Don’t Sell Your House

At Theron Properties we have a program called:

“Don’t Sell Your House”.

Owner Finance It and make double your cash out over 5 years!

Don’t sell your house or apartment or townhouse. Be like a bank and then finance the sale.
Let us explain. You have a very low risk as seller and all the money remains always yours.

Here is what NOT to do:

1. So, you own a property, let’s say $250,000 (paid off or not).
2. You sell it to a buyer for “a cash offer” or a conventional mortgage.
3. You get your sales price and are done with that old place.
4. You have your $250,000

OR

Here is what to do:

1. You own this same property of $250,000 (paid off or not)
2. You advertise the property for sale with “By Owner” and “Owner Financing” available.
3. You now own the financing deal, the mortgage. And to put the buyer at ease, they get the Property Deed transferred into their name, just like a normal bank and the deed specifies the mortgage contract as “THE TERMS”.
4. You set your terms to a 5/1 ARM term. (That is typically a 30 year mortgage over 30 years, BUT after 5 years, the interest rate goes up every year or even every 6 months for the buyer.
5. You set your interest rate (typically based on the persons credit score) at up to double the current bank rates. So if banks have 3%, you set yours at 6%. (Or higher.) This is all very legal. Why do you ask should you do this? 
   1. You allow people to buy a home with “not-so-good-credit”
   2. You allow people to buy their dream home with very little down payment.
6. You decide what the down payment should be based on what the property has cost you or how much renovations you made etc. So anywhere from 20% and down to as low as 5%. This will attract many buyers!
7. Lastly, make sure you have a clause in about “structured by time” pre-payment-penalties that is beneficial to you as seller. You know? Like the banks do!

This is what it looks like for you now:

1. Your sales price is still $250,000
2. A buyer is paying you a cash down payment of lets say 10%. That is $25,000 cash.
3. Your term is set at 5/1 ARM, so typically the buyer will refi your mortgage before 5 years is up, to get out of the penalty of higher rates when the 5 year term is up.
4. Your interest rate was set at 6%, so on a $250,000 price, and 0%, the monthly payment is $694.44, but at your rate of 6%, the buyer pays you per month $1,498.88 every month, for 5 years.
5. That is if you own the house free and clear, you make $1,498.88 X 60 = $89,932.80 plus the $25,000 down = $115,000.00
6. And the buyer still have to refi to pay you off for the remainder at said interest rate, or face the annual 1/2 % additional charges per year if they go over the 5/1 ARM term.
7. Also, at any time the buyer defaults, you keep the deposit of $25,000 plus what ever they paid to date and you kick them out via a foreclosure action. (In Florida, the laws changed massively in favor of the banks and not the buyers).
8. Your monthly payments are rolling in. Even if you still have your own low rate mortgage to pay off, you take your new buyers money and pay your monthly debt. Just show proof of this ongoing.

Big picture:

1. You own the property until the buyer paid you completely in full.
2. You get a lump sum of cash immediately to make you sleep better.
3. You get paid usually within the term 5/1 or 7/1 or 3/1. Whatever you make it.
4. On a 5/1 over the 5 years, and you have no mortgage on the house, you will make $539,596.00. So instead of $250,000, you made in 5 years with the same property, an additional $289,596
5. That is nearly $60,000 per year income. WOW.
6. Last but not least, the buyer screws up at any time and you have to foreclose, you get the entire deposit and all monthly payments is yours forever. (Just like the banks do it to us.)

CONTACT US TODAY SO WE CAN GET YOU STARTED. (813) 388-8953