MakeMoneyOnline w/Houses  

This method I will be discussing today is
How to Find and/or create a safely structured
100% LTV N.O.O. (None-Owner-Occupied) Financing
... Even when un-conventional lenders Don't or
Won't offer them?

EXACTLY What Are WE DOING HERE?

Investing in Single Family homes
That Can Easily Appreciate in Value
By Making Simple Improvements
[simple Bedroom/Bathroom Additions]

THEN WE:

Locate Sellers [F.S.B.O and/or MLS Listed]

And

Finally MAKE OUR OFFER:

Full Asking Price based on As-IS
[not more than 90% of Mkt]

AND So long as you can Buy it from the
Seller's Title Holding LAND TRUST
Begin Improvements and Pay Off the
Asking Price in 30-45 Days...

===============================

THE FIRST STEP IS TO:

Do You homework on both the Property and current Market Conditions

You Must Learn What is Currently Selling at Top Value in the Mkt Place you target
And Which Improvements[Amenities] are Getting the TOP DOLLAR/Quickly Selling?

THEN NEXT STEP:

1. Find out (Determine) Your COST [financial outlay to do improvements] Relative to IMPROVED VALUES.
2. Calculate the Contractors estimated Timetable for finishing the Improvements
3. Calculate the Contractors estimated COSTS for IMPROVEMENTS.
4. Consider TRADE/BARTER or PROFIT CENTER SPLIT for The materials NEEEDED TO IMPROVE VALUE
5. Calculate Your Total costs for Completing the Transaction.

THIRDLY:

MAKE YOUR OFFER - Ask the Seller to put the property "Under Contract" to be Purchased By YOU from within&;an EHTrust[tm] title holding land trust in order to protect HIS, and OUR, interests while WE finish the Improvements...

As co-Beneficiaries of that trust, WE Now have the 1st Right to purchase the property at the
"Full Fair Market Value", as deemed by the Appraisal needed to obtain the New AIV [After Improvements VALUE] Loan.
 
QUALIFICATIONS:
You should already be pre-approved for the amount of the purchase before we even make our offer to the Seller or agree to Set up the EHTrust[tm] title holding land trust.

Before We make our proposal, You or the Realtor MUST run a Comprehensive Market Analysis (CMA) And do what amounts to an mini-appraisal, based upon WHAT the property would be valued at ONCE The Improvements have been DONE (ARV or After Repair Value or in our case AIV or After Improvement Value).

++++++++++++++++

Here's the key:

YOU and I both must be able to walk away from the closing with cash in hand... LEGALLY!!!
++++++++++++++++

How Does the Title-Holding Land Trust Allow You and I to accomplish this?

Why Would a Builder/Seller Agree to Do this?

Why Not Just Buy get a repair or home-improvement loan fix it up and Rent it out
on lease option?

++++++++++++++++++
OUR Exit Strategy:
++++++++++++++++++
 
Will look like this...

$ MAV [Mutually Agreed Value] upon placing the property into a NEW EHTrust[tm].
Equals 2 x Times [Double] the Costs of Improvements.

$ Monthly Rent with Positive Cash Flow from the RB we locate

Also We 'bump up' the property's value by 5% to 7% in order to lock in additional
profit in the future sale. [in 3 to 5 Years]

Here's how it can end up.

You get your 5% or 10% Back which is Paid To you as PROFIT being that you will be
a Co-Beneficiary of the Title holding Trust.

AND NOT as an ILLEGAL kick-back from the Builder or seller.

 Then together

1. We split $ with the builder/Contractor, whose happy to put the labor in.
    
2. We Now have $ increased Our BEGINNING EQUITY in the home by at least 25%
    (that is the difference between the amount financed and the MAV after Improvements).
3.  We make Addl. $ CASH UPFRONT from the RB  [Resident Beneficiary We Pre-Located to both live in the property and buy it from us in 3 to 5 years from now].
4.  We also have a $ Monthly in Positive Cash Flow. Given that Your Purchase loan
    [being at 90/95% of MAV] is at an affordable rate.
5. And Most IMPORTANTLY We have reserve funds to cover any contingencies, insurance deductibles missed payments, and/or to evict the RB and advertise the property (if need be)...

FINALLY.......

We're on course and set to share in 50% of the net proceeds upon the final disposition [sale of the home to the RB] at termination of the Trust in 3 to 5 years.

