Strategy Buy Seller Gets a New 1st Mortgage then You Buy Sub2 Purchase
1 Buy “Seller Gets a New 1st Mortgage”
then
2 Investor buys Sub2 Purchase
Example
Let’s say a seller has a house that’s worth $100,000, and
they can refinance and pull money out and then sell the house.
Let’s say that there’s existing financing is $50,000.
They refinance to 80% loan value or $80,000 and
walk away with a check for $30,000 tax free because it’s a loan.
Then they sell it to you for $100,000
and you take over the existing financing with subject to.
You could give them a note for the 20% equity. (Note $20,000 no payments for 60 months,)
But that note doesn’t need to have any payments for 60 months so that you can
rent the property out or
sell it lease option or
sell it land contract and get a cash flow. 🙂
