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These are people who would love to buy a house
like yours, but who cannot or will not qualify for a bank mortgage.
They may be self-employed businesspeople, small
business owners, or foreign nationals. They do not want to have to
show tax returns, financial statements or assets. And yes, there may
be others in this catagory with bad credit resulting from a personal
or business reversal.
What they all have in common is that, in most
cases; they have plenty of cash and the income to support the
monthly payments necessary to finance the purchase of your house.
When you offer your home on terms that meet their
needs, with seller financing, these Phantom Buyers will gladly pay
you 20-30% more than the fair market value of your home.
You will double or triple your profit from the
sale!
There is only one way to be able to sell your
home with seller financing to someone else without them having to
get a new mortgage to replace yours.
You must place the title to your home into a
properly structured land trust, then you sell it on a "Rent to Own"
basis to one of the Phantom Buyers.
The new buyer pays you a substantial down
payment, perhaps even the total amount of equity you have in the
house, then makes payments on the balance, if any of your equity,
and takes over the payments on your mortgage. The term of the deal
can be anything mutually agreeable, from a year or two to 10 years
or more.
The situation is similar to financing a car
through the bank. The “owner” the car uses it as he pleases. The
only thing he does not have is the title to the car. The bank holds
it until it is paid off.
Your buyer has all the rights and benefits of
homeownership, including the tax write offs for the mortgage
interest, real estate taxes, etc. The only thing he does not have,
is the title, which is held by the trustee of the land trust.
Bottom line? You have sold your house for more
than the fair market value and received all or most of your original
equity at closing, with any balance of the higher price due and
payable when the new owner gets his own mortgage or when he sells
the property.
It is not unusual for you to make two or three times more profit
than you would have walked away with in a sale to a “normal” buyer.
If your new buyer fails to keep the property up
or fails to make his payments, you notify the trustee and he is
evicted, with no costly or time consuming foreclosure needed.
You simply find another “Phantom Buyer” with
another down payment and start over.
The land trust is a little known device used by
wealthy property owners for hundreds of years to protect their
assets and provide complete privacy for their property dealings.
Since the land trust is not well known in all
parts of the country, and requires meticulous adherence to the
rules, you may have to seek out a specialist.
It could mean doubling your profits on the sale
of your home!
Bill Young is a real estate investor and
educator. To learn more about land trusts, read Bill’s article at
http://MotivatedSellersOnline.com/LandTrust |
How
to Sell Your Home by Owner And Double Your Profit When You Sell