Posted by B.L.Renfrow on February 13, 2000 at 20:43:26:
Scott,
That book was one of the first I read in the CRE field and definitely had an impact on my future!
You are correct: non-qualifying assumables are out there, but are not very common these days. If you concentrate on looking for those loans, you’re not likely to find many deals. However, the good news is that ANY loan is assumable, using the right techniques.
Spend some time reading the how-to articles on this site, specifically those regarding subject-to deals and land trusts, then you’ll see what I am referring to.
newbie wanna-be needs advice - Posted by Scott McKinzie
Posted by Scott McKinzie on February 13, 2000 at 19:04:22:
I’ve been reading Wade Cooke’s book, “Real Estate Money Machine”,and buying and selling on contract really appeals to me. But it seems non-qualifying assumable loans (without the due on sale clause) are few and far between. Is this an outdated approach for today? Any advice or comments are appreciated. Thank you.
Re: newbie wanna-be needs advice - Posted by Jim IL
Posted by Jim IL on February 13, 2000 at 23:58:00:
Scott,
I too have read Wade Cooks book. I found it to be helpful and made me seek out other sources for REI education.
He does seem to talk a lot about Non qualifying assumable loans.
They are far and few between these days.
But, in order to “Buy on contract”, the underlying loan does not have to be a NQ assumable.
Read the articles here about “Avoiding the Due On Sale” and also goto www.legalwiz.com.
Any home can be bought “subject to” the existing financing. You just need to do it the right way.
Not one of the homes I have EVER purchased was “Free and Clear”, and not one had a NQ loan.
Some were bought using L/O’s, others with Land Contracts (I assume thats what you are talking about here), and others were simply taken over “Subject to”. (the seller gave me the deed.)
I have been doing this for just over a year now, but still, not one loan has been called. (knock on wood! Õ¿Õ).
If you have not read this site from top to bottom, and studied a course or two, NOW is the time to do so.
Educate yourself a little more than just using Wade Cooks book.
Then, go buy houses!