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With ARM's adjusting it could be a great time if you are an investor

You hear it in the news everyday that $100,000 Adjustable Rate Mortgages will adjust in the next couple months. But what does that mean to you if you are an investor? It means good times are here!  You see, as buyers, ARM's adjust their payments may get out of reach for them and if they don't have enough equity to sell the home they are either going to have to give it back to the bank or sell it for a loss. (MAYBE)

Here is what I propose to them and it makes it a win-win for my investors and the seller. On a $300,000 home the commission's can be as high as $21,000 and if they bought the home for $285,000 they are not going to be able to sell it to get enough to pay closing costs and commissions. What I have them do is sell it to one of my investors for what they bought it for and then the investor does a lease option on the property to another buyer. I get paid out of the lease option and the investor agrees to split the net profit he gets from the sale of the property when the option is exercised with the original seller.

The investor has only closing costs out of pocket, and saves $15,000 on the purchase of a home, and the seller is out from under a mortgage he couldn't afford without having to pay a commission. I know I'm going to get a lot of feedback on telling these people to sell their home without paying a commission, but the commission is getting paid, but just at a later time.

The original home owner is now saving $6,000, because he didn't have to come out of pocket for commissions, and in two years when the option is exercised on the lease option, he could get a check for $15,000 from the profit split with the investor.

Difficult times can make for excellent opportunities with out of the box thinking to investing. Using other people's money is a great way to do that. For more information on out of the box solutions to investing and getting a money producing investment property, feel free to call or email me anytime.


Respect Realty LLC (Expect More)


At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction.  We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.


Reach out today, we look forward to talking with you!


Todd Clark and Seraina Aguayo (Owners of Respect Realty)

Respect Realty LLC (Expect More)



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Comment balloon 4 commentsRespect Realty LLC • September 23 2007 12:21AM


I love the way you think outside of the box Todd. You have some really great ideas!
Posted by Rick Grand (nowhere) about 12 years ago

Rick - Thanks and thanks for thinking of me when it came to your client that had some credit issues, I am hoping when he calls I can help them.


Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) about 12 years ago
Todd, Another great post.....
Posted by Doug Beaver, Corona Norco Eastvale Riverside Homes (Century 21 Olde Tyme) about 12 years ago

Doug - Thanks, sorry it took so long to get back you. (LOL)

Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) over 10 years ago

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