You thought about renting it, but you realized that wouldn’t work due to the land lording headaches. Now you must leave town and the home sits vacant.

Your home sits vacant and you have no hope of it selling. You will probably make three or even four mortgage payments. Your insurance company could cancel your homeowner’s policy if the home sits for 30 days or more. (Read your policy!) Your home sits there with no bites and you think about reducing the price to sell it quickly. You know you need to do something NOW!

Maybe you owe more than the current market value, can’t afford to pay Realtor commissions – no problem, and yes the property can be legally sold even if it’s upsides down – ask me how?

OR – You choose to be the Bank, make tens of thousands more, get the highest market value sale price possible (Seller Financed houses sell quicker, and for a premium because of the built in financing) have a monthly cash flow, no real estate commissions (Buyer’s pay us) and pay the taxes on the profits as you receive them.

Here’s the solution: Owner-Finance.

• • Sales Price: $135,000
  • Interest Rate: 6%
  • Down Payment: $2,000
• • Monthly Payment: $797.40
  • Term: 2-5 Years (Negotiable)

We paid the seller monthly payments for 5 years and then paid the balance off in full by refinancing with a bank. The initial term is set for 5 years but could be purchased any time before the end of the term.

Let’s see how the seller did:

Sales Price: $135,000 – Down payment $2,000 = New Purchase Price of $133,000
The seller received monthly payments of $797.40 for 5 years. They received monthly cash flow with no maintenance costs or repairs for the entire agreement. At the end of the term, the balanced owed was $123,762.45. We paid the balance off and the seller received a nice profit. The seller received $36,606.45 just in interest. Total payment for five years was $171,606.45. Much better than receiving and all cash offer 5 years earlier.

What’s The Point?

You may be asking yourself, “What’s the point of this real estate lesson?” Well, first we are Real Estate Agents and we are a group of private investors that specialize in Owner Financing, Leasing, Buying, Fixing, Marketing, and Selling Houses.

We offer a unique Owner Finance program that will fit your needs. We will Owner Finance your home from you at an agreed price and terms. We will find a suitable buyer that we will qualify, to live in your home. When our buyer is ready to buy, we will help them get financing to buy your home. We will then buy the house from you and the new buyer will buy the house from us. Our price is higher than what we bought it from you. This is a WIN/WIN situation.

SELLERS BENEFITS:

• Build Equity every month
• No long vacancies
• Safer than conventional rentals, better quality tenants
• No management headaches
• Receive non-refundable down-payment
• No Maintenance Costs or Repairs
• Tax benefits

Why Don’t I Just List It With A Realtor?

It won’t hurt you to list your home unless it doesn’t sell. However, most real estate brokers simply just list the home on the MLS and hope to get a bite. The first problem with listing your home is that there are thousands of homes on the MLS. Realtors also have several other homes they are trying to sell as well. The second problem with listing your home with a Broker is that they don’t understand what Owner Finance is or they will say there isn’t enough money for a commission.

When we agree with you to Owner Finance your home from you, we take it seriously. We treat your home as if it was ours. We are constantly thinking of ways to move your house faster, so you can get on with your life.

What If The Tenant/Buyer Tears Up My Home?

Well, there is no guarantee that a tenant won’t damage your property. But under our agreement, if that happened, we would repair it at our expense. Our goal is to find a buyer that will be able to qualify for a loan. It has been our experience that Lease-Option buyers treat the home as if it was their own, so damages are rarely a problem.

What about a Property Manager?

A property manager will charge you around 8-10% of the monthly rent. Sometimes you will need to follow up on property managers to make sure their doing their job. Anytime there are repairs needed, the property manager will call a repairman to fix the problem at your expense. Not only are you losing 8-10% every month but also you will be paying all repair costs.

How Can I Trust You?

You are probably asking yourself, “How can I trust these people with my house?” Great question. We understand your concern. If there is anything we can provide you so you feel comfortable with us, just ask. We want you to be able to sleep at night and not have to worry about your home.
Give us a call today and find out how we can sell your home with our Owner Finance Program. If you want an alternative to the stale conventional ways of selling your home, pick up the phone and call us NOW! Our company is about RESULTS. We’re confident that our program will work for you.
See the full Report Below: “Why Should I Take Payments When I Sell?”