============================

This all Based on the property's True CURRENT MARKET VALUE from Improvements adjusted by no more than ($ increase of 10 to 15%) and a modest 7% appreciation over the next 3 years or so.
 
Historically it's Conservative to use between 5% as a low and 8% as a High
The property should be worth approximately 15% to 24% MORE at the end of the Term of
Our Trust with the RB.

And That explains how you and I will split an additional 5% to 7.5%
with the future buyer We locate [the RB] and after all other costs are covered.

The RB will purchase [Rather Refinance to pay off your loan] in 3 years.

In the meantime...

Because you have set up this new title holding trust to protect your,
my own, and the RB's interest the Trustee can provide You with a

100% DEBT-To-Income CREDIT Relief Letter to ZERO OUT this loan (or similar ones)
you have established in our Land Trust partnering arrangement.

This offers you unlimited purchasing power and Profit-Generation Prospects!

By Our working together to locate and lock down these transactions
the Possiblities are endless.

Let's Say we BEGIN BY

[A]  Targeting $500,000.00 (+) Value Homes

Our Mutally Agreed Value Goal is to... Make Offers to Sellers who are in say the

$375K to $425K property Sales-Price Range
[or 75% to 85% of the After Improvements Value]

[B] After We I identify these we'll then Research obtain a CMA [by You and/or Your Realtor] to Obtain What $500K Homes HAVE Recently SOLD as well as WHAT these $375K to $425K HOMES DON'T Have or AREN'T Offering in Comparison?

Our Goal is to IMPROVE The VALUE To $500,000 Improvement and/or Labor Costs should to be No More than $30K to $50K

So...

$30K Addition should bring $60K Improved Value

$50K Updates+ Decorating Should bring $100K in Increase Value.

Going back to our example above At  $375K = 90% then it is a $410K Value Home
with $50K in Updates the New Value will be= $510K [AIV]

or

$425K = 90% then the Value is actually $470K with a $30K bedroom bath Addition the NEW VALUE is = $535K[AIV]

[C] Materials Are then Purchased or Ordered on CREDIT

The Contractor selected, Contracted or Given Beneficiary Interest
to Split Profits in the Home's AIV [After Improvement VALUE]

[D] The New Loan [90-95% LTV] is obtained by you.

[E] The Seller is Paid Off by the Trust [75% to 85% of AIV]

[F] NET Proceeds are Split By us at the Co-Beneficiaries of the Trust

Use of these Funds will go to cover:
-----------------------------------

1 - Return of You 5% or 10% Down payment

2 - Set up of YOUR Tile Equity-Holding Land Trust[tm]

3 - Advertising to Locate an RB[Tenant-Future Buyer]

4 - Escrowed for Taxes and Insurance

And

5 - Cover interim mortgage Payments until RB buys into our trust.

[G] The RB's Purchase Price expected to be $535K

-$450K to $475,000 Loan Balance (no note reduction because we use an Interest - ONLY Loan)

=$375,000 to 425,000

- $41K to $47,000       Beginning Equity to YOU and I

- $26,750                    RB Contribution (5% Move In) 100% refundable to the RB at termination.
= $21,750                   Net Profits split 50/50 with RB

Out total profits on one deal =

$12,500 Our split of the Cash Out with Contractor [30 to 45 days]
$21,000 Upfront from RB after Trust Setup and Closing Costs  [45 to 60 days]
$10,800 Cash Flow ($300 X 36 mo.)
$50,000 Beginning Equity [10% instantly made on our 90% offer]
$17,500 Our half of the Net Proceeds and Profits [created up front net in 3 years]
========================
= + $111,800 in Total Profits

We Can Easily Create one Deal like the above EVERY 30 DAYS [once a month]!

And YES, although we can just sell the property outright at the beginning equity
and put several thousand buck into our pockets and walked away... but I think we Can Do SO MUCH BETTER...

Offer more to get more in a Safe reasonably more profitable way?

With....

No Landlording Headaches
No Rehabbing or dirty work
No Hassles Smooth Financing and Contracting
Reserves to Cover payments as well as any Negative unforeseen issues
Cash Back at Closing  +  Equity to Share = More Profit-Generating Deals To the Next Month!!!

So Are You in?

Then Give me a Call Right Now 1(734) 931-1132

or EMAIL Derrick@Rent2OwnCondoz.com