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 .