No Equity Deals - do they exist? - Posted by Matt

Posted by Carmen Doucette on January 29, 2002 at 09:55:29:

copy this link and paste it on your browser.

http://www.creonline.com/wwwboard/messages/70929.html

No Equity Deals - do they exist? - Posted by Matt

Posted by Matt on January 28, 2002 at 15:44:17:

Hi all - first, thanks to all who post and reply on a regular basis - truly a great board with lots of info!

After reading and more reading, I’ve finally decided to move forward with some actual ACTION. (Action always beats inaction) So I put an ad in the local paper and have had a few calls, nothing too juicy yet, but I know it will come.

I’ve gotten some calls from folks who are motivated, yet they’ve been in the house ~1 year and have very little/no equity - they simply want to get what they owe, or get out of a loan, which is right at the comp price range… Initially, it doesn’t look like any deal, and aside from the possible L/O (which is probably a break-even deal at best) with hopes of property appreciation, but that sounds too much like speculative investing to me.

The only reason I ask is I thought I read somewhere where there are creative ways to make cash with zero equity sales, but I can’t seem to find it or think of where the cash would be made… Any ideas that I’m missing?

Thanks folks - appreciate the help!

Matt

Re: No Equity Deals - do they exist? - Posted by Brent_IL

Posted by Brent_IL on January 29, 2002 at 01:00:24:

When you make your offers remember to ask the sellers to subsidize the monthly payments if the deal is too skinny. Giving you one or two hundred a month for a few years may be a relief to them if they’re paying out one thousand dollars a month now.

Re: No Equity Deals - do they exist? - Posted by Ronald * Starr(in no CA)

Posted by Ronald * Starr(in no CA) on January 28, 2002 at 23:25:52:

Matt-----------

JohnBoy talks about this in his post at message 70929, this main CREONLINE.COM bulletinboard.

Read on Lease Option Deals. Read on “Subject to” or “Sj to” deals. Use the search function. If you don’t find over 500 posts for last year, go back to the prior years.

I understand that there is somebody that has an investment education program dealing just with this very type of situation. I don’t remember who, but somebody else may remember and mention it to you.

Good InvestingRon Starr********

Re: No Equity Deals - do they exist? - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on January 28, 2002 at 16:13:47:

See what the rental rates are for the area. The rents may be more than the payments which might make it a doable situation. Example for illustration purposes is that you find a property worth $75k and the owners will let you have it for the payments of $600 a month that is on it; you might do this if the rental income in the area is bringing in $750 a month. They may have bought it only last year and got a 7% interest rate, but now have to move or something.

If you don’t want to be a landlord, then sometimes there is no deal for cash up front profit.

Re: No Equity Deals - do they exist? - Posted by Matt

Posted by Matt on January 29, 2002 at 07:19:31:

Hi Ron - nevermind, I saw the numbers in the url… it’s not even that early in the morning to be half asleep!

Thanks again,
Matt

Re: No Equity Deals - do they exist? - Posted by Matt

Posted by Matt on January 29, 2002 at 07:17:09:

Thanks Ron - how can I find the message you reference - 70929 - I looked everywhere and could not find where messages are numbered… I appreciate the info and reply. Best, Matt