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.
Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8738
Todd@IFoundYourNewHome.com
http://www.ifoundyournewhome.com/
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)622-8739
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard.
All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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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.
Doug - Thanks, sorry it took so long to get back you. (LOL)