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

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, Making Money. Growing up, Don’s family was very poor. Even though Don was still a youth, it was necessary for him to help generate an additional income to help his family survive. It was out of this necessity that one of the greatest Entrepreneurs in America was born! Over that last 25 years, this remarkable man has developed more ways to make money than you could imagine. But the most incredible part of the story is his willingness to share what he has learned with others. 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. As you can see every day on his nationally aired TV show, his ever growing list of successful students is amazing. These people’s lives will never be the same thanks to Don Lapre and his generosity. Over the last few years, Don has gained National recognition for his incredible innovations in the 1-900 pay-per-call business. 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. 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. Don’s company sets up the programs and handles everything else. And, you receive weekly checks for all the calls that you generate. If you would like more information on this exciting program you can call 1-800-800-2451. 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. Through a unique new program, Don did it again. He took something that everyone would love to have but could not afford, and he made it affordable! For less than you would ever think possible, you could have your very own Custom Internet Web Site set up right through Don’s company. With an estimated 50 million people on the Internet, 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. 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. 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.

1

How to Buy a House Without Qualifying!

Introduction
Real estate is one of the only assets in the entire world that appreciates, or goes up in value reliably. As a matter of fact, real estate consistently appreciates between 7% and 12% in most areas of the country and even higher in others. Real estate is perhaps the single most important investment that individuals will make in their lives for themselves and/or family. A home is where we live and our family grows. 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. 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. More important, this manual will focus on purchasing a single family residence without qualifying and “nothing down” purchasing techniques. Ordinarily, 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. 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. If the seller does not accept the buyer’s offer, the seller may counter the buyer’s offer. If the buyer does not accept the seller’s counter offer, the buyer may counter the sellers counter offer. This process may continue until a deal is made, or either party decides that they do not want to proceed in negotiations. In either case, and regardless of when an offer is accepted by the seller, 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.” During this process the title company checks to see what liens the seller may have against the property. These can be anything from mortgages to other debts for which the seller has used the property as collateral. Other debts can also be accessed against the property such as judgments and taxes. 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.” Prior to closing, the title company will present to both buyer and seller a statement known as a “settlement summary,” which shows both parties what their costs will be to close escrow, or transfer the ownership of the property from the seller to the buyer. The settlement summary shows what proceeds have been placed into escrow and who will receive what portions of these proceeds. Ordinarily, the proceeds are sent by the buyer’s mortgage company and then placed in escrow to pay the seller. However, all traditional and non-traditional costs are paid first. Both buyer and seller are offered title insurance in case the title company missed any encumbrances against the property, or defects in title. Once escrow is closed, the buyer is granted ownership of the property through the seller’s relinquishment of the deed or title. The title company first pays all the debts against the property, including the seller’s mortgage (if any). The balance goes to the seller and the buyer signs a promissory note secured by the newly released title. In a perfect world, this would be the typical home buyers experience. However, what if the buyer cannot qualify for a mortgage. Factors ranging from income to a short time on the job can affect a buyer’s ability to borrow. For this reason this manual will cover techniques and methods to purchase real property without qualifying through a bank or mortgage company.

2

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. The quickest and easiest way will be through the “real estate for sale” classified section of your local newspaper. However, before looking you will need to know what to look for. 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. 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. Total of each loan or mortgage owed against property. Total payment of each mortgage or loan owed against the property. Property address. Other liens against property besides mortgages. Number of bedrooms and bathrooms, total square footage, unique features such as swimming pool, fireplace, garage, etc. Why is property being sold? Once you gather the answers to these questions you will want to choose a title company in your area. Ask it to prepare a “listing kit” for you with copies of all instruments, a plat map, and information on as many comps (comparable properties) that have sold in the area in the last six months as they can provide. 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. A listing kit is a summary on a property prepared by the title company that shows public information on a property. Instruments are ownership and debt documents signed by the property owner. Plat maps are used by county assessors to determine and survey properties into legal descriptions. 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. 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. 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. The listing kit will also include prices of the comparable properties as well as features and amenities. 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. You will want to make adjustments to your offer based upon the findings of your listing kit. 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. You can then be sure that your offer is in-line with current sales prices in the area.

3

How to Buy a House Without Qualifying!

