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Owner Financing The Seven Way WIN
Owner Financing The Seven Way WIN
(Guest blog post by Mitch’s student Jerry Gurley)
Debbie and I are very excited about our new real estate business. We buy houses from people who don’t want or need them. We renovate them. Then we sell homes to families who love them. We often sell with owner financing allowing people to buy homes who could not otherwise in today’s tight finance market.
We call these transactions The Seven Way WIN
Win #1 Our Sellers-Our sellers get rid of a property that is a burden to them. They get paid for a house they don’t want or don’t need. They can move on with their lives without the burden of this house.
Win #2 Our Buyers-Our buyers get a home they love. Since we owner finance most of the properties, our buyers get to own a piece of the American Dream that in today’s finance environment is impossible for many. We don’t have rigid credit standards people have to meet. We understand sometimes bad things happen to good people. It feels good to help them reach their dreams.
Win#3 Our Investors-Our investors finance most of our purchases. Our investors take money out of CD’s that yield one half percent or roller coaster stock market and put them into houses that yield 8% at 60% or less loan to value. Not many investments can lose almost half their value and still be fully secured. Folks are also using their self-directed IRAs and 401-ks to improve their retirement returns.
Win#4 Our Neighbors-Many of our houses when we buy them are the neighborhood eyesore. They have not been occupied for years, weeds in the yards are head high, taxes have not been paid, a real mess. We clean these properties up and get them ready for a new family. Neighbors love us!
Win#5 Our Schools and Local Government-Many of our houses have not had taxes paid in years. Without tax dollars local schools don’t work and police and fireman don’t get paid. Now, I am not talking about the nitwits (of both parties) in Washington DC. In one transaction this summer taxes had not been paid in 7 years. We paid over $33, 000 in past due taxes and liens in one day.
Win#6 Our Contractors and the Local Economy-We usually spend around $15, 000 to $20, 000 per house on rehab. These funds are paid to local contractors who buy supplies locally, buy groceries, and feed their kids all with local stores.
Win#7 US-Debbie and I make a nice profit with each house. If we did not, we could not stay in business.
From our years in business both Debbie and I realize at the end of the day how rare it is for everyone you interacted with that day to be better off after dealing with you.
WE ARE VERY EXCITED ABOUT THE FUTURE!
Written by Jerry Gurley (Another Success Story)