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Buy a House Without Qualifying(PDF)

Buy a House Without Qualifying(PDF)

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Published by Blaze Benham
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neither the author nor distributor shall have any liability to any person or entity with respect to any loss or damage incurred as a consequence of the use and application. photocopying. of any advice. Copyright 1998 By New Strategies This Manual was provided to you by an Independent Distributor. either directly or indirectly. recording. . Notice of Liability The information in this manual is distributed on an “as is” basis without warranty.Notice of Rights All rights reserved. mechanical. While every precaution has been taken in the preparation of this manual. or otherwise without the prior written permission of the author and New Strategies. No part of this manual may be reproduced or transmitted in any form or by any means. or methods presented in this publication. electronic. information. Please note that any refunds or exchanges must be handled by that Distributor.

.....................................1 Introduction ....................................................4 Closing The Deal!...13 Contacts ..............12 Buying and Selling No Qualifying Homes for Fun and Profit! .....................3 How To Make An Offer! .................................2 How To Locate a No Qualifying Deal! ...........................................................Table of Contents About The Author ........................................................................................ Taxes and Commissions .............................13 ......................................12 Insurance............

With his program you don’t need any equipment to get started and all you have to do is advertise to get people to call your 1900 number. If you would like more information on this exciting program you can call 1-800-800-2451. Even though Don was still a youth. You’ll find that his staff is very helpful as well as a pleasure to talk to. The manual that you’re about to read is just one of many incredible publications available by Don Lapre. With an estimated 50 million people on the Internet. Growing up. it was necessary for him to help generate an additional income to help his family survive. Making Money. Don has gained National recognition for his incredible innovations in the 1-900 pay-per-call business. Don’s company sets up the programs and handles everything else. It was out of this necessity that one of the greatest Entrepreneurs in America was born! Over that last 25 years.How to Buy a House Without Qualifying! About The Author Don Lapre is a self-made multi-millionaire and the star of the nationally aired TV show. and he made it affordable! For less than you would ever think possible. 1 . this remarkable man has developed more ways to make money than you could imagine. Don’s family was very poor. you could have your very own Custom Internet Web Site set up right through Don’s company. it is becoming a premier advertising location and communications tool! If you would like more information on the program you can give Don’s office a call at 1-800-800-2451. Don did it again. He took something that everyone would love to have but could not afford. This will connect you directly to Don Lapre’s office where they will be happy to explain all the details! Another area of Don’s company that is skyrocketing is his Custom Internet Web Site division. But the most incredible part of the story is his willingness to share what he has learned with others. As you can see every day on his nationally aired TV show. If you would like to request a catalog of Don’s extended line of money making and money saving tools. please call Don’s customer service number at 602-453-1282. you receive weekly checks for all the calls that you generate. He has revolutionized the industry by creating a unique program that allows the average American with an average income to get set up with their own incredible 1-900 business. Through a unique new program. Over the last few years. These people’s lives will never be the same thanks to Don Lapre and his generosity. Don Lapre has supplied literally hundreds of thousands of people all across the country with the information and money making tools that could change their lives. his ever growing list of successful students is amazing. And.

