Hi! It’s Lou Brown. With another of my valuable profitable 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flow. So today’s tip is number 22. When optioning to buy or when buying on an agreement for deed, always have this seller place their deed in escrow. Now one of the things you might have heard about is that you could actually purchase a property by simply getting an option and a lease with the seller. So rather than actually getting the deed on the property, maybe you’re not so sure there’s equity there. Maybe you’d be better off doing a lease with the option to buy. Maybe the seller doesn’t want to give you their deed. Maybe they want to stop you from getting their deed. Maybe they’re concerned that you won’t make the payments. Maybe they’re concerned they would have to foreclose to get their property back.
I’ve got solutions for that, and I love it. So the Step(1) for me is to try to get the deed and we buy that property subject to the existing loan. So we purchased it in trust and then we take over the existing financing and I teach you that in another segment. And in volume four, Land Trusts. And let’s say that the seller, for whatever reason, probably your own concern about whether this is going to work or not, your own, let’s say way of being that you’re not giving off the right vibes. They’re a little bit concerned with your own apprehension about doing it because that’s really the problem. It’s not that it’s a bad concept or there’s anything wrong with the concept, it’s that you have to get comfortable with it yourself. And you have to learn what I call the magic words and I’ve definitely got those magic words and I teach them to you.
But let’s say they say no. Okay, what’s our backup plan? Our backup plan is a thing called ‘Agreement for Deed’ where we buy the property with an agreement to get the deed at a later date. When you perform. When you do what you say you’re going to do. Now when you buy the property on an agreement for deed and yes, I’ve got the paperwork to do that in my buying volume one system so that you’ve got everything that you need to be able to purchase properties. Remember that my philosophy is, and what I teach you is we don’t go to banks and we don’t qualify for loans. So there are many different ways that we can have the seller by the bank. So again, if they’re not going to sell you the property subject to the existing loan then our backup plan is, we’re going to get something called an agreement for deed.
And if we can’t get the agreement for the deed, our backup plan is a thing called a ‘Lease with the option to buy. Now I’ve got all the paperwork to do that. And the key is that when we purchase a property that way, we want the seller to place their deed in escrow. And the reason is something might happen to the seller. They might die, they might get divorced, they might leave town, we might, they might not be find-able. And all of a sudden we’re ready today to get our deed, but we can’t find the seller anywhere or the seller’s deed. So what do we do if we’ve already got the deed in escrow with escrow instructions? Then it prevents the seller from controlling that deed any longer because as long as we fulfill those instructions, as long as we do what we said we’re going to do, then we can get our deed without the seller having to be present. Isn’t that a wonderful solution?
Well, I hope that you enjoy this. I hope this has been valuable to you. I know it will make a difference. I know it will make a profit for you. I’ve done this over and over again. I can teach you the magic words and I’d love to share with you more of my profitable tips. How can you get more? Well, simply wherever you’re seeing this. Please like it. Please love it. Please share it with others. Please comment on it. Please subscribe. And thank you for watching. And I hope to see you soon. Yeah, baby!
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