Strategy Seller Refinances then Sells to Investor Sub2 Land Trust

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. 🙂