When Getting Owner Financing; Ask For First Right Of Refusal If Mortgage Is Sold - Street Smart Cash Flow Accelerator #16
One of my favorite ways to buy a property is to have the seller be the bank. Write that down. The seller is the bank. Now when the seller is the bank, it's a really cool thing because of course you didn't have to go to the bank, you didn't have to qualify for a loan, you saved all the points, you saved the closing costs, you save all of the pain and suffering of qualifying for that loan in the first place. Very, very powerful thing to master. I mastered owner financing decades ago and I share with my clients how to do that. I share that with my students, how to create an amazing business without going to banks and without qualifying for loans. It's one of my favorite ways to buy properties. Well, when you get a seller to carry back financing, then they're getting a mortgage and you're paying a note to that seller. Well, that has value and they could sell that to somebody else if they were to sell it to somebody else. If it has a clause in there that says the payor (that's you) gets a first right of refusal to purchase that note, because many times when those notes are sold, they're sold at a discount, so why not you receive that discount? Now, if you've got the funds to do it, great, you go ahead and buy the note. If you don't have the funds to do it, great. Let them sell it to somebody else and you keep on making your payments just like you agreed to do.
To watch the next part of the video go to: When getting owner financing ask for ‘substitution of collateral’ https://youtu.be/-H0L_DTJIuY
Investors have long regarded Lou’s training, systems and forms as the best in the industry. He has been quoted as an expert by many publications including The Wall Street Journal and Smart Money Magazine.
Lou draws from his wide and varied background as a real estate investor. Having bought property since 1977, he has invested in single-family homes, apartments, hotels and developed subdivisions, as well as building and renovating homes and apartments. These experiences have given him a proving ground for the most cutting-edge concepts in the real estate investment industry today.
