Re: First Home - Posted by Bill Gatten
Posted by Bill Gatten on June 23, 1999 at 13:28:14:
I’ve bought my last five residences and many, many investment properties without a single penney out of pocket and without a second’s worth of bank qualifying (albeit… in the ones I lived in, there were some minor closing costs that I didn’t get back immediately).
Here’s one way to do it (not the “be all and end all”… just a way):
Find a seller willing to stay on his/her existig loan for a couple years while you agree to live in the property and make all of the payments, and handle all of the repairs, maintenance, upkeep, property taxes and insurance for a few years (2, 3, 4, 5). Explain that your intentions are to refinance in your own name and pay off his loan as soon as you have the down payment and the credit to do so. You agree that at that time, you’ll repay any/all equity he may have in the property at start (plus interest, if he asks for it… many don’t).
Explain that during the period you are in the property and waiting to refi, he/she needn’t even transfer the title to you or take any chances with you. Suggest, instead, that he/she put the property in their own Land Trust–in their own name–and simply make you a co-beneficiary in it. This process [a PACTrust™] gives you 100% of all the benefits of homeownership, including full tax write-off. And… no one has to take any chances with anyone (re. either party’s personal or legal problems, tax lines, judgement creditors, BKS, marital disputes, etc.).
Also, Lawrence, with this process you don’t even have to care a twit about whether this seller has any equity to start with or not. As a mastter of fact, the property could even be a little (sometime quite a bit even) over-encumbered and not matter to you. The key is just to make sure that your aggregate payment is not significantly higher than it would be if you had gotten a 100% loan on the same property. To justify a slightly higher payment, you might even add a penatly for yourself (due to having no credit and no money) and be comfortable in paying slightly more than you might on a 100% financing, medium interest-rate, loan on the same house.
When you find the guy/lady ('trying to be politically correct here)…give me a call, and I’ll sell him[her] for you (no charge what-so-ever, you just pay for the conference call…I’ll even write up the land trust for you at no charge if you wish).
'Know what’s holding you back? Nothing more than a lack of knowledge that you don’t need to be held back.