On today’s episode, I talk about buying houses on terms. This is a follow up to our previous podcast episode, which spoke about the Novations Strategy. If you have not already listened to that episode I encourage you to do so.
In today’s market, if you are doing direct to seller marketing, you are going to be facing sellers who know that the market is hot and know that they can get top dollar.
You are going to encounter many scenarios where the seller wants a retail price or close to retail, and as a cash investor, you simply cannot pay that much.
If you are paying cash, you are typically buying properties at around 70 cents on the dollar. Usually, you are using hard money or private lender to buy properties for cash and because the rates are high, you have to buy at a significant discount for the deal to make sense.
But is there a case for you to buy properties at a higher price like 80 to 90 cents on the dollar? There may be, if there is existing financing in place and the rate is very low on that financing.
The two strategies that I talk about today are both “buying houses on terms” strategies. I use current examples of seller leads that we are currently working on in our office so that you can see how this works with real life scenarios.
On this episode I show you examples of buying a house subject to the existing mortgage and also buying a house with seller financing.
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