Ron LeRrand – Pretty House Cash Flow System 2010 | Available Now !

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For Sale By Owner

Here’s an example to help clarify this opportunity. Suppose a seller calls you with a house in excellent condition worth $200,000 with loan balance of $182,000 and a payment of $1,350. He’s just lost his job and is two payments behind. The seller isn’t too concerned about his equity because he simply doesn’t have any to speak of. He’s more concerned about a potential foreclosure ruining his credit and debt relief.

If he lists the house with a real estate agent and pays a commission, he’ll have to continue making payments he can’t afford while it’s on the market. When and if it sells, he’ll be lucky to break even.

Most sellers in this situation are simply looking for a solution, any solution. If you can provide one, you’ll be a hero and make money on a deal most people would never recognize.

Solution: Get the seller out of his payments and clear of the house by simply allowing him to transfer ownership to you for no money or perhaps $500 “moving money.” You will take over his loan with no liability to you. The loan stays in his name, but ownership transfers to you, and it will be closed by your attorney to ensure the proper paperwork is done.

I always get the seller to sign a CYA (cover your assets) letter to make sure he understands I made no promise to assume his loan. Everything is disclosed in writing and properly done.

Don’t forget, this seller is about to be foreclosed on by the bank, so he has nothing to lose by selling his house to you and leaving the loan in his name. Either you provide a solution, or he loses the house anyway.

Remember, the house has a $182,000 loan, which most people would think is a problem and prevent a sale. This simply isn’t true, and those who believe this conventional wisdom are walking past a fortune as they listen to so-called experts.
Any time a homeowner wants to deed you their house, there’s absolutely nothing to prevent them from doing so. The loan is only a lien against the house. It doesn’t have to be assumed or paid off to transfer the title. Of course, the $182,000 loan is still attached to the house, but you now own the home. You aren’t liable for the debt unless you assume the loan, which would be foolish and would screw up a perfectly simple, risk-free deal.

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