Sign Kentucky Banking Residential Lease Agreement Easy

Industry sign banking kentucky residential lease agreement easy

welcome back to the flip nerd calm REI classroom where experts from across the real estate investing industry teach you quick lessons and take your business to the next level and now let's meet today's an expert host hey everybody I'm Jim anchor saw with the REI classroom thanks for tuning in today I've got some really awesome content to share with you on seller financing so that you don't have to go out there and suck up to loan officers and hope that you can get a bank mortgage this show was sponsored by passive rental calm go directly to the seller now you might be wondering why would a seller ever want to be my bank they're trying to get rid of this this deal this house that they own and they're motivated to do so so why would they want to do it well let's talk about that real quick before I tell you how to do it because you've got to believe they need you as bad as you need them as the bank so first of all you're gonna buy it as is that means when I write my contracts with directly with sellers I write in there that I don't care about lead-based paint I don't care about mold I don't care about termite inspections none of that all of that goes away they can't do that with regular investors now number two as let's talk a little bit about the price because as real estate investors we're taught we got to nail that price as low as we can go but in some cases there's a gap and you can never close the gap with some sellers they want 80 your max buy formula says you can't go a penny over 70 well what if you went up a little bit above 70 outside the confines of your your cozy max buy formula and it allowed you to have that seller be your bank could you do that deal I think the answer is yes in many cases it goes back to rehabbing your financing before you start rehabbing that house so you can give them a little bit more money as well it's a good way to do it now one of the questions I asked the seller when I'm trying to get seller financing is what are you going to do with this hundred thousand dollars you're gonna get because you're a high equity seller you're selling you've got tons and tons of equity what are you gonna do when you get all this pile of money what are you gonna do with it your most common responses well I'm gonna put it in the bank well then you can talk to them about wouldn't it be nice instead of earning 1% in a certificate of deposit right now if you earn 6% loaning your equity back to me see how you frame that and you short us sort of shifted during your negotiation now let's let me give you three examples of seller finance deals that work very very well in today's market the first one is free and clear in a hundred months free and clear enum 100 months I hope I have your attention would you love to start lining up free and clear houses in a hundred months let's the seller is stuck on $77,000 they've got to have nothing less than 77 your max buy formula says you shouldn't go above 70 but let's say for a minute you agree with me you're willing to go up to that 77 here's how you can do the deal you could give that seller a 10% down payment $7,000 and the remainder of the money which is a $70,000 balance let's give it to them in 100 months of payments of $700 a month you know the interest rate on that is it's a big flopping zero I love 0% interest that's a hundred percent advertising loan that's why I love that and that's how you get to free and clear really fast if you didn't have to pay all the interest on your loans you'd pay them off in less than half the time so that's number one number two let's say they really want a fair price they want to make sure they get a fair downpayment and a fair interest rate why don't you negotiate something else that I love which is the term called deferred first payment if you had the ability to buy a house seller financed you give the seller the price they want you give them a fair interest rate say 6% and you give them a fair downpayment say 10% then why don't you negotiate in this term you won't make your first payment for six months that gives you six months to get the house rehabbed to get it occupied with a great tenant and it gives you six months of in of no payments do it all which really is juices up your cash flow for a while deferred first payment you can't do that deal at the bank but you can do it with the seller as your bank and finally one of my favorites is called the 5050 this is where you tell the seller let's say your buy formula says you can't go above a hundred K and the seller says that's great but I want to solve for less than a hundred and ten all right then you say mr. seller all right I'm gonna give you full price for your house is very fair one hundred and ten thousand dollars here's how we're gonna do it I'm going to give you 50% at closing and I'm going to give you the final 50% in six years one payment so a closing you give them $55,000 they feel very warm and sound payment you make no payments for six years and then you pay them off the other $55,000 it gives you six years of a ton of cash flow coming in because you don't have any payments - it's like having a free and clear house for six years the end of six years you can either pay them off or sell the house that's three ways you can go out in structure seller financing directly with the seller talk them into being your bank so you don't have to go to the loan officer get a portfolio loan a hard money loan or a Fannie Mae compliant loan I'm Jim Ingersoll with the rei classroom I hope you enjoyed that you may want to go back and listen to this one again and I've got a free gift for you today go to big money investor com forward slash flip nerd because flip nerd is the absolute best have a great day passive rental calm is your source for turnkey done-for-you rental properties if you'd like to be an investor in not a landlord please visit passive rental calm to learn how to purchase cash blowing professionally managed rental properties in the hottest rental markets across the country we can also help connect you with financing for your next property invest the easy way today and get started by visiting passive rental calm please note the views and opinions expressed by the individuals in this program did not necessarily reflect those of flip nor calm or any of its partners advertisers or affiliates please consult professionals before making any investment or tax decisions as real estate investing can be risky [Music] are you a member yet a flip nerd calm the hottest real estate investing social community online if not you can join for free in less than 30 seconds and get access to hundreds of off-market deals vendors in your market to help you in your business and you can start networking with thousands of other investors just like you get your free account now at flip nerd calm please check out the flip turn family of real estate investing shows where you can access hundreds of expert interviews and quick tips and lessons 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