BUYER LEAVES CLOSING WITH CASH? - Posted by JOHN MILLER

Real Estate Investing Real Estate Gurus
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Posted by Yolanda on May 03, 1999 at 23:35:38:

Hi John. I’m new to investing as well and have purchased CS course. I’m going through it for the first time though. I had to respond to your post because I listen to Jay Lamont on 950 WPEN (real estate expert and Director of Temple University Real Estate Department)in Philadelphia, every Sunday and he has always, always warned his listeners not to purchase real estate in the Poconos because it is basically a kiss of death. His advice has been if you purchase in that area, you will be holding on to that property forever and won’t be able to give it away. Call Jay Lamont yourself and ask. He seems to be extremely knowledgeable about real estate trends in certain parts of the area.

I don’t know what area you’re in, but if you can, listen to him. He’s on Sundays from 9am - 1pm on 950 am WPEN (Philadelphia area station).

Good luck to you.

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BUYER LEAVES CLOSING WITH CASH? - Posted by JOHN MILLER

Posted by JOHN MILLER on May 03, 1999 at 16:18:52:

I PURCHASED A CS KIT SOMETIME AGO, I’VE BEEN THROUGH THAT THING A THOUSAND TIMES, I KNOW IT INSIDE AND OUT I’VE ALSO STUDIED ROBERT G. ALLEN AND A FEW OTHERS, BUT I’M STARTING TO THINK I’M STUPID BECAUSE FOR ALL THIS RECENTLY ACQUIRED KNOWLEDGE I CAN’T FIGURE OUT HOW THOSE BUYERS ON THE CS INFOMERCIAL ARE COMING OUT OF CLOSINGS WITH CHECKS FOR THOUSANDS OF DOLLARS. THIS IS A CRUCIAL THING FOR ME.

I’VE LOCATED A FLEXIBLE BUYER WILLING TO HOLD A MORTGAGE ON A PIECE OF VACATION PROPERTY IN THE POCONOS, HES ASKING $68,000, BUT NEEDS $20,000 NOW AND WILL HOLD A MORTGAGE FOR $48,000 OF IT AT A REASONABLE INTEREST RATE.

MY CREDIT IS GOOD AND SO IS MY FIANCEE’S I KNOW I COULD GET A MORTGAGE FROM THE BANK OR ANOTHER SOURCE, BUT HOW DO I WALK AWAY GIVING HIM HIS $20,000 AND PUT THE REMAINING $48,000 IN MY POCKET. WILL THE BANK ALLOW THIS? I THOUGHT IT OVER AND I THINK IT WOULD CONSIST OF TWO SEPARATE TRANSACTIONS :

  1. A MORTGAGE FROM THE BANK FOR $68,000
    TO BE PAID TO THE SELLER.

  2. A MORTGAGE FROM THE SELLER FOR $48,000 OF IT TO BE PAID BACK WITH INTEREST

DOES THIS MAKE SENSE?

HOW ARE THEY DOING IT ON TELEVISION, I REALLY NEED TO KNOW, SOMEBODY HELP, PLEASE.