The Experts In Real Estate And Mortgages

There are several strategies that I use when I either do not have the money for down payments to purchase real estate or just prefer to use leverage instead.

Here I am going to discuss some of the techniques that are available for these types of situations.

They are in no particular order but are all good to have in your arsenal so you can use the one that best fits the situation.

The first one is:

A. Seller Held 2nd-you get a hard equity loan for 70% of the purchase price and get the seller to hold a 2^nd mortgage that will subordinate to the first for the remaining 30%.

B.Hard equity financing of 70% of the “after fixed up value of the property”.-property is worth 200,000 after the fix up, you are buying it for $120,000 , they are giving you up to 70% of the 200,000 = the purchase price

C. assume the existing financing n the property, no qualifying

D. You buy the property and sell it immediately at the closing table, and then use the new buyers money to pay you seller. This is known as a simultaneous closing

E. flip the contract to an investor for a fee and then let him close

F.Lease purchase/option then flip to a retail buyer.

Remember that you need a motivated seller to help this work. Do not waste your time with someone that is not hungry to sell. In this market there are just way too many people that have to sell to waste time or effort on non motivated folks.

For a total real estate training and many more no money down techniques I reccomend the Ultimate Real Estate System

If you missed the post on contracts please go here and read it now:

Real Estate Sales Contracts

I meant to put this in the post on contracts but here is a copy of a typical contract approved for the Florida Bar. I am sure that it will be very similar to those used in most title theory states and will give you a good idea of the typical clauses in a contract.

 You can also add space to add your own clauses to it which will supersede some of those in the contract or add an addendum to include your clauses and demands.

This is a sample and not intended for official use. Consult your attorney for an official contract.

 

AGREEMENT TO SELL REAL ESTATE

THIS REAL ESTATE SALES AGREEMENT is made on the day, month of , year of 20 __ .

1. Parties: The parties to this Agreement are

Seller: Name(s)

Address

Buyer: Name(s)

Address

2. Property. The Seller agrees to sell and the Buyer agrees to buy, on the terms stated in this Agreement, the following described property:

Description of Property:

Property locally known as Parcel No. located in the of

County of and state of Pennsylvania.

Including all buildings and improvements on the Property and all rights of the Owner to streets, highways, alleys, driveways, easements and

rights-of-way relating to the Property.

And Including the following items of personal property: .

3. Restrictions. Buyer will accept the Property subject to restrictions of record providing they do not conflict with the present or intended specific

improvements or intended uses of the Property, and have not been violated, unless their enforcement is barred by law; water lines, sanitary sewer,

drainage, gas distribution line and main, electrical and telephone easements and rights-of-way of record provided they are or may be used to

service the Property and provided buildings and other improvements on the Property are not on the easements; and also:

.

4. The PURCHASE PRICE is Dollars ($ ), payable as follows:

$ as a deposit when Buyer signs this Agreement.

$ as an additional deposit within 48 hours after Seller signs this Agreement.

$ by assuming the principal amount still unpaid on EXISTING MORTGAGE.

$ by a standard Purchase Money Note and Mortgage from Buyer delivered at closing in the amount of $

with interest at the rate of %, and payment of $ monthly for a term of months.

$ (balance) by cash or certified funds on the Closing and delivery of the Deed

$ Total Purchase Price

If a Purchase Money Note and Mortgage is to be given by Buyer, it shall be drawn on the standard form customarily used in the vicinity. The Buyer

shall pay any mortgage recording tax and recording fees.

5. Adjustments to Purchase Price. There shall be pro-rated and adjusted as of closing, any rentals, mortgage interest, taxes computed on a fiscal

year basis, water and sewage charges, and the following items (List: insurance, fuel or other additional items to be adjusted)

If there is an EXISTING MORTGAGE, the Seller will furnish to the Buyer at closing a statement by the mortgagee stating the unpaid principal

balance, interest due and the terms of payment and shall assign to Buyer all reserves held in escrow by the mortgagee for payment of taxes, interest

and other items and the Buyer shall repay to the Seller the amount of such reserves.

The Buyer will accept title subject to, and will pay all assessments and installments of assessments for, local improvements which are not payable

as of date of delivery of deed.

6. Existing Mortgage (if any). If an EXISTING MORTGAGE is assumed by Buyer, the Property will be conveyed subject to the continuing lien of

the EXISTING MORTGAGE.

