vendee, free of all encumbrances except as otherwise set forth.

9. DEFAULT BY VENDEE: If an installment payment to be made by the Vendee under the terms of this Land Contract is not paid by the Vendee when due or within two (2) installments thereafter, the entire unpaid balance shall become due and collectable at the election of the Vendor and the Vendor shall be entitled to all the remedies provided for by the laws of this state and/or to do any other remedies and/or relief now or hereafter provided for by law to such Vendor; and in the event of the breach of this contract in any other respect by the Vendee, Vendor shall be entitled to all relief now or hereinafter provided for by the laws of this state.

10. GENERAL PROVISIONS: There are no known pending orders issued by any governmental authority with respect to this property other than those spelled out in the Land Installment Contract prior to closing date for execution of the contract.

It is agreed that this Land Installment Contract shall be binding upon each of the parties, their administrators, executors, legal representatives, heirs and assigns.

Witness: _____________ Vendor: _______________
Witness: _____________ Vendor: _______________
Vendee: _______________
Vendee: _______________

IN WITNESS WHEREOF, the parties have set their hands this ____ day of _______, 20__

STATE OF: ___________ COUNTY OF _____________ On this _____ day of ______, 20_, before me a Notary Public in and for said county and state, personally came ____________, Vendor and ________________ Vendee in the foregoing Land Installment Contract and acknowledged before me the signing thereof to be their voluntary act and deed.

WITNESS, my official signature and seal on the day last above mentioned.

NOTARY PUBLIC ____________________ My commission expires: _____________

Agreement For Deed

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THIS AGREEMENT FOR DEED made this _______ day of _______________________ AD AND BETWEEN ________________________________ of the County of _____________ State of __________________________ hereinafter referred to as SELLER and ___________________________________ hereinafter referred to as PURCHASER.

WITNESSETH, that provided the said purchasers shall first make the payments and perform the covenants hereinafter set forth on their part to be made and performed the said sellers covenant and agree to and will by good and sufficient warranty deed convey and assure to the said purchasers, their heirs and assigns forever in fee simple, free and clear of all encumbrances, the following described land situate in _________________________ County, _________________________ to wit:

The purchase price of said land is $__________________________, of which the purchasers have herewith paid to the sellers the sum of $____________________ and the purchasers agree to pay to the sellers the balance, to wit: the principal sum of $___________, together with interest on so much of said principal sum as remains from time to time outstanding and paid at the rate of _______% per centum from ___________________ until paid; said principle and interest to be payable in consecutive monthly installments, each in the sum of _________; said installments to be applied first to interest and balance to principal. If any payment is not received within ______ days of due date, there shall be a late charge of ______ added. The purchasers may prepay any part of the principal sum hereof in multiples of $__________ on any instllment payment date, but any such prepayment shall not relieve the purchasers from making the payment of the installment then due and any subsequent installment provided hereby unless at the time of such prepayment the purchasers pay all sums unpaid hereon.

THE PURCHASERS covenant and agree as follows: (a) to pay all taxes, fines and assessments levied or assessed on said land subsequent to December 31, _______, as and when the same respectively become due and shall exhibit to sellers immediately after such payment the official receipts therefor; (b) to place and continuously keep on the building now or hereafter situate on said land fire and extended coverage insurance in the usual standard policy form in a sum not less than $ __________ in such company or companies as may be approved by the sellers and said policies shall be delivered up and held by the sellers and contain the usual clauss making said policies payable to the sellers as their interest may appear; and in the event any sum of money becomes payable under such policies the sellers shall have the right to receive and apply the same on account of the indebtedness secured hereby; (c) to permit, commit or suffer no waste, impairment or deterioration of said property or any part thereof, (d) to at all times keep and maintain the buildings and improvements on said land in a good and tenantable state of repair and condition.

Upon full payment of this contract, Seller shall issue a General Warranty deed to the buyers, free of all encumbrances except as otherwise set forth.

Time is of the essence in this agreement and in the event of any breach of this agreement or default on the part of the purchasers f any kind whatsoever the sellers may without notice to the purchasers exercise the following options; (a) to terminate this agreement and retain all sums of money theretofore paid by the purchasers as liquidated damages and/or the reasonable rental value of said land, and to reenter said premises and take possession thereof fully and to all intents and purposes as if the purchasers had no interest in said property whatsoever or 9b) to acccelerate all sums of money secured by this agreement whether due by the literal items hereof or not, and to foreclose this agreement in accordance with the rules of practice applicable to vendor's liens, in which event the purchasers agree to pay all costs of collection and foreclosure, including a reasonable attorney's fee.

The words seller, sellers, purchaser and purchasers, whether in the singular or plural as the case may be whereever used herein shall be taken to mean and include the singular, if only one, and plural, jointly and severally, if more than one, and their respective heirs, assigns and legal representatives; and that the word their taken to mean his, her or its whereever the context hereof so implies or admits.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year first above written.

__________________ _______________________
Witness Seller

__________________ _______________________
Witness

__________________ _______________________
Witness Purchaser

__________________ _______________________
Witness

STATE OF: __________________
COUNTY OF: ________________

Before me personally appeared _____________________________________ to me well known and known to me to be the person(s) described in and who executed the foregoing instrument and acknowledged to and before me that ___________ executed said instrument for the purpose therein expressed.
WITNESS my hand seal, and official seal this ____ day of ______, _______.

Notary Public ________________
State of ____________________
My Commission Expires _________

Before me personally appeared _____________________________________ to me well known and known to me to be the person(s) described in and who executed the foregoing instrument and acknowledged to and before me that ___________ executed said instrument for the purpose therein expressed.
WITNESS my hand seal, and official seal this ____ day of ______, _______.

Notary Public ________________
State of ____________________
My Commission Expires _________

This instrument was prepared by:

_________________________

_________________________

_________________________

The Tools for Selling With Owner Financing

2009-05-15T10:28:00.014-04:00

Wraparound Mortgage

An all-inclusive loan encompassing underlying financing. You collect a larger payment from your buyer than you pay your lender. Seller deeds to buyer and takes back a note and mortgage. This must all be prepared by a professional and will vary in form from state to state. Therefore, no samples are included here.

Land Contract, Land Installment Contract, Agreement for Deed, Contract for Deed

All these terms mean the same thing but the name will vary from state to state. Serves the same purpose as a wraparound, but the deed remains with the seller until paid. Buyer has equitable interest in property. You'll find a sample enclosed to buy and sell because you will probably be closing yourself, especially when selling. This is a very simple process. It's no more complicated than completing a Purchase and Sales Agreement.

Trust Deed or Deed of Trust

A Trust Deed is a contract by which title of the property is conveyed to a Trustee for the repayment of a loan who is usually a non-related entity. This contract involves three parties. The Trustor is the owner who borrows from the lender. The Beneficiary is the lender. This document should always be prepared by a professional and varies. None is included here.

I recommend you acquire good legal counsel any time you are preparing or having prepared any legal documents transferring ownership of a property.

ADDENDUM TO WRAP-AROUND MORTGAGE

THIS IS A WRAP-AROUND MORTGAGE subject and subordinate to a first mortgage dated __________________, payable to _______________________________, and recorded in O/R Book ____________ page _______________ and a second mortgage dated ___________, payable to _____________________________ and recorded in O/R Book ____________ Page ____________________ BOTH HEREINAFTER REFERRED TO AS THE FIRST MORTGAGE.

(a) The mortgagors agree to comply with all of the terms and conditions of the first mortgage other than with respect to the payment of principal and interest due under the first mortgage. If the mortgagors shall fail to so comply with all the terms, provisions and conditions of the first mortgage, so as to result in a default under it (other than with respect to payments of principal and interest due), that failure on the part of mortgagors shall constitute a default under this mortgage and shall entitle Mortgagees, at their option, to exercise any and all rights and remedies given the mortgagees in the event of a default under this mortgage. The curing of a default under the first mortgage by the mortgagees herein shall not excuse or waive the default under any by virtue of the terms of this mortgage. Any monies expended by mortgagees in curing such default under the first mortgage shall be added to and secured by the lien of this mortgage.

(b) The mortgagees assume and agree to pay to the holder of the first mortgage the unpaid balance of the first mortgage, together with all interest accruing under it as and when required by the terms of the first mortgage, i.e., by paying the said mortgage and note thereby secured according to its term.

(c) All such payments shall be made before the expiration of the applicable grace periods provided for those payments as contained in the first mortgage.