“Why Should I Take Payments When I Sell My House”

Would you like to know ALL your options before making such an important financial decision?

To anyone reading this, the assumption is that you are trying to sell a property and you are considering selling quicker by taking back a second mortgage note however, you may have some reservations or perhaps don’t quite understand all of the advantages. First of all, let me tell you my feelings: I do not want just cash! If you get large chunks of cash for the equity in the house you have to pay excessive taxes on it and the money just disappears. So my question is really simple: Why would you ever want to take cash? Let me give you several points to think about…

POINT #1

The mortgage note secured by your house with monthly payments coming in is going to produce a steady monthly income. (I will explain later just how secure it is, and why financially you will be better off if they don’t make their payments and how we totally have verified the Buyers are legit). These checks will keep coming in if you are alive and well, sick and in the hospital, or dead and gone. Surely you realize that even though you write a contract with payments coming in for 25 or 30 years, the buyer of the house may refinance or resell the property in 8 to 10 years or whatever and cash you out, but for a long period of time you are going to receive these steady checks. Young families and older people alike who are looking forward to retirement should think about having a higher interest on their money like 5, 6, 7 percent on their money as opposed to less than 2% per year currently being paid. To help the buyer(s) one could structure the payments on a graduated starting smaller at first and increasing as time goes by. You could later perhaps sell the note later, and with the payments you already collected, have possibly received the full amount of the original mortgage note that was created.

POINT #2

By selling the house this way you will be able to claim your profits on the installment sales method. Simply put, you will be able to claim them as you receive them. The IRS Form 6252 is the Form that will be used. Always check with your accountant or CPA along with your Attorney before you sell this way, to be sure of all the options available to you at any given time, as law are always changing.

POINT #3

By selling you house this manner, normally you don’t have to take discount, but in fact sell at or above market value. This should improve your monthly income from the mortgage note. You will sell faster and for more because you will be selling to a larger group of buyers who under today’s very strict standards are keeping them out of their chance to purchase now, even though they make a great monthly income.

POINT #4

The monthly income stream can be used for some other monthly payments you have or will acquire in the future. You could take the mortgage note and trade it for other properties or for a car. It is a marketable item that has value (correctly structuring the mortgage note will increase the value). Let me give an example: If you sold your house that had equity of $40,000. And you received $400 month for that equity but, you needed the cash to buy a new car. If you used the cash to purchase the new car, what would he have to show for it in 5 years? Yes, the car would be free and clear and worth much less in 5 years, because you were going to take the cash today and pay for the car. However, if you received the $400 month and part or all went towards the car payments in 5 years the car would be paid off but, you would still be receiving the monthly payments for years. If it was a 30 year mortgage note you could go and buy a new car every 5 years five more times. Remember the tax savings by selling on the installment sales method.
I see that most people have never been educated on the value of receiving monthly payments, what they are and what they can do. This is the way Americans used to do business before the Banks got involved. Now the Banks have gotten such a hand on it that people have forgotten how to be creative.

I have been trained by Attorneys and Title Companies. I have done a lot of these transactions. I protect all interests in the transaction and they are always closed at Escrow/Title companies and overseen by an Attorney. There are many ways to give or take title to a property that can be either advantageous or dangerous depending on the specific situation and protection of your interest as needed (Lease/Option, Uniform Real Estate Contract, All Inclusive Trust Deed, Contract for Deed, Land Contract ect…)

Sellers Benefits

*More qualified buyers

*Fast closing

*Large Down Payment (for your further security)

*Easy way to sell properties that do not conform to traditional lending guidelines

*Higher selling price; no appraisal needed (although buyers are advised to obtain one)

*Tax deductions, may qualify for deferred gain (always check with your CPA)

*Great way to establish cash flow secured by real estate

*Higher rate of return than money market accounts

*Position can be sold for quick cash at a later date

Buyers Benefits

*Full benefits of ownership: all profits; tax benefits; exclusive rights to use the property, subject only to the terms of the mortgage

*None of the hassles of qualifying for or obtaining an institutional loan (although the seller could ask for a credit report)

*Negotiate terms (length, rate, payment amount)

*Low closing costs; no lender fees

*Fast closing

DUE DILIGENCE PERFORMED ON ALL BUYERS

All transactions Close through a Title/Escrow Company or Attorney
The below Screening & Verification process is performed on all potential Rent, Lease, Lease with Option, or Owner Finance Buyers of Your Property:

* A completed credit application is done (approved by Mortgage Broker with the “Ability to Pay”)

* Copies of Driver’s License.

