Re: Would you offer owner financing to someone like ME?? - Posted by David Alexander
Posted by David Alexander on May 27, 2000 at 13:36:03:
Learn to buy houses By taking over the existing loan, meaning you will buy the house subject to the existing loan. You dont qualify for anything, you simply look for motivated sellers and solve their problem.
Example: maybe someone has a house worth a 100k, and they are 5k behind on payments, and the house needs 5k worth of work. They dont want to screw their credit up any further so you offer them the solution to solve their problem and save their credit.
Maybe they owe 70k on the underlying loan. You take over payments, fix the house, catch up the back payments and now your into this house for the monthly payment plus 10k.
You turn around and sell the houe for a 110k with Owner Financing, with 10k down. You carry back a note for a 100k, You now have a profit of 30k, and a cashflow of approx. 300/month and No Money left in the deal.
Or maybe you just retail the house and list it with a realtor and wait for it to sell, with an asking price of a 103k. You get an offer of 100k and it closes after realtor fees etc you net 92k or so. 92k - minus 70k leaves you with 22k cash at closing or a 100% return on your 10k invested.
That’s how you make your money work for you.