7. Financing. If all or part of the purchase price is to be financed by a new mortgage, Buyer agrees, upon acceptance by the Seller, to apply

forthwith and in good faith for, and diligently process a year mortgage commitment in the amount of $ at a rate

not exceeding %. Should such mortgage commitment be not obtained by either party by , 20 , or be

thereafter rescinded without fault of the Buyer, either party may cancel this Agreement by giving written notice of such cancellation to the

other party, in which event the monies paid on account hereof shall be returned to Buyer and this Agreement shall become null and void and

neither party hereto shall have any claim against the other.

8. Costs and Expenses. Seller shall pay any state transfer tax and for the filing of documents required to perfect title. Buyer shall pay mortgage

tax, fee for recording deed and mortgage, mortgage holders assumption fee, private mortgage insurance premium, if applicable, and all inspection

and reinspection fees charged by its lender, unless otherwise agreed upon.

9. Inspections. Before closing (but after written mortgage commitment has been obtained), Buyer shall have the right to inspect the Property with

utilities in service at Sellers expense on reasonable notice to Seller.

.

10. Title. Except as specifically permitted in this Agreement, Seller shall transfer to Buyer good and marketable title free and clear of all liens,

encumbrances, easements, restrictions, fights and conditions of record or known to Seller.

Seller will deliver a preliminary title report on the premises setting forth all Title Exceptions.

Buyer shall have 10 calendar days to reasonably disapprove any Title Exceptions. If Buyer fails to disapprove within

the time stated, the Title Exception shall be deemed approved. Seller shall furnish at Buyer’s expense a title policy issued by

(title company), showing good and marketable

title vested in Buyer subject only to the Title Exceptions specifically permitted under this Agreement or approved by Buyer. If Seller cannot or will

not eliminate all un-permitted and un-approved Title Exceptions, or fails to deliver title as required under this Agreement, Buyer may terminate this

Agreement and all deposits will be returned to Buyer and neither party shall have any other or further liability to the other.

11. Deed. At the time of closing herein, Seller shall tender to Buyer a Fee simple deed (with lien covenant) conveying

good and marketable title in fee simple to said premises free and clear from all liens and encumbrances, except as otherwise provided herein.

12. Possession. The Buyer shall have possession and occupancy of the premises from and after the closing of deed, subject only to the matters

herein otherwise provided for, and the following: (List any continuing tenancies, etc.)

13. Closing. This Contract shall be closed at the appropriate recording office on the day of , 20____ ,

or at such time and place as Seller and Buyer mutually agree upon. Time is not of the essence as to the closing date; either party may after the

above date, upon reasonable notice, declare time to be of the essence and set such a closing date.

14. Condition of Property. Buyer has inspected the buildings on the Property and the personal property included in this sale and is thoroughly

acquainted with their condition. Buyer agrees to purchase them “AS IS” and in their present condition subject to reasonable use, wear, tear, and

natural deterioration between now and CLOSING. Buyer shall have the right, after reasonable notice to Seller, to inspect them before Closing.

15. Default.

By Buyer: If Buyer fails to perform the Buyer’s obligations, any deposits made by Buyer as may be retained by the Seller as agreed

liquidated damages and in full settlement of any claim for damages.

By Seller: If the Seller fails to perform any of the Sellers obligations, any deposits made by the Buyer, shall be returned to the Buyer on

demand.

16. Brokers Commission. Seller and Buyer agree N/A brought about this sale and the Seller agrees to pay the entire

brokers commission. Seller authorizes his attorney to pay any balance of sale commission owed out of sale proceeds. The deposit(s) shall be

held in escrow by N/A .

17. SIGNATURES. Unless all of the persons whose names appear at the beginning of the Agreement sign it on or before the day

of , , this Agreement shall not become effective.

Seller Date Purchaser Date

Seller Date Purchaser Date

RECEIPT OF DEPOSIT:

Received the initial deposit of $ on account from Buyer.

Agent’s Signature

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Sorry I put this post out of order as the next post was to be on Foreclosures but I have so much info that it took me a while to put it together so i should have it ready by the next 1–2 posts.

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Suggested reading:

The Ultimate Real Estate System-Become a real estate investor the right way

Massive Profits In Foreclosure-Earn $10,000 in 30 days with Foreclosures

Fix your credit– Raise your credit scores and remove negative credit

Free Nationwide Foreclosure Lists-Look for foreclosures in every state

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