* Full name and date of birth for all occupants (including children).

* Social Security Number(s) for all adult occupants.

* Full Residence History for all adult occupants for the last 2-3 years, including: address, name of landlord(s), contact information for landlord(s), dates of residence and reason for leaving.

* Full Employment History for all adult occupants for the last 2-3 years, including: name of employer, contact information, tenant/buyer title, tenant/buyer supervisor and tenant’s income.

* Name and account number for Bank accounts (savings and checking).

* Two emergency contact numbers – must be two nearest relatives not living with the tenant and/or buyer. Get the Name, relationship, address and phone number. It’s best to get the name of parents when possible.

* Get the Tenant / Buyer written authorization to verify the information provided and to obtain a credit report or any other supplemental information that you might need in the approval process.

* Have the Tenant / Buyer pay to pull a credit report. Call this a “non-refundable application fee”.

* Screening includes a Verification and Validation of: SSN Validation, OFAC/Patriot Act Search, Evictions and Suits, Liens and Judgments, Bankruptcies, Criminal Records Search, Sex Offender Search, Collections, Social Security Death Index, FICO Score, Validate Applicant Identity, Name, Address, & SSN Name Match.

* The Tenant/Buyer will have substantial skin in the game with the Money Down through an Option Amount for a Lease Option or Down Payment with an Owner Finance situation. Enough for one to be quite comfortable and make it worthwhile if you had to take property back and do it all over again. Ask me how I know?

* Dodd Frank & Safe Act Compliant (If still applicable)

All Seller Financed transactions are closed by a Title Company, or a real estate Attorney, and are subject to the Dodd-Frank Act and the SAFE Act. A Residential Mortgage Loan Officers (RMLO) is used to approve the Buyers as if they were getting standard Bank loan, to prove that the Buyers do qualify for the seller financing, and have the “ATP” Ability to Pay for the Seller Financed loan. All Buyers must also pass our screening and background process as listed above. After you have all this information you as the Seller must approve of the Buyers as well. Always consult with your licensed CPA and/or your Attorney.

The possibilities are endless as there are Sellers and Buyers.

LEASE + PURCHASE OFFER = LEASE-OPTION AGREEMENT

Definition:
A Lease-Option is simply a lease agreement combined with a purchase contract, which gives the new tenant/buyer the right to purchase your home under specific terms.
LETS LOOK AT A LEASE-OPTION EXAMPLE…

Here’s an example that we have actually done. The seller wants $135,000, rent of $1150 per month with a rent credit of $200, and a term of 2 years.

• • Sales Price: $135,000
  • Rent Credit: $200 Each Month
• • Monthly Rent: $1150
  • Term: 2 Years

(Rent credit is only a paper credit. It is deducted from the purchase price.)

Usually there will be a monthly rent credit of 15%-25% of the rent. This credit is applied to the purchase price ONLY! So if the new buyer buys in 1 year, they would have a total of $200 x 12 months (1 year) = $2400. Subtract the $2400 from the total sales price of $135,000.

$135,000 – $2400 = $132,600
(This is the new purchase price)

(Rent credits are a great incentive for buyers to always pay you on time or they do not receive a credit for that month.)

What’s The Point?

You may be asking yourself, “What’s the point of this real estate lesson?” Well, first we are not Realtors; we are a group of private investors that specialize in Leasing, Buying, Fixing, Marketing, and Selling Houses.

We offer a unique Lease-Option plan that will fit your needs. We will Lease-Option your home from you at an agreed price and terms. We will find a suitable tenant/buyer that we will qualify, to live in your home. When our tenant/buyer is ready to buy, we will help them get financing to buy your home. We will then buy the house from you and the new buyer will buy the house from us. Our price is higher than what we bought it from you. This is a WIN/WIN situation.

