First off, always ask property owners how much they want for their equity instead of how much they want for their property. This way, owners start to think in terms of how much equity they have in the property and not the overall sale price. Plus, you can follow this with my favorite question: Would you be willing to lend me your equity in the property secured by a seller-financed mortgage loan? Generally, I buy options on properties only from owners who are willing to help finance the purchase by providing seller-financed mortgage loans on reasonable terms. This way, owners lend you their equity, secured by a seller-financed mortgage or deed of trust loan on the property, which allows you to purchase it without going through the rigmarole of having to:
1. Fill out overly intrusive loan applications.
2. Qualify for new mortgage or deed of trust loans.
3. Pay outrageous loan fees.
4. Pay rip-off third-party due diligence fees.
5. Deal with less-than-honest lenders.
Was this article helpful?