When Optioning To Buy Or Buying On Agreement For Deed, Have The Seller Place Their Deed In Escrow - Street Smart Cash Flow Accelerator #22
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 don't want 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. The step one for me is to try to get the deed and we buy that property subject to the existing loan. We purchased it in trust and then we take over the existing financing and I teach you that in another segment and in volume for 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. What's our backup plan? Our backup plan is a thing called a 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. When you buy the property on agreement for deed and yes, I've got the paperwork in my Buying Volume 1 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's many different ways that we can have the seller be the bank. So again, if they're not going to sell you the property subject to the existing loan than our backup plan is, we're going to get something called an agreement for deed. If we can't get the agreement for 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. The key is that when we purchase a property that way, we want the seller to place their deed in escrow. 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 finable, 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 dead. 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 on 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.
To watch the next part of the video go to: Get all the issues uncovered before you make an offer. https://youtu.be/rx8oYlcVgps
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.
