Here is my offer on your home if you are in the “need” group…
Once again, this offer is for folks who have not been able to sell their home themselves and do not have enough equity or money to pay Realtor fees.
This is a very common situation. It does NOT necessarily mean that you are broke or poor or even in distress. What it means is that you bought a property, got a mortgage on that property and the value of the property has not gone up enough to create the equity you need to pay a real estate agent to list the property in the MLS.
Here is my offer…
I will buy your property and take over the payments on your mortgage. 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 if they aren’t up to speed on it.
Since you don’t have any real equity, you would not receive any money for the house, but you would not have to continue making payments after I took over either.
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 payment (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. When my partners and I purchase property we typically have professional property managers who help us manage them so our properties are well taken care of.
2. We also have a very precise bookkeeper who makes sure we pay all of our 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 should I have a vacancy.
4. We also have very competent contractors do any repairs or fix ups that are needed as time progresses.
5. I have systems and business plans in place for all contingencies, have been a real estate investor, and have owned investment property for many years. As a matter of fact, I teach real estate investing and sell information that shows new investors how to make money in this business. If you are interested, you can find out more about me at this site click here.
Here are the criteria of the
homes that I am seeking to buy
1. The value of the house must 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.
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.
Frequently Asked Questions
A question that many folks have when deciding whether or not to accept my offer is…
“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 have good credit (which is required for all mortgages), 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.
“But I do have equity in my home and I’d like to get something for it.”
If you have much more than 10% of real equity in your home, you should look at my other category, the “greed” category. Just click here to go to that page.
If you have less equity than that, it is unlikely that you would get much (if any) money back after you close, if you sell through a real estate agent. Most folks in this category have less equity than what it would cost to sell the property… so they would actually have to come to closing with cash in order to sell through a real estate agent. This small amount of equity is known as “realtor equity.” It only exists if you succeed in selling it for cash as a “for sale by owner.”
By the way, it is possible to sell it yourself and get this equity, (although you would still have to pay closing costs, carrying costs, negotiate with the buyer on the price and pay for repairs) but the statistic is that 85% of all “for sale by owners” do not succeed in finding a cash buyer.
“My mortgage has a “Due on Sale” clause. If I sign it over to you, won’t the mortgage company foreclose?”
99% 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. We 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 back 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 seriously doubt that lenders are going to be looking for houses to foreclose on if the payments are being made.
Okay, Mike… I’d Like To Sell You My House
What Do I Do Next?
Just click on the link below and go to this web page. 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.
I look forward to working with you.
Best Wishes,
Mike Riley