Posted by Russ Sims on March 30, 2000 at 15:39:55:
You might nix the attitude…Doug just probably wanted to make sure he wasn’t missing something. And he DID teach you something, didn’t he? He tought you that the real selling price of a 45K home that is 6K in arrears is 51K. Very important lesson.
Why limit yourself to selling to investors? How many would-be owner occupants out there would love a home of their own where half of their mortgage is being paid by a tenant on the property? So you pay 6K to bring the property out of arrears, and you buy it for the loan balance of 45K subject to the existing loan.You then re-sell it owner financed for 75K and take 10% down, which gives you $7500 cash. Pay yourself back the initial 6K and pocket $1500. Create a spread on the monthly payments between what you must pay on the existing loan, and what you are charging your owner occupant buyer. You can probably easily pocket $200 per month for a very long time. As to where you get that initial 6K, it really doesn’t matter: credit card, mom, Uncle Lester, Your Local Loan Shark, etc.You will only be floated the loan for a month, if that, until you can line up your buyer. In fact you can probably line up your buyer before you have to pay the dough. It doesn’t get any better!