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HOW TO PURCHASE YOUR "DREAM HOME" WITH NO CREDIT CHECK

Part 8

USE CONTINGENCY CLAUSES WHEREVER NECESSARY

  Contingency clauses can give you many advantages when you are ready to make a deal. Contingency clauses can stack real estate agreements in your favor. What you are doing in effect, is specifying certain conditions that allow a contract agreement to be valid.

  Basically, there are two reasons for using contingency clauses:

1. The contingency clause is of great importance to the deal; and
2. You simply want more time and are using a contingency clause to get it.

1. Contingent on buyer arranging suitable financing;
2. Contingent on buyer selling his property before the deal is valid;
3. Contingent on appraisal;
4. Contingent on the buyer's accountant or attorney inspