Secret Insider Technique #3 For Buying Real Estate: Subject-To and Seller Financing Combined!

By Gregg Cohen

Hopefully you’ve been following my 3 part blog post series on ways that you can acquire real estate without using any of your cash, credit or needing a bank loan. If not, here’s a quick recap:

Secret Insider Technique #1: Seller Financing is wealth-building on Steroids! (click here to read blog post)

Secret Insider Technique #2: Take over properties “Subject-To” and build your real estate portfolio! (click here to read blog post)

And that brings us to today’s topic. Now you might want to sit down for this one, because you’ve probably never heard of it before and it takes a little bit of brain-power.

So, guess what. Not every seller is going to have a free & clear property (required for a Seller Financing offer) and not ever seller is going to accept an offer to merely sell their property for what is owed on the mortgage (required for a “Subject-To” offer.) APPARENTLY, some sellers have this crazy idea that they should actually make money when they sell their property (I know, it annoys me as well ).

So that’s where this little beauty comes into play:

If you'd like to read my special report that has all 3 of the Secret Techniques, just click here!

Secret Insider Technique #3:

Subject-To and Seller Financing: A highly profitable combination!

Have no fear, we have yet another Secret Insider Technique that still won’t require any of your own cash or credit. It combines the best of both worlds of Seller Financing and Subject-To!

We can use this strategy when the following occurs: A seller wants to sell the property and currently has a loan on it, but wants to make a profit on the deal. So, anytime someone wants to make a profit on the deal we ask those magic wealth-building words once again:

“Mr. Seller, I can pay you the price you want for the property, but I’ll have to pay you over time. Can you handle that?”

We structure the deal so that we take over the payments on the current loan AND create a new loan with the seller which we will pay off over time. Using the numbers from Secret Insider Technique #2, I’ll show you how this deal would work out:

Market Value of Property: $130,000

Seller’s Asking Price: $105,000

Current Loan on Property: $100,000

Current Monthly Payment: $700

Projected Monthly Rent: $950

So, we take over the current loan just like we did in the previous example. In this case, we would now pay the $700 monthly payment to the bank. That is the Subject-T0 part of this transaction.

We THEN create a new loan with the seller where we will PAY HIM DIRECTLY. Again, whenever you are using Seller Financing, you are only limited by your own financial creativity. So let’s say we agree to take out a new loan to the seller with the following terms:

New Seller Financing:

Loan: $5,000

Interest Rate: 0%

Monthly Payment: $50

Payment Term: 100 months

So, now let’s combine both the Subject-To and the Seller Financing parts of the deal and see what kind of transaction we have put together:

Purchase Price: $105,000

Down Payment: Zero!

Equity: $25,000

Monthly Cash Flow: $200

When you use one of these Secret Insider Techniques, or a combination of both, you remove all of the potential roadblocks that stand in your way of acquiring massive wealth in real estate! You are not limited by your own cash and you’re not limited by your credit or bank financing regulations – you are merely limited by your financial creativity!