Here is my offer on your home if you are in the “greed” group…
This offer is for folks who have not been able to sell their home themselves and have plenty of equity or cash to pay Realtor fees. BUT… they hate the idea of paying a real estate agent a ton of money and cutting into their profits.
Here is my offer…
I will buy your property and take over the payments on your mortgage. I will give you a second mortgage for your equity up to 95% of the true value of the property. I will make the payments until I pay it off or sell the house.
You will not have to do anything once you sign the property over to me… it will become my responsibility.
This is called, selling your house “subject to” the existing loan. Essentially, I am buying your house for the loan amount. Although it is a relatively unknown method for transferring property, it is both legal and ethical. I’d be happy to answer any questions your attorney might have about this process.
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Here is a hypothetical example.
Let’s say the true market value of your house is $150,000 and the total of all liens and mortgages on the property is $90,000.
I will take over the payments on the $90,000 mortgage and we will have an attorney create a new junior mortgage payable from me to you of $52,500. That means I am paying you a total of $142,500 total for the property which is 95% of the real market value.
Here is how you save a ton of money…
You will not have to pay Realtor costs (6% average). You will not have to pay closing costs (2% average). You will not have to negotiate the price (3% average). You will not have to pay for repairs (1% average). You will not have to pay carrying costs while you are waiting to sell (1% per month average) These costs are a total of 13%.
You will also get 7% annual interest on your equity. In this case, 7% of $52,500 is $3675 a year paid monthly ($306). This is better than you can get in almost any other secured, conservative investment vehicle. We will continue to pay on this note for 5 years and will pay it off at the end of that time as a – “balloon payment.” (Note: at the end of 60 months time that is an extra $18,375 of spendable cash in your pocket!)
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Two Other Options
1. If you don’t want to carry your equity, one other option is for you to refinance your house and take out all your cash. Then we take over the mortgage and you are out of the deal with your cash.
2. Some folks would rather steeply discount their property rather than sell it the way I suggest above… although, personally, I don’t think it’s the best move financially – but sometimes it’s not about finances. I buy many properties for cash, but I need a discount of 30% or more below the market value before I consider it. Most people consider an offer like this an insult, so please don’t take it that way – I’m just giving you an option that many people have asked for in the past. (Note if you want this cash offer option please mention that in the comment section of the webform when you fill it out and submit it.)
Here is WHY I buy properties like this and why it makes sense for you
I can close when you are ready. If you need to close right away, we can do it in as little as 3 days. If you need to wait, that’s not problem either, just let us know when you want to close and we’ll be there at that time.
After I sign the simple paperwork with you to purchase your house, you don’t have to do anything. I bring in my property manager and have them find me a good tenant.
You will NEVER have to deal with that tenant. In fact, you will NEVER have to deal with the property at all after you sign it over to me. I take care of everything. I am responsible for maintenance, repairs, and for any possible future damage.
You will NEVER be required to make another payment. I will always make the full payments (principle, interest, taxes and insurance) on time and as you originally agreed with your lender.
After I get the property rented, I will continue to rent the property out until the value has gone up sufficiently. Then, when the tenant moves out, I am gambling that I can sell the house for a profit. Until that time comes, I will pay for any expenses or costs that arise on the property.
I make my money by managing the property, keeping it in good condition and being patient until the values rise. I take full responsibility for the house.
This is a very simple process and takes about 3 days to close. All you have to do is sign the deed over to my company. (Note: If you need more time to move out, that is no problem, just let me know.)
Please be aware that the mortgage stays in your name. I’ll be making all the payments, but your name will still be on the mortgage. This was initially a concern for many of my past sellers, but when I showed them how it worked, they realized it was not as risky as it sounded.
Here’s why…
1. My partners and I own a lot of property and have professional property managers who help us manage them so the properties are well taken care of.
2. We also have a very precise bookkeeper who makes sure we pay all mortgages on time.
3. Because of the other businesses that I run, I have ample cash flow to cover the mortgage payments on my properties when I have a vacancy.
4. We also have very competent contractors to do any repairs or fix ups that are needed as time progresses.
5. I have systems and business plans in place for all contingencies and have been a real estate investor as well as owned investment property and have been in business since 2009.
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Here are the criteria of the
homes that I am seeking
1. We prefer the value of the house to be between $100,000 and $200,000 (we sometimes buy higher priced properties)
2. The mortgage amount for all loans secured against the property must be UNDER the real market value.
3. The mortgage rate must be below 8%
4. The house must be in “rentable” condition. If you aren’t sure on this, just let us know what the major defects are and we will tell you if they are a problem.
5. Payments must be current. We prorate the interest to the day we take over.
That’s it. We are not terribly picky. We buy in “as is” condition as long as the condition is reasonable. You won’t have to pay for (1.) repairs, (2.) Realtor costs or (3.) closing costs and (4.) we won’t beat you up on the price. You also won’t have to continue to pay the monthly mortgage payments… which you would have to do if you listed the property for sale with a real estate agent or realtor.
If you would be interested in selling me your house, please go to this form and give us your information. click here
Below are some common questions we get from sellers.
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Frequently Asked Questions
“I need my cash equity for a down payment to buy a new home.”
One option you have is to refinance the house and pull out your equity up to 95% of the value of the house. BUT… if you are using the money as a down payment on a new house, why not just get a loan on the new home that requires a smaller down payment. The money I pay you every month for the equity note will usually cover the higher payment on your new house.
“Can I still get a mortgage to buy another home, if this loan is still in my name?”
The answer is “YES, you can.” Mortgage Lenders will see the loan for this house on your credit report, but will consider it a “sale” rather than a liability. As long as you maintain good credit, they will not count this loan against you as a debt and it will not affect the amount you can borrow for a new home. You can confirm this fact by calling up any mortgage lender and asking them.
I also occasionally get the following question.
“My mortgage has a “Due on Sale” clause. If I sign it over to you, won’t the mortgage company foreclose?”
99.9% of all mortgages in the nation have “Due on Sale” clauses built into them as standard language. It says that if you sell your house without paying off your mortgage, they have the right to foreclose. My partners and I have purchased and sold over 500 homes “subject to” over the last 20 years and have NEVER had a lender foreclose on one of our properties for this reason. The reason they don’t is, we religiously make our mortgage payments.
Lenders are in business to collect payments on loans. They are not in business to take over properties… especially properties that don’t have much equity. Lenders have credit scores just like you and I. Their credit is damaged if they have a foreclosure on their books. If they get too many foreclosures, they will not be able to make loans. They do NOT want your house back… especially in these tough times for lenders. The pundits are estimating that one million houses will go into foreclosure this year. I doubt that lenders are going to be looking for houses to foreclose on that are making their payments.
Okay, I’d Like To Sell You My House
What Do I Do Next?
Just click on the link below and go to the webpage. It will ask you to give us the details of your house. If you still have questions, there is a place on that form for you to send them to us.
Click Here To Sell Your House
I look forward to working with you!
Best Wishes,
Mike Riley