Creative financing closing??

3 Replies

I have been considering investing in real estate for quite some time now.  I do not have enough money to purchase a home outright and in a couple of conversations I have had, I have lost leads due to my inability to close quickly.  I have looked into the creative financing department and have found that it could be a great option for me... if I knew how to close the dang thing.

My thinking is that if I, for example, wanted to purchase a home and got a seller to carry a loan - I would need to pay this loan off and take title before I OWNED the home, in which case I could sell the home to another buyer.  Since I never really have had the money to own the home, and therefore never really own the home... How do I actually sell without taking title?  Does this require me to do a double closing and sell before I actually own the home?

@Cameron White

You are in UT

If it has equity, you could buy on a wrap or sub2 + note or installment land contract.

If it has little or no equity, you could lease option and assign, buy on sub2 or wrap or Installment land contract.

If it is free and clear you could buy in Installment Sale.  See

http://www.irs.gov/taxtopics/tc701.html

Go here for posts on above

http://www.biggerpockets.com/blogs/3-reiskills-and...

Medium banner reiskills 997   copyBrian Gibbons, REISkills | [email protected] | 818‑400‑3046 | http://MyREISkills.com

Thank you for your reply - I can see a sub2 or a assignment but I don't exactly want to take the risk of having a loan called because a lender found out about this.  

If I did, for example, a lease option, how would I close when trying to sell to a new buyer?  I would need to exercise my option to buy (which I do not have money for) before I could sell it, so how do I sell the home without actually owning the home?  The key here is that I do not want to get a loan since they can take a while to get funded...

If you're limited on funds

Enter your LLC into a lease with an option with the seller,

market for a tenant buyer, 

assign your paperwork to the buyer for 3% fee

Medium banner reiskills 997   copyBrian Gibbons, REISkills | [email protected] | 818‑400‑3046 | http://MyREISkills.com