financing secrets of a millionaire real estate investor.pdf

More documents

Recommendations

Info

5 / Creative Financing through Institutional Lenders 81 From an investment standpoint, they are a fair to good bet, depending on interest rates and market inflation. Most laypeople think of bonds as being a secure investment. Of course, institutional lenders are generally too savvy to accept the face value of a bond as collateral. However, when dealing with a private motivated seller, an owner-carry offer that is cross-collateralized with U.S. Treasury bonds sounds appealing. When making an offer to a seller with owner financing, offer the face value of the bond as collateral. Although the present value may be less, the very idea of a bond as additional collateral sounds safe. Furthermore, bonds can be used in lieu of a down payment. ☛ Example: Sonny Seller owns a house free and clear and is asking $100,000 for his house. Brian Buyer offers Sonny $110,000 as follows: $30,000 in U.S. Treasury bonds and an $80,000 note secured by a mortgage on the property. The $30,000 in bonds, if they matured in 30 years, can be bought for a fraction of their face value, depending on the market interest rates. In the seller’s mind, he’s receiving more than the asking price, but the buyer is paying much less than the asking price (sometimes sellers are stuck on asking price just because they are ashamed to tell their neighbors they took less!). For an excellent reference on using bonds as collateral for real estate financing, I recommend Formulas for Wealth by Richard Powelson, Ph.D. (Skyward Publishing, 2001). For more information on bonds, try .
82 FINANCING SECRETS OF A MILLIONAIRE REAL ESTATE INVESTOR Key Points • Avoid loan costs on flips—use the double closing. • Use the middleman technique to overcome lender down payment requirements. • Don’t let lack of income hold you back—use NIV loans. • Think beyond the property for collateral: substitute, subordinate, and cross-collateralize.
Page 5 and 6:
This publication is designed to pro
Page 7 and 8:
vi CONTENTS Government Loan Program
Page 9 and 10:
viii CONTENTS 8. The Lease Option 9
Page 12 and 13:
CHAPTER1 Introduction to Real Estat
Page 14 and 15:
1 / Introduction to Real Estate Fin
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
CHAPTER2 A Legal Primer on Real Est
Page 24 and 25:
2 /A Legal Primer on Real Estate Lo
Page 26 and 27:
Page 28 and 29:
Page 30:
Page 33 and 34:
22 FINANCING SECRETS OF A MILLIONAI
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42: 30 FINANCING SECRETS OF A MILLIONAI
Page 91: 80 FINANCING SECRETS OF A MILLIONAI
Page 100 and 101: CHAPTER7 Partnerships and Equity Sh
Page 102 and 103: 7/ Partnerships and Equity Sharing
Page 110 and 111: CHAPTER8 The Lease Option The road
Page 112 and 113: 8/The Lease Option 101 is not relie
Page 114 and 115: 8/The Lease Option 103 Famous Optio
Page 116 and 117: 8/The Lease Option 105 job just a s
Page 118 and 119: 8/The Lease Option 107 The house ne
Page 120 and 121: 8/The Lease Option 109 your option
Page 122 and 123: 8/The Lease Option 111 • whether
Page 124 and 125: CHAPTER9 Owner Financing If you’d
Page 126 and 127: 9 / Owner Financing 115 FIGURE 9.1
Page 128 and 129: 9 / Owner Financing 117 a corporate
Page 130 and 131: 9 / Owner Financing 119 long before
Page 132 and 133: 9 / Owner Financing 121 Simply tell
Page 134 and 135: 9 / Owner Financing 123 FIGURE 9.2
Page 136 and 137: 9 / Owner Financing 125 Problems wi
Page 138 and 139: 9 / Owner Financing 127 one willing
Page 140 and 141: 9 / Owner Financing 129 This is a b
Page 142 and 143:
9 / Owner Financing 131 FIGURE 9.4
Page 144:
9 / Owner Financing 133 of each mon
Page 147 and 148:
136 FINANCING SECRETS OF A MILLIONA
Page 150 and 151:
APPENDIXA Interest Payments Chart 1
Page 152 and 153:
APPENDIXB State-by-State Foreclosur
Page 154 and 155:
APPENDIXC Sample Forms Uniform Resi
Page 156 and 157:
SAMPLE FORMS 145
Page 158 and 159:
SAMPLE FORMS 147
Page 160 and 161:
SAMPLE FORMS 149
Page 162 and 163:
SAMPLE FORMS 151
Page 164 and 165:
SAMPLE FORMS 153
Page 166 and 167:
SAMPLE FORMS 155
Page 168 and 169:
SAMPLE FORMS 157
Page 170 and 171:
SAMPLE FORMS 159
Page 172 and 173:
SAMPLE FORMS 161
Page 174 and 175:
SAMPLE FORMS 163
Page 176 and 177:
SAMPLE FORMS 165
Page 178 and 179:
SAMPLE FORMS 167
Page 180 and 181:
SAMPLE FORMS 169
Page 182 and 183:
SAMPLE FORMS 171
Page 184 and 185:
SAMPLE FORMS 173
Page 186 and 187:
SAMPLE FORMS 175
Page 188 and 189:
SAMPLE FORMS 177
Page 190 and 191:
GL OSSARY abstract of title A compi
Page 192 and 193:
GLOSSARY 181 improvements. Also use
Page 194 and 195:
GLOSSARY 183 applied towards the pu
Page 196 and 197:
GLOSSARY 185 security instrument A
Page 198 and 199:
RE SOURCES Suggested Reading Altern
Page 200 and 201:
IN DEX A Acceleration clause, 118 A
Page 202 and 203:
INDEX 191 blended, 73 Federal Reser
Page 204 and 205:
INDEX 193 W Washington Mutual, 22 W
show all

financing secrets of a millionaire real estate investor.pdf

Create successful ePaper yourself

Delete template?

Save as template?