How to Take Over House Payments (Owner Finance Homes for Investors)
How to Take Over House Payments (Owner Finance Homes for Investors)

How to Take Over House Payments (Owner Finance Homes for Investors)

How to Take Over House Payments. (aka Subject To) Owner FinancingWhen a seller owns their home, you can consider owner financing. You create a note (if you don’t know what this is, The Mother Course covers it in extreme detail) and then secure the deal. The seller will appreciate how fast the closing is and as the buyer, and you don’t have to worry about your credit rating or loan costs. Not convinced about Subject To? Here’s a case study that will sway your opinion.3054 Rambling Drive, Dallas, Texas is an address that sold me on Subject To. It’s been quite some time since the deal went down but I’ll never forget the address. After taking over the property and renting it out for quite some time, I sold it for a cash gain of about $70,000. I can’t remember the exact amount so I’m rounding for my memory’s sake.When I added the cash flow I received over the years of renting to my equity cash out, I foundout I had made well over $100,000 from this single property that I obtained through Subject To.You can check out my blog at www.myrealestatedojo.com to see the paperwork for yourself.I bought the property from a firefighter. He was going through rough times and was highlymotivated to sell. He was three months behind on his mortgage and didn’t want to faceforeclosure. Because of how motivated he was, I ended up only paying for the three months theywere behind and my closing costs, which all together was around $3,000. A large amount ofmoney but not impossibly huge to come up with.17 I didn’t have to get a loan. I didn’t have to put down a down payment. I didn’t have to ask myparents for money. I didn’t have to give the seller anything. All I had to do was put the houseunder contract, close on the deal, and start making payments. After about five years, I becamehighly motivated to sell due to family situations and was handed that huge check. Imaginegetting a check for about $70,000 when you only put down $3,000! You won’t find that sort ofreturn anywhere else, folks.This is a notable example of finding a motivated seller. You’re only going to buy from motivatedsellers. The fireman who owned this house had a wife, two kids, and two dogs he needed toprovide for. He didn’t want the home to go into foreclosure and ruin his credit. He NEEDED to sell. I stepped in, took over the payments, let them stay until they found a new home, and thenrented it out.When the time came for me to sell, I was motivated. I let the house go for about $120,000 belowmarket. But I sold it to another investor who was able to sell the house again for profit. In thissituation, everyone came out a winner.When you work with motivated sellers, they’ll do what they need to do to keep you interested.When you’re a motivated seller, you can find a buyer who will dance to your tune. It’s all aboutmotivation, whether that motivation is financial or emotional. If it’s there, you’ll come out on top.18 So, to sum this case study up, I bought a property Subject To. It cost me $3,000 to purchase thehome. After renting the home out for several years, I sold the property, making $100,000 through my renting profits and cash equity. No one went into foreclosure (in fact, the firefighter’s creditimproved when I sold it) and I never had to take out a loan. I made a huge return on my investment without having to flip the house or put more money into it.If you’re still not sure about Subject To, look at HUD-1 , line 203: Existing loan(s) taken subject to. You’ll see that this is completely legal and possible for you to take advantage of today. This is a great strategy. It’s what I call an exponential lever. If you want to learn more about Subject To, check out Thank you for clicking the LIKE and the Subscriber Button. Thanks for watching!!

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