Profit-Lesson
#3:
"We
Come To The Rescue!"
By
Teddy Hanson
In the last lesson, I explained what happened when Sally Seller
decided to sell her house and carry back the paper herself.
Now
let's continue with lesson #3 and I'll explain how we rescue Sally
from her money predicament.
Onward...
Profit-Lesson #3:
"We Come To The Rescue!"
It's
Time For The Closing
At closing, (a month or so later), Bud Buyer gets possession of
the house. Sally Seller gets her $20,000 cash and she also gets
a "promissory note" for $80,000 at 10% interest in which Bud Buyer
promises to pay her $702.06 for the next 30 years.
Instead
of Bud getting a regular bank loan and paying the bank every month,
he will now send Sally a check. Sally is actually acting as the
bank in this instance because she carried back the mortgage. This
is what's called a "Seller Financed Mortgage" or a "Seller Carry
Back"!
The
months go by and everything is fine Bud pays Sally on a timely basis.
He faithfully mails her a check for $702.06 every month without
fail.
Sally
Is Getting Impatient
Now a year has gone by since Sally sold her house and her financial
picture has changed. Sally is getting a little short on money and
she wishes that she could have her money now instead of having to
wait 29 more years to get all her money from the sale of her house.
Because
Bud Buyer has been paying on the mortgage for 1 year, the money
he now owes Sally is down to $79,555.30 (from the original $80,000).
Sally
thinks, "Boy it sure would be great to have the money right now
instead of having to wait all those years".
But
Sally doesn't know how in the world she can get her money now instead
of having to wait 29 more years.
Here's
Where You Come To The Rescue
Sally doesn't realize that she can sell her mortgage note for cash,
or that she can sell a part of it if she doesn't need all of the
money right now!
Amazingly,
A Lot Of People Receiving Payments On A Note
Don't Realize That They Can Sell The Whole Note Or Part Of It !
Their stockbroker isn't going to buy it, and a bank can't and won't
buy a privately held note.
That
should do it for now. Next I'll explain what happens when Sally
decides she wants cash now instead of waiting any longer.
Remember...
"You
Don't Have To Get It Perfect...
You Just Have To Get It going!"
Click
Here For Next Lesson
Article
by Teddy Hanson of Profit Ideas, Inc. Teddy has helped hundreds
of ordinary people succeed in their own home-based business,
flipping mortgage paper. Visit him at http://www.lucrativedeals.com for
FREE "how-to" information".
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