(d) The mortgagors shall comply with all of the terms and provisions of the first mortgage other than with respect to the payments of principal and interest due.

(e) The mortgagees do not assume any of the obligations of the mortgagors under the first mortgage except as provided above with respect to payments of principal and interest due.

(f) The mortgagors agree to pay to the mortgagees any sums required to be paid to the holder of the first mortgage (other than payments of principal and interest under the mortgage) at least _____ days prior to the last day under each of the mortgages that those payments may be made without constituting a default, and the mortgagees agree to remit promptly those sums so paid to the mortgagees by the mortgagors to the holder of the first mortgage in payment of the sums due under that mortgage.

(g) If the unpaid principal balance of the first mortgage is reduced by the holder of the mortgage applying insurance proceeds in its reduction so that the mortgagees' obligation to pay to the holders of the first mortgage the unpaid balance of the mortgage as above provided is similarly reduced, then the mortgagors' obligation shall be similarly reduced in accordance with the terms contained herein, and/or the notes secured hereby, applicable to the payment, partially or in full, as the case may be.

(h) If the mortgagees shall default in making any required payment of principal or interest under the first mortgage, the mortgagors shall have the right to advance the funds necessary to cure that default and all funds so advanced by the mortgagors, together with interest at the rate of _____% per annum, shall be credited against the next installment(s) of interest and principal due under the note secured by this mortgage.

(i) The mortgagors shall have the right to prepay the whole of the unpaid balance of the indebtedness under this mortgage at any time on _____ days' notice in accordance with the provision for prepayment contained in the promissory note secured hereby. If the mortgagors prepay the whole of the unpaid balance, the mortgagees shall remit to the first mortgage, together with accrued interest, provided that as a condition to such privilege of prepayment the mortgagors shall pay any and all prepayment penalties or charges required by the first mortgage for prepayment of the first mortgage. Any partial prepayment shall be applied against the sums last payable under this mortgage, and if the amount prepaid exceeds the amount determined by subtracting the then unpaid principal balance under this mortgage, then that excess amount shall be remitted to the first mortgagee by the mortgagees, provided that the mortgagors shall pay any and all prepayment penalties or charges required by the first mortgagee for prepayment of the first mortgage.

(j) The monthly escrow account charges for taxes and insurance charges by the first mortgagee shall be paid each month to the mortgagee by the mortgagors with and in addition to the regular monthly payment of principal and interest made under this mortgage, and the mortgagees shall remit those escrow payments to the first mortgagee with the monthly payment of principal and interest on the first mortgage.

(k) The parties hereunto agree to send each to the other copies of any notices received by them from the holder of the first mortgage. The mortgagors and the mortgagees covenant and agree not to enter into any agreement with the holder of first mortgage modifying or amending any of the provisions of the first mortgage, including but not limited to the payment of principal and interest, without prior written consent of the other.

Date: ____________________ Mortgagor: __________________

Date: ____________________ Mortgagor: __________________

Date: ____________________ Mortgagor: __________________

Date: ____________________ Mortgagor: __________________

Most Common Mistakes

2009-05-14T05:36:00.005-04:00

Trying to deal with unmotivated, unscreened sellers.

Giving the seller to much down just to get the deal done.
Working with low price properties.
Buying houses that need several thousand dollars in repairs and then expecting to sell as a handyman special and get a large down payment.
Taking title in individual's name and guaranteeing notes personally.
Buying a house with some sort of inadequacies that prevent a fast sale. Example: Located in a commercial area, extremely small, area has industrial odors, functionally obsolete, et.
Not working hard enough to get the payments on seller financing as low as possible.
Not getting several months free when negotiating with seller.
Not getting a CYA letter in cases where the underlying loan is due on sale.

Most Common Mistakes By Seller

Allowing buyer to take title with only small down payments.
Not putting the proper protection clauses in the debt instrument.
Allowing the buyer to dictate the rules and control the negotiation.
Agreeing to pay a large portion of the closing costs unnecessarily.
Not getting a CYA letter from buyer in cases where the underlying loan is due on sale.
Not selling the house for more than appraised value.

How Does Constructing No Qualifying Financing Tie In With Lease Option

You should be able to classify each seller's situation to determine whether the deal is best suited for taking title and constructing paper to the seller or lease optioning.

Your job is to create solutions to increase your chance of profiting while at the same time solving the seller's needs.

If constructing no qualifying financing is all you know, you'll miss a large portion of your potential

income from the lack of ability to create other solutions. When possible, sellers should be given a choice, of which owner financing is only one.

The faster you learn to create multiple offers the faster you'll see your income skyrocket from doing less work with fewer sellers.

You should become a transaction engineer!

Key Words for Your Ads To Sell

2009-05-13T10:20:00.004-04:00

No qualifying
Owner Financing

Your ad should begin with these words. Do not bury them in the script. You should have no problem attracting a lot of calls to a house with no qualifying financing, eliminating banks.

Other Ad Ingredients:

Area - use subdivision name if very well known. If not, use North, South, East or West

Sq. Foot - If house is medium to large. If it's small, do not use in ad

Bed/Bath - All buyers want to know this

Payment/Price - Either will do. I prefer the price because I can usually adjust payment to suit buyer

Special Amenities - Such s pool, finished basement, 2 car garage, large lot, etc.

Do not mention down payment. It's always flexible. Sometimes the buyer has more than you require.

Pre-screen all callers to see if they have enough down payment before giving them the address. Get a buyers sheet on all who have reasonable sums of cash and send them to look at the house from the outside, looking in if vacant. Leave all window coverings open. If house is still occupied, instruct caller not to disturb occupants unless you have made arrangements with seller to show.

When interested parties call back and want to see the inside, capture the following information after making an appointment:

Address, Social Security Number, Gross family income, Birth dates and employer(s)

You may choose to do this after you show the house if you don't feel you're tactful enough to collect this information without scaring away buyers.

Pull a credit report if you can. If not, have the buyer bring you a copy of theirs. You're looking for a debt ratio and bad history with foreclosure and evictions.

When you find a buyer you like, prepare a sales agreement and get as large a deposit as possible. The minimum is $1000.

Set up for closing with your closing agent as soon as your buyer is ready and all other pertinent factors have been completed.

Instruct your buyer to get insurance and give him the phone number of the closing agent to call for the amount needed to close. This is usually done the day before closing.

Structuring Your Seller Financed Purchased For Resale

2009-05-12T04:08:00.003-04:00

Always know your back door(s) when making the offer. The offer to purchase hinges on the method of sale.

You must get in light.

Property should be in good condition or you're willing to repair at your expense because your down payment from buyer will cover your costs or you intend to get cashed out soon and can wait to get your money back.

Insure monthly cash flow by negotiating low or no interest rates if seller has a lot of equity.

Make sure the property is freely transferable upon resale with no seller interference, which means no due-on-sale clause or one time right to transfer.

Don't leave cash in the house when you sell unless you clearly understand your exit and expect to recapture it quickly.

When your oral offer is accepted, immediately proceed to a written agreement. You should be prepared to write your own contract and have all sellers sign. If seller wants to have any attorney check the agreement, leave a blank copy for seller and write your basic offer on a yellow pad. It should be nothing more than the numbers and the terms.

If the seller is ready to do business now, fill out the agreement and get a signature before leaving.

In cases where the seller is ready to leave and wants little or no money...get a deed signed and notarized on the spot.

If the property is in foreclosure check your state law concerning title problems that may occur if the loan is not brought current at the time of transfer.

You should also be aware of any disclosure statements your state requires and be prepared with blank copies.

When offer is accepted by all sellers, have the title checked by your closing agent.

Start running ads to attract potential buyers who probably can't qualify for bank financing because of: weak credit, self employed, job stability, debt ratio, proof of income, bankruptcy.

Build a buyers list from this ad. I will become your most important asset very quickly. Soon, you'll be looking for houses where you have buyers with large chunks of money.

Your Posture

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Don't beg, plead or even ask twice. They are either in or out. You shouldn't go on the defensive. You have nothing to defend yourself about. You're offering your clients a rare opportunity. It's your job to state your case and answer questions, work with those who get the message and get rid of those who don't.

Those who get the message will be begging you

Don't expect everyone to jump in. Some people won't be interested, some will.

SW - Some Will
SW - Some Won't
SW - So What
SW - Some one's Waiting

When you get good at answering objections, you'll be amazed by how many times you'll get a ...YES.

