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"Owner Will Finance" -- Those are magic words. Even in a market where institutional interest rates are low, those words will get the phone ringing. Whether you are buying or selling, you need to understand how to get this financing or take back financing your self without getting taken!
This class will be of interest to Buyers, Sellers, Real Estate Agents, Note Brokers and Note Investors. We will consider the difference in terms and financing you would want as buyer versus those you would want as seller. We will also discuss how selling and carryback financing can benefit the investor who wishes to retire from day-to-day management.
Below are just some of the topics we will cover.
- Getting a Higher Price for the Property, while Selling Faster
- Difference in Balloons & Calls – when to use each
- WRAP Notes & Mortgages
- Lease-Options, Lease-Purchases, pure Options & Land Contracts as financing tools
- Terms & paperwork depending on whether you are Seller, Buyer, or Note Buyer/Broker
- Clauses to include in Note & Mortgage
- Interest only, normal & negative amortization
- Getting Seller to give you 0% financing
- Tax reporting – installment sales1098, 1099, Section 121, dealer sales, capital gains, SE tax
- Dealer property issues and owner financing
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- How to Purchase Subject-to
- Dealing with Insurance
- “Nothing Down” v. “No Money Down”
- Getting Guarantors/Co-Signors
- “Abandoning” the Collateral and suing on the Note as alternative to a Deficiency Judgment
- Collections & alternatives to foreclosure
- “Walking the Mortgage”
- Additional Collateral
- The relationship of Price & Terms
- Discount for early payoff & lump sum payments
- Substituting Collateral
- Using pure options to control property for future appreciation
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Experienced real estate investors know that you must understand owner carryback financing if you are to stay in the game for the long term. You cannot always depend on conventional sources of financing.
They know that when you sell, you can...
· Get top price by taking terms rather than all cash,
· Sell faster to a larger pool of prospective buyers
· Defer taxes on any gain by using an installment sale,
· Receive a higher rate of return than if you put after-tax proceeds
from a cash sale into another investment, and
· Receive monthly income secured by property you know.
But, they also know that when you buy, you can...
· Often get an effectively lower price based on negotiated terms,
· Buy faster and without all the paperwork, time and expense of conventional lenders,
· Take loans "subject-to",
· Often get a lower interest rate, and
· Chance to further discount in the future.
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