What Is Owner Financing?

- - Uncategorized

two_way_puzzle_people_800_clr_4872This is the most common way to get a hundred percent financing. This is where the current owner agrees to finance all or some of the purchase price. If it’s just some, you can get the remaining amount from Cogo Capital or another local private lender in your market. If you have the financial or credit wherewithal, you could also go as far as getting conventional financing.

Common owner financing is where the principal will be paid at a later date, which is called a deferment. You can also defer the interest and stack all of the debt at the end where an exit strategy will occur. That exit strategy can be the sale of the asset or a refinance of the asset with either conven- tional financing or a new private money loan. We actually see this happen a lot in Cogo.

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6 Questions To Ask A Seller

- - Communication

paper_question_mark_19357Before structuring the deal, you need to understand the seller’s motivation. Why are they even having this conversation with you? To do this, here are some questions that I want you to make sure that you’re asking. The answers will help you in the negotiation and give you some idea of the terms to put into the purchase and sale agreement.

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Why Use Private Lenders Instead Of a Bank?

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keyhole_handshake_money_400_clr_18558The difference between banks and private lenders are these. For regulation as it relates to banks, regulation is very high and as it relates to private lenders it’s low. I don’t have a crystal ball and I’m probably going to regret saying this, but I don’t an cipate or foresee much regula on in the private money mortgage market any me soon other than the licensing requirements which we’re already seeing.

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Create a Marketing Plan for Leads

- - Personal Growth

business_word_block_400_clr_7620I’m wealthy but that doesn’t mean that’s because I work hard, I work smarter not harder. I’m going to go after the easy, or what I’ve heard called the “low hanging fruit” by putting together a marketing plan and generating an easy and consistent steady flow of leads.

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Unlock Your Potential In Four Steps

- - Personal Growth

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Too often, we‘re bogged down by work and other activities and we forget to hone our emotional and mental assets.

The rule of thumb is: If what you do completes you and gives you joy, then it‘s a strength and you should spend more time developing it. If it depletes you, then it‘s a weakness and you should give it the boot.

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Where Do You Find Foreclosures?

- - Getting Started

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At the County Recorder’s Office you will find notice of default lings in non-judicial states. Bankruptcy filings is often also an indicator that a foreclosure is looming. Many homeowners will unfortunately utilize the trump card of bankruptcy too early in the foreclosure process. If they understood strategy, they would know that bankruptcy should not be  utilized until a week of the home actually going to auction. I used to teach an entire training class on bankruptcy and foreclosure where if you know what you’re doing and all the angles, you can actually avoid foreclosure against the lender for three to five years. I don’t teach that nearly as much as I used to since I became a lender because I don’t want anybody utilizing these loopholes and cos ng me three years to foreclose.

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Lease Options

- - Flipping

                                                             Lease Options were one of the first strategies that I utilized when I was first getticustom_corner_street_sign_14248ng started in real estate. Some of you are familiar with my story of working at a grocery store, where I was making about $3.90 an hour while putting myself through community college. I did not have an extra penny to spare. My credit cards were maxed out from buying lunch at McDonalds between breaks at school, and I didn’t have any extra cash. And this is why I’m really sensitive to those of you who are getting started in this business. For some of you, cash is really tight right now and lease options may very well be the thing for you because you don’t have to have cash or credit if you negotiate them properly.

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Wholesale Case Study

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I just want to walk you through a brief wholesale deal. Let’s assume now that you’ve gone out and you’ve put a property under contract for $100,000 and then you’ve assigned it to another buyer for $105,000. Now when you go to closing, your end buyer will actually bring $105,000 – $100,000 for the purchase and $5,000 for the assignment fee.

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