Remember, 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. What is being asked for homes is completely different from what homes are selling for. Sellers frequently inflate their prices in order to leave negotiation room for bargain seekers. Now that you are armed with a plentiful resource for locating no qualifying deals, in chapter two we will look at how to put together a no qualifying offer.

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. The more money you have to put down on a home the easier it is. Now do not become discouraged too quickly because as you will see in this chapter, money does not always have to be your own and does not always have to be paid up front. 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. ! No qualifying deal with assumption and 100% carryback of sellers equity by note and deed of trust/mortgage. ! No qualifying deal with assumption and balloon payment for sellers equity. ! No qualifying deal without assumption on land sales contract. ! No qualifying deal where seller borrows on equity and buyer takes possession on land sales contract. ! No qualifying deal where seller owns property free and clear; buyer gets portion of proceeds at close of escrow. ! No qualifying deal where seller requires large cash down and buyer pays partial cash and balance of down via note for balloon payment. ! No qualifying deal where buyer leases with option to buy. ! No qualifying deal where the buyer trades personal property or services for part of down payment, pays down payment balance on terms via note and assumes mortgage. ! No qualifying deal where the buyer trades personal property or services for down payment, pays down payment balance on terms via note, and wraps all three encumbrances into one payment through the title company. 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. If this is the case then you will want to check your local Yellow Pages, or ask a local title company for a few references. If your state does not require you to have one then you may consider writing the offer yourself. However, prior to making your offer you will need to find out whether the seller is receptive to your creative financing offer. Once you have determined this, then you will want to pursue forward with actually putting your offer in writing.

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How to Buy a House Without Qualifying!

If you are writing the offer yourself, then you will want to pick up an ample supply of purchase contracts from your local stationery store. They are as little as 25¢ each, and you will find that they are comprised of several sections. However, 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 - This is evidenced by the signature(s) of both buyers and sellers. Consideration - This is the tangible item of worth that will be received by the seller in exchange for the property. Inception Date - This is the date the parties entered into the agreement. Expiration Date - This is the date by which the terms of the agreement must be executed. Lawful Object - This is the property itself. As long as your purchase offer consists of these five elements then it is considered legal and binding. The first part of your offer generally deals with having a receipt for any down payment made to the seller, the buyer’s legal name, and how the buyer will take title. 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. The third part of your offer deals with the actual terms of your offer. It shows the total offered, minus your down payment (if any), and terms of payment for the balance. 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. If the buyer runs out of room here usually the listing of terms is continued on an addendum, which is presented with the offer to the seller. The fourth part of your offer gives a legal description of the property. The fifth part of your offer bears the buyer’s signature and date signed. There is also a space for the seller to sign. Once both buyer and seller agree to the terms set forth in the buyer’s offer, the purchase agreement and any additional parts it may have are given to the title company and escrow is opened. The title company then takes the escrow instructions and produces a document known as escrow instructions. This is basically the title company’s interpretation of the terms and conditions of the buyer’s and seller’s purchase agreement. Once both parties have agreed to and signed the title instruction the title company continues with the escrow. Now once you have picked up a supply of blank purchase agreements from your title company, you are ready to start putting offers together. Let’s now take a look at how to put together those “10 Most Common Deals.”

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. When we refer to down payment we are referring to the amount that we will put down on the owner’s equity. 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. The following is a summary of the seller’s asking price and information on the existing financing:

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How to Buy a House Without Qualifying!

Seller’s Asking Price: $100,000 Our Offer: $98,000 Loan Balance on Existing Financing: $92,000 Type of Loan: FHA/ assumable/no qualifying Cash To Mortgage: $8,000 Monthly Payment: $977.58 Interest Rate: 10%
Based upon the information on the existing financing, the seller’s cash to mortgage and asking price, let’s put together a summary of what our offer should look like:

A. The total price that we will offer the seller is $98,000, based upon the sales prices
for similar homes in the area over the last six months. Because of the $2,000 reduction of sales price in our offer our cash to mortgage is also reduced proportionately by $2,000, from $8,000 to $6,000. 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, made out to the title company. After our earnest money payment our CTM is $500.

