Seller Walks, Wants No Money? - Posted by matt
Posted by matt on January 09, 2002 at 01:36:51:
I found the following in the “How to Articles” group. The name of the article is “Get Out of Your Comfort Zone: Make REAL Money.” I’m really baffled about how these examples are possible. Below are two examples from that article that I’m having a problem understanding:
“Here’s a brief re-cap of a few more deals presently in the works with students. A $300,000 house in lovely shape with a $145,000 mortgage that’s $17,000 behind. The seller has deeded it to us. We won’t put up a dime. You figure the profit.”
My question is, why would someone just hand you a deed to their house without taking a dime? I’m very new to this but my understanding is that when someone sells their house, they are going to want something for it. They aren’t going to give it to you. What is that seller going to use for a down payment on his next house or apartment if he dosen’t get a dime for his house? Obviously, I’m missing a major point here. Please explain it to me.
The next example is:
“A house worth $180,000 with a balance of $135,000 that’s current. Seller is deeding and will wait until we sell it for her. She’ll net $10,000 which was previously agreed upon.”
Again, I find it hard to belive that a stranger is going to just hand over a deed. And on top of that wait and trust that she will get paid. What is she going to use for a down payment for her next residence until the house is sold? Why would she hand it over to someone else to sell? Why didn’t she use a broker like most people do?
If someone could help me to understand these examples, I would greatly appreciate it.