"Sub
2", or How To Take Over Payments On Houses Subject To
Existing Financing
Successful Real Estate Entrepreneur
Spills The Beans
About His Chief Weapon For Adding
More and More Homes To His Portfolio.…
It is…Taking Over Payments On
Beautiful Homes
Subject To Existing Loans &
Later Reselling Them For $20,000-$50,000 Profit)
What Does It Take to Make A Lot of Money In Real Estate?
The
answer isn't that complicated.
Making
money through real estate investing is all about spreads between
what you pay out and what you receive.
1.
You buy houses with the low payments and low prices.
2.
You sell with higher payments and higher prices. If you master
that skill – you’ll be well ahead in the game.
But
How Do I Get The Financing To Buy The Houses With?
As
you probably guessed, the main barrier to entering the real
estate business is money, or financing. If you plan to buy
and sell a lot of homes you got to have a way to finance your
purchases.
At
least that’s what all “uninitiated” real estate
investors think: “I either have to have the cash or good
credit, so I can borrow money”.
What
if you have neither? Are you out of the game?
Not
at all! You don’t need to have your own money and you
don’t need credit to become a successful real estate
investor. What you need is knowledge about how to buy houses
by reusing good existing mortgage loan financing that’s
already been arranged before by somebody else.
That
brings me to one of the most profitable models in modern real
estate investing.
Business
Model For Success:
Take over payments on existing low interest loans with no
money out of your pocket and resell these homes for profit.
How
can you find these homes that you can reuse their existing
financing?
They’re
all around you.
At
first glance - unbelievable, but true. You do realize there
are hundreds of thousands loans that already have been arranged
(or originated) in your city right where you live? Even millions
of loans in a single large metro area.
I’m
referring to the FHA, VA and conventional low interest, low
payments loans obtained by home buyers over last 2-5 years
and used to purchase their residences.
There’re
already lots of these loans in your marketplace, but there’re
many more better ones coming as you read these lines.
Thanks
To The Government For Low Interest Rates!
As
you know the real estate markets around the country have been
slow. But our government has been faithfully reducing mortgage
interest rates causing a lot of refinancing activities by
the home owners who have higher interest loans.
In
a recent report American Mortgage Bankers Association stated
that in the US in a single year there are about $950 Billion
dollars of new loans created by home owners who refinance
their old existing loans.
Considering
there’re about 100 major metropolitan areas in the US,
that’s about $9.5 Billion in loans on average
for every one of them – YOURS too! And that is being
added to the mortgages in your town almost every year.
Most
of these loans are created at low interest rates of 4.5%-7.5%.
With these low rates, the mortgages (and houses they're attached
to) have low affordable monthly mortgage payments.
The
great news for you as a real estate entrepreneur is - you
can reuse these existing loans without filling out a loan
application, having your credit pulled and passing banks’
rigid qualifying guidelines.
So
you see, you don’t even need a down payment to take these
loans over. What you do need is knowledge of how how you can...
Take
over payments subject to existing loans or financing
(This Strategy is Often Referred to as "Sub 2" for
short)
Whenever
these homeowners who recently obtained a new loan or refinanced
their old loan decide to sell their home, you could be right
there – buying a home from them. But instead of getting
a new loan like everybody else does, you can reuse theirs!
When
you do so, you’ll own a home with very low monthly payments
and long term financing. There are multiple ways for you to
generate massive sums of money once you buy homes like that.
Here’s
an example:
A
few years back I purchased an executive home for under $260,000
by taking over payments on the loan HE QUALIFIED FOR AND OBTAINED.
I didn’t have to come up with any money out of pocket
except for some minor closing costs.
I
originally intended to resell the home “as is” with
owner financing. However, shortly thereafter my family persuaded
me to move into this house.
I can sell this home today for cash for about $500,000. (Remember,
I only paid $260,000 for it!)
Let
me ask you – could you afford NOT to learn this way of
buying homes, when you can take over payments on someone else’s
loan without qualifying or down payment and later resell the
home for quarter of a million dollar profit?
