How To Find Off Market Deals Below Market Costs and Make a Million ;-)

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For finding deals and reaching early retirement, new investors can get help in their financing by utilizing Creative Finance like Wraps and Subject To. Wanting to buy that second property? Tired of not finding deals and then when you finally locate one, the bank wants 20% down? On a $400,000 property, that's $80,000, Crazy isn't it.

Here's how it works:

Instead of putting 20% down and having high lender costs, you can find deals below market, take over the loan, and save all of those costs. On top of that, when you turn around and sell it on a Lease Option, you get all of your money back right away , make a ton on money and have money to buy the next one.  Okay, it takes a little learning but here is why it works.

Here is what one of the new people I coach from Socal did with a property in Phoenix I helped him find. He has taken his training seriously. It’s a Subto (Subject To) that I helped him buy “off market” and he chose to sell on a Lease Option. This also works in CA, TX and GA. I’ve broken it into sections so it’s a little easier to follow.

He is into it for a total $15,828 cash, has some cash backup just in case, and nets $106,745 when all is said and done. Using a traditional bank he would have a 20% down of $55,000 plus $3600 in closing so roughly $58,600 in cost to buy this property. That's what the average investor does. Boring, and expensive. Cash flow averages $100 a month. Yawn!

Now we use a technique that's been used for decades, you just aren't aware of it. It's called Creative Finance.  Buying below market price, not on the MLS, you can take over the seller's existing 3.5% interest rate mortgage. How cool is that! No down payment! no lender fees! Low payment! The cash flow is $700 a month. WoW!

That’s a difference of about $42,000 to buy a property. That is money he can use to buy the next one, and the next one. It’s 3 times as efficient to do the (BOMSTSLO) ™ Method

Don't get it yet? That's okay, we provide a spreadsheet that lets you, run your numbers and learn how it works.  Just connect.

(BOMSTSLO) ™ Method "Buy Off Market", using "Subject To" selling on "Lease Option"

	Seller Bought	Nov-21
	Purchase Price	$275,000
	Interest	2.65%
	Down	$9,625	3.50%
	Financed Amount .	$265,375
	Principal & Interest	$1,069
	Mortgage Ins	$156
	Prop Tax	$63
	Insurance	$93
	HOA	$0
	He takes over Loan and
	He makes Monthly Payment	$1,381

	.
	Current ARV	$300,000
	Seller Sold Subject To
	Principal Current	$252,455
	Arrears	$0
	Cash to seller	$10,000
	Real Estate Agent Fees	$15,147	6%
	** No Agent Involved **	$0
	Subject To Sale Price	$277,602
	.

	.
	Cash to seller	$10,000
	Closing costs	$3,628
	Wholesaler Fees	$0
	Marketing to find	$2,200
	His Cost to Buy	$15,828
	(He has reserves set aside of )	$5,000

	.
	He Sells On Lease Option
	Interest	8.00%
	Current ARV	$300,000
	Lease Option Increase	$330,000	110.00%
	Option Fee	$33,000	10.00%
	Principal Optionee Owes	$297,000
	He makes Monthly Payment	$1,381
	He gets monthly Rent	$2,100
	His monthly Cash Flow	$719

	.
	Property Mgr (Don't need)	None	Optionee takes care of
	Repairs (Optionee does all)	None	Optionee takes care of

	.
	His Income From Property
	Amount Underlying Loan	$233,298	When Optionee Refinances
	3 Year Principal Paydown	$19,157	Added To Profit

	.
	His Profits
	Option Fee	$33,000	Cash into his pocket
	Back End	$63,702	His Equity when Optionee Exercises Option
	12 mos cash flow	$8,624	Cash into his pocket
	12 mos cash flow	$8,624	Cash into his pocket
	12 mos cash flow	$8,624	Cash into his pocket
	Gross Profit	$122,573
	Cost to Buy	$15,828
	.
	His Net Profit	$106,745