SELLERS BENEFITS:

• Build Equity every month
• No long vacancies
• Safer than conventional rentals, better quality tenants
• No management headaches
• Receive non-refundable down-payment
• No Maintenance Costs or Repairs
• Tax benefits

Why Don’t I Just List It With A Realtor?

It won’t hurt you to list your home unless it doesn’t sell. However most real estate brokers simply just list the home on the MLS and hope to get a bite. The first problem with listing your home is that there are thousands of homes on the MLS. Realtors also have several other homes they are trying to sell as well. The second problem with listing your home with a Broker is that they don’t understand what a Lease-Option is or they will say there isn’t enough money for a commission.

When we agree with you to Lease-Option your home from you, we take it seriously. We treat your home as if it was ours. We are constantly thinking of ways to move your house faster, so you can get on with your life.

What If The Tenant/Buyer Tears Up My Home?

Well, there is no guarantee that the tenant will not damage your home. But under our agreement, if that happened, we would repair it at our expense. Our goal is to find a buyer that will be able to qualify for a loan. It has been our experience that Lease-Option buyers treat the home as if it was their own, so damages are rarely a problem.

What about a Property Manager?

A property manager will charge you around 8%-10% of the monthly rent. Sometimes you will need to follow up on property managers to make sure they’re doing their job. Anytime there are repairs needed, the property manager will call a repairman to fix the problem at your expense. Not only are you losing 10% every month but also you will be paying inflated repair costs.

The Perfect Tenant Buyer Program

It is our goal to ensure the process of selling your home is a smooth and easy one for you. We strive to achieve a win-win-win situation in all our Lease Option Purchases and Seller Financed transactions.

You, as the seller of the house, win by receiving the assurance of knowing that while the house is being sold, all of the expenses are taken care of, the house is maintained, and you are receiving all of the tax benefits associated with being a landlord, with none of the management responsibilities.

Our tenant/buyer wins by getting to own a home in a shorter amount of time than it would take them if they were trying to buy conventionally, as well as being able to immediately occupy their new home, while qualifying for a loan. We have created a system that creates the paperwork that mortgage lenders look for when qualifying people for loans to assist our tenant/buyers. In addition, we give our tenant/buyers immediate credit tips to assist in the loan qualification process.

We win by profiting from the sale of the home, as well as gaining two more satisfied customers. The reason that we are in business, of course, is to make a profit, as well as to use our expertise in real estate transactions to assist homebuyers and sellers in making the sale or purchase of their home an easy, stress-free one.

Thank you for taking the time to explore our “Perfect Tenant Program”. We hope you see the benefits of PRICE, CONVENIENCE, and SECURITY that we have worked to create in our program. We look forward to working with you soon and making the sale of your home a stress-free and easy one.

Full Service Real Estate Solutions

We will differentiate ourselves from our competition by becoming a full­ service Real Estate Solution Provider. We can take any challenge and create a profitable solution by utilizing our specialized knowledge. Deals aren’t found, they are created. We will stay in our seller’s lives until their Real Estate problems have been solved.

TR Network
The “Perfect Tenant Program

The following summarizes our “Perfect Tenant Program”, answers many of the most common questions regarding the program, and explains how it can be a very beneficial way to sell your property for full market value and pay no commissions or fees. If, after reading the following question and answer sheet you have any further questions, please don’t hesitate to call. We look forward to discussing our program further and meeting with you soon. Thank you.

FAQ – Why is it a benefit to place my home in the “Perfect Tenant Program”?

Q. What are the benefits of selling my house on a lease option?

A. PRICE, CONVENIENCE, and SECURITY. We offer to buy your house at today’s full market value and take care of the rest. When we lease option a house, we guarantee in writing that all maintenance and repairs will be paid by us while we are selling your house to a tenant/buyer. We only deal with high quality people who are looking to buy, not just rent a house. When you sell your home to us, we handle all the marketing of the house. This includes paying for advertising, screening potential tenant/buyers, and showing the house. We want the process of selling your home to go as smoothly as possible, with no more headaches for you caused by buyers who tell you that they want a house, but end up not being able to qualify for financing. You are also relieved of having to pay double mortgage payments in the event that you have to move before you are able to get a buyer for your home. We simplify the process of selling your home by handling all the details that waste much of your time and money.