Ordinarily. or defects in title. As a matter of fact. Once escrow is closed. all traditional and non-traditional costs are paid first. or either party decides that they do not want to proceed in negotiations. There are many types of real estate that can be purchased and they can be purchased for a variety of reasons ranging from rental income to value speculation.How to Buy a House Without Qualifying! Introduction Real estate is one of the only assets in the entire world that appreciates. 2 . the home buying and selling process is under way! The buyer proceeds with getting a loan from a mortgage company and both parties enter “escrow” or the transfer of ownership of real property from one party to another through an independent third party most commonly referred to as “the title company. the home purchase process works like this: The buyer locates a home that he or she wants to purchase that is on the market by a seller. or transfer the ownership of the property from the seller to the buyer. However.” Prior to closing. real estate consistently appreciates between 7% and 12% in most areas of the country and even higher in others. In a perfect world. including the seller’s mortgage (if any). For this reason this manual will cover techniques and methods to purchase real property without qualifying through a bank or mortgage company. Both buyer and seller are offered title insurance in case the title company missed any encumbrances against the property. Factors ranging from income to a short time on the job can affect a buyer’s ability to borrow. Real estate is perhaps the single most important investment that individuals will make in their lives for themselves and/or family. This process may continue until a deal is made. If the seller does not accept the buyer’s offer. the proceeds are sent by the buyer’s mortgage company and then placed in escrow to pay the seller. The settlement summary shows what proceeds have been placed into escrow and who will receive what portions of these proceeds. The title company first pays all the debts against the property. and regardless of when an offer is accepted by the seller. the title company will present to both buyer and seller a statement known as a “settlement summary. Ordinarily. For the intents and purposes of this manual we will discuss the purchase of single family residences for individuals or families to personally occupy them.” which shows both parties what their costs will be to close escrow. If the buyer does not accept the seller’s counter offer. this manual will focus on purchasing a single family residence without qualifying and “nothing down” purchasing techniques. Once the title company has determined through a public records search of various county records what debts the seller has against their property they expediently move to “close escrow. the buyer is granted ownership of the property through the seller’s relinquishment of the deed or title. this would be the typical home buyers experience. The balance goes to the seller and the buyer signs a promissory note secured by the newly released title. or goes up in value reliably. A home is where we live and our family grows. However. More important. In either case. Other debts can also be accessed against the property such as judgments and taxes. The buyer makes an offer to the seller for either the amount the seller is asking for and terms or a lower price and different or modified terms.” During this process the title company checks to see what liens the seller may have against the property. what if the buyer cannot qualify for a mortgage. the buyer may counter the sellers counter offer. These can be anything from mortgages to other debts for which the seller has used the property as collateral. the seller may counter the buyer’s offer.

3 . unique features such as swimming pool. The listing kit will also include prices of the comparable properties as well as features and amenities. Total payment of each mortgage or loan owed against the property. Instruments are ownership and debt documents signed by the property owner. garage. Why is property being sold? Once you gather the answers to these questions you will want to choose a title company in your area. before looking you will need to know what to look for. Number of bedrooms and bathrooms. Property address. The quickest and easiest way will be through the “real estate for sale” classified section of your local newspaper. By including comparables in your listing kit you will be able to instantly know if the seller is in the “ball park” with his or her price. One quick double check that you can do to make sure that you are in the “ball park” is to drive by the comparables and the seller’s home prior to making your offer. a plat map. The easiest no qualifying deal to put together is one where the seller will allow you to assume their mortgage and you pay them on terms for their equity. It is important to take all of these factors into consideration as you arrive at the price and terms that you are willing to offer a seller. and information on as many comps (comparable properties) that have sold in the area in the last six months as they can provide. Ask it to prepare a “listing kit” for you with copies of all instruments. You can then be sure that your offer is in-line with current sales prices in the area. However. You will want to make adjustments to your offer based upon the findings of your listing kit. A listing kit is a summary on a property prepared by the title company that shows public information on a property. To find these types of properties in the paper look for ads that have the following terms in them: ! ! ! ! ! ! ! ! ! ! ! No qualifying Low CTM (cash to mortgage) OWC (owner will carry) OAF (owner assisted financing) SAF (seller assisted financing) owner will help with financing seller motivated seller will consider all offers seller must sell under market price reduction ! ! ! ! ! ! ! ! ! ! below market owner transferred must sell to settle estate divorce forces sale canít afford second home renters evicted owner fed up playing landlord all offers considered make me an offer free and clear Once you locate a few of these deals you will want to call the owner and ask the following questions: Total asking price. Our home addresses that we use to send and receive mail from are actually different from the legal description that the various counties of our states use to refer to and divide real property. Other liens against property besides mortgages. The plat map will allow you to see exactly where the comparable properties are geographically in relation to the subject property that you are considering purchasing. Total of each loan or mortgage owed against property.How to Buy a House Without Qualifying! How To Locate a No Qualifying Deal! One of your greatest challenges in purchasing a home without qualifying will be to locate a no qualifying deal. etc. fireplace. total square footage. Plat maps are used by county assessors to determine and survey properties into legal descriptions. It will usually provide this to you for free if you let it know that you will be using their title company if you decide to purchase the home.

