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Caught
On Audio:
Successful Real Estate
Entrepreneur Spills The Beans
About His Chief Weapon For Adding
More and More Homes To His Portfolio.…
It is….Taking Over Payments
On Beautiful Homes
(and Later Reselling Them For $20,000-$50,000 Profits)
What
Does It Take to Make A Lot of Money In Real Estate?
The
answer is an amazingly simple 2-Step Plan:
Step
1.
Equip yourself with the right tools
– you got to learn how and where the money is made in
the real estate game.
And
it’s not that complicated.
Making
money with houses is all about spreads between what you pay
out and what you receive. You buy with the low payments and
low prices. You sell with higher payments and higher prices.
If you master that skill – you’ll be well ahead
of the game.
But
first you must learn your tools – the strategies to find,
make and finance your purchases at low cost and the strategies
to sell for the most profits overall and monthly.
The
world is full of ignorant people who refuse to learn and absorb
the information that’s available to investors aspiring
to succeed in real estate.
Don’t
YOU be one of them.
Step
2. Use what you learn diligently
– knowing is not enough, you got to apply, adjust and
apply again until you make it work.
Ignorance
isn’t the only sin causing failure. The world is also
full of smart people who are broke. They get the “know
how”, they read the books, go to seminars, buy home study
courses – but never take action.
Knowledge
by itself is useless, only its application will bring results.
How
Do You Get The Money To Buy Homes With?
As
you could guess, the main barrier to enter the real estate
business is money, or financing. If you plan to buy and sell
a lot of homes, you got to have a way to finance your purchases.
At
least that’s what all “un-initiated” folks
think: “I either have to have the cash or good credit,
so I can borrow money”.
What
if you have neither? Are you out of the game?
Not
at all! You don’t need to have your own money and you
don’t need credit. What you need is knowledge about how
to re-use good existing financing that’s already been
arranged before by somebody else.
That
brings me to one of the most profitable models in modern real
estate.
Business
Model For Success:
Take over payments on existing low interest loans with no
money out of your pocket and resell these homes for profit.
We talked about the necessity of you learning how to finance
your purchases at low cost – to guarantee you make high
profits.
Where
can you find the mortgage money to buy homes?
They’re
all around you.
Are
you aware there are billions of dollars in loans that already
have been arranged (or originated) right where you live?
I’m
referring to the FHA, VA and conventional low interest, low
payments loans obtained by home buyers over last 2-5 years
and used to purchase their residences.
There’re
lots of these loans in your marketplace,
but there’re many more coming as you read these lines.
In
a recent report American Mortgage Bankers Association stated
that in the year 2001 alone there would be about $950 Billion
dollars of new loans created by home owners who refinanced
their old existing loans in the U.S.
Considering
there’re about 100 major metropolitan areas in the US,
that’s about $9.5 Billion in loans on average for every
one of them – yours too! And that’s only in 2001!!
All
these loans that just have been created have interest rates
of 6%-7.5%. With these low rates, they will have low affordable
monthly mortgage payments.
The
great news for you as a real estate entrepreneur is - you
can re-use these loans without filling out a loan application,
having your credit pulled and passing banks’ rigid qualifying
guidelines. You don’t even need a down payment to take
these loans over.
What
you do need is knowledge of how to go
about taking over payments on these existing loans.
Whenever
these homeowners who recently obtained a new loan or refinanced
their old loan decide to sell their home, you could be right
there – buying a home from them. But, instead of getting
a new loan like everybody else does, you can re-use theirs!
When
you do so, you’ll own a home with very low monthly payments
and long term financing. There are multiple ways for you to
extract massive sums of money once you buy homes like that.
Here’s
an example:
A
while ago I purchased an executive home for under $260,000
by taking over payments on the loan. I didn’t have to
come up with any money out of pocket except for some minor
closing costs.
I
originally intended to resell the home “as is” with
owner financing. However, shortly thereafter my family persuaded
me to move into this house.