Q. What are the advantages of selling my home by lease option over listing it with a Realtor?

A. We make your monthly payments while a tenant/buyer is qualifying for a loan. All your expenses related to the house are taken care of. Try getting a realtor to do that while listing your home! Another advantage is that our objective is to put only high quality tenant/buyers in the house since we make our profit by selling for higher than we buy. Since we guarantee all maintenance on the house, it is in our best interest to ensure that our tenant/buyer will take care of the home and eventually secure financing to cash you, the seller, and us out. This means that we put our tenant/buyers through an intensive pre-screening process before they are even permitted to look at the house.
We don’t work for commissions, so you keep your equity. And, because our profits are made by selling for slightly higher than what we buy for, we have a vested interest in the house and in making sure it gets sold.

Q. How long does it take before your tenant/buyer cashes me out?

A. That can depend on a number of different factors. We work with many mortgage brokers that are usually able to get most people financed after they have paid for 12 months on the lease option. Since everyone’s credit history and circumstances vary, that time period can be shorter or longer for the tenant/buyer that we eventually put into the home. Because of this, we cannot guarantee the exact time our tenant/buyer will secure financing. However, until our tenant/buyer qualifies for financing, we continue to pay all the expenses related to the home. It is also in our best interest to get our tenant/buyer a new loan as soon as possible, since that cashes us out as well. We aggressively work to get our tenant/buyer financed as soon as possible.

Q. Why don’t I just sell my house myself or rent it in the meantime?

A. These are always options available to you. The difference would be that you are responsible for your monthly payments, maintenance and repairs during the selling period. You need to try to find someone who can actually qualify for financing, wait for them to get approved, and hope that they don’t pull out of the deal, making you start the whole process over again. Renting during this period opens entirely new difficulties that would-be landlords often overlook, especially when you are trying to show the home and sell while renters are living there.

Q. Why don’t I just find my own tenant/buyer?

A. If you have the expertise to screen potential tenant/buyers, check references, know what sort of credit scores will allow someone to be able to be financed, deal with maintaining your home while someone else lives in it, work with mortgage brokers to get them financed, and finally, process the paperwork and set up a closing, then finding a tenant/buyer on your own would be a viable option for you. If you lack the expertise in any of these areas, we are able to help.

Q. What if our tenant/buyer doesn’t buy the house?

A. Our tenant/buyers are carefully pre-screened to ensure that they want to buy the house and are able to do so at some point in the future. However, circumstances can change in someone’s life, such as an
unexpected job transfer that can make it necessary to move. In
situations like that, we continue to pay all the expenses for the house while we find another qualified tenant/buyer to put into the home. Remember, we make our money when your house sells!!

It is our goal to ensure the process of selling your home is a smooth and easy one for you. We strive to a win-win-win situation in all our lease option purchases. You, as the seller of the house, win by receiving the assurance of knowing that while the house is being sold, all of the expenses are taken care of, the house is maintained, and you are receiving all of the tax benefits associated with being a landlord, with none of the management responsibilities.

Our tenant/buyer wins by getting to own a home in a shorter amount of time than it would take them if they were trying to buy conventionally, as well as being able to immediately occupy their new home, while qualifying for a loan. We have created a system that creates the paperwork that mortgage lenders look for when qualifying people for loans to assist our tenant/buyers. In addition, we give our tenant/buyers immediate credit tips to assist in the loan qualification process.

We win by profiting from the sale of the home, as well as gaining 2 more satisfied customers. The reason that we are in business, of course, is to make a profit, as well as to use our expertise in real estate transactions to assist home buyers and sellers in making the sale or purchase of their home an easy, stress-free one.

Thank you for taking the time to explore our “Perfect Tenant Program”. We hope you see the benefits of PRICE, CONVENIENCE, and SECURITY that we have worked to create in our program. We look forward to working with you soon and making the sale of your home a stress-free and easy one.

Let us help you solve your real estate challenges.
All transactions closed with a Title/Escrow Company or Real Estate Attorney.

Steve Gallagher

Investor / Agent / Paralegal / Bankruptcy Preparer

435-632-9783