buyer gets portion of proceeds at close of escrow. ! No qualifying deal where seller owns property free and clear. pays down payment balance on terms via note and assumes mortgage. ! No qualifying deal without assumption on land sales contract. in chapter two we will look at how to put together a no qualifying offer. or ask a local title company for a few references. prior to making your offer you will need to find out whether the seller is receptive to your creative financing offer. Before we actually take a look at the 10 ways that we will examine to buy a house without qualifying let’s first discuss the tools you will need: Depending on the laws of your state you may need an attorney to actually write the purchase agreement that you will need to open escrow. ! No qualifying deal where buyer leases with option to buy. money does not always have to be your own and does not always have to be paid up front. Now do not become discouraged too quickly because as you will see in this chapter. ! No qualifying deal where seller borrows on equity and buyer takes possession on land sales contract. The more money you have to put down on a home the easier it is. then you will want to pursue forward with actually putting your offer in writing. and wraps all three encumbrances into one payment through the title company. ! No qualifying deal with assumption and balloon payment for sellers equity. Now that you are armed with a plentiful resource for locating no qualifying deals. The following are the offers that we will examine in this chapter: ! No qualifying deal with assumption and down payment by buyer that equals total cash to mortgage. If this is the case then you will want to check your local Yellow Pages. ! No qualifying deal where the buyer trades personal property or services for part of down payment. Sellers frequently inflate their prices in order to leave negotiation room for bargain seekers. How To Make An Offer! The first thing you will need to decide prior to making a no qualifying offer on a home is just how much of a down payment you have to work with. What is being asked for homes is completely different from what homes are selling for. ! No qualifying deal with assumption and 100% carryback of sellers equity by note and deed of trust/mortgage. Once you have determined this.How to Buy a House Without Qualifying! Remember. pays down payment balance on terms via note. However. to help secure your equity position in any home that you make an offer on you will want to structure your offer based on current sales prices not current asking prices. ! No qualifying deal where seller requires large cash down and buyer pays partial cash and balance of down via note for balloon payment. 4 . ! No qualifying deal where the buyer trades personal property or services for down payment. If your state does not require you to have one then you may consider writing the offer yourself.

then you will want to pick up an ample supply of purchase contracts from your local stationery store. The third part of your offer deals with the actual terms of your offer. They are as little as 25¢ each. However. Once both parties have agreed to and signed the title instruction the title company continues with the escrow. The first part of your offer generally deals with having a receipt for any down payment made to the seller. There is also a space for the seller to sign. The fifth part of your offer bears the buyer’s signature and date signed.This is the date by which the terms of the agreement must be executed.This is the property itself. minus your down payment (if any). and terms of payment for the balance. which is presented with the offer to the seller. Let’s take a look at the basics of putting together the 10 most common no qualifying deals: #1 No qualifying deal with assumption and down payment by buyer that equals total cash to mortgage.This is evidenced by the signature(s) of both buyers and sellers. Inception Date . before discussing the sections of the typical purchase agreement let’s take a look at what it takes to have a legally binding contract for the purchase of real property: Meeting of the Minds . and you will find that they are comprised of several sections. It shows the total offered.How to Buy a House Without Qualifying! If you are writing the offer yourself.This is the date the parties entered into the agreement. you are ready to start putting offers together.This is the tangible item of worth that will be received by the seller in exchange for the property. In this section you also enter any other terms that are relevant to the offer as well as the buyer’s proposed division of escrow costs with the seller and estimated closing date. Now once you have picked up a supply of blank purchase agreements from your title company. Consideration . When we refer to down payment we are referring to the amount that we will put down on the owner’s equity. Expiration Date . The fourth part of your offer gives a legal description of the property. the buyer’s legal name. the purchase agreement and any additional parts it may have are given to the title company and escrow is opened. As long as your purchase offer consists of these five elements then it is considered legal and binding. This is basically the title company’s interpretation of the terms and conditions of the buyer’s and seller’s purchase agreement.” How To Put Together The 10 Most Common Deals In the next sections when we refer to assuming existing financing we are referring to assuming an existing FHA loan without qualifying. Once both buyer and seller agree to the terms set forth in the buyer’s offer. Lawful Object . The following is a summary of the seller’s asking price and information on the existing financing: 5 . If the buyer runs out of room here usually the listing of terms is continued on an addendum. The second part of your offer deals with how much you will actually pay down for the property and the terms of your down payment if any. Let’s now take a look at how to put together those “10 Most Common Deals. The title company then takes the escrow instructions and produces a document known as escrow instructions. and how the buyer will take title.

