Real Estate Investor!

Good to see you're still reading this publication! I hope all is well and you're progressing in your real estate investment career.

In This Issue:

Yet Another Powerful Real Estate Investing Strategy for you.

Take Over Payment, Flip For Cash To Another Investor

In the last issue we talked about making money by creating financing, then passing it through to other real estate investors.... and generating a nice chunk of cash for you in the process.

Here's another investment strategy twist I invented related to this. It's probably the easiest to explain with the...

Real Life Example:

I got a call from a lady whose family wanted to move out of area. They bought the home they were living in about a year ago with a VA zero down payment low interest loan program. The loan balance was about $87,000 and the payments were about $850/month including all taxes and insurance.

They were already in the process of moving and wanted somebody to take care of the loan payments. There was hardly any equity in the house and they didn't care to get any money out of the sale, as long as it didn't cost them anything to sell the home. They knew they would not be able to pay 6% realtor commission out of pocket.

I took over payments on the house without having to pay a dime. The only cost to me was a $50 notary fee for their signatures on the Deed.

I put a home on the market and started advertising owner financed sale on the house. I was looking for a buyer who'd occupy the home, make monthly payments (of more than $850/month) and eventually get his own loan and pay me (more than $88,000 loan balance I assumed).

Before I found a buyer like that, I was approached by a couple of different real estate investors offering to pay me $5,000-$12,000 in cash to assume the payments on the loan. This could have been an easy cash profit for me.

Even though I ended up not selling the property to investors, this situation is very common and illustrates how easily you can turn good financing on a house into quick cash from investors. The cash you can take to your bank in days or weeks, not months or years.

Right now, there're hundreds of investors in your town (assuming you are in a major metropolitan area) who are ready, able and willing to pay $10,000-15,000 for the opportunity to take over payments on a good low interest loan they can assume without qualifying.

The reason they were offering a good chunk of cash for the house was because of the very attractive terms on the loan. It was a 30 years, 7.5% interest loan which they couldn't have gotten if they were to apply for an investment property loan. This loan offered them a higher cash flow than they would be able to get on the same home with the investor loan.

The rates on investor loans are typically 1.5-2% higher than those on residential owner occupied properties. Such a difference could amount to $100 or more extra cash flow monthly. That adds up over a period of time.

Besides, they'd have to put about 20% (or $18,000 for this size of purchase) in down payment funds in addition to $4,000 in closing costs. Here they were getting a house with quite a bit less than $18,000.

Now you see why good financing is valuable to investors, and how you can flip properties to them for quick cash profit, if you choose to do business with them.

In the future issues I am going to show you how you can make a ton of money by offering financing to owner-occupant buyers.

Never Ending Supply Of Deals

One of the keys to doing deals like above OFTEN is -- never running out of motivated sellers who're calling you and literally begging to take the property off their hands. I dug up a great resource that will help you to generate so many calls from motivated sellers - you won't know what to do with them... Hopefully you will after reading this issue and the previous one... just pass them through to other investors for quick cash. Surf to this page to read a Special Report on Direct Response Marketing for real estate Entreprenuers. You'll learn A LOT about generating tons of leads from motivated sellers. Marketing For Motivated Sellers

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In The Next Issue...

Goldmine in selling deals with good financing to owner-occupant buyers.