REI WEALTH MONTHLY Issue 35 | Page 29

# 18 – Shared­Appreciation Mortgage
SO MANY WAYS TO BUY( PART 2) BRUCE KELLOGG

# 18 – Shared­Appreciation Mortgage

When the market is appreciating rapidly it is sometimes difficult to convince a seller to sell on reasonable terms, or to carry back owner­financing. One approach to this is to create a“ Shared­Appreciation Mortgage” which the seller carries back. Usually, it involves a low interest rate, but then gives the seller a percentage of the profit at the end of the loan term. This approach also works well in a high interest rate environment because it helps the buyer achieve a reasonable cash flow to sustain the property. A“ standard form” for this type loan is not normally available, so it ' s best to have an attorney draw one up, or customize an existing one.
Watch out for Part 3( final part) in the next issue.
Bruce Kellogg
Bruce Kellogg has been a Realtor ® and investor for 35 years. He has transacted about 500 properties for clients, and about 300 properties for himself in 12 California counties. These include 1­4 units, 5 + apartments, offices, mixed­use buildings, land, lots, mobile homes, cabins, and churches. He is available for listing, selling, consulting, mentoring, and partnering. Reach him at brucekellogg10 @ gmail. com, or( 408) 489­0131.