All Forum Posts by: Michael Fagan

I've used brrrr very effectively, have 10 financed properties that all cash flow, I have enough cash to continue but don't know how I'd get my money back out.

Thanks Brian, that does help. So to paraphrase, I'd take on the land contract myself (or would I tie it up until I find the buyer?) , find the buyer, then re-assign to the buyer and ask for 3% of the fair market value. If I'd be getting the house at 80% fmv that say $80,000 and fmv was $100,000 I'd get $3,000 for putting the deal together and the buyer would be getting a nice deal? Is the interest rate due to the seller usually a bit over what a conventional mortgage would be? If the buyer defaults in the future that's up to the seller to deal with.

I was reading an article, and it all made sense and was easy to follow except when I got to this:

"Usually in 2 weeks I get a buyer, and we make $5000 a house (sometimes I take a note on maybe 20% to 33% of the down payment.) "...

How are you making $5000 on the house, does taking a note mean borrowing the buyer the down payment?

"This is in and out, not a sandwich lease option." ... 

I'm thinking that means once the transaction is done they are done?

"We act as a principal in a lease option, then assign. We work with land contracts too in the same manner."...

Not sure what acting as the principal means or assigning?

I have a ton of questions about how the mortgage companies are involved, and how the wholesaler would get paid? I sounds like basically the wholesaler would be the middleman to the transaction, but the buyer has to get the mortgage before the seller would be free of his mortgage and I believe in a rent to own situation could take quite a while.