Proudly Brought to You by

 [FIRSTNAME]  [LASTNAME]

 

OUR CORPORATE PARTNERS

You Make and Save from Every Company in Every Link Below!

Constantly Being Updated with New Money Making and Saving Links

Auto EVERYTHING!

Auto Loans

Beauty Products
Business Supplies
Clothes & Misc Accessories
Computers

Credit Cards & No Credit Personal Loans

Free Credit Reports
Discount Insurance
Education and Career
Electronics

Entertainment

Music Mags Books,Tickets

Fine Jewelry & Watches
Gifts and Flowers
Food, Spirits & Sweets
Health & Fitness Grow Young!
International Services
Pet Care & Supplies

Real Estate & Home Repair

    No Down RE Financing
      Free foreclosure Lists
Shoes

Success Principles

Toys and Games
Travel and Vacations

No Credit Check Personal Loans

 

 

Free Home Classifieds

Have a house to sell? To Rent?  A Rent to Own Home?  Place your ad, complete with picture and description for free!

 

 

Free Misc Classifieds

BRAND NEW! Selling a car? A motorcycle? Looking for a friend, placing a personal? Misc goods or services?  Place your ad here-- for free!

 

NEW!

Fund Raising Assistance

Are you... or do you know of a School, Church or other worthy organization that is need of new sources of Revenue?  Click Here to see how we can help.

 

Health Products

Every nutritional product you can think of is here.

 

Free Search Engine Submission

Free links to all major search engines and directories.

 

No Down Home Loans

Low Interest No Down Home Loans, even with bad credit, late pays, collections or bankruptcy.  Let us show you how easy it is to buy!

 

Want a New Career in Finance? No Experience or Lic. Required.

Click here for complete details.

 

Free Repo Lists

Always Free lists of Foreclosures, HUD homes, Bank Repos, VA foreclosures, IRS Seizures, etc...

 

Do You Need a Will?

Valuable estate planning and Low Cost Will Preparation Services.

 

U Pay 2 Much Taxes

Income tax strategies that will save you money.

 

No Down Investments

Free Online Creative Financing Course teaches you to buy real estate with no money, no credit, (even bad credit), and even no job.

 

Divorce

Tips on how to have a successful divorce, and low cost nationwide services.

CHAPTER 7

 

"SUBJECT TO" ASSUMPTION & SELLER CARRY BACK

Let's now assume that you have come across a property that is selling for $100,000; it has a loan balance of $50,000 with payments of $500 per month. 

 

With this scenario, the seller has $50,000 in equity.  Like anyone else, he would prefer to sell the property and get his $50,000 equity in cash.  But, consider this...  When he sells the property, what is he going to do with the cash?  In many cases, this money is going to go into a bank account and sit there collecting 3% interest. 

 

Do you think that if he could get a secured 12% interest instead of a mere 8% he would be interested?  The answer is obvious.  Now we will see how you can give him what he wants, namely, a higher interest rate and get what you want; a property without a down payment. 

 

The first part of the formula is simple assume the first loan of $50,000 (as we discussed under assumptions). Or simply take the loan ďSubject ToĒ.  This simply means that you donít actually formally assume the existing loan,  you simply take responsibility for the loan, and make the payments directly to the lender. 

 

You take over the payments of $500 a month and you're set.  But what do you do about the other $50,000 that is still owed the seller?  Simple! 

 

You execute (sign), a second mortgage in favor of the seller, secured by the property you are buying.

 

What this means is simply this:  The $50,000 that you owe the seller, (his equity) is now secured by the property you are purchasing.  In other words, if you do not make the payments, just as any other lender, he has the right to foreclose and take back the property.  When creating the second mortgage, the terms can be whatever you and the seller decide upon.  It can be 10%, 12%, interest only, due in 5 years, 10 years, 30 years or whatever.  Any terms that fit the wants and needs of both you and your seller will work.  However, in our example, we said 12%, so lets see what happens...

 

For our example lets say we created a 12% interest only note, all due and payable within two years. What this means is that for the duration of the loan, (2 years), you pay only the interest.  (12% x $50,000 = $6,000 per year or $500 per month)  By paying only interest, your monthly payments stay low, however, at the end of the two years you still owe the seller $50,000.

 

There is a reason for stipulating that the loan be paid off within two years...  Although the seller may not have an immediate need for the cash, it is very rare that a seller would want to wait ten, twenty or thirty years for his money.  By structuring the transaction in this manner, the seller not only gets a high rate of return on his money but he has an assurance that he will have access to his money in the near future.  Two years is a short enough period of time to make it attractive to the seller and a long enough period to create enough appreciation to either refinance to repay the second with a refinance or sell the property at a profit.

 

You have just purchased a one hundred thousand dollar piece of property with nothing down.  Your payments are $1,000 per month, ($500 to the first mortgage plus, $500 to the seller); and as we explained earlier, even if you barely break even on a monthly basis, in the long run, you have just made thousands!

 

What if there is no loan to assume? Here's a simple variation on this financing method.  If the property is "free and clear", (no loans against it), the seller can usually refinance the property, put the proceeds in his pocket, have you assume or take that loan ďsubject toĒ, and then have you execute a second mortgage in favor of him for the balance.

 

This way, he gets his money, and you still get the property with nothing down.

 

In this example the seller received NO cash out of the transaction.  What if he absolutely insists on putting a substantial amount of money in his pocket?

 

See Chapter 8.

Assumption & Seller Carry

 

 

 

Chapter 1

Introduction

 

 

Chapter 2 How to

Raise Cash Creatively

 

  

Chapter 3

Borrow against money.

Chapter 4

Selling Money

 

 

Chapter 5

Buy with no down and get cash back at close of escrow.

Chapter 6

How to assume a loan

 

Do you or someone you know need a quick infusion of cash? 

  

 

Chapter 7

The Wrap Around Basics

 

 

 

Chapter 8

Assumption & Seller Carry

 

 

Chapter 9

Wrap Around Mortgages

Wrap Around in Action

 

 

Chapter 10

Buy with no job or money

 

 

Chapter 11

buy and get cash back

Buy and Get Cash Back 

 

 

Chapter 12

Get Creative

 

Chapter 13

How to Borrow Even Closing Costs

 

 

Create the Appearance of Wealth.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Today's Solutions for Today's Issues

Send mail to Bruce@allsolutionsnetwork.com with questions or comments about this web site.
Copyright © 2004-2016 Bruce Castro The All Solutions Network
Last modified: 05/04/2016 08:56:46 AM