Posted by David Krulac on February 05, 2002 at 21:31:09:
yea, I’ve done a short sale where I got cash at settlement, seller financing and seller credits/closing help where money came in this direction. Its not that great as in many cases it includes over financing which just has to be paid back.
Its nice, but not a panacea.
David Krulac
Cash at Closing…Real Estate Investment - Posted by Mike
Posted by Mike on February 04, 2002 at 13:52:52:
Anyone who has done it. I keep seeing how these people get these huge chunks of money when they BUY the real estate. They receive these checks at closing. Can anyone help me with where I can go to see how these deals were structured.Maybe an exaple or two??
Thanks in advance
Re: Cash at Closing…Real Estate Investment - Posted by Doug
Posted by Doug on February 05, 2002 at 17:02:31:
One way is to borrow more than you’re paying. As long as you’re within the banks LTV range they usually have no problem with that. Also, when you buy a property the seller must give you the prorated property taxes for that year, so technically you are getting cash but it’s cash that’s going to have to be paid when the property taxes come do.
Re: Cash at Closing…Real Estate Investment - Posted by Greg
Posted by Greg on February 04, 2002 at 19:12:00:
My wife and I purchased and studied the Carlton Sheets program. We have had it for three years.
On my third deal we walked away with $14,598.00. Here’s how.
It is a mobile home park, six homes. The seller wanted $75,000. We got a loan from a bank(small liberal one) for $65,000.00. I got the seller to take a second mortgage for $25,000.00. I gave him $50,000.00 of the $65,000.00 plus I got the bank to finance the points. I only had to pay the differnce in closing cost.
The seller liked the deal so much that he is now my partner in other deals. One we will close on the end of this month and split $100,000.00 less closing cost at closing. We have another that will close the end of this month, too! We will only get $5,000.00 each after expenses.
If you will just follow Carlton Sheets program you can do the same thing. I have listened to all of his tapes more that ten times. I have been self employed for over thirteen years and the Carlton Sheets program is by far the best, easiest, and cheepest way to learn how to make money.
Cash at Closing…not that difficult… - Posted by David Krulac
Posted by David Krulac on February 04, 2002 at 16:32:15:
the basic way is that the encumberance on the property is greater than the sale price or adjusted sale price.
one example might be to get hard money lender to lend $50,000 on a house worth $100,000. If you give the seller $30,000 then you get $20,000 back at settlement.
another example might be where the seller of the $100,000 house gets an $80,000 first mortgage and takes back a $20,000 second mortgage. the seller pays all the closing costs and maybe some fix up credit and the buyer gets back cash at settlement that could include the fix up credit, proration of rents, security deposits, taxes etc.
Re: Cash at Closing…Real Estate Investment - Posted by Mike
Posted by Mike on February 05, 2002 at 17:16:35:
Thanks for the response. have you done any and can you provide a scenario or two??. I just want to be sure that this is structured properly.
Re: question about the 2nd - Posted by Heather D
Posted by Heather D on February 05, 2002 at 18:17:50:
The seller wanted $75,000. We got a loan from a bank(small liberal one) for $65,000.00. I got the seller to take a second mortgage for $25,000.00. I gave him $50,000.00 of the $65,000.00 plus I got the bank to finance the points.
So, who is paying the 2nd mortgage? You or the seller?
I’m a newbie trying to figure it all out. Also, think
I think I might take your advice about Sheets.
Thanks alot,
Heather
Re: Cash at Closing…Real Estate Investment - Posted by wm-pa
Posted by wm-pa on February 05, 2002 at 08:21:17:
Getting money back at closing sounds great…but isn’t this money from a loan and have to be paid back at a later time???
Re: Cash at Closing…Real Estate Investment - Posted by Mike
Posted by Mike on February 05, 2002 at 06:37:04:
Greg,
Thanks for your response. One question is the bank “on board” regarding the second. In other words did they know about it? Some banks in my area don’t want to know about any seconds…but the numbers still have to jive. So you think the best course is Sheets? NO offense but how do I know you don’t work for Sheets?? Do you do mostly what you have described or do you buy and hold too?? Thanks in advance for your response
Re: Cash at Closing…not that difficult… - Posted by Mike
Posted by Mike on February 04, 2002 at 18:33:32:
Dave, Thanks for your response. Have you done any like this? Just curious if there is more detailed info on this subject.
Re: question about the 2nd - Posted by greg
Posted by greg on February 05, 2002 at 20:56:34:
Heather,
I am paying the 1st and the 2nd. The actual total that I have financed on the MH park is $90,000.00.
Since the income from the park can handle it, it really does not matter to me how much the loans where.
We took $10,000 of the money and purchased a duplex.
10% down(money from property a to pay for property b)and got 90% financing for 30 years on that one. All this I learned from his course
If you get the course, listen to the tapes at least twice, before you purchase a property. Follow his directions. The hardest property will be your first one. The second is a lot easier and the rest will be as easy as riding your bike. Main thing is do your homework. Our first house that we bought came with 600 bats in the attic. Amazing what you can learn off the web about ridding a house of bats without killing them. House has been bat free for almost 2 years now.
That is why I say do your homework. Go in every attic and underneath every house, apartment, and duplex. I do now.
Good investing,
Greg