BiggerPockets

Go to a list broker and purchase " free and clear" lists. These people are very likely to do owner financing.

I am a newbie but this type of financing definatly sounds interesting since you have no loan in your name, but would you really want the owner to finance the property for longer than 5 years? I would think that if you could get the owner to finance for say 5 years then in 5 years you should be able to REFI and payout a balloon payment at the end of the term. Anybodys response would be greatly appreciated.

Like I said I am pretty new to REI and I have a little knowledge of it but how exactly would a Sub-2 deal work out anyways if you are going to rent out the property?

Personally, I flip properties (not wholesaling) without ever taking title to them or doing any fixup or rehabbing. I used to find them, fix them, flip them and then forget them. And where possible, I skipped step 2.

It is so much easier to flip them without taking title (no, not assignments either).

Larry

Let's say the FMV is $150,000, I send people to my website to answer a few questions. In about 95% of all cases, it builds in an automatic discount without me ever having to negotiate.

Now let's say the seller will take $110,000 (they are out there). The house needs no rehabbing or fixup (if it did, I do not buy).

I then begin to market the property and then if their is enough of an equity spread, I will offer the new temporary owner financing which will lend to buyers with credit scores as low as 500 (it is opening up to investors this week). Once my end buyer is approved (looks like that will soon be within 2 days instead of 3), I put the seller and my end buyer together and let them go to closing. So, at that point I am pulling myself out of the equation, using this patented method, I am assured that the title company will pay me my $40,000 profit.

Unless it is a local property, I never see the house, the seller or my end buyer.

Larry Potter

So, if I have your 'method' correct, you must find a seller who is willing to sell at less than FMV and hold owner financing and be okay with you telling them that you are no longer buying but some guy with a 530 credit score is buying and they must be okay with seeing you make $40k at the closing table. And I'm sure you know they do see it because since you never hold any title you are never really present at the closing table so it's just the two parties looking at each other like " why do we need this guy?" . And you must find a buyer before your contract runs up with the seller. Sounds like these are a lot of pieces that must come together, but if you can make it happen, more power to ya.

If your buyer brings their own financing it would be difficult because banks don't like names on the HUD that are not the seller or the buyer or the RE agent. I don't think they would be too happy loaning $40k to some line item on the HUD.

It sounds like what you do pretty similar to what a RE agent does.

Sure there are sellers that want to sell less than FMV, doesn't mean most of them are going to hold a note and be okay with the multiple other things that must come together to make this happen.

i'm not saying it can't be done, it just seems like a lot of things that need to fall into place.

Maybe I'm misunderstanding the discussion:

Sounds like simultaneous closings. I was just talking to one of my friends at the title company.....Transactions where A sells to B who sells to C. Then the loan generated by C pays A and B.....these deals are pretty much gone.

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