making money on terms - Posted by Clare Z

Posted by Brent_IL on April 25, 2002 at 08:14:32:

It also means buying with some type of owner-financing and using additional contract terms to enhance or make the deal.

Some quick examples are:

1- Purchase money mortgages with low, zero, or negative interest rates.

2- Interchangeable collateral.

3- Lien subordination.

4- Little seller resistance to tax-favorable allocations.

Good deals will mix-and-match these terms to greatly lower the cost of the property acquisition.

making money on terms - Posted by Clare Z

Posted by Clare Z on April 24, 2002 at 21:46:17:

I have been told that in this market, that making money on terms is the way to go, rather than buying cheap, as there are not enough cheap houses to be had here. (SoCal Coast)

I GET flipping, I am OK with L/O, but I am not sure what was meant by making money on terms.

Any insight?


Re: making money on terms - Posted by Mike Daly (GA)

Posted by Mike Daly (GA) on April 25, 2002 at 05:30:57:

It just means you sell on some type of owner financing, such as LO or land contract. By selling on terms, you can sell at a higher price than if you were selling for cash only.