Tuesday, January 5, 2010

Seller Finance Magic‏

there's a better way to acquire real estate...
Just about every rental property I own was purchased with Seller financing. There are amazing benefits to buying with seller financing; here are just a few:(1) No bank financing or approval required(2) No private lenders to split profits or equity with(3) Buy with very little down payment(4) Structure monthly payments the house can easily afford(5) Ability to restructure the loan/payments if necessary(6) Privacy - Deed straight in to a land trust & not on your credit report(7) Easier to get ZERO or very low interest rates.When you learn how to find seller finance opportunities and buy with seller financing, there'sa good chance you'll abandon buying any other way. It's easier than every to buy with seller financing now. It's a skill you definitely need to learn! Some of my rental properties were purchased with seller financing which mirror and wrap an underlying loan (subject to the mortgage) and others were free and clear houses but the terms of the sale were that I would buy with a small down paymnet then monthly payments until paid in full. Here's a typical deal:Purchase price: $87,000Down payment: $1,000Closing costs: $1,000Fix up costs: $1,500Value: $115,000Payment: $780 ( piti)Rent: $1100Notice there's NOT a big discount between the value and the purchase price but the "terms" make the deal work. For only $3,500, I was able to acquire this property and create monthly cash flow of $320 per month. Heck, you can even pay full price if the terms are good enough. The terms are much more important than the purchase price with you're buying with seller financing.The 3/2/2 property above was purchased 10 years ago. I've had two tenants in the house during that whole time. How much has that $3500 investment made me in 10 years? The tenants are paying down the mortgage for me. The cash flow has paid for any repairs that needed to be done. I could have sold this house with seller financing that wraps the underlying seller finance note. Then I'd have NO repair costs. There's a way to keep all or part of the equity too. You'll learn how to do this too. There are many other advantages to buying with seller financing. This is also the perfect way to acquire the next house you live in!To learn more about buying with seller financing, join us in Arlington Texas on January 16-18th for the "Best Real Estate Strategies for 2010" seminar.You'll learn how to find seller finance deals - it's easier than you think!You'll learn how to structure the deals - it's easier than you think!You'll learn multiple exit strategies - it's easier than you think!

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