B. We

will assume the seller’s existing FHA/no qualifying financing at the current terms and conditions. Monthly payments on the seller’s loan are $977.58 PITI (principal, interest, taxes and insurance.)

C. A contract, by definition, is a meeting of the minds, or agreement between two or
more people to do or not to do a particular thing or action. Although contracts do not have to be in writing, real estate contracts must be in writing. Now that we have created the core part of our contract we will need to put together an addendum. This is simply an extension section that is attached to our contract that contains contingencies and other terms and conditions of our offer. Here are a few of the contingencies we will include on the addendum of this offer:

1) Purchaser to take title, subject to the terms and conditions of the first
mortgage on the property. 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, and or added to the principal amount buyer has agreed to assume.

2) Tax, insurance and utility impounds gratis to buyer. 3) Seller warrants that all appliances and equipment are in satisfactory
working condition and order at closing.

4) Offer contingent upon buyer’s approval of property prior to the close of
escrow. If buyer does not approve of property at any time prior to close of escrow, earnest money is due to buyer in full. Now let’s take a look at how this offer would stack up in a Real Estate Sales Contract (Offer to Purchase):

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How to Buy a House Without Qualifying!

Real Estate Sales Contract
WHEN COMPLETED AND SIGNED THIS IS A LEGALLY BINDING CONTRACT. IF THIS CONTRACT IS NOT FULLY UNDERSTOOD THE SERVICES OF A COMPETENT PROFESSIONAL SHOULD BE SOUGHT. Seller, Joe Seller, hereby agrees to sell to Buyer, Jane Buyer, or Buyer’s nominee, the real property set forth below and all improvements thereon (herein referred to as the Property), and Buyer agrees to purchase said Property from the Seller on the terms and conditions set forth in this contract. Description: The property is located in Maricopa County, Arizona, is commonly known as 456 East Dale Street, Phoenix, Arizona, 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, it may be attached to and incorporated herein afterward.): Lot 42, section 432, plat 6, bloc 9 1. 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 ($92,000 approx.) FHA/No qualifying mortgage loan @ 10% interest with monthly payments of $977.58. (a) (b) (c) (d) (e) Initial deposit ......................................................................................................................$ 500.00 Sum due within seven working days after acceptance of this contract. ..............................$ 000.00 Additional sum due at closing (not including prorations) by certified funds ....................$ 5,500.00 Proceeds of new note and mortgage to be given by Buyer or any lender other than the Seller ............................................................................................................$ 000.00 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 ............................................................................................................$ 92,000.00 Balance due Seller by promissory note of the Buyer subject to the requirements set forth in this contract ......................................................................$ 000.00 Balance due Seller by Articles of Agreement for warranty deed ..........................................$ 000.00

(f) (g)

TOTAL PURCHASE PRICE ..............................................................................................................$ 98,000.00 2. 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. 3. 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, as evidenced by a standard form title insurance policy in the full amount of the purchase price issued by ________________________Title Company, subject only to such liens, encumbrances, clouds or conditions as may be approved in writing by Buyer. (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. 4. CLOSING, PHYSICAL POSSESSION: On or before (close date)____________or within________days of acceptance, whichever is later, both parties shall deposit with the escrow holder all funds and instruments necessary to complete the sale in accordance with the terms hereof. Physical possession, with all keys and garage door openers, shall be delivered to Purchaser upon recordation of the deed. 5. 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, exercisable by his giving a written notice to the escrow holder and to Seller, to cancel such escrow, terminate this Agreement, and recover any amounts paid by him/her to Seller, or to the escrow holder on account of the purchase price of the Property. The exercise of such power by Buyer shall not, however, constitute a waiver by him/her

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How to Buy a House Without Qualifying!