B. Because of the $2.000 Monthly Payment: $977.58 PITI (principal. Monthly payments on the seller’s loan are $977. Our CTM (cash to mortgage) will be reduced even further with our earnest money deposit that we will put down to show good faith to the seller that we fully intend to carry out the terms of our offer. We will indicate in our offer that we are putting down $500 on the home in certified funds. If buyer does not approve of property at any time prior to close of escrow.000.How to Buy a House Without Qualifying! Seller’s Asking Price: $100. 2) Tax. Any differences or variations in the principal amount due from the amount shown on the contract shall be subtracted from the seller’s cash to mortgage. Now let’s take a look at how this offer would stack up in a Real Estate Sales Contract (Offer to Purchase): 6 . 4) Offer contingent upon buyer’s approval of property prior to the close of escrow. and or added to the principal amount buyer has agreed to assume. Although contracts do not have to be in writing. The total price that we will offer the seller is $98. made out to the title company. interest.000 to $6. based upon the sales prices for similar homes in the area over the last six months.000 reduction of sales price in our offer our cash to mortgage is also reduced proportionately by $2. After our earnest money payment our CTM is $500.58 Interest Rate: 10% Based upon the information on the existing financing. Now that we have created the core part of our contract we will need to put together an addendum.) C. taxes and insurance. We will assume the seller’s existing FHA/no qualifying financing at the current terms and conditions.000. insurance and utility impounds gratis to buyer. Here are a few of the contingencies we will include on the addendum of this offer: 1) Purchaser to take title.000 Loan Balance on Existing Financing: $92.000. let’s put together a summary of what our offer should look like: A. subject to the terms and conditions of the first mortgage on the property.000 Our Offer: $98. 3) Seller warrants that all appliances and equipment are in satisfactory working condition and order at closing. or agreement between two or more people to do or not to do a particular thing or action. This is simply an extension section that is attached to our contract that contains contingencies and other terms and conditions of our offer. real estate contracts must be in writing. from $8. A contract. by definition. earnest money is due to buyer in full.000 Type of Loan: FHA/ assumable/no qualifying Cash To Mortgage: $8. the seller’s cash to mortgage and asking price. is a meeting of the minds.

