Posted by Ed Copp (OH) on February 18, 2001 at 08:56:26:
pay for the property unless I intend to keep it long term. Then I attempt to use seller financing for part or all of the purchase whenever possible.
I like interest free loans of sorts.
Sometimes I use a purchase contract, with an extended time period for closing the transaction, lets say 90 days to close. I retain the right to assign the contract, and I then have what might be considered as a 90 day listing, or a 90 day interest free loan.
Sometimes I am able to use a sn option just as above, except that my minimul option consideration will be my cost for the option. I then have an interest free loan for the time period of the option.
In the two cases mentioned it is pretty difficult for some creative investor to “go around” me (the broker). Now when all else fails I attempt to get a listing. This will give me a lot of control for the time period of the listing (usually 90 days). If the seller decides to reduce the price, or for some other reason becomes extremely motivated, I (not the general public) will be the first to know, and I will not hesitate to buy my own listing.
Then I start looking at other kinds of financing. One of the best is taking deed “subject to” the existing loan. I sometimes must come up with some money here (mine). The financing is already in place and does not have to be originated, which is quite expensive.
I seldom borrow commercially. I have a serious objection to signing a note that leaves me, personally liable. Generally I am not willing to risk the house that I slept in last night just to buy one that someone has for sale.
Posted by Ed Copp (OH) on February 18, 2001 at 07:53:10:
I am a broker, with my own company. So I work with Realtors, who work with me. I sometimes represent the seller, sometimes the buyer, sometimes both. Often I am the seller, or the buyer. I often have a list of buyers (some better than others), I do a slight pre-qualify myself but I do not do too much here because pre-qualified and pre appreved are two entirely different things.
I like to be the seller. My best leads for other houses to buy (or to sell for others) come from my sold sign in the yard…
From time to time I do create a note, and once in a while I do sell the note BUT, it really hurts me to give away all the “gravy” profit on a note by selling it. I try to keep all I can concerning notes. Often something will happen to cause the note to pay off early and this makes my position a lot more desirable.