Make an appointment to see the house and collect more facts, only after you have prescreened the seller and feel you have a reason to go.

Make sure all decisions makers are home.

You should have the following information before setting an appointment:

Seller's name, address and phone
Where did seller see your ad?
Asking price
Loan balance, payment and type
Condition of house
Approximate value of house
Appropriate square footage
Number of bedrooms and baths
Special amenities
A clear idea in your mind of how you intend to structure offers based on the information provided

Construct multiple offers when possible to fill the seller's needs and at the same time create a profit center for you. Sellers like a choice and the better you get at creating solutions the more offers you'll get accepted. Present all offers at the same time.

Here are some examples of possible choices:

All cash offer (I will discuss Wholesale/Retailer at a later time)
Small down payment with long term seller financing. This is the ideal offer to set up non-qualifying financing for your buyer. This offer will usually be the highest purchase price in exchange for good terms. In fact it can be at or near retail price and still make sense. The seller must have considerable equity and not need all the cash. Several offers can be constructed by adjusting the down payment and the terms. Listen closely for the seller's needs.
In cases where the equity is small and the debt is high your offer will be to take over the debt (without assuming). Sometimes the seller will get some cash and sometimes none.
You may offer the seller an existing note you are collecting payments on, in exchange for all or part of his equity.
A lease option may be more feasible if the seller won't sell until he receives all cash or if the underlying loan is non assumable and the seller is concerned about his credit (I will discuss Lease Options at a later time)
An option offer may be in order if the seller doesn't want anyone int he house until sold or a seller financing plan can't be worked out or the sales price is higher than you would pay on an all cash deal or you just don't know how to raise the case (I will discuss Lease Options at a later time)

Always know the back door before entering the front door

Sample Radio Script For: 60 Second Commercial

2009-05-08T10:42:00.007-04:00

UPBEAT PUBLIC DOMAIN MUSIC/FADE TO BACKGROUND ANNOUNCER:

Are you a homeowner looking to sell your home? Are you about to be transferred or promoted, or have you recently been laid off? Have you fallen behind on your house payment?

King and Queen Enterprise may buy your house on the spot! We're not Realtors and we're not associated with any real estate agency. King and Queen buys houses! And we can buy yours, immediately! For details, call 555-5555

You will Learn:

How easily you can have your house sold...in as little as 24 hours!
How your mortgage payments...even back payments, can be taken care of completely...starting immediately!
How you can sell even if you have no equity in your home!
Why you never have to become a landlord to get the money out of your property.
Why you never have to pay a commission to sell your home. Because King and Queen home buyers never charges a commission! King and Queen buys houses...and King and Queen has a program to buy your house, too

Call for your free information, 555-5555. There's no obligation and your information will be kept confidential. Call now 555-5555

BRING UP MUSIC/FADE OUT :60

When Calls Start Coming In

Prescreen all calls to eliminate dead ends.

When talking to a prospect you should know within a few minutes whether you have any chance of offering a solution to the seller which will be mutually beneficial.

Your job is to ask the right questions to get answers suitable for completing the prescreening process quickly. This can be done by asking questions that are critical to know to discover the seller's needs and to categorize the type of transaction.

Sample Questions

To determine if the house can be purchased wholesale!
Q - If I were to pay you all cash and close quickly, what's the minimum amount you could accept?

To determine the approximate value!
Q - If I were to have your house appraised tomorrow, what do you think it would be worth? How did you arrive at this figure?

To determine if the seller will take payments!
Q - Will you take a small down payment and the balance of your equity in monthly installments?

To determine if you can get in light!
Q - What is the least down payment you can accept?

To determine if the seller is willing to deed you the house!
Q - Will you sell me the house for what you owe?

To determine if you can assume without qualifying!
Q - Does your existing loan require qualifying?
A - I don't know
Q - Is it FHA, VA or conventional
If conventional, it requires qualifying
If FHA and closed after 12-15-1989, it requires qualifying
If VA and closed after 03-01-88, it requires qualifying

To determine if you can lease option the house!
Q - If I were to guarantee your payments and be responsible for all your repairs until I get the house sold, would you consider leasing to me with option to buy?

To determine if you can option the house!
Q - I have a plan where I may sell yur house for all cash with no risk to you whatsoever. No one will occupy it while I do so and I won't even take it off the market. If your house qualifies and we can agree on a price you have absolutely nothing to lose. Should I come look?

Business Cards

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Your card should be an ad for your service, not a monument to you.
The purpose of a business card is to motivate people to call you, not to tell them: How great you are; How long you've been in business; How your service is like no other; How nice your building looks.
All of the above is irrelevant!
What your customer wants to know is: What's in it for them? How can you help them? Why should they call you?
Use both sides of the card. Display your benefit laden message on the back.these same principles are true in all of your ads, flyers, letters and postcards. What benefits can you provide your customer.

Note - I've never seen a business card that will generate customers while it's still in the box. If you get arrested because you're a real estate entrepreneur, will they have enough evidence to convict you?

Radio Ads

A 60 second radio spot costs less than you think to run if you get on the right stations. It's easy to produce and can be changed or redone in minutes.

You can go to most stations and have it produced by them if you provide the script. Their announcer will read the script and the engineer will add music to the background.

Sometimes they'll do it for free if you agree to run some spots. Other times you'll pay a small fee.

Make sure you run on inexpensive stations to be cost effective. Paying more than $20 to $30 per spot is not necessary.

The stations that produce the best results for us are:

Talk format
Christian
Sports
News

When people tune into these stations they intend to listen more closely than other formats.

Make sure you have an answering service take the calse when you can't.

The Real Estate Expert

2009-05-06T14:05:00.003-04:00

Dear Property Owner,

I would very much like to discuss purchasing your home. Please notice, I'm not asking to "list your home". I am not a Realtor and I'm not associated with any real estate firm. However, I'm definitely interested in buying your house as an investment.

I'm just a private individual like yourself, who has developed the ability to solve seemingly complicated financial dilemmas... the kind that thousands of homeowners get into everyday when they try to sell their home.

Relocation, divorce, payments in arrears, or simply outgrowing the old homestead... these are all situations that can happen to good, honest homeowners. And before you know it, your valuable asset is looking more and more like a big, heavy anchor. Whether any of the above circumstances is happening to you, I sincerely believe I can help.

I am associated with a group of private investors that buys from five to ten houses per month. We buy houses in almost every area of the city and every price range using private funds that require no long, drawn out bank approvals. As I mentioned, above however, we're not real estate agnets. There's a big difference...

An agent's job is to sell housess ... not buy them!

Do you have any idea how many houses your agent is trying to sell? I think it's safe to say more than just yours! Most agents have a whole folio of houses, all over the city, that they are trying to sell at any given time. This means the attention your home needs might not always be there.

Which is exactly why some people conclude: "Well, what if I just sell it myself" After all, who knows more about the house than I do?" While this may be true, do you want to risk having a potential buyer slip through your fingers, just because you're not used to walking through every detail of a real estate transaction?

Remember, if someone wants to buy your house, chances are they want to close just as quickly if not quicker than you do. If they get a feeling of uncertainty at any step of the deal, they could switch to that "other" house in a heartbeat. The one that nice agent showed them earlier in the week. After all, he made closing sound so smooth and easy ... he sounded like he really knew his business.

Lt's face it, most folks have never sold a house on their own before, or , at the most only once or twice. This is where come in. I specialize in solving problems...especially the kind you find when you're dealing with a complex sale (like every real estate deal!)

Some people lose patience and move to the new place, wishing and hoping their house will sell in a month or so.

Firsr of all, if it hasn't sold by now, with you keeping it all spruced up and pretty, why in the world would it have a better chance to sell vacant? Not to mention the worry. Are the little neighborhood angels climbing through the kitchen window, with their sledge hammers and spary cans?

Not only that but you'll have double house payments. If you're like most people, that's a little hard to swallow. Plus, there's the possibility you might not qualify for that new home with this one hanging over your head.

Which way do you turn? An agent with hundreds of other listings to handle? Selling yourself and sweating out financing details, lost deals, last-minute closing "surprises"? Moving out and hoping you don't get some midnight call telling you to get to your vacant house...fast!

I can offer a solution, a way out of your dilemma!

How does a quick sale sound to you? If your property qualifies, I guarantee that I will have a written offer to you within 48 hours after I see it. I'll explain everything to you in as much detail as you want. I will be direct, clear and honest in all our discussions and arrangements. If you and I come to an agreement, I can pay all cash with no contingencies and close in a few days if needed. I'll handle all of the paperwork and make all the arrangements Best of all...

