When Getting Owner Financing, Ask For ‘Substitution of Collateral’ - Lou Brown's 101 Street Smart Cash Flow Accelerator # 17
I’m going through some of the contract closes in our amazing standard rent, a standard purchase and sale agreement on the buying side. I've got one for buying and I've got one for selling. I'm focusing on the buying side here in this tip when getting owner financing asked for substitution of collateral. Now that's a powerful one. I'm going to teach you how to master the process of getting sellers to carry bank financing. I love the idea of the seller being the bank. Now when they carry back that loan, there's a mortgage and in that mortgage you have some stipulations in there, some clauses, and one of the clauses I recommend that you have in there, and it's included in my purchase and sale agreement, is that the seller agrees to something called substitution of collateral. Of course they're carrying back a mortgage on the property that they're actually selling to you. And you might find a buyer for that property. While it would be a terrible thing to get rid of that seller financing, wouldn't it? Wouldn't it be wonderful if you could move that seller financing to another property? Well that's what I'm teaching you to do. Move that financing to another property. It's so powerful when you've got the right paperwork and you've got the right language. I'm sharing with you something that we call our standard purchase and sale agreement and it is loaded with profit centers and protection and that's in my system called “Buying Volume One” and one of the amazing things about having the right paperwork, it can make such a difference in your life. Go to streetsmartinvestor.com click on tools and then take a look at the buying system. I promise you it will be well worth your investment and we've really become a staple in the industry for paperwork. So you will know that you're getting the best paperwork and the industry has been tried. It's been true. And it's something that many of my licensees have used for literally decades, and I'm encouraging you to get that for you and your business too. To watch the next part of the video go to: Offer to Buy "Subject To" Owner Financing - Lou Brown's 101 Street Smart Cash Flow Accelerator # 18 https://youtu.be/AVJwKwdFRmE
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.
