How to earn a profit by assigning a "target audience" purchase option to a buyer who challenged a mortgage

For those trying to invest in real estate in today's market there is a unique way that does not require cash or credit, there is no risk of owning real estate for rent or headache. In this article, I will explain how to arrange the non-sellable housing subject to the contract of the existing mortgage and then assign the contract to the buyer who could not obtain the mortgage. Your profit is about 5% average purchase price.

This is not a mortgage assignment

One of the latest madness is now going around the internet, many investors, the e-mailbox is a concept called mortgage allocation. For those who are not familiar with this, it seems that you have assigned home loans from one person to another. Please note that this is not the same as the mortgage assumption that the lessor will legally transfer liabilities from the seller to the buyer. Rather, the mortgage assignment is not just to assign payment to the buyer while the seller holds the mortgage under his or her name. Under the mortgage assignment program, the lower trading will continue to be eligible for the sale of existing mortgages. In either case, if the mortgage is not paid, the seller of the property is still sensitive to credit. What you do is to find a seller who wishes to sell real estate subject to an existing mortgage and sell its real estate to a buyer who has cash, but today's harder underwriting standards are mortgage loans It is not eligible to receive.

Why do not you need to become a realtor

One of the first questions to appear is how can I do this without being a real estate agent? Well, that's easy. What you do is to allow the seller to agree to attach purchase options to their real estate. You now have a fair interest in real estate. You will be marketing your interests to other buyers. This is the same as selling your property to buyers like FSBO.

Understand the transaction of "subject"

For "Subject" or "Sub 2" transactions, we purchase real estate subject to existing loans. This means that existing mortgage loans will not be repaid. If the seller has a share in the house where the seller is trying to make cash, the buyer may make cash available or the seller may agree to make payment in the form of a second mortgage. Normally, Sub2 transactions occur when there is little or no stake in assets because the seller can not refund the mortgage at settlement, or pay the commission and responsibility, or both. An alternative to this is short-term sale or foreclosure, either one is simple and fun.

The biggest problem we face with one Sub 2 transaction is what we call "deadline for sales". What this means is that when a real estate is sold, the lender has the right to demand a mortgage. In other words, we need to repurchase the property of the seller. However, from almost all the experiences of Sub2 investors, mortgage has never been paid for sale. Many experts teach all kinds of techniques to avoid receiving the seller's notice to the seller, such as a land trust or a contract contract, but others taught you to set up a lender in advance I will do it. The way the lender knows about regular selling is not when new acts are recorded but when there is a new owner in the homeowner's insurance contract. In my Find and Assign package I will explain in detail the deadlines and why they do not need to worry.

Seller's dilemma

Currently, the market is perfect for executing Sub 2 tasks. Many houses are in the water, and the seller will bear more burden on the mortgage than the housing value. There are sellers who can not afford to pay at their mortgage, are struggling to make monthly payments, are late for payment, and face foreclosure. In Find and Assign, we have various options the seller has to remove their possessions and a matrix showing the cost of each. If you can show the seller how much you can make the mortgage payment away from your property away from your estate without affecting your credit, you can offer your offer with your motivated seller There is a person who accepts.

Buyer's dilemma

In the past, what you had to do to gain mortgages was to scrape the mirror. In other words, you just had to live! Banks and mortgage companies issued loans to all those who can fill in the application. There were uncollateralized loans, declared income loans, and loans for subprime purchasers. Prepayment is zero. I will flash towards today. It is now necessary to prove your income, submit a two-year tax return, bank statement and obtain a credit score of 680 north. I was a buyer who could get a mortgage a few years ago, but now I can not. Therefore, simply passing the purchase option subject to the existing mortgage to the seller and assigning this contract to the buyer as the allocation fee, we are in a perfect position to sell unresolvable housing to non-sellable purchasers. The new buyer receives the certificate upon settlement and pays the closing cost.

Find the seller

There are many ways to find a seller, such as posting ads on Craigslist and newspaper advertisements. In the sample advertisement, we can say "we purchase a house with little or no capital." One of the wonderful ways to find a seller is to call a realtor to ask you to provide the lead of the person you want to sell, but because you can not put out cash to go for settlement, You can provide. Even if it is told that the agent is honest and can not receive introduction fee, you can legally proxy the agent by becoming an agent of your buyer for that agent. When you acquire a house under a contract and assign a contract to the final buyer, the agency in the settlement will receive their legal fee according to what you agree. In Find and Assign, I will consider many other ways to find a seller for Sub2 Assignment program.

Search buyers

Of course, we need a buyer to complete the transaction and earn money. You can find a buyer by running an advertisement saying "Purchase mortgage unqualified housing". 10% cash is required. "You can post these ads on Craigslist and newspaper ads and you can call these mortgage officers and ask about leads who want to purchase a house but are not qualified for a mortgage loan These loan representatives get your information and let them tell them to the popular buyers.

Create contract

There are two ways to do this. One way is to create a simple real estate purchase agreement. Please write "and / or assignment" after your name. In the Purchase Price section, fill in the price and then subject to the existing funding listed in Appendix A. In the Appendix the mortgage or mortgage balance of the property and the existing monthly payment are stated The second way is to write a purchase option to your home using the same optional subject line for the new buyer with the appropriate escape phrase to walk from the transaction if the buyer is not found There is a purchase option in the agreement Purchase property, but you are not obliged to do 90 days period, you are just walking.

In conducting these transactions, there is disclosure that the seller needs to sign, in fact it is clear that the sale is the subject of the existing mortgage and the fact that the mortgage remains in that name. We also distinguish the possibility of deadline for sales. What I always suggest is finding a real estate lawyer who previously made a Sub 2 deal before starting this. You can find the same way I did in Craigslist! In Find and Assign, I will share with you how I did this and what kind of questions I need to ask. A title agency may be necessary to terminate the transaction. It covers it with search and assignment. You need to know that your real estate lawyer will also use it.

End the transaction

The only thing you really have to do is to make the end buyer write an authorized check of the allocation fee after doing due diligence on the real estate, including searching for titles, checking and so on. In the title search, all the mortgages attached to the real estate, the judgment of the owner, and the back tax paid on the property are displayed. You can search using any title agency. The commission is around 60 dollars. You can let the buyer do this, or let the seller do it and make it available to potential buyers.

When there is a real estate buyer, I would like to consult with a real estate attorney to terminate the transaction. In this way you brought two parties together and played your part to earn your allocation fee. The key is that the real estate lawyer is involved in these transactions and stops closing the "kitchen table". The buyer's seller does not want to come to you because you did not discriminate everything you should have. If you do this right you can get reasonable income by simply assigning one or two objects per month. Search online, you can find what you need on forums and other sites. There are no special formats other than purchase options, assignment of purchase options, purchase contracts and, of course, the CYA disclosure form. Other formats include approval of public information and possibly power of attorney. If you find a real estate lawyer that made these transactions, this person can provide all the forms you need.

I can know more about it

My Find and Assign package provides more detailed information on how to run Sub2 Assignments. This is described in all necessary forms and contracts, including a highly detailed disclosure form in addition to one of the bonus packages in the form of a 42 page guide. I will teach you many ways to find a seller or buyer. It also teaches how to let other people see your property without having cash. In addition to this, you will get a PowerPoint package that you can use with the seller, along with other useful tools and resources. There is no need to spend hundreds of dollars on courses and workshops. If you understand how to find buyers and sellers and understand what formats you need to fill out, you can start with this in cash at all. What you really need is the willingness and commitment to advertise online and what you want to say to those calling you from your advertisement. Searching and assigning can even get scripts and information to send to sellers and buyers.