..................... (b) Delivery of possession of the Property to Buyer or his/her nominee immediately on close of escrow free and clear of all holdovers and occupancies except as Buyer may waive in writing..............$ 5......How to Buy a House Without Qualifying! Real Estate Sales Contract WHEN COMPLETED AND SIGNED THIS IS A LEGALLY BINDING CONTRACT..................................... it may be attached to and incorporated herein afterward..00 Balance due Seller by promissory note of the Buyer subject to the requirements set forth in this contract ......................................$ 98...........................500....... 3.... the real property set forth below and all improvements thereon (herein referred to as the Property)......... and recover any amounts paid by him/her to Seller........... PURCHASE PRICE AND DEED: The total purchase price to be paid for the Property by the Buyer is payable as follows: Buyer to assume Seller’s existing balance ($92.... or to the escrow holder on account of the purchase price of the Property..... Arizona.. IF THIS CONTRACT IS NOT FULLY UNDERSTOOD THE SERVICES OF A COMPETENT PROFESSIONAL SHOULD BE SOUGHT.... and Buyer agrees to purchase said Property from the Seller on the terms and conditions set forth in this contract...................... CONDITIONS OF ESCROW: The close of such escrow and Buyer’s obligation to purchase the Property pursuant to this Agreement are conditioned on: (a) The conveyance to Buyer or his nominee of good and marketable title to the Property....): Lot 42......) FHA/No qualifying mortgage loan @ 10% interest with monthly payments of $977................ Jane Buyer..... Arizona... subject only to such liens.......... plat 6.00 Sum due within seven working days after acceptance of this contract....... with all keys and garage door openers.. 4....$ 000............ bloc 9 1........... however......00 Proceeds of new note and mortgage to be given by Buyer or any lender other than the Seller .......$ 000..................... constitute a waiver by him/her 7 ............. hereby agrees to sell to Buyer.. (a) (b) (c) (d) (e) Initial deposit .. Joe Seller....... ..... encumbrances......... PHYSICAL POSSESSION: On or before (close date)____________or within________days of acceptance........00 Balance due Seller by Articles of Agreement for warranty deed ..$ 000....000..... 5... Phoenix.. terminate this Agreement..... has approximate lot dimensions of 40 X 100 and is legally described as follows (If the legal description is not included at the time of execution. whichever is later...58........$ 000...$ 500....................................... as evidenced by a standard form title insurance policy in the full amount of the purchase price issued by ________________________Title Company...... Seller........$ 92.........00 2.............. or Buyer’s nominee.........00 (f) (g) TOTAL PURCHASE PRICE .......................................... The exercise of such power by Buyer shall not...................000 approx... Physical possession. shall be delivered to Purchaser upon recordation of the deed...........000............00 Additional sum due at closing (not including prorations) by certified funds . CLOSING. Description: The property is located in Maricopa County........... clouds or conditions as may be approved in writing by Buyer.. FAILURE OF CONDITION: Should any of the conditions specified herein above fail to occur within_____days after the opening of escrow.......... Buyer shall have the power....... to cancel such escrow.... section 432........00 Existing mortgage on the Property which shall remain on the Property but which shall not subject Buyer to any penalty or fee or increase in the original interest rate of said mortgage ......... OPENING OF ESCROW: An escrow shall be opened to consummate the sale of the Property pursuant to this Agreement at________________within_____days from the date here of. is commonly known as 456 East Dale Street...... exercisable by his giving a written notice to the escrow holder and to Seller........................ both parties shall deposit with the escrow holder all funds and instruments necessary to complete the sale in accordance with the terms hereof...

both Buyer and Seller agree by initialing this provision that the amount paid by Buyer to Seller on execution of this Agreement constitutes a reasonable estimate under the circumstances existing at the time this Agreement is made of the damages Seller would sustain because of such default and may be retained by Seller as liquidated damages in the event of any such default. interest and other expenses of the property shall be prorated as of the date of recordation of the deed. 6. Buyer or Seller. in addition to such other relief as may be granted. ENTIRE AGREEMENT: This instrument constitutes the sole and only Agreement between Buyer and Seller concerning the Property and their rights and duties in connection with that Property. 7. unless specified differently in this agreement or its addendum(s). taxes. this Agreement. 8. advance rentals or considerations involving future lease credit shall be credited to Purchaser. the Parties have executed this agreement on this _______day of ______________. irrevocably instructed by Seller on any such failure of conditions and receipt of such notice from Buyer to immediately refund to Buyer all moneys and instruments deposited by him/her in escrow pursuant to this Agreement. Any Agreements or representations between Buyer and Seller regarding those matters are null and void unless expressly set forth in this instrument. PRORATIONS: Rents. Attorney’s FEES: Should any litigation be commenced between the parties hereto concerning the Property. and is hereby. to a reasonable sum as and for his attorney’s fees in such litigation which shall be determined by the court in the litigation or in a separate action brought for that purpose. BONDS AND ASSESSMENTS: Any bonds or improvement assessments that are a lien on the Property shall. or the rights and duties of either in relation thereto.How to Buy a House Without Qualifying! of any other rights he/she may have against Seller for breach of this Agreement. be paid by Seller. The escrow holder shall be. LIQUIDATED DAMAGES: Should Buyer default in the performance of this Agreement. on close of escrow. the party. 199__. Agreed: ________________________________ __________ Seller Date ______________________________ Seller __________ Date ________________________________ __________ Buyer Date ______________________________ Buyer __________ Date 8 . 11. prevailing in such litigation shall be entitled. IN WITNESS WHEREOF. 10. Security deposits. Broker’s COMMISSIONS: Any and all commissions due to real estate or other brokers as a result of this sale of the Property shall be paid by Seller.