It’s
been about 5 months since I got the house and the market is
not as great as it was a year ago this time. Nonetheless,
I can sell this home today for cash for about $350,000. (Remember,
I only paid $260,000 for it?)
Let
me ask you – could you afford NOT to learn this way of
buying homes, when you can take over payments on someone else’s
loan without qualifying or down payment and later resell the
home for $100,000 profit?
Common,
it’s $100,000 on a single purchase! 75% of the American
workforce would have to work 3 years full time for this kind
of money.
Admittedly,
this is a pricey home and the profit margin on it is pretty
sizable.
What
if you were to take over other people’s loans on homes
in the $90,000-$150,000 range? Making $30,000 profit and $400-$500
a month cash flow in this price range is pretty realistic.
In
fact, I hardly ever settle for less.
How
many of these deals would you like?
They
are right in your backyard and there will be more of them,
in today’s weak economy.
How
can you learn more about taking over payments?
There
is a way.
Recently
an old friend of mine, Matthew, called me up. He asked me
to spend some time with him and share some strategies on making
money with real estate.
You
see, just several short months before, Matthew was a millionaire.
That’s right, he was worth about $4,000,000. Unfortunately,
these millions were only on paper, in the form of stock options
of the high tech start-up company he was working for.
At
the time he became fully vested (i.e., he reached the mandatory
length of employment with the company which allowed him to
access all his stock options) the company was going through
a lock-out period.
That’s
typically a period of time surrounding company’s quarterly
financial reports. During that time no stock trading is allowed.
Finally the lock-out was over and Matthew was able to access
all of his stock options. Only at that time the options became
worthless since the company’s stock lost most of its
value.
Today,
Matthew doesn’t have a job.
Without
a job and with cash being precious – getting loans and
putting a lot of money down to buy homes wasn’t a desirable
option for Matthew. He was pretty eager to learn about this
particular real estate business model of taking over payments
on existing loans.
So,
we spent about an hour discussing what I do in my day-to-day
business. I laid out a plan for a beginner to follow my steps
to success.
Here’s
what the conversation focused on:
|
1.
Is taking over loans a real opportunity and can anybody
get involved and repeat my success
2.
What are the benefits for investor of taking over loans
as opposed to other type of purchasing homes
3.
What are the benefits for home-owner of this type of
sale
4.
What are the best loans to take over and which must
be avoided
5.
How to find home owners who have the type of loans we’d
like to take over
6.
What’s involved in taking over a loan
7.
Who could handle the paperwork for such transactions
8.
What are potential pitfalls of taking over loans and
how to avoid them
9.
Since this isn’t a traditional sale of the home,
the homeowners often don’t understand what’s
going on and tend to shy away. How you can explain to
a home owner this type of transaction
10.
How to guarantee the home owner feels safe and secure
about this transaction
11.
How to make a ton of money with the home after you purchase
it and take over the loan
|
This
conversation with Matthew was recorded on audio and is available
to you.
With
the model I described above (which is mostly how I buy homes
in my business) you’ll be re-using existing loans.
Therefore,
you don’t need cash or credit to get started.
If
you were postponing your entrance into this lucrative business
because you thought you needed cash or credit – you now
know how to get around this obstacle.
If
you’re thinking of getting into real estate game be sure
to start learning these powerful concepts of using mortgage
loans created by other people. They can make you rich. This
audio is a “must have” in your library.
However,
let me make one thing absolutely clear.
Will
You Know Everything There’s To Know
About Taking Payments Over “Subject-To” Existing
Loans
After Listening to This Audio Interview?
Nooooooo.
Absolutely not.
You’ll
learn the basics, you’ll know what it is about, you’ll
know pros and cons, you’ll know the risks and the benefits…
…As
a result you’ll be able to decide whether or not this
strategy may help you in your quest for real estate riches.
You
may like what you hear or you may not.
