The question that Zack Childress poses in every podcast is how do real estate investors build real wealth and freedom without access to millions of dollars in capital? His mission is to help you find the answer.
Creative financing brings great opportunity. There’s lease option or sandwich lease option, there‘s subject to. Both involve taking over payments from current owner.
With a subject to, I take over the property and take over the payments, but the financing agreement with lender remains in the current owner’s name. The contract states that I pay the owner the payoff amount of loan after ‘X’ number of years.
During those years, I have a renter in the home that’s paying more than the mortgage amount while the final amount due (my final price) continues to go down. I get cash flow and a low price.
Lease option and subject to deals have different contractual requirements. A good real estate attorney is going to know this, but it’s important for you to understand the options so you know the deal’s executed properly.
Wrap mortgage is another approach. It allows you to sell the property with seller financing instead of being a landlord. You charge the buyer a higher interest rate than the property’s existing rate and amortize the loan.
Zack gives a clear explanation of the wrap option. A wrap is a good long-term money maker, so open your mind to this important tool.
Watch and learn:
Listen and enjoy:
- Zack’s current subject to deal
- Know state and federal laws
- Wrap mortgage option
Mentioned in this episode:
- Reach Zack by phone: 707.247.4248
- Follow Zack on Facebook: REI Success Academy Facebook
- Zack’s Book: My First Deal Playbook