as seller(s) and ________________. Offer contingent upon buyerís approval of property prior to the close of escrow. PURCHASE PRICE AND DEED: The total purchase price to be paid for the Property by the Buyer is payable as follows: 9 . 19____. subject to the terms and conditions of the first mortgage on the property. Tax.) FHA/No qualifying mortgage loan @ 10/% interest with monthly payments of $977. or if over $250 but under $1.58. or if under $250 added to the buyer’s closing figure.How to Buy a House Without Qualifying! In addition to the purchase contract for our first deal we will also present the Seller with this Addendum: ADDENDUM This Addendum is made the _____ day of _______________. Balance of $6. 3.” #3 No qualifying deal with assumption and balloon payment for seller’s equity. Agreed: ________________________________ __________ Seller Date ______________________________ Seller __________ Date ________________________________ __________ Buyer Date ______________________________ Buyer __________ Date #2 No qualifying deal with assumption and 100% carryback of sellers equity by note and deed of trust/mortgage. PURCHASE PRICE AND DEED: The total purchase price to be paid for the Property by the Buyer is payable as follows: ”Buyer to assume Seller’s. on the following property:____________________________________________ 1. Purchaser to take title. and is added to and amends that certain agreement between ________________. earnest money is due to buyer in full. Using the figures from our first deal let’s look at the modifications that we would make to section 1 of our purchase agreement offer: 1.000 paid to seller by note @ 6% simple annual interest in 12 monthly installments. 2. insurance and utility impounds gratis to buyer. existing balance ($92. Any differences or variations in the principal amount due from the amount shown on the contract shall be subtracted from the sellerís cash to mortgage. 19______.000 shall be paid by note secured by deed of trust/mortgage @ 10% simple annual interest with 60 monthly payments of principal and interest for five years from close of escrow. Seller warrants that all appliances and equipment are in satisfactory working condition and order at closing. 4. Using the figures from our first deal let’s look at the modifications that we would make to section 1 of our purchase agreement offer: 1.000 on total sales price of $98.000 approx. If buyer does not approve of property at any time prior to close of escrow. secured by a deed of trust/mortgage. as buyer(s) which contract/agreement is dated the ___________ day of ____________.