of any other rights he/she may have against Seller for breach of this Agreement. The escrow holder shall be, and is hereby, 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. 6. PRORATIONS: Rents, taxes, interest and other expenses of the property shall be prorated as of the date of recordation of the deed. Security deposits, advance rentals or considerations involving future lease credit shall be credited to Purchaser. 7. BONDS AND ASSESSMENTS: Any bonds or improvement assessments that are a lien on the Property shall, on close of escrow, be paid by Seller. 8. 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. LIQUIDATED DAMAGES: Should Buyer default in the performance of this Agreement, 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, unless specified differently in this agreement or its addendum(s). 10. Attorney’s FEES: Should any litigation be commenced between the parties hereto concerning the Property, this Agreement, or the rights and duties of either in relation thereto, the party, Buyer or Seller, prevailing in such litigation shall be entitled, in addition to such other relief as may be granted, 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. 11. 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. Any Agreements or representations between Buyer and Seller regarding those matters are null and void unless expressly set forth in this instrument. IN WITNESS WHEREOF, the Parties have executed this agreement on this _______day of ______________, 199__. Agreed: ________________________________ __________ Seller Date ______________________________ Seller __________ Date

________________________________ __________ Buyer Date

______________________________ Buyer

__________ Date

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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 _______________, 19____, and is added to and amends that certain agreement between ________________, as seller(s) and ________________, as buyer(s) which contract/agreement is dated the ___________ day of ____________, 19______, on the following property:____________________________________________

1. Purchaser to take title, subject to the terms and conditions of the first mortgage on the property. 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, or if under $250 added to the buyer’s closing figure, or if over $250 but under $1,000 paid to seller by note @ 6% simple annual interest in 12 monthly installments, secured by a deed of trust/mortgage. 2. Tax, insurance and utility impounds gratis to buyer. 3. Seller warrants that all appliances and equipment are in satisfactory working condition and order at closing. 4. Offer contingent upon buyerís approval of property prior to the close of escrow. If buyer does not approve of property at any time prior to close of escrow, earnest money is due to buyer in full. 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. 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. 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 ($92,000 approx.) FHA/No qualifying mortgage loan @ 10/% interest with monthly payments of $977.58. Balance of $6,000 on total sales price of $98,000 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.”

#3

No qualifying deal with assumption and balloon payment for seller’s equity. 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. PURCHASE PRICE AND DEED: The total purchase price to be paid for the Property by the Buyer is
payable as follows:

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How to Buy a House Without Qualifying!

”Buyer to assume Seller’s, existing balance ($92,000 approx.) FHA/No qualifying mortgage loan @ 10/% interest with monthly payments of $977.58. Balance of $6,000 on total sales price of $98,000 shall be paid by note secured by deed of trust/mortgage @ 10% simple annual interest with 1 payment of principal and interest 60 months, or five years from close of escrow.”

#4

No qualifying deal without assumption on land sales contract. 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. 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, existing balance ($92,000 approx.) FHA/No qualifying mortgage loan @ 10/% interest with monthly payments of $977.58. Balance of $6,000 on total sales price of $98,000 shall be paid by note secured by deed of trust/mortgage @ 10% simple annual interest with 60 monthly payments of principal and interest, on contract for deed for five years from close of escrow. Existing financing to remain in the name of 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 $40,000 on property and had $58,000 in equity:

1. 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 7.5% interest with monthly payments of no more than $700 principal and interest. Buyer will assume new financing on contract for deed. Financing shall remain in the name of the seller.”

#6

No qualifying deal where seller owns property free and clear, buyer gets portion of proceeds at close of escrow. 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 cash in their pocket!!!):

1. 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 7.5% interest with monthly payments of no more than $700 principal and interest. Buyer will assume new financing on contract for deed. Financing shall remain in the name of the seller. Of proceeds from new financing which will be placed in this escrow, buyer to receive $25,000 and seller to receive balance.”

#6

No qualifying deal where seller requires large cash down and buyer pays partial cash and balance of down via note for balloon payment. Notice buyer does not assume existing financing. 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 $40,000 on property and had $58,000 in equity:

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How to Buy a House Without Qualifying!

”Buyer to pay Seller’s, existing balance ($40,000 approx.) FHA mortgage loan @ 10% interest with monthly payments of $351.04 on contract for deed. Seller to remain on note for existing financing. Balance of $58,000 on total sales price of $98,000 shall be paid as follows: 1) By cash at close of escrow for $1,000 dollars 2) By note secured by deed of trust/mortgage for $57,000 @ 10% amortized interest with monthly payments of $550.07PI (principal and interest) for 240 months (20 years).”

#8

No qualifying deal where buyer leases with option to buy. This deal should be done on a lease agreement, which you can find in your local stationery store. 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. At the conclusion of the lease you will then execute whatever purchase terms you have chosen.

