HOW TO MAKE $72,000 BUYING A HOUSE FOR TOP DOLLAR RICHARD ROOP
any
seller
down
payment,
closing costs, repairs costs and
holding costs. It also includes
reimbursement of any money
spent on mailing postcards.
But that is not all. You need
cash! So we always pull out
extra
cash
out
at
closing
(usually $10,000 to $20,000).
This is key, since we want to be
able to “buy and hold” yet we
still need some cash profits -now.
Consider borrowing up to 50% of the value of the
done with a $72,000 profit. That’s because any
property on the first mortgage without bank
profit goal you choose is treated as an expense.
qualifying. Would this be a pretty safe, well-
The higher your costs the less you offer a seller.
secured note for a private lender? I’ll say. They
So you always lock in your profit.
have a first position and tons of equity to protect
them. If you make this opportunity available (flap
These first mortgages are so well-secured that I’ve
your lips) you’ll find folks who’ll be happy with 6%
found money partners who will do them nationwide
to 10% annual interest. I offer 8% and am very
for me and my clients -- even though they can’t
comfortable making this opportunity available to
inspect or visit the property. We simply provide
friends, family or anyone else I know.
them with a certified appraisal and close with a
nationwide title company to protect them.
Actually you can offer whatever interest you want
to a private lender. It does not cost you anything.
The note payments are covered by the income
you collect on the property. And the total cost of
How to Get Sellers to Carry a Note with
Little or No Interest
the loan is accounted for when determining the
price you’ll offer to the seller. So if you pay more
to a lender you simply offer less to a seller.
Sellers agree to carryback a note because they
love the price and other benefits you can offer.
About one out of 10 free and clear sellers will
You can even pay hard money lender rates of
12% to 15% plus points if needed to get the deal
accept your offer because they understand it, see
the benefits, feel comfortable with you and it works
for them.