Financing shall remain in the name of the seller.” #5 No qualifying deal where seller borrows on equity and buyer takes possession on land sales contract and pays zero down! Using the figures from our first deal let’s look at the modifications that we would make to section 1 of our purchase agreement offer if the seller only owed $40.5% interest with monthly payments of no more than $700 principal and interest.000 cash in their pocket!!!): 1. Buyer will assume new financing on contract for deed. Buyer will assume new financing on contract for deed.58.000 approx.) FHA/No qualifying mortgage loan @ 10/% interest with monthly payments of $977. Financing shall remain in the name of the seller.000 in equity: 1.000 in equity: 10 . Of proceeds from new financing which will be placed in this escrow. or five years from close of escrow. on contract for deed for five years from close of escrow. buyer to receive $25.How to Buy a House Without Qualifying! ”Buyer to assume Seller’s.” #4 No qualifying deal without assumption on land sales contract. PURCHASE PRICE AND DEED: The total purchase price to be paid for the Property by the Buyer is payable as follows: ”Seller will obtain new 30 year FHA financing @ no more than 7. buyer gets portion of proceeds at close of escrow. PURCHASE PRICE AND DEED: The total purchase price to be paid for the Property by the Buyer is payable as follows: ”Buyer to pay Seller’s. Notice buyer does not assume existing financing.5% interest with monthly payments of no more than $700 principal and interest.000 on property and had $58.58.000 shall be paid by note secured by deed of trust/mortgage @ 10% simple annual interest with 60 monthly payments of principal and interest. Existing financing to remain in the name of Seller.) FHA/No qualifying mortgage loan @ 10/% interest with monthly payments of $977.000 on total sales price of $98. Using the figures from our first deal let’s look at the modifications that we would make to section 1 of our purchase agreement offer if the seller only owed $40. Balance of $6.000 on total sales price of $98. existing balance ($92. Using the figures from our first deal let’s look at the modifications that we would make to section 1 of our purchase agreement offer (notice zero down!!!): 1.” #6 No qualifying deal where seller owns property free and clear.000 on property and had $58.000 shall be paid by note secured by deed of trust/mortgage @ 10% simple annual interest with 1 payment of principal and interest 60 months. Using the figures from our first deal let’s look at the modifications that we would make to section 1 of our purchase agreement offer if the seller owed nothing against the property and got new financing (look carefully and notice the buyer is putting $25.000 approx.” #6 No qualifying deal where seller requires large cash down and buyer pays partial cash and balance of down via note for balloon payment.000 and seller to receive balance. PURCHASE PRICE AND DEED: The total purchase price to be paid for the Property by the Buyer is payable as follows: ”Seller will obtain new 30 year FHA financing @ no more than 7. existing balance ($92. Balance of $6.

” #10 No qualifying deal where the buyer trades personal property or services for down payment. by contract for deed. Simply use whatever terms you find most appropriate for your purchasing situation and make a portion of your monthly rent apply toward the purchase of the home.000 shall be paid as follows: 1) By personal property. Seller to remain on note for existing financing.000 dollars 2) By note secured by deed of trust/mortgage for $57.) FHA/No qualifying mortgage loan @ 10% interest with monthly payments of $351.000 and therefore will serve as down payment on purchase of seller’s $98. which title and possession will be provided to Seller outside of and prior to the close of escrow.000 @ 10% amortized interest with monthly payments of $270. Value of personal property is agreed upon by seller and buyer to be $20.04. Seller to remain on note. which you can find in your local stationery store.000 and therefore will serve as down payment on purchase of seller’s $98.000 home.) FHA/ mortgage loan @ 10% interest with monthly payments of $351. ”Buyer to assume Seller’s. Balance of $58. and assumes mortgage. which title and possession will be provided to Seller outside of and prior to the close of escrow.000 on total sales price of $98.000 home.000 @ 10% amortized interest with monthly payments of $550.) FHA mortgage loan @ 10% interest with monthly payments of $351. existing balance ($40.000 approx. existing balance ($40. 2) By note secured by deed of trust/mortgage for $28. This deal should be done on a lease agreement. Balance of $58. pays seller’s equity on terms via note. ”Buyer to pay Seller’s . existing balance ($40. and wraps all three encumbrances into one payment through the title company. Balance of $58. At the conclusion of the lease you will then execute whatever purchase terms you have chosen. pays equity balance on terms via note.22PI (principal and interest) for 240 months (20 years). 2) By note secured by deed of trust/mortgage for $28.04.04 on contract for deed.” #8 No qualifying deal where buyer leases with option to buy.000 shall be paid as follows: 1) By personal property.22PI (principal and interest) for 240 months (20 years).000 approx.000 on total sales price of $98. #9 No qualifying deal where the buyer trades personal property or services as a down payment. Be sure to indicate on your addendum that both buyer and seller will split title company collection costs as well as monthly fees.000 on total sales price of $98.000 @ 10% amortized interest with monthly payments of $270. This deal would be written the same as Deal #9 except you would not assume the note (it would stay in the name of the seller) and you would establish a collection account with the title company to collect and pay all parties owed monthly. Value of personal property is agreed upon by seller and buyer to be $20.” 11 .How to Buy a House Without Qualifying! ”Buyer to pay Seller’s.000 approx.07PI (principal and interest) for 240 months (20 years).000 shall be paid as follows: 1) By cash at close of escrow for $1.

