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Books Real Estate Tips

23 October, 2017



CHAPTER 2 S E L L I N G REAL ESTATE

CHAPTER OUTLINE

MONEY TIPS WHEN SELLING REAL ESTATE

HOME SELLING MONEY TIP #1

LEARN TO CONFIDENTLY NEGOTIATE

LEARN HOW TO BRING BUYERS TO YOUR DOOR

Buyer’s Barriers to Buying

HOW TO SOLVE BUYING HOME BARRIERS

LUCRATIVE OWNER CARRY CONTRACTS

WHAT TO DO WHEN A BUYERS FINANCING FALLS SHORT
EXAMPLE DEAL #1
BUYERS CAN STILL BUY EVEN WHEN FINANCING FAILS
EXAMPLE DEAL #1

SELLING HOMES MONEY TIPS – KEY POINT SUMMARY
Advantages for the Seller
Advantages for the Buyer

Sell your strategy to Prospective Buyers
Explaining and Reasoning Contract Terms

How to Get as Much CASH Out of Your Home as YOU Want

FINANCING STRATEGY on YOUR Contract for Deed
Example #1
Example #2
Example #3

    ——————————————————————–

HOME SELLING MONEY TIP #1

Selling a home can be made difficult or easy. You

make that decision. When deciding on method of sale you really

are setting the stage for the well after or not so well after the sale.

Commission paid, cash losses, and taxes on the capital gain from

lump sum distribution of your equity proceeds going right into idol

pockets of the seller for uncle Sam to seek his fare share.

It is common to think that the sales professionals are

the only way of getting top price for your home. But reality shows

better results in the longrun if you sell your home yourself. In the

“DownMarket” I call this current era of high forclosure numbers

and fewer and fewer real estate offices open and available to do

business with us now – it seems we need to lean on another means

of selling real estate. I see “space available” signs on what used to

be mortgage company offices too. There’s another indicator that

times have changed. How long will the market be down such as

we see it and are experiencing today? No one has “exactly” that

answer.

The main thing here is avoiding contracts that “can be” avoided

when you initially put your home up for sale. And be ready for

contracts when they are in YOUR best interest. What I am talking

about is this:

You payoff your old mortgage loan with proceeds from
the sale and put a down on your future home you will be going

into (should you be buying right then) and the difference is slush.

Thus, if the buyer only has to qualify for two-thirds or one-third of

the asking price with his or her banker or mortgage finance people

then it is much easier for him to qualify. That opens doors to the

SALE of the home much more rapidly. Then the slush is the

amount over and above what the buyer has taken out in loan so

far and the “sales price” of the home. This difference could be

carried as a second trust deed on the home. Not only that, you

can play with the TERMS all you want. This is your own financing

and you can run it out for forty-years at 17.99% interest or balloon

payoff in 20-years so you can help your grandchild into a nice

college 20-years from now, when you know you will “really” want

access to your cash, without mistake or market crash. Important

timing of cashout from property transactions will save you some

tax dollars too. Remember Capital Gains Tax? Avoid it while

possible and make a good rate of interest on your note while you

have the opportunity to do better than the bank’s 2.25%.

Inflation rises approximately 6% or more every year. Good is what

good does, for us now, and later. Holding onto a chunk of your

equity and investing it back into the house in this way creates an

asset. A very powerful asset if you price the paper high enough in

interest rate terms that a “note buyer” would readily be attracted

to this “paper” all day long because of the income stream and the

hedge against inflation, his dollars ‘win’ the game on such a deal!

The noteholder does sell the note for a slight discount of course,

but the point here is, the asset is liquid! You can get cash for this

kind of “paper” carried on a nice home that appraises well and

has good payment history to-date; quite easily. The higher you set

your note rate the easier it is for a note broker to find the capital

to cash you out and buy a portion or all of that note’s steady future

income stream.

Worst thing that could happen is you have to take back your

old home and resell it again but if you are in 2nd position to the

mortgage company forclosing – you will need to check with the

State Department of Finance as to your State’s remedies available

to lienholders in line behind the 1st Trust Deed holder.

Tip #1: don’t contract unless you are writting an asset contract.

Real estate sales people earn on the average 6%. This is what I

call a LIABILITY CONTRACT. That $6000 per 100K is a lot of

equity flushed and irreplacable and non-investible. Neither should

you close on a home and take with it a large amount of idol cash

that will sit in a passbook savings account. Have an investment

plan for the capital that will help you get ahead. The stockmarket,

is, what you are doing for yourself without the “load” fees – you

have a small-capital backed investment in the “paper” you carried

on your old home. It has a fixed rate of interest that out paces the

race with inflation. Who would ask for anything more, and . . .
!!!!!You can cash it out in an emergency!!!!!! , , , and
without taking too much of a loss. You can even partner the

remaining note terms with a note buyer, and still have half the

monthly incoming payments coming to YOU as a partner onthe

note and a steady monthly income still left to enjoy. Plus

remember that you received cash from the sale of one-half of the

payment stream on the deed. You cashed out the amount you

needed and left the remainder well invested still in the home you

sold months ago. It’s not as secure maybe as the passbook

savings account your bank offers, but again YOU decide where

those years of equity in your home get spent or get saved.

Flexibility and yet stable planning for future cash needs. Do it

yourself and keep your money where it belongs,,, in your control.

written by Cheryl Ann Eld now on 2/18/2011 10:11 AM 2/18/2011



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