Self-employed Buyer - Cash Creation Strategy

Self-employed Buyer - Cash Creation Strategy

The seller of this single family home had no mortgage. Because of the upgraded improvements made to the property, the seller was firm about the sale price of $280,000, which was confirmed by the property appraisal. The total funds needed by the seller was $56,000 or 20% of the purchase price.

The buyer was turned down for a conventional loan because he was self-employed. He did have a 10% down payment of $28,000 and his business supported the monthly mortgage expense with no problem.

A Realtor, one of my associates, contacted me to see what we could do.

For this self-employed buyer we created the frame work for a promissory note of $252,000 at 8% interest for the property seller. The payments were amortized over 30 years with a balloon payment due in 60 months.

Here is the summary of what the seller received:

The sale price of your property will be $280,000.00.

You get $28,000.00 from the property buyer as the down payment when escrow closes.

You get $28,000.00 from the sale of part of the note when escrow closes.

The total cash you will receive immediately is $56,000.00.(20%)

You will receive 60 payments of $1,849.09 for a total of $110,945.40.

Your balloon payment will have a remaining balance of $152,045.35.

The total you will receive for your $280,000 property will be $318,990.75!

This is one of many ways financing can be structured. Everything is customized to satisfy the needs of the seller and buyer.

The discount on this transaction was only 5.3% including the commissions. The seller received a premium of $38,990.75 for the time needed to collect all of the funds.

The seller got more money than expected. The buyer got the funding that was previously denied, and immediate access to the property. The real estate agent got a satisfied customer and a nice commission. My company was compensated for arranging the customized financing. It was a big "WIN" for all involved.

It was an exceptional deal that reminded us, "time is money". We can do something similar for you or someone you may know. Just submit a Seller-Profile for a preliminary needs assessment. If you are a buyer that has been turned down by conventional lenders, but you have down payment money and the ability to pay a new mortgage, just complete a buyer-profile and submit it as soon as possible.

If you are a real estate agent or broker with a deal in the "ditch", contact us immediately with the details. Remember, time is money.

Self-employed buyers are one of many types that benefit from our cash creation strategies. Our E-book, "How To Sell Your House FAST In Good Or Bad Markets" gives you very special insights into the world of promissory notes and the Time Value Of Money. It's priced at only $14.95 for a limited time. Be sure to add a copy to your home library. You will be glad you did. It is available in an easy download. Details are at the link above.