Using Financial Judo Series (Part 1 of 2)

Sometimes, you will blow a deal because the owner needs some or


all of the equity from the sale of his property in cash.





You may feel a little inadequate if you don't happen to have


the cash on you that day. Don't fold up your tent and slip away


into the night so fast.





A little Financial Judo might just save the deal.





There are a many different moves you can make. I will review a


couple we have used successfully, including one we used this


very morning. We will take a look at others in a subsequent


article.


Remember, you can never be too thin or too rich or have too


many moves.



First, let's examine equity. What exactly is it? Equity is


defined as the difference between the value of the property and


the amount of the mortgage(s).





Another way of looking at is the amount of the house you own,


as opposed to the bank.





For instance, if the value of the property is $100,000 and the


mortgage is $85,000 the equity is________? If you said $15,000


you are right.





The first "Jujitsu Move" is to "Counsel the Equity" Like most


martial arts strategies, it uses your opponent's strengths


against themselves.





Here we talked to a motivated, pre-foreclosure seller. They had


an equity of $15,000 in a house worth $160,000 with a mortgage


balance of $145,000. The couple generously allowed that they


would agree to take only $10,000 of their $15,000 equity if we


could close quickly, leaving the balance to cover the 2


mortgage payments they were behind.





We were certainly willing to buy their house quickly. It was a


nice 3 bedroom, 2 bath in excellent condition in a great area.


You could almost see the house appreciating from the picture!





We knew that they desperately wanted to move across the


country to Ohio to buy a house near to her parents because she


was expecting in 2 months and had no support in the community


they lived in.





He had also lost his job 2 months ago. They had had the house


on the market for 6 months. They wanted the $10,000 for the new


house.





This Seller is willing to sell. Find out how we finish the deal and close it up next week in part two of Using Financial Judo.

Comments(0)

Add Comment

Login To Comment