You can get on with your life!

I don't know your particular reasons for selling but I do know how to get your house closed as quickly and as professionally as possible. Because I work with private funds, I can usually do so in as short a time as 48 to 72 hours. After all, let me be up front with you, as long as I can make a profit and solve your problem in the process, I'm ready willing and definitely able.

I'll be in touch with you in the next few days or if you're ready to act or have some mmediate questions, you don't have to wiat for my call... You can contact me right away.

If you want an alternative to the stale, conventional ways of selling your home, pick up the phone and call me now! You have everything to gain and nothing to lose!

Don't Sit On Your House Another Day! You Can Sell It Within A Few Days!

2009-05-05T18:31:00.003-04:00

Just ask Staff Sergeant Will Parker and his wife, Kathy. They were in a tight situation. Will was career military. As often happens, without warning, he received notice that he was being transferred in 90 days.

Will and Kathy had just built their beautiful 2,500 sq. ft. home 2 years before and they were facing the prospect of making double house payments if they didn't sell fast. They had no idea how to get interested buyers through the stringent banking rules for approval. They didn't have any equity to pay a real estate agent's commission. They'd been trying to sell it for over tow months when they responded to an ad and contacted King and Queen Enterprises.

When they agreed to buy their house for full value, Will and Kathy couldn't believe their ears! Their credit would be safe, they could buy a new house at their new location, and best of all, King and Queen Enterprises even agreed to pay their mortgage payments until they closed!

King and Queen Enterprises is a private investment company -- not a Realtor or real estate agency -- with several unique buying programs to allow homeowners to instantly sell their home, without any of the usual time delays and hassles of traditional home-selling methods. They also charge the seller no fees or commissions for their service.

There is no cost or obligation when you call.
Not A Realtor or Associated With Any Real Estate Agency

Letter to Expired Listings

Any agent can pull up a list of expired listings from the MLS computer. A well-crafted letter to these sellers should produce calls from people looking for solutions. Mail the letters at least twice monthly and follow up with a second mailing to the same list two weeks later. If you still haven't received a call, send a post card two weeks after the second mailing.

You should mail the first letter immediately after the listing expires. However, if you can acquire current listings that are about to expire within 30 days, a letter to these sellers before they relist may produce better results.

Caution - You'll need a good relationship with an agent to get access to MLS listings. This service is paid for by licensees and meant for their use only.

Why Should I Deal In Higher Price Ranges?

2009-05-04T11:39:00.003-04:00

1. You get a bigger up front profit on the down payment.

2. You get a larger spread on the monthly payment.

3. You get much bigger back end profits.

4. The more of the buyer's money you get the less chance you have of buyer default and vandalism.

5. You'll have a lot less competition from other investors.

6. You'll be one of only a few choices in your city for your buyers to find qualifying financing.

7. If you wish to keep some houses for growth the appreciation will increase in dollars much faster on higher priced properties.

Structuring Deals With FSBO's Step by Step

1. Crank up the buying maching to attract calls from people looking to sell their home.

Run Ads
Business Cards
Post Cards
Radio
Call Ads

Ads to Buy

I'll buy or lease your house, make your payment, do repairs, close quickly, any area, any price, any condition 555-5555

I buy and lease houses any area, any condition, any price 555-5555

Payment Assistance We have a special program to help make your house payments 555-5555

New Company looking to buy or lease houses in Charlotte area, any price, any condition 555-5555

Post Cards

You can acquire lists of homeowners in any zip code with presorted data to allow you to segment the list to narrow down your targeted prospects. You can select by length of ownership, age, marital status, price range, and various other selection criteria.

Mail post cards to homeowners in your target area. You should do this two or three times to the same list for best results.

Don't mail more than 1,000 at a time to test. If you get no calls from the first 1,000 you most likely will get the same results from the rest. However, mailing 100 cards is not a valid test and may cost you a very profitable deal because you quit too soon.

Post cards may also be used to expired listings, FSBO signs, FSBO magazines, cross-referenced newspaper ads, FSBO websites (electronic post cards), etc.

My experience with post cards indicates they are best used as a second, third or even fourth hit. A letter gives you more space to tell your story. However, one big advantage of the post card is you don't have to worry about the envelope getting opened which is always the case with the letter.

Can I Sell Houses With Due On Sale Loans?

2009-05-03T08:07:00.004-04:00

You can as long as your buyer is aware the loan may be called due and you get a statement signed to that effect holding you harmless.

What If A Private Seller Insists On A Due On Sale Clause In Their Loan?

Ask for a one time right of transfer. You may sell to your buyer without qualifying but your buyer may not sell unless the loan is paid off or your seller gives permission for the transfer.

Your attorney should create the language to put in the note. Just add the words "buyer reserves the one time right to transfer the property without seller's approval" to your purchase and sales agreement and let him/her do the rest.

Letter Of Agreement And Addendum

Concerning Sale of _________________________________________________
To ____________________________________________________________
Date __________________________________________________________

I have been made aware that my loan on the property I am purchasing contains a due on sale clause, which means the lender has the right to call the entire loan due upon transfer of title.

I agree if this should happen it will be my responsibility to either assume the loan or pay it off. If I am unable to do either or make other arrangements with the lender I may lose the house to foreclosure.

If this should happen I will hold the seller harmless for any loss which may occur.

____________________ __________________________
Date Signature

____________________ __________________________
Date Signature

Can I Buy Houses With Due on Sale Loans?

2009-05-02T18:52:00.005-04:00

You can under the following conditions:

1. The seller is aware the loan may be called and is willing to sell anyway. This will happen in cases where the seller is not credit conscious and sometimes ready to abandon the house if he hasn't already. They may be a few payments behind or they can be current. Both cases will occur.

2. You get a statement from the seller clearly stating you made on promises to pay off or assume the loan, or to be responsible for payments after you have sold the property and the seller is aware the loan will stay in their name until it's paid off of assumed. If you make no promises, you have none to keep.

3. You have little or no money invested and you haven't guaranteed the loan. You must be in a no lose situation.

Letter Of Agreement And Addendum

Concerning Purchase of ________________________________________________ By ____________________________________________ Date ___________________

I have been made aware that my loan on the property at _________________________ contains a due on sale clause which means the lender has the right to call the entire loan due upon transfer of title.

I understand the loan will stay in my name until it's paid off or assumed by a future buyer.

I'm aware that the above buyer has no intentions of assuming said loan and that no promises have been made to me that the loan will be assumed or paid off. I agree to hold harmless buyer or assigns shown on the attached agreement, or any further buyer in the event the loan is called due or goes into default for any reason.

(Optional if payments are in arrears)

The buyer has agreed to make up the back payments only upon resale of the property. No promises have been made to do so prior to that time. If buyer is unable to resell the property, I understand the payments may not be brought current and the property may go into foreclosure, in which case the butyer will be held harmless.

________________________ _________________________
Date Signature

________________________ _________________________
Date Signature

How Can I Get The Seller To Accept Payments When They Want Cash?

2009-05-01T06:28:00.002-04:00

Show them how you can get them cash by selling off some or all of their payments.

Step 1 - Determine how much cash they need to solve their problem
Step 2 - Contact a paper buyer to get a current acceptable yield.
Step 3 - Use a financial calculator to figure how many payments they must give up to receive the desired cash at an acceptable yield to a paper buyer.

Example
Seller taking back a $100,000 note at 7% for 30 years with a payment of $665.30, needs $25,000 cash now. To determine how many payments they must sell, follow these steps on your calculator.

$25,000 = PV (Present Value)
$665.30 = PMT (Payment)
15% = I (Interest), acceptable yield to paper buyer
(52) = N Solve for number of payments required to arrive at 52

Step 4 - Contact the paper buyer and arrange a purchase of the payments at closing or shortly thereafter.

What About The Due On Sale Clause?

What is it?
The due on sale, or escalation clause is a paragraph in the mortgage or trust deed, which gives the lender the power to call the entire loan due if title is transferred without the lender's permission. This usually requires buyer to formerly qualify to assume the loan. In some cases the loan is not assumable even if the buyer qualifies.

How Does It Affect My Business?
It makes it difficult to transfer properties that have such a loan in place. The buyer can't assume without qualifying, this potentially removing the best sales tool to move house quickly.