” or free to you the buyer. seller’s terms. real estate deals usually go a couple of different ways:   Your price. when you buy a house the title company collects two months of insurance premiums up front.” but most of the time you will do only one of the above. this could add up real quick. In your purchase contracts you will want to indicate that the seller’s insurance impounds are “gratis. Depending on the value of your home. Here’s how it works: Normally. Just remember to write “tax impounds gratis to buyer” and you’ll save yourself a bundle at closing!! 12 . Sometimes you will have the luxury of “having your cake and eating it too. your terms. and go open escrow! So many real estate investors end up buying deals back because they hang around talking after they have closed their deal until the seller gets wary and they say something that makes them want to back out. shut up and leave. Taxes and Commissions As you invest in real estate you will encounter many different insurance. Closing the deal is where your talents as a deal maker will be the most needed. When you sell your home you get these insurance premiums back. Taxes This works the same way as the insurance impounds. What happens when you do this is that the title company will collect the insurance impounds on behalf of the seller from the insurance company and then transfer them to you!! You can then use these to get your own insurance. When presenting your offer to your seller. be sure to play up the advantages of your offer and never haggle too long on any one deal because there are plenty of them out there! Knowing When To Shut Up And Run When a seller says. As a prudent real estate investor it is important that you make every attempt to acquire the insurance impounds of the seller. Here’s a word on all of them: Insurance When you buy a house you will need to have insurance regardless of whether you assume existing financing.” get his or her signature.   Seller’s price.How to Buy a House Without Qualifying! Closing The Deal! Writing the offer is perhaps the easiest part. Remember. “Ok. Insurance. tax and real estate commission situations. They are simply held in an escrow account for the insurance company in case you ever default on your home loan it would still be covered.

After you purchase your homes either sell them for cash or rent them out. work with the agent and you might be surprised to find out how flexible they may be with carrying or reducing their commission.How to Buy a House Without Qualifying! Real Estate Agent Commissions Many times you will encounter homes that are listed by real estate agents for sellers. Publication Date: October 1996. Published by Reilly Escrow Corp. 13 . Be sure to check with your tax professional for an explanation and guidelines for enjoying the tax benefits of real estate investing. If you are trying to put together a no qualifying deal this commission could get in your way. You are in no way obligated to pay a real estate agent a commission unless you have a written agreement with them for services. Anosike. Feagans. Buying and Selling No Qualifying Homes for Fun and Money! Now that you know how to buy a house without qualifying and without a down payment why just stop at one? Why not buy and sell for fun and money? Just simply make a commitment to yourself that you will use the techniques in this manual to buy at least one house every three months. Published by Escrow Publishing. We wish you the best of success and good luck!! Contacts All About Escrow and Real Estate Closings: Or How to Buy the Brooklyn Bridge and Have the Last Laugh (6th Edition) by Sandy Gadow. B. Publication Date: November 1997. Published by Escomp Pub. Escrow Principles & Practices by Sherry Shindler. When purchasing homes to sell and make money from remember that you actually make your money when you buy not when you sell! If you do not purchase a home with equity or a low enough monthly payment where you could enjoy a monthly positive cash flow from rental income you will not be able to recoup your investment and you will end up losing money. Published by Prentice-Hall. At any rate always remember that real estate commissions on the home that you will purchase are always an obligation to the seller. Publication date: June 1991 Escrow Book: A Quick Reference Guide on Real Estate Closings by Nancy Patricia Reilly. Guide to Escrow Transactions: with Model Forms by Walter Newell Prince. Publication date: December 1980. Remember that the real estate agent charges the seller anywhere from 1% to 10% of the total sales price as a commission for selling their home. Publisher: Ashley Cro. Publication date: June 1997. However. National Mortgage Escrow Audit Kit: How to Audit Your Mortgage Escrow Account forOvercharges by Benji O. Escrow Basics by E. Published by Do It Yourself Legal. On top of the income benefits that you could enjoy from buying and selling houses there are also tax professionals.

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