2 of 2

Write now Article Tools

Page 2 of 2

only.

At the closing table, the note sellers get their cash i.e. a total of $50,000.00 out of the $80,000.00 goes out.

The seller of the house gets $100,000.00 in good seasoned notes.
You get the house and the balance of the $80,000.00 loan proceeds which might be about $25,000.00 after closing costs and that money is tax free because it is loan proceeds.

We do not recommend you have all parties in the same room. Educate your closing agent at the title company to split them up. Have them in different rooms or have them come in at a different time. Not only educate the closing agent but insist on it or go to another title company.

At this point you still have $20,000.00 equity in the house. You can either leave that on the table or sell it quickly to another buyer or investor to get you out of your short term loan. In the event you were able to put on a permanent long term loan, you can either rent the house and become a landlord if you have the temperament or sell it out on an unrecorded contract for deed which is one of my favorites because we can usually pick up another $5,000.00 or $10,000.00 down payment and now we have someone who takes better care of the house and who also pays the taxes and insurance.

Think about this deal. There are always people who need money and are willing to sell good, seasoned notes at a discount. There are always people out there who would like to have a 9% return on their money.

This deal is hard to do with a real estate agent in the deal unless the property seller is will to pay his agent out of his pocket at the closing or to give the agent one of the notes and that involves an agent who is savvy enough to be creative to take one of the notes as his fee and I find that most agents seem to want 100% of nothing than to be creative when it comes to their commissions.

How do you find a buyer who will take this kind of a deal? Why not run an ad that says "Have good seasoned paper paying good, stead monthly payments, want a free and clear single family house." See what kind of response that would bring.

Where do you run this ad? Perhaps in the houses for sale section of the houses for rent section. There are plenty of landlords who would rather have passive monthly income than erratic paying tenants. Place an ad in the mortgage section saying, "I buy mortgages, fair price, fast closing". Sit back and the phone will right especially if you remember to put your telephone number in the ad. We tend to favor all the penny savers simply because they are cheaper than the regular newspapers. Run them for a month, matter of fact ninety day ads works best.

The real estate game is not a game for sissies nor is it necessarily a game for the big money people. It is a game for the adventurous and the bold. Play it fairly and squarely and it will be good for you and to you.

Learn more about this author, Arlene Wright-Correll.
Click here to send this author comments or questions.

• << previous page
• 1
• 2

Add your voice

Know something about Buying houses and mortgages to maximize profit: The 'Midas Touch' formula ?
We want to hear your view. Write now!