Posted by JohnBoy on May 04, 1999 at 09:42:09:
Almost forgot. You assign your deal over to your buyer by selling at retail. Use their down payment to pay the back payments due to bring the mortgage current. After deducting their down payment from your retail price, you assign the first over to them and carry back a second on any difference between your selling price minus their down payment and the amount owed on the first. You pocket a nice profit up front in cash, plus you get a nice little monthly income off the second. Even if your buyer was to default on your second, so what, you made your profit from the down stroke. Anything they pay on the second is extra gravy on the deal. But if you wanted you could always take the property back to protect your interest in the second and resell the property again if you felt is was worth the trouble.
The deal… - Posted by Gino L.
Posted by Gino L. on May 02, 1999 at 22:06:10:
Just want to hear others take on this deal.
Im interested to hear feedback and ideas. The way I plan to structure this deal involves over financing with a newly created note and discounting out for cash. Want to know what others would do to solve this ladies problem.
the deal:
Lady in forclosure on 2 properties…
both properties are in marginal areas with large rental market. both need cleanup only to a heavy extent (2 truckloads from each).
1st prop 77k 1st, FMV is 95k…must sell in 30 days…no arrears yet. The question is how to get in and out with no money! Non assumable.
2nd prop 72k 1st, 5k 2nd, 8k in arrears, forcloses in 20 days. FMV 110k
Same owner. This lady is willing to carry as much as needed and has no cash reserves and needs to come up with at least 8k total out of both properties combined…=:) Will not sign a exclusive option because of time restraints.
Interested to hear any and all creative techniques from people heavy into L/O’s and Trusts. Also any ideas on combining l/o w/notes, and trusts to assume.
The object is to do this deal with absolutely none of our own cash!
Re: The deal… - Posted by JohnBoy
Posted by JohnBoy on May 04, 1999 at 09:29:58:
Buy the property by taking over the existing mortgages “subject to”. Make the deal subject to you finding a suitable tenant. You take the property over for what the seller owes on the mortgage. Have the seller deed the property into a trust, then assign the beneficial interest of the trust over to you. You own the property and the mortgage remains in the sellers name. Since shes facing foreclosure she shouldn’t have a problem with this because she’s about to lose it all anyway. At this point you would be saving her from a foreclosure.
Next you find a buyer with $5k - $20k cash to put down.
OWNER WILL FINANCE! NO BANK QUALIFYING!
CREDIT PROBLEMS OK! 10% DOWN QUALIFY’S
REGARDLESS OF CREDIT! CALL xxx-xxxx
After you have a buyer with enough down stroke then just assign the deal over to them for their down payment amount and your out of the deal with a quick profit. You never had to use a dime of your money to purchase the property. Piece of cake! 
Re: The deal… - Posted by Figures!
Posted by Figures! on May 04, 1999 at 01:24:43:
All these know it alls on this sight and not one person could fiure this deal out! Unbelievable!
Makes me wonder…