Common,
even after closing costs and commissions, it’s nearly
$200,000 on a single purchase! 75% of the American workforce
would have to work 5 years full time for this kind of money.
Admittedly,
for my town this is a pricey home and the profit margin on
it is pretty sizable.
What
if you were to take over other people’s loans using sub
2 strategy on homes in the $90,000-$150,000 range? Making
$20,00-$30,000 profit and $400-$500 a month cash flow in this
price range is pretty realistic.
In
fact, I hardly ever settle for less.
How
many of these deals would you like to
Take
Over Payments Using Sub 2?
They
are right in your backyard and there will be more of them,
in today’s weak economy.
How
can you learn more about taking over payments sub 2?
There
is a way.
Recently
an old friend of mine, Matthew, called me up. He asked me
to spend some time with him and share some strategies on making
money with real estate.
You
see, just several short months before, Matthew was a millionaire.
That’s right, he was worth about $4,000,000. Unfortunately,
these millions were only on paper, in the form of stock options
of the high tech start-up company he was working for.
At
the time he became fully vested (i.e., he reached the mandatory
length of employment with the company that allowed him to
access all his stock options) the company was going through
a lockout period.
That’s
typically a period of time surrounding company’s quarterly
financial reports. During that time no stock trading/cashing
is allowed.
Finally the lockout was over and Matthew was able to access
all of his stock options. Only at that time the options became
worthless since the company’s stock lost most (99%) of
its value.
Shortly
thereafter Matthew didn't even have a job.
Without
a job and with cash being precious – getting loans and
putting a lot of money down to buy homes wasn’t a viable
option for Matthew. He was pretty eager to learn about this
particular real estate business model of taking over payments
on existing loans subject to existing financing.
So,
we spent about an hour discussing what I do in my sub 2 business
of taking over payments on mortgages. I laid out a plan for
a beginner to follow my steps to success. The conversation
focused on:
Taking
Over Payments Subject To Existing Financing
|
1.
Is taking over loans a real opportunity and can anybody
get involved and repeat my success
2.
What are the benefits for investor of taking over loans
as opposed to other type of purchasing homes
3.
What are the benefits for homeowner of this type of
sale
4.
What are the best loans to take over and which must
be avoided
5.
How to find home owners who have the type of loans we’d
like to take over
6.
What’s involved in taking over a loan
7.
Who could handle the paperwork for such transactions
8.
What are potential pitfalls of taking over loans and
how to avoid them
9.
Since this isn’t a traditional sale of the home,
the homeowners often don’t understand what’s
going on and tend to shy away. How you can explain to
a home owner this type of transaction
10.
How to guarantee the home owner feels safe and secure
about this transaction
11.
How to make a ton of money with the home after you purchase
it and take over the loan
|
This
conversation with Matthew was recorded on audio and is available
to you.
With
the way I take over payment sub 2 existing financing model
I described above (which is mostly how I buy homes in my real
estate investing business) you’ll be reusing existing
mortgage loans someone else qualified for and obtained.
Therefore,
you don’t need
your own cash or credit to get started
If
you were postponing your entrance into this lucrative business
because you thought you needed cash or credit – you now
know how to get around this obstacle.
If
you’re thinking of getting into real estate game be sure
to start learning these powerful concepts of using mortgage
loans created by other people. They can make you rich. This
audio is a “must have” in your library.
However,
let me make one thing absolutely clear.
Will
you know everything there’s to know about...
Taking
Payments Over “Subject-To” Existing Loans
after
listening to this audio interview?
Nooooooo.
Absolutely not.
You’ll
learn the basics, you’ll know what it is about, you’ll
know pros and cons, you’ll know the risks and the benefits,
you'll know what mistakes to avoid and what pitfalls to watch
for and a lot more.
As
a result you’ll be able to decide whether or not this
strategy may help you in your quest for real estate riches.
You
may like what you hear or you may not.
