All Forum Posts by: Bill Jones

Hi Kevin, Here's how I do it...Or should I say we, through group investing.

.

1. Purchase inexpensive homes $5000-$20000 (I have an inexhaustible supply of these kind of homes they are not junk they are totally livable and not in need of repairs. They are not in a war zone there in a good area of the country that I'm from and totally familiar with. with all cash we can close on these homes within days.)

2. We, that is us the investment group resell the homes holding the first trust deed or a land contract...The return on investment is astounding... here's and example:

Purchase Price $6000

Sell Price $30000

Down Payment $1000 (The reason we can sell at this price is the low down and low monthly payments..Cheaper than rent)
Hold note for 10 years 120 months at 11%

Payment $399.48

Yield 95.88% (That's unbelievable)

Months until return of initial investment 12.52
Total payment $47,937.60
Profit $42,937.60

But here's the best part..If we want we can sell the note as follows:

FULL SELL
Yield 20%
Sell price $20,671.06
Discount $8,328.94
Profit $15,671.06

PARTIAL SELL
Yield 30%
Months 60
Sell Price $15,223.54
Remaining Balance $18,142.24
Total Profit $34,192.74

The financing possibilities are endless...

Hi Kay, Don't listen to the nay Sayers "Just do it" Here's one way

Can you still buy with No Money down? The definitive answer. Yes and No. It depends. The no money or nothing down deals are out there, they're just harder to find and have to be approached differently. (When this latest bubble bursts and it will...Creative financing will come into its own again.)
No Money Down?
Think of buying with no money down as 100% financing. In other words you're going to borrow all or most of the money needed to purchase the property.

Here's what I mean. You find a suitable property for let's say $100,000 the seller owes the bank $75,000 how to we purchase the property? You offer to take the property "subject to" the existing bank loan, and ask the seller to loan you some of his $25,000 equity by holding a note for $12,500 called a wrap or an AITD all inclusive trust deed.

Then you borrow another $12,500 from a third party who you would give a note secured by a second mortgage on the property as security for the down payment money.

Congratulations you just purchased a property for 100% financing or no money down.
I should mention here that most of you will have different reasons for needing the information found in these postings. Maybe you have good credit but no money. Or you have the money for a down payment but no credit.

The example used above is just one of the many ways the purchase could have been accomplished. However, by using other no money down or creative financing techniques such as a land contract, a lease option or equity sharing may be advantageous for you as a buyer or seller. We will explore all of these techniques in detail and more in subsequent postings.

But no mater what technique you're going to use you want to make sure it's a win win for the both of you, however the one with the better knowledge of creative financing will ultimately come out on top. So it's very important that you have an understanding of your creative financing options so that you as the buyer or seller and not the other party can use the correct or best way to structure the deal.
My lessons favors the buyer and will first point out their best approach and secondly the sellers approach. You as buyer or seller will have to determine the technique that works best for your situation. With that said let's get to it....Next time
If you need any help structuring any type of deal give me a shout
Bill

Hi again Wayne is correct about the lender lowing the loan balance (I wish)

However the deed does not have to be transfered go to my blog here to see why...

http://www.biggerpockets.com/blogs/4633/blog_posts/33239-creative-financing-in-a-nutshell-part-one#c_15713

Hi Daniel, read my blog posts and find your answers...No the bank is the last ones you want to deal with

Bill

People that don't understand contract law, especially those outside of California... Can't think outside of the box when it comes to real estate

Ms Poe your absolutely correct... 90% of my deals are escrow instructions only... Mostly unlisted seller carries

Hi Elder you can check out my blog here on BP "Creative Financing in a Nutshell" need ay any help let me know

Bill

Hi Ryan,

We invest in inexpensive home out of state and hold the first mortgages

Bill

HI Anthony Give me a call need further information

Bill 562-344-5047

Hi Andre,

Welcome I'm new here also...I specialize in creative financing but I also co invest buying inexpensive homes in the Upper Peninsular of Michigan..reselling holding the first mortgages the ROIs are amazing if intersted give a a shout

Bill