For 30 years I've done my best to give us our two offers a cash offer in terms of. Terms offers a more attractive because the seller generally makes more money. But Sellers need to be creative.

How do you find sellers that are willing to be creative?

I think the easiest way is to either find properties that are for sale already with long days on the market or DOM or look for expired listings

These people are trying to sell and they're not having a good time doing it the traditional way

So what do you do?

If your license, you can't really go after long days on the market folks because it goes against your ethics as an agent

But if you're not licensed, you can knock on their door and say I understand your agent as Mabel to sell your house in a while, would you be interested in doing outside the box and getting a possible solution to your house problem?

Now I know some of you might think you're interfering with a listing agreement between the seller and the agent. If the seller is not performing, getting a cash offer that's acceptable to the seller, then perhaps the seller can work out arrangement with the realtor

If it's an expired listing, I don't know if people realize this book many new agents go after expired listings, and they try to convince the home seller that their company or their marketing ability is better than what they had tried and they want to relist the house

If you are licensed, and you have a list of expired listings, you can knock on their door, and say, I understand you tried to sell before with an agent it didn't work out? Would you be open to a creative idea? It'll take me about 15 20minutes to go over it with you. Boom you're in the door.

Now what kind of solution are you going to talk to him about?

Well the existing financing is high in the loan-to-value was high 95% loan to value, every little equity, and the cost to sell the house including the commissions, closing costs, sellers concessions, spruce up costs and holding costs, all these add up to a good amount of money to be taken out of the proceeds of the sale

So for number sequence it's 100,000 and you show the seller that it's going to take about 1012% of the value of the house if they owe 95% and they got to pay to get rid of the house

So what's the alternative? Well selling on terms entails, if you don't know, some going to rent to own arrangement, or rent them purchase arrangement, or some kind of subject to existing financing, or some kind of wraparound mortgage.

So for us in equity, you going to basically look at everything, the condition, with the sellers need, the urgency for the sellers, existing financing, their comfort level with the due on sale clause with such two in the wrapper on my goods, the lease to own, etc.

To ease for you to profit with no equity deal on the following:

One is you can lease with an option and then assign the deal for a fee. No lease options have different rules in different states. So you should have an attorney that knows lease options really well.

Secondly you can look at subject to existing financing or wrap around mortgages.

To show the difference what I usually do is roll I know y'all up and show the sellers that what's in it for them on the lease to own arrangement and what's in it for them on subject to, the lease to own their going to have to turn into investment property and get landlords insurance and they're responsible for maintenance, and they have to follow the state laws as far as being a landlord

I'm subject to, you buy the property subject to existing financing, and your exit is generally a lease to own or renting it out. Because the due on sale clause, I recommend that you try to get a quick sale within a year to be able to satisfy the existing financing being paid off in full

The nice thing about helping sellers of every little equity is that you don't need to get a bank loan to make some money, and you don't need great credit to be able to run a business that helps seller solve problems, especially Low or No equity.

9 Votes