#9

No qualifying deal where the buyer trades personal property or services as a down payment, pays seller’s equity on terms via note, and assumes mortgage. ”Buyer to assume Seller’s, existing balance ($40,000 approx.) FHA/No qualifying mortgage loan @ 10% interest with monthly payments of $351.04. Balance of $58,000 on total sales price of $98,000 shall be paid as follows: 1) By personal property, which title and possession will be provided to Seller outside of and prior to the close of escrow. Value of personal property is agreed upon by seller and buyer to be $20,000 and therefore will serve as down payment on purchase of seller’s $98,000 home. 2) By note secured by deed of trust/mortgage for $28,000 @ 10% amortized interest with monthly payments of $270.22PI (principal and interest) for 240 months (20 years).”

#10 No qualifying deal where the buyer trades personal property or services for down payment, pays equity
balance on terms via note, and wraps all three encumbrances into one payment through the title company. 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. Be sure to indicate on your addendum that both buyer and seller will split title company collection costs as well as monthly fees. ”Buyer to pay Seller’s , existing balance ($40,000 approx.) FHA/ mortgage loan @ 10% interest with monthly payments of $351.04, by contract for deed. Seller to remain on note. Balance of $58,000 on total sales price of $98,000 shall be paid as follows: 1) By personal property, which title and possession will be provided to Seller outside of and prior to the close of escrow. Value of personal property is agreed upon by seller and buyer to be $20,000 and therefore will serve as down payment on purchase of seller’s $98,000 home. 2) By note secured by deed of trust/mortgage for $28,000 @ 10% amortized interest with monthly payments of $270.22PI (principal and interest) for 240 months (20 years).”

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How to Buy a House Without Qualifying!

Closing The Deal!
Writing the offer is perhaps the easiest part. Closing the deal is where your talents as a deal maker will be the most needed. Remember, real estate deals usually go a couple of different ways:

  Your price, seller’s terms.   Seller’s price, your terms.
Sometimes you will have the luxury of “having your cake and eating it too,” but most of the time you will do only one of the above. 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, “Ok,” get his or her signature, shut up and leave, 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.

Insurance, Taxes and Commissions
As you invest in real estate you will encounter many different insurance, tax and real estate commission situations. 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. As a prudent real estate investor it is important that you make every attempt to acquire the insurance impounds of the seller. Here’s how it works: Normally, when you buy a house the title company collects two months of insurance premiums up front. Depending on the value of your home, this could add up real quick. When you sell your home you get these insurance premiums back. 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. In your purchase contracts you will want to indicate that the seller’s insurance impounds are “gratis,” or free to you the buyer. 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. Taxes This works the same way as the insurance impounds. Just remember to write “tax impounds gratis to buyer” and you’ll save yourself a bundle at closing!!

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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. 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. If you are trying to put together a no qualifying deal this commission could get in your way. However, work with the agent and you might be surprised to find out how flexible they may be with carrying or reducing their commission. At any rate always remember that real estate commissions on the home that you will purchase are always an obligation to the seller. You are in no way obligated to pay a real estate agent a commission unless you have a written agreement with them for services.

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. After you purchase your homes either sell them for cash or rent them out. 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. On top of the income benefits that you could enjoy from buying and selling houses there are also tax professionals. Be sure to check with your tax professional for an explanation and guidelines for enjoying the tax benefits of real estate investing.

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, Published by Escrow Publishing. Publication date: June 1997. Escrow Basics by E. B. Feagans, Published by Escomp Pub. Publication date: June 1991 Escrow Book: A Quick Reference Guide on Real Estate Closings by Nancy Patricia Reilly, Published by Reilly Escrow Corp. Publication date: December 1980. Escrow Principles & Practices by Sherry Shindler, Publisher: Ashley Cro. Publication Date: November 1997. Guide to Escrow Transactions: with Model Forms by Walter Newell Prince, Published by Prentice-Hall. National Mortgage Escrow Audit Kit: How to Audit Your Mortgage Escrow Account forOvercharges by Benji O. Anosike, Published by Do It Yourself Legal. Publication Date: October 1996. 13