In summarizing this various trading structure, market pressure and lien brought us sellers and our due diligence was rewarded.
Here you will see the different ways properties can come to you and how to navigate exceptional situations to favorable conditions.
These two transactions are examples of aspiring sellers benefiting from non-traditional transactions and terms, and are perfect examples of how to pivot from standard procedures and structures.
Buy a house, not a lien
Let’s start with the eyebrow razor.
For this property, the homeowner had two mortgage loans. These will be canceled when you file for bankruptcy and will be amortized 15 years later. The owner was detained in real estate for another five years under the statute of limitations of the state.
Cleaning up the house allowed him to move to Florida. In the meantime, we could wait five years and sell the house knowing that the underlying debt would be minus two liens. Win-win!
When constructing a transaction, my company and I create three paydays. In this case, those paydays would be a significant deal on their own, even if we had to. Pay off lienThat’s why we were able to make the decision to move forward.
In addition to that, and knowing that this was a good possibility, Lien was about $ 195,000 in total. We wanted to negotiate it up to about $ 1.30. I was pretty sure I could get it done.
Meanwhile, we had a lawyer dig up. They found that less than five years had passed since Lien’s statute of limitations. They were installed in the house, but not personally to us, as they remained the seller’s name and left with the help of our lawyer. ..
Therefore, the transaction was significantly improved with the addition of an additional $ 195,000 on the final payday.
Payday # 1 – $ 30K (purchased for $ 361,000, base loan and 2 lien amount)
Payday # 2 – $ 60K (Loan-to-value is so low that it’s easy to get $ 1K a month
Payday # 3 – Before Lien, he had about $ 33,000
After 5 years, it will be $ 63K on the 1st and 3rd payday and $ 60K on the 2nd payday. Therefore, it was $ 123K before adding the expiring $ 195,000 lien. It ’s a good deal, is n’t it?
Now, if you add $ 195, you’re over $ 300,000 in a house that sells for $ 400,000 for terms, loans, and expired Lien.
Take advantage of the late season
The second property was a ham and eggs lease purchase contract, which was fairly stereotyped.
The property owner called after receiving a sly broadcast message as part of the “expired dialing process.” The owner sold the house. He had a $ 100,000 buyer and had pre-approved from the bank, but the deal wasn’t closed.
We talked to him about the deals we build and how to deal with non-conforming buyers. He said the owner understood well. He took his home off the market because he had a non-conforming buyer and the deal couldn’t be closed.
The autumn season was approaching. When this happens, people tend to panic when they are in areas where the weather can affect sales and other areas of the market. This may list many new properties. For example, our associates have undertaken five properties in the last 45 days.
The owner of this was asking for $ 520,000 and borrowed only $ 290K. They sat a lot fair.
We made up $ 230,000 and paid off the loan 36 months or earlier. This is a great setup for them if they can wait for their fairness.
Payday # 1 – $ 40,000 down!
Payday # 2 – $ 800×36 months = $ 28K
Payday # 3 – Approximately $ 26,000, calculate principal payments and markup
total: $ 94,000
Two deals found nearly $ 400,000. One was a very rare transaction and the other was a more routine transaction, both of which were achieved by tracking the system over several months.
Do you want to configure the transaction based on the terms? Why or why not?
The following comments!