Does This Mean The Lender Will Call The Loan Due?
Usually, NO! It's rare a lender will call a loan if the payments are current. However, it is possible and does happen from time to time. Almost all banks will call due credit lines if they learn of a transfer.

Who Owns These Kinds of Houses?

2009-04-30T04:29:00.007-04:00

People just like us People who may have any one of the following problems or one that's not listed, or in fact no problem at all.

Divorce
Forced Transfer
Can't Afford Payments
Loss of Job
Death of Spouse
Failing Business
Failing Health
Inherited
Major Lawsuit Pending
Outgrown House
House Too Large
Built New House
Wants to Move Back Home
Wants to Retire To Another State
Too Old To Maintain
Bankruptcy
In Foreclosure or About To Be
Post Foreclosure (Bank Owned)
Very Little Equity

Why Do Some Sellers Agree To Accept Installments?

1. They don't need the cash

2. Tax consequences of getting cash

3. They like the monthly income

4. Some elderly folks don't want their children to get cash to squander

5. Cash is less important to them than getting the house sold so they can:

Be relieved of underlying debt
Eliminate paying property taxes & insurance
Be relieved of maintenance responsibility
Finalize a divorce settlement
Get the house out of their name to avid pending judgments
Qualify for a loan on another house
Prevent or cure a foreclosure
Move to another state

Why Should a Seller Discount

2009-04-29T09:56:00.002-04:00

To get cash now instead of payments over a long term. The time value of money makes it worth much more today than in the future.

For example
$130,500 at 7% for 10 years yields an uncompounded income of $107,779 in payments, plus the balloon amount of $115,847 for a total of $223,626

Show your seller that $100,000 cash could be reloaned to you at 12 1/2% simple interest at a 60% - 70% loan to value ratio and net them $225,000 over the same 10 years. Their advantage is a safer loan, higher return and better liquidity.

Your advantage is $30,500 cash from the discount and $100,000 of easy money to go buy wholesale, all cash deals.

OR

If your seller is really safety conscious you could show him that $86,217 invested in a mutual fund or some other vehicle at a 10% compounded rate would yield the same $223,626 in 10 years

OR

If you're a loan broker making private loans you can show your seller if they were to accept $90,000 cash now and let you loan it out at 15% well secured, interest only, short term loans, it would produce a minimum of $13,500 per year in income. That's $135,000 over 10 years, plus the $90,000 principle for a total yield of $225,000. Seller gets better collateral, higher return, more liquidity.

You get $40,500 discount plus loan broker fees of $9,000 at 10% commission rate, plus future fees when reloaning the same funds when paid off.

The truth is you can usually get substantial discounts simply by asking, with no proposal to seller for the use of their funds. Most people would prefer cash today and are willing to take less to get it.

Add Power To Your Close

Show the seller how much they will still be owed after the payments they sell now are collected and the note revents back to him.

To figure the balance follow the following steps on your financial calculator

Subtract the number of payments sold from the total (360 - 52 = 308 remaining)

N = 308 (number remaining)
PMT = $665.30
I = 7% (the note rate)
PV = (solve for present value) in our example is $95,037

So after collecting $25,000 in cash now and waiting 52 months the seller is still owed $95,037 of a $100,000 note.

Seller can start collecting payments or sell off another portion to raise more cash at that time.

Is It Worth My Time?

2009-04-28T22:35:00.003-04:00

Let's look at a few examples to see if it makes sense fr you to devote the time and money to learn this business.

Example I - Complete Seller Financing

Seller calls you with a house worth $150,000 in good condition. He's asking $145,000 has no loan and after prescreening you find he would be willing to owner finance with a 10% down payment.

Asking
$150,000 Value
$145,000 Asking Price
$ 14, 500 Asking Down
$130,500 Mortgage to seller at a requested rate of 9% for 30 years with a 10 year balloon

Your Offer
$140,000 Price
$ 5,000 Down
$135,000 -7%, 30 years, 10 year ballon, payments of $898.16, with the first one due in 3 months, no due on sale clause

You Sell
$160,000 Sales Price
$ 20,000 Down From Buyer
$140,000 Land contract to you at 10% for 30 years with a 10 year balloon. Payments to you of $1,228.60

Results

$15,000 profit on down payment ($20,000 from buyer less $5,000 to seller).
$330.44 per month on payment spread ($1,228.60 incoming less $898.16 outgoing
$5,000 minimum on back ent ($140,000 owed you less $135,000 you owe seller. This profit increases each month because the incoming debt pays off slower than the outgoing due to the difference in interest rates.
? discount when you get ready to pay off the seller due to your buyer refinancing or selling.

Example II - Low Equity Loan Take Over

Seller calls you with a house worth $125,000 in good condition. The loan balance is $118,000 wit a $953 payment, which includes taxes and insurance. He just completed a heated divorce and is ready to abandon the house if someone doesn't offer him a solution. You learn he is one payment behind and his ex-wife deeded him the house.

Asking
$118,000 Loan Balance
$ 953 Payment
$ 1,000 Moving Money

Your Offer
$118,000 Take over loan subject to
$ 953 Payment to be made when and if you find buyer
$ 1,000 Moving money if he leaves appliances

You Sell
$135,000 Sales Price
$ 17,000 Down Payment
$ 118,000 Take over loan with no qualifying

Results
$15,047 Profit from down payment in a few days

In this example you have no monthly spread or back end profit. But as you can see it's worth your time to get involved for a few days and create a solution.

This type of deal is the most common and is very easy to find.

Example III - Partial Seller Financing

Seller calls you with a house in good condition worth $175,000. There is a no qualifying loan for $82,000 with a payment of $855.20 per month, including taxes and insurance. The seller is asking $175,000 cash for the house. Upon questioning, you learn she would consider carrying a second for her equity if she gets a $15,000 down payment.

Asking
$175,000
$ 15, 000 Down
$ 82,000 Assume Loan
$ 78,000 2nd at 9% for 15 years

Your Offer
$160,000 Purchase Price
$ 10,000 Down Payment
$ 82,000 Assume non qualifying loan payment of $855.20
$ 68,000 2nd mortgage to seller at 6% for 30 years with 10 year balloon - Payment $407.69
Total outgoing payment $1,262.89 PITI

You Sell
$185,000 Sales Price
$ 20,000 Down Payment
$165,000 Land contract, 9.9% for 30 years with a 10 year balloon - Payment $1,628.52 PITI

Results

$10,000 instant profit from down payment spread
$365.63 per month profit from the payment spread
$15,000 when your buyer pays off the loan to you
? large discount possibility

What You'll Need To Know

2009-04-27T15:43:00.002-04:00

1. How to get sellers to call you wit houses for sale.
2. How to pre-screen the incoming leads so you spend time working only on qualified prospects.
3. How to structure offers and solutions to increase your acceptance ratio, overcome objections, and pave the way for an easy sale to your buyer without risk of loss to you.
4. How to attract and pre-screen buyers quickly.
5. How to structure a fast sale for maximum profit and protection

Where Will This Work?

Everywhere people have homes for sale especially in the markets where the median price range is $100,000 and up. it works best on properties that will sell for at least $75,000 with no maximum price cap. The higher the price, the easier it will be to build in large profit centers.

Advantages of Seller Financing

1. Lower rates and lower payments
2. Lower closing costs
3. No banks to deal with
4. Doesn't show on your credit report
5. Flexibility
6. No personal liability when using trusts
7. Solves negative cash flow on keepers
8. No due on sale clause or balloons
9. Sets up future profit center by discounting or substituting collateral
10. Can close quickly

How Do We Profit?

There are 4 main profit centers when structuring purchases involving the seller financing their equity.

1. Down Payment Spread - The difference between what you collect from your buyers down payment and what you agree to pay the seller for a down payment.

This is why you must get in light

2. Payment Spread - The difference between the monthly payment you collect from your buyer and you pay in underlying payments

This is why you should work to get a low outgoing monthly payment to the seller

3. Back End Sprad - The difference between your purchase price and your sales price.

One big advantage to non qualifying financing is you get to establish your sales price which should be 10% to 25% higher than appraised value

4. Discounts - When your buyer either refinances or sells you must pay off your underlying loans from the proceeds. This opens very profitable opportunities to discount privately held loans to your seller.

Constructing No Qualifying Financing

2009-04-26T11:51:00.002-04:00

What is it?

