Deferred Buyer Financing At A pre-determined Time? - Posted by Robert Ramey

Posted by dewCO on December 01, 2000 at 11:16:57:

There is nothing about what you wiritten that sounds interesting or appealing and screams SCAM at me.

Learn how to do creative correctly and then you can make more than 30% and not be dependent on otheres whom you don’t know to control YOUR deal.

Deferred Buyer Financing At A pre-determined Time? - Posted by Robert Ramey

Posted by Robert Ramey on November 30, 2000 at 12:44:45:

I received some information in the mail recently from a company selling a real estate program supposedly where both buyer and seller would benefit. You have no doubt heard of these types of programs or real estate transactions. However, I do not see anywhere on your site that it’s mentioned.

Anyway’s, they claim that they can help sellers unload their non-owner occupied real estate (single family) or tenant occupied (rental income) by selling through their PRE-STRUCTURED PRIVATE MORTGAGE FINANCING PROGRAM. Sellers would receive up to 30% or more in profit from the sale of their property.

The terms formulated will be based on an agreeable structured mortgage schedule with a formulated interest rate over a short term…with deferred buyer financing at a pre-determined time. As a result, the owner receives up to 30% or more in profit on the sale of his/her property. The terms will be based on mutual agreeable factors between buyer and seller.

There is more to this, but I’ve given you the basics of the program. I would like your comments as to how familiar you are with such a financing technique, and if it is feasible.

Thank you.


Re: Deferred Buyer Financing - Posted by Brent_IL

Posted by Brent_IL on December 01, 2000 at 12:11:57:

Yes, it is more than feasible; it is second only to the sale itself as a major seller benefit for carrying the paper. PRE-STRUCTURED PRIVATE MORTGAGE FINANCING PROGRAM means seller carry-back. The interest due the seller is accrued or accumulated to generate a larger pay-off sometime in the future. Read the sidebar on the left of Bill Gatten’s homepage ( to understand the advantages of doing it within a PACTrust. It?s not hard to learn. You don’t need to pay another company to tell you how to do it. Play with a financial calculator and observe how changing any given term affects the other values.

A seller will accept your idea if he believes it is in his best interest to do so. If he thinks he can do better, he will not.

Quick example.

$100,000 FMV $50,000 existing loan-$500.00 payment

An offer:

Use PACTrust, no due-on-sale. Buyer makes payments on loan.

$100-50=$50,000 remaining.

$20,000 cash paid to seller by buyer.
$100-50-20=$30,000 remaining

12% 30-year $30,000 note carried by seller @10% schedule and 2% deferred. Ten year balloon.

"Mr. Seller, if you list with an agent, after perhaps six months of uncertainty, you might sell your house for the listing price. By the time you pay off the first mortgage and pay a $6,000 RE commission, you are left with $44,000. During the time you’re holding the property you still have to (make payments, bad tenants, damage, et al). When you accept my offer here’s what happens. I make the payment on the 1st mortgage so you are off the hook. You get $20,000 in cash at closing. You receive $268.27 every month for 119 months, a total of $31,329.31. When you get the 120th check it will be for $38,448.98.

$50,000 First
$20,000 cash down payment
$31,329 payments
$38,448 120-month balloon

$139,777 Total dollars to you.

By spreading less than one-third of the sale price over 120 months, you can double your profit (139,777-50000=89,777. $89,777 / 44,000 (without your offer) = 2.04) and save on taxes, too. Press hard, there are four copies.?

The variations and combinations are endless, but the offer must work for you before you can present it as the solution to the seller?s problem(s). To a seller who doesn’t need all cash, it’s magic.