3 UFP METHOD 3 Note4Equity Seller Carries In case where your discounted

3 ufp method 3 note4equity seller carries in case

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3. UFP METHOD #3: Note4Equity – Seller Carries In case where your discounted purchase price is still substantially above the existing loan balance, and assuming the seller is willing to wait for that equity, you will have them carry back a promissory note. This way you buy the house by taking over their loan, and the remaining equity will be paid at a later date. I teach my students to never mention an interest rate when talking about seller carry notes. As the result, all of them are getting interest free carry back financing by the seller. This is ‘cheap’ money, plus it provides more opportunity to profit later on by discounting that note – I will cover more on that in my live event. By the way, this is a great strategy. I love creative real estate and you will too!! 4. UFP METHOD #4: Cash4Deed – Tiny Down=Deed In this scenario, the seller needs some money to move and will not let you by for the balance of their loan without it. For example, the house is worth $100k, the
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Foreclosure Investing MASTERY - Manual – SECTION 1 . Copyright 2017 – 2018 © Marko Rubel MarkoRubel.com Page 34 of 121 loan is at $75k and the seller agreed to sell it to you for $78k. In this case you will write them a check for $3k at closing and you still received a great deal with the long term financing in place that you can sell any way you want. 5. UFP METHOD #5: Reinstatement – Foreclosure Reversal This is in essence the same as any of the method explained above, but in addition the seller is late on the payments and the lender has started the foreclosure process. When you receive the deed on the property in this scenario, your ownership is subject to that foreclosure action – so if you don’t stop foreclosure you will lose the property. In order to reverse the foreclosure, you will need to catch up on the back payments owed by the seller. This is a very powerful method because the sellers in this scenario don’t have a lot of options and are very motivated. That results in great deals. Here’s an example of a great deal that I purchased using this method: Worth: $470,000 (Fair Market Value) 1 st Loan Balance: $220,000 + $25,000 to reinstate Purchase Price : $335,000 included the 1 st loan, the reinstatement, and the seller carry back note for the remaining equity in the amount of $90,000. Selling Price : $445,000 Cost to Sell : $24,000 Note Discount : $10,000 TOTAL PROFIT : $96,000 (Sold to an outright buyer who got a new loan) As you can see, this was a great deal but it needed $25,000 to reinstate. If you find a deal like this and put it under contract, I will partner with you and provide the money. This is one more reason for you to be an active Diamond Member. Many of you have received discounted tickets for the LIVE training, where your $2,995 tuition has been waived. That is a GREAT BONUS! You should definitely take advantage of it – I will take you through precise negotiation points needed to
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Foreclosure Investing MASTERY - Manual – SECTION 1 .
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  • Spring '15
  • Mr. Gardner
  • Subprime mortgage crisis, short sale, Hard money lender, Hard money loan

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