The business of creating financing to purchase which allows you to sell acting as the bank, receiving monthly payments, without the use of any lending institution involved in the transaction. The offer to purchase is structured so as to market to sometimes non-qualified buyers by bank standards. This sometimes allows for an almost instant sale, which usually closes within a few days of locating a buyer who has a reasonable down payment generating a cash profit now, a monthly cash flow and a profit when your buyer sells the house in the future.

The 4 Major Ways to Profit in Quick Turn Real Estate

2009-04-23T22:09:00.002-04:00

1. Wholesaling - The business of locating houses, usually needing repairs, at bargain prices and quickly passing them to bargain hunters well below retail.

2. Retailing - The business of locating houses at bargain prices, usually rehabbing them and selling to the end user for all cash with new financing.

3. Getting Ownership - The business of owning pretty houses in lovely areas by taking over existing debt. Creating seller carry back financing or a combination of the two.

4. Lease Options and Options - Taking control of a property by leasing it from the seller and retaining the option to purchase at an agreed upon price and terms. In addition you must have the right to sub-lease it to a tenant/buyer, giving them the right to purchase from you

You Should Become A Transaction Engineer

Lease Options/Lease Purchasing

2009-04-22T19:00:00.002-04:00

When I talk about real estate, I'm usually talking about single family homes. A creative technique to use when trying to help a motivated seller out of a sticky situation is to offer to lease the property with the right to sub-lease to a tenant/buyer. For example, if a homeowner needs to sell they're home quickly but is not getting a quick sale, an option may be lease the property to you and then you find someone to sublease the property to, to help the homeowner number one and you can make a little bit of a profit too. Remember, real estate has to be a win win situation for everyone. The mortgage is $500 per month. You find a tenant/buyer to pay market value lease/rent of about $850. After the mortgage is paid, you have a $350 dollar profit. The homeowner gets his/her mortgage paid keeps from facing foreclosure and you get a $350 profit every month. At the end of the lease, the tenant/buyer has the option to purchase or not to purchase. If he/she chooses to purchase, then you sell the house to tenant/buyer and the homeowner gets a sale and you get a profit. If the tenant/buyer chooses not to buy, then he/she unfortunately looses his/her deposit and you go find another tenant/buyer to lease the property to. It's always important to help the distressed homeowner out of his/her distressed situation.

Real Estate

2009-04-20T19:35:00.002-04:00

Real Estate is the best investment. We will always need shelter, whether for our residence or for business. And you can borrow money to purchase it. You can't borrow money to purchase stocks. Even though the real estate market has plunged lately, this is the best time to purchase real estate; it's like there's a real estate sale going on. Then when you hold onto your real estate for as long as possible, you'll definitely reap a return on your investment; buy low, sell high. The banks have tightened up the credit market, however, savvy investors know how to be creative and in this current economy, you better know how to be creative. Sellers, including banks, are motivated. Find out what they, the seller, need, meet that need, and you're in like flynn. (o:

Wealth Is Mental

2009-04-19T08:13:00.002-04:00

I wake up every morning and make the same positive affirmations: I'm happy, health and in great shape; I have a happy, healthy and loving family. My family and I control wealth through businesses and investments and we're multi-millionaires. See the invisible; believe the impossible; and when you do this, it will be your reality. The world doesn't control you, you control it. Believe in what you want and expect it. Believe you can achieve it and you will. Believe you can fly and you will. Believe you can walk on water. You can do all things with inner strength and courage. Surround yourself with positive people. Make up in your mind that you will be happy and watch it happen.

Being Greatful, Even in Tough Times

2009-04-17T17:33:00.001-04:00

Although I my employment was recently terminated, I am still so ever eternally greatful. I have a fantastic, loving and supportive husband, a beautiful, healthy daughter and a beautiful, healthy poojon. They make my life complete and they love me unconditionally. And beyond that, I have a marvelous relationship with God, and without Him, I wouldn't have this attitude of greatfulness. I prayed for it; I work on it everyday. I speak life and abundance, no matter what. I think life and abundance, no matter what. My quality of life is abundant, no matter what, because God makes it that way. I still give ten percent to God and his kingdom, his kingdom on earth as it is in heaven. If I receive $1, 10 cents is given away to someone or something. I look forward to continuing to say because of my positive attitude and my positive lifestyle and speech, in return I get positivity from the universe so that others are encouraged. I control my own life and my own destiny.

Universal Power

2009-04-15T09:37:00.003-04:00

There's power in asking the universe for whatever you want. Whether it be money, happiness, a relationship or whatever, if you can believe it, you can achieve it. Speak to the mountain and it shall be moved. But remember, the opposite is true too: If you think negative, negative things will happen to you as well. Whether you're a religious person or not, these principles are biblical. You don't have to worship Jesus, just follow his life (he never told us to worship him anyway, but that's another story). Jesus taught us to be ye transformed by the renewing of your mind and greater is he that lives in me than he that lives in the world ("he" being your mind, emotions or spirit). This is the answer to abundant living. Live life to the fullest by following these principles. Now, it's not to say that everyday will be perfect and things will not happen, but I promise you, if you want prosperity, be positive and prosperity will come to you. It's that simple; life is very simple. We humans make it hard and we don't have to. Be a giver and it will come back to you pressed down shaken together an running over. Amen. (LOL)

Making Affirmations

2009-04-14T06:06:00.003-04:00

Whatever you want out of life, affirm it. Start every day with verbal affirmations reminding yourself of what you want out of life. For example, I start every day by affirming: Thank you God for another day; I'm happy, healthy and in great shape; I have a happy, healthy family and I control wealth through businesses and investments. These are not only affirmations to me, but are the order of my life: God first, my health and strength second (because if I can't love myself, how in the hell can I love somebody else?), the health and love of family, friends, and community involvement and then money. Because of this order, I find that I have a better quality of life; I'm rich in spirit and in truth and the intangible becomes the tangible. It takes constant work. Because life has its ups and downs, you must remind yourself to be positive everyday in order to attract positivity from the universe.

When One Door Closes....

2009-04-13T20:05:00.000-04:00

A job that I held for two years was recently terminated and I couldn't be happier! I hated that job. I was so overworked and so unappreciated and underpaid. Now, I have the best life. The best quality life: having more time for my daughter and my dog. Not to say that I don't need to make money, but I know for sure that when God closes one door, another door opens (it's actually been opened and waiting for me to go through it). Sometimes we don't come into our destiny until we go through something like a job loss. I'm praying that I can continue to control my finances and my time; total financial freedom. I have a non-profit organization - Carolina's Homeowners Assistance Corp., which assist homeowners facing foreclosure - and an LLC - King and Queen Enterprise, which purchases already established convenience stores and single family houses in need of rehab. Now the fun begins.

Down, But Not Out

2009-04-07T09:07:00.000-04:00

I've been striving to be a full-time entrepreneur for that last seven years, but had to take jobs here and there in order to help my husband support our family. My husband has been and continues to be very, very supportive, however, I didn't think it was fair for him to bear the financial burden of the family alone, hence my return to the work force. Two years ago, I began working at the Aziz Law Firm, which specializes in Immigration Law. It is a small yet very busy law firm. The days were long and filled with stress. On Thursday, April 2nd, I was terminated. The initial shock was disheartening, however, I must continue to believe that when God closes one door, he's opened another.

IRS 501(c)(3) status

2008-12-07T19:57:00.000-05:00

We filed for federal tax exempt status and have received our acknowledgement letter, which allows us to start applying for funding as a tax exempt organization. We surely look forward to raising money so we can carry out our mission to help people who are facing foreclosure. In these hard economic times, we need to "bail" our neighbor out, which would in turn, bail our communities out.

Together We Can Change Lives

2008-10-26T17:56:00.000-04:00

Carolina’s Homeowners Assistance Corp.
P.O. Box 42265
Charlotte, NC 28215
704-208-9454
408-692-1947 (fax)
Sankofa21997@aol.com

Federal Tax ID 26-2829119

October 26, 2008

Dear Sir/Madam,

I would like to introduce you to Carolina’s Homeowners Assistance Corp. Carolina’s Homeowners is a non-profit agency whose mission is to make North Carolina the first state in the country to have a 0% foreclosure rate by the year 2018 and to fully adopt eco-friendly usage of products and materials when preserving homeownership. The primary objectives are 1) to preserve homeownership and 2) improve housing conditions, through eco-friendly, home improvement assistance, which would address residential safety and health hazards to promote healthy homes of the elderly, middle and low wealth households. The overall aspiration to attain healthy homes is to improve the efficiency and cost-effectiveness of methods for evaluation and control of lead-based paint and other housing-related health and safety hazards. This also supports our strategic goal to strengthen our communities by improving the environmental health and safety of families living in North Carolina. Therefore, our goal is to assist the homeowner to avoid foreclosure to preserve homeownership, and assist with home improvement projects to improve our relationship with the earth. Located in Mecklenburg County, Carolina’s Homeowners Assistance Corp. helps low and middle income families and individuals. Support groups and educational programs are also offered to help families develop the skills needed to enhance and improve their life situations.

