Today’s tip is number 21 have the seller refinance their home, get the cash that they need, and sell it to you subject to the existing loan. Now, how does that work? Well, let’s say that you go to the house, and in one of my other tips, I said that we go through a presentation with our sellers. When we’re going through the presentation, we do something called the cost to sell worksheet. We get down to a final number that shows the seller their equity. Now let’s say that our seller was insisting really did need cash. Okay, how can we get them their cash and how can we stay out of the bank and not qualify for a loan? I love that part.
I’ve never been to the bank. I’ve never qualified for a loan on a single-family or small multifamily property. Now if I can do it, I know you can do it. So one of the ways I’ve done that in the past is the seller says, let’s say that their equity in that property is $20,000 okay, great. Then we have the seller go ahead and apply for and get a new loan on the property. They get the money from that new loan. Then we take over the payments on that brand new loan, so we bought the property subject to the existing financing. Now when we use that cost to sell a worksheet, just know that property has not been financed up to 100% of the property. Its finances are significantly lower than the value of that property, so it’s easy for them to be able to qualify for a new loan because there’s so much equity in the property and if they have a good relationship with their local bank, they might be able to easily get that loan.
Now there are other ways that we can do this and I love sharing them with you. I’ve found 37 different ways that we can structure transactions. I even have a full-blown training on this called millionaire deal maker. It’s a four-day event. Just on the topic of creating deals and I need you to master transaction engineering, master deal structuring because that’s where the money is. One of the things I teach you is that you make your money going in, you realize your money while you own it and when you sell it, but you make your money going in. So you got to master structuring deals and millionaire dealmaker is where we do that. Now you can learn more about that in my buying volume one and you can also learn that and millionaire dealmaker, the live training. So if you’re interested in the system that we use the printed system, then you’d go to street smart investor.com and look under tools. If you’re interested in the training, go to a millionaire deal maker.com I hope you enjoy this. I hope you’ll use it. I know it will make you money and I’d love for you to share this with your friends. I know that these profitable free tips will help you if you’d like to get more, depending on where you’re seeing this, please like it.