Get your Buyer! - Posted by Monique
Posted by Monique on February 17, 2001 at 17:14:38:
Your best bet would be to not have to use Hard Money at all.
Run an add in the newspaper like this:
Will sacrifice for $50K below market
if you can close before March X.
$400K Executive home with blah, blah, blah.
If you can lock up your Buyer, you won’t need the hard money. You can do a simultaneous close and let your Buyer’s money fund the whole deal.
Alternatively, you can run ad that says:
NO BANK QUALIFYING
Executive home with blah, blah, blah.
$450,000. Shaky credit OK. Down Payment Required.
In this case, you find someone with 10% (or more) to put down and you owner finance the rest. Write up your Buyer’s contract with a 70% 1st Mortgage ($315K) and a 20% 2nd Mortgage. Sell the 1st Mortgage to a note buyer for cash. Use this cash to pay your Seller’s $250K and pocket the difference … and you still keep the 10% they put down, and the 2nd mortgage that you are holding.