THE RIGHT TERMS – EVERY TRANSACTION IS UNIQUE
EVERY TRANSACTION HAS TERMS. Agents are familiar with ONLY one type where the Buyer pays a down payment and gets a new loan. But, there are alternatives that can benefit all. We have no biases.
SOMETHING BAD FOR EVERYONE. Worse than a rental and agents hate because they forego payment for an extended period. Lots of law suits.
Similar to Lease Option. But, consideration divided over the term with less up-front. Most involve inflated values so likelihood of exercise is remote (<35%). Payments nearly double lease option. Term much shorter.
LAND CONTRACT OF SALE
Like lease option above, BUT BETTER. The Buyer makes a down payment, BUT TITLE DOES NOT PASS from Seller until Buyer has “performed” or completed the contract – gets a new loan and pays off the Seller and the existing loan. Buyer allowed to write off the payments, keep the appreciation, etc. , earn pay down on underlying loan (s). Approved strategy in almost all states. (California OK)
FREE AND CLEAR PROPERTY – SELLER WANTS CASH
Purchase price agreed upon. New 1st and 2nd TD created in Escrow. Buyer makes down payment – usually 10-15%. 1st TD is sold at COE to a note Buyer that services the note. Seller retains a small interest via the 2nd TD. Seller will receive most of their cash right away. Opens up probate properties.
SELLER CARRY-BACK FINANCING
Allows a Seller to sell and remain “invested” in their property. Value may rise over time for increased protection. Buyer may or may not purchase without loan qualification; Seller gets their price and” re-invests” their equity right back in the property in the form of a secondary mortgage or note.
ALL INCLUSIVE TRUST DEED
One payment by a Buyer through an independent loan servicing organization that pays the Seller’s existing loan, taxes, etc. PLUS payments on the Seller’s remaining equity after the down payment. Buyer may get ownership without having to qualify for a loan; the Seller gets the sale they need.
A joint venture between a Seller and Buyer where a Seller becomes a passive investor in a property. A huge win to sellers because they end up with considerably more than they would with a traditional sale. Ask for “Equity Sharing” for full description from us.
OTHERS AND COMBINATIONS
LET US EXPLAIN EACH AND FIND OUT WHAT WORKS BEST FOR YOU – OR NOT!!
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1605 Grand Avenue
San Marcos, CA 92078
CAL DRE 01870080
Arthur A. Armagost
CA DRE 01473344