Posts Tagged ‘ Financing ’
In this example, the equity is the same as the sales price because the seller owes nothing on the property. The sellers didn’t need their equity in cash. They were interested in an income stream. The seller was planning on putting their equity into certificates of deposit (CDs) at the bank.
Why the seller accepted was his own business. We now had a property available to flip. Only by making an offer can you start the process of flipping a property. No offering, no flipping. We flipped the property for $136,000 within 30 days to a retail buyer who was going to live in the property. The buyer was very happy to get a good deal.
You are a real estate investor, not a home buyer. You are a wholesale buyer of real estate. You are going to do things differently. Everyone (except us) will tell you get your financing first, and then buy the property.
In the 1990s, when we traveled the country teaching real estate investors Robert Allen’s Nothing Down
seminars, we blew them away with “buy the property first, then get the financing. ”In city after city,
people in the seminar told us we could not buy real estate that way. We told them to try it our way and
report back to us what happened.