Over this next year we are seeking to provide housing and prevention groups in addition to other services. Your tax deductible contribution can assist us in developing strong, stable individuals and families in which our community will grow. People are our legacy. By helping others improve their lives; they will become a contributing member of the community and in turn, give back to their community. Join us in this endeavor, by contributing to our organization. If the Federal Government can bail out Wall Street but won’t bail out your next door neighbor, why don’t you help? We need your assistance.

Please complete the coupon on the enclosed page and designate your donation amount. You will receive a letter verifying your tax deductible donation and updates on the changes you have made possible in the lives of others. Feel free to contact me if you have questions or need further information.

Thank you for contributing to Carolina’s Homeowners Assistance Corp. and your dedication to improving our community.

Sincerely,

Caroline Narttey
Executive Director
Together We Can Change Lives

You can assist us in changing lives and changing your community in a positive way. Your tax deductible contribution to Carolinas Homeowners Assistance Corporation will directly support the programs that support people in changing their lives. You can be a part of this effort by donating at one of the following levels:

__________ Copper ($1.00 - $99.00)

__________ Silver ($99.01 - $999.00)

__________ Gold ($999.01 - $1500.00)

__________ Platinum ($1500.01 - +++)

Donors are kept informed, annually, of Carolinas Homeowners Assistance Corporation’s achievements. Please complete the form below and send it with your contribution to Carolinas Homeowners Assistance Corporation, Post Office Box 42265 Charlotte, NC 28215. This information will be used to send your donation receipt, annual report and news of upcoming events.

Check the level of your donation above:

Name: _________________________________________________________________

Address: _______________________________________________________________

Telephone Number: ______________________________________________________

Email: _________________________________________________________________
Any comments: __________________________________________________________

Carolina's Homeowners Assistance Corp.

2008-07-13T20:37:00.000-04:00

By focusing on God first, health, happiness and well being second, family third, then community and business, the underlying values and goals of Carolina’s Homeowners Assistance Corp., is to become a 501©(3) corporation to assist distressed homeowners and avoid foreclosure. The primary objectives are 1) to preserve homeownership and 2) improve housing conditions, through eco-friendly, home improvement assistance, which would address residential energy efficiency, safety and health hazards to promote healthy homes of the elderly, middle and low wealth households. The overall aspiration to attain healthy homes would also be to improve the efficiency and cost-effectiveness of methods for evaluation and elimination of lead-based paint and other housing-related health and safety hazards. This also supports our strategic goal to strengthen our communities by improving the environmental health and safety of families living in Mecklenburg County to eventually branch out to all counties in North Carolina. Therefore, our goal is to assist the homeowner to avoid foreclosure and preserve homeownership, and assist with home improvement projects to improve our relationship with the earth.

Carolina's Homeowners Assistance Corp

2008-06-26T21:59:00.000-04:00

Carolina's Homeowners Assistance Corp is a non-profit corporation whose mission is to assist distressed homeowners. Incorporated by Caroline Narttey, the program will focus on helping homeowners who are facing foreclosure with an alternative in order to keep their homes and to assist homeowners with making their homes more energy efficient. Carolina's Homeowners Assistance Corp will also work with government agencies throughout the state, including HUD, to relieve it from the recent foreclosure "tsunami". The corporation is in its startup phase and it will be hiring a President, Vice President, Treasurer and Secretary, along with support staff to include Grant Writers, Administrative Assistants, and contractors, with Mrs. Narttey as CEO. This will be a phenominal supportive community based organization to make the State of North Carolina an even better place to live.

Homeowner Associations

2008-04-27T18:33:00.000-04:00

I live in a very nice subdivision, however, we do not have a homeowner's association, therefore, I plan to start one. My eleven year old daughter and I prepared the flyers and will attach them to each mail box in our subdivision. We will give everyone one week to respond, afterwhich, we will schedule a date and time for our first meeting. On the agenda will be landscaping and upkeeping common areas, neighborhood watch and police presence, holiday events in the neighborhood for families, among other things. I look forward to the response and to building a very successful organization. If anyone has any suggestions, please, I welcome them.

Home Improvements Projects

2008-04-23T21:32:00.000-04:00

When improving your home, it's always best to put the money into upgrading your kitchen and bathroom(s). These upgrades guarantee a return on your investment. However, be careful not to over-improve. Over improving makes your house the most valuable house in the neighborhood and that's okay if you plan to remain in your home long term, however, if you wish to sell your home in the near future and you over improve, you may not reap a good return on your investment. For example, I currently live in a neighborhood where the subdivision is very nice, with decent working class folk, however, I don't intend to put granite countertops because not only don't I think I would get a return on my investment soon, it would be over improving for my neighborhood. However, my husband and I plan to put in wood floors on the first floor, upgrade our stove and over the range microwave, change the light fixtures in our kitchen and breakfast nook, put in silestone counter tops (which is man made and not as pourous as granite and much more free of maintenance) along with new hardware/jewelry for the kitchen cabinets. We will improve our master bath with a jacuzzi tub, put in double sinks, change the mirrors and light fixtures and install new floors, probably made of ceramic or marble. And we will upgrade a second bath on the second floor too. Also, landscaping is very important. If you're not into the maintenance, hire someone to do it and do something simple. Curb appeal is very important. I love interior decorating and so look forward to getting these projects completed. Oh, and you must paint!

Contacting Your Prospective Homeowners

2008-04-21T21:04:00.000-04:00

Go down to your local courthouse, or better yet, hire someone to do it, and look up all the pre-foreclosure notices that were filed in your target county. Write down the names and addresses of as many of them as you can, go home, type a nice little letter that let's them know you're interested in buying their home, then mail the letters out. I would suggest mailing around 100 letters every two weeks, until you get a hit, by a hit I mean, a distressed homeowner contacting you. Once a homeowner contacts you, handle them with professionalism and respect, find out how much they owe, if there is more than one mortgage and/or another lean on the property and compare it with the comparables in the area. If they come out below, then try to make a deal with the seller in order to help them out; put the seller's needs first. If the amount owed is more than market value, you may have to walk away and keep on searching.

Subject To Your Existing Mortgage

2008-04-20T22:11:00.000-04:00

When helping a seller who is facing foreclosure or in the pre-foreclosure stage, an offer that many investors make is to purchase the home subject to the existing mortgage. This means that the investor would have the seller deed him or her the house, leave the mortgage in the seller's name, be responsible for making the payments, then get the home sold. The real estate investor profits when the home is sold because of the equity in the home. If there's no equity, the real estate investor will not even get involved. In real estate, everyone has to benefit: the seller has to be able to get out of the property w/o blemishing his credit report and the real estate investor has to profit b/c of the equity the homeowner has to walk away from. This is the ideal deal in the business of real estate.

Working with Real Estate Agents

2008-04-13T22:16:00.001-04:00

In the past, real estate investors and real estate agents didn't mix. However, now a days, in its modern economics, I think real estate agents realize that they have to have the same creativenes as real estate investors if they want to make a living. Real estate agents even attend real estate investment club meetings and specifically target motivated sellers for investors. If you read some the the real estate advertisements, they specifically say "...great for investors; good investment property, etc." To really be successful in any business, you must have a good team of people, including accountants, lawyers, contractors, home inspectors, landscapers, architects, builders and, yes, real estate agents. There's room for many players in this game.

Real Estate Investment Clubs

2008-04-10T07:26:00.000-04:00

It is so important to network with other people who have the same interests as you do. So, since I consider myself a serious real estate entrepreneur, I'm attending a real estate investment club meeting tonight here in Charlotte, NC. Besides the networking that comes with attending such events, you could learn alot too! It's always good to surround yourself with people who are moving and shaking and not just talking. They could teach you how to get your offers accepted, how to structure deals, how to get to the closing table, how to choose good contractors, so on and so forth. I'm so excited and so looking forward to being in the company of some real movers and shakers. And most of the time, the successful ones are more than happy to take you under their wing because they know how it is to start out and struggle. Although everyone has to go through their struggles, it helps to have someone on board with you.

Ugly Houses

2008-04-09T21:39:00.000-04:00

If you're like me, you like turning something ugly into something pretty. Take a house that's been abandoned, with water damage, wood rot, etc., you can buy it cheap, fix it up, sell it and make a nice profit. If you become good at it, you can make a hefty piece of change. Yes, it's a lot of work, but anything in life worth having takes a lot of work, and usually what you invest in reaps it's rewards in some form or fashion. And you can put your interior decorating style to good usage. I'd like to have a signature on all the houses I rehab; like a certain color paint or a certain color tile that I use in all my houses as a signature on my "art". So, the next time you look to purchase a house that's been renovated, look for my signature, so you''ll know it's authentic.

Buying Real Estate When the Market Takes a Dive

2008-04-08T21:24:00.000-04:00

Oh, happy day! A big blowout sale on real estate. Buy low, sell high. What goes down must come up. It's only temporary, guys. The stock market takes a dive and recoups, so does real estate. This is the ideal time to purchase properties. Really good investors know how to make the best of any situation, and when real estate values plummet, real estate investors rejoice. A real entrepreneur is creative and figures out how to benefit in any market. And, no, it's not being greedy, it's being financially literate. So, all you people who get scared and sell when the market goes down, keep it coming; us investors are waiting to buy...for pennies on the dollar.

Homeownership In the South Compared to the North

2008-04-06T12:10:00.001-04:00

I owned a home in New York City and I currently own a home in Charlotte, NC, and let me tell you, they both have their pros and cons, as with everything in life. For example, in New York City homeownership is much, much more valuable where as in Charlotte, NC, homeownership is much more spacious. In New York City, you could spend at least $500K on a home with very little square footage, where as in Charlotte, NC, you could have a mansion with lots of acreage for $500K. Although I was born and raised in New York City and miss a few amenities, like mass transit, broadyway, culture, and St. Paul Community Baptist Church, I don't miss living there at all. For me, money isn't everything; peace of mind is, and I have just that in Charlotte, NC. The lifestlyle here is much easier and I feel less stress living here than I did living there. My husband and I live a very modest life with our daughter, living comfortably below our means, accumulating wealth to pass on to the next generation, where as up north, living modestly almost doesn't exist because with the pricey real estate values comes pricey everything else. So, we will continue to focus on building a nice portfolio of investments, which definitely includes real estate, and enjoy the trees, and grass and flowers, leaving the concrete and steel and noise to the northeners.

Real Estate Mogul

2008-04-06T03:13:00.000-04:00

If you look at anyone who invests in real estate, whether primarily or secondarily, they are, beyond a doubt, wealthy. I mean, even God says in the bible: go and possess the land. Real estate is a product that we all need. So, it appeals to all markets, regardless of class, race, gender, religion, sexual orientation, etc. My passion continues to be one of helping people out who would otherwise suffer more if they couldn't settle their differences with homeownership. Also, my passion is interior decorating. I love making something not so pretty, pretty. The only thing I don't like is the intense labor necessary for some projects. But as with everything in life, there's something good and bad to contend with. I'll design and let the contractors bring my vision into fruition. And it would be another way to help someone out: giving contracts job opportunities. Coloring walls, upgrading kitchens and baths, landscaping and decorating with furniture and accessories all make me feel good. I'm the HGTV Queen! And for those who've been living under a rock and don't know what HGTV stands for, it's the Home and Garden Television Channel. It's HGTV, Discovery Home or the FineLiving channel for me, or nothing else. These are resources I use to advance my love for anything having to do with real estate.

Every Now and Then, We All Get Weary

2008-04-04T21:28:00.000-04:00

Sometimes, when things that are challenging happen to us, we wonder: What is my purpose on earth? Why do I struggle with my marriage? My children? My job? My finances? Hell, my health? We all have a purpose on earth, and until we realize our purpose, we won't understand why we struggle. To struggle is to train for the next level in life, to make us stronger and more appreciative. If you study anyone who became financially successful, trust me, they struggled to get where they are. I like hear about people's struggles more than their successes. It shows tenacity, persistence, faith, and focus, among other things. That's why when you first approach a potential client, in this instance, a distressed homeowner, you must realize that more than likely, you will not close the deal with the first contact. It takes many contacts sometimes before closing a deal. Just look at at Thomas Edison. I mean he wasn't a real estate investor (at least not that I know of) but I failed 10,000 times before discovering electrician. Not just imagine how our life would be if he gave up. I couldn't imagine it. As an entrepreneur, we are challenged to be creative, to find new ways to challenge ourself to be more than we ever imagined ourselves to be. And for those nay sayers, I say keep hatin' , cause it only makes me stronger. So, to all you real estate entrepreneurs out there, keep hope alive.

Beware of the Real Estate Investor

2008-04-03T20:56:00.000-04:00

As I was getting ready for work this morning, I turned to News 14, as I always do, to hear the weather forecast so I'd know which outfit to wear that would coincide with the weather. Among the few stories that they cover, covering the same ones every couple of minutes, the one that caught my attention was about real estate investors who take advantage of distressed homeowners. Another example of the few bad ones making it bad for all the good ones. All industries have the good versus evil syndrome, including the real estate industry. Hey, if some of these lenders weren't predatory lenders, half of these distressed homeowners wouldn't be in the situation that they are in. We never say the big banks contribute to these problems, although they do. Hence, the good real estate investor comes riding in on his white horse of shiney hope. Let's just all face it: there are good and bad doctors, lawyers, bankers, internet users, etc., And yes, there are bad real estate investors. However, please let's not make the mistake of thinking that just because we hear something on the news, that it's from God himself. Hell, some news reporters are distorted perpetrators of so called truth. So, let's not throw stones when we live in glass houses. Let he that is without sin throw the first stone. What did you say? Oh, nothing...that's what I thought. People, listen up: as long as there are problems in the world, there will always be problems with real estate and therefore there will always be good real estate investors to solve those problems. Count me as one amongst the good. Amen.

Key To Success

2008-04-02T21:41:00.000-04:00

One thing I know for certain is that persistence is the key to success. No matter what we want out of life, if we are consistent in our pursuit, eventually we'll get just what we ask for. Seek, and ye shall find, ask and it shall be given unto you, knock and the door shall be opened for you. We have not cause we ask not. And when we don't get it immediately, we give up, as if our season of reaping is in our control. Never give up and the season of reaping has no choice but to come, not in our time but at the right time. And how does this relate to Real Estate Investing, you ask? Well, in contacting potential clients, in this case, distressed homeowners, just like in any business, persistence is the answer. The first time you contact a seller, the prospect my be reluctant but by the seventh time, or even the 100th time, the prospect may be ready. Time and circumstance change minds, so be there at the right time for the right circumstance. And since there's no way to predict that, you must be persistent in order to find out. The distressed homeowner doesn't know I'm out here to help him or her, so I must make my presence known by making the distressed homeowner aware that I'm here and I can help. I'm not going to say I can solve all your problems, but one thing I will say is that I will do everything I can to solve the problem facing the homeowner's homeownership.

Helping A Homeowner In Distress

2008-04-01T21:38:00.000-04:00

I have been contemplating real estate investing for about six years, and now I'm finally ready to get into this business whole heartedly. I've become educated about the whole business thing and the whole real estate thing and all the money to be made in real estate. My initial hesitation was because I didn't, and still don't, want to be viewed as a money hungry vulture because that's not who I am. Now, don't get me wrong, I know the power of the mighty dollar. But life has to be more fulfilling for me then just money. I mean, I do want to contribute to the world more than take away from it. Hence, my coming to peace with real estate investing: as long as I can help a distressed homeowner, I'm cool with it, and, yes, the money will follow. But helping a distressed homeowner out of a sticky situation is my priority. Therfore, my focus is on homeowners who are two months behind on their mortgage and have been served with a foreclosure notice by the bank. The homeowner must accept my services, as time is of the essence at this stage. And not only will the homeowner save him or herself from having a foreclosure on their credit report for the next 7-10 years (practically financial suicide), they may even be able to walk away with a little extra cash in their pocket so they can start all over. Every situation is different and it's important for me to learn the homeowner's situation so that I can diagnose it, the same way a doctor or lawyer would diagnose a patient/client. Need to know the problem so I can fix it. There's no such thing as a problem that can't be solved. Also, other distressed homeowner situations include: divorce, death/estate sale, job loss, and relocation.