I Didn’t Put Up One Penny

I ran an add that said:

“If you have found the house you want, but the bank won’t give you enough money, a private person can help: xxx-xxx-xxxx”

The phone rang off the hook. Here is one deal:

The house appraised for $100,000. Original sellers would let it go for $80,000 because of divorce. Buyers couldn’t qualify with local bank for more than 80% of $80,000. The buyers had $8,000 for down payment and closing costs.

I didn’t put up one penny. I bought the house for $80,000 and simultaneously resold it to the buyers at $100,000–same closing. I gave the buyers an easy second mortgage.

The special bank bought the fresh note from me for slightly less than $80,000 (80% of the $100,000). The buyers made up the difference from their down payment. The buyers paid me $3,000 at closing to discount their second, which I did. Everyone was happy. These “no money down” deals can be done anywhere.

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By CREOnline Contributor

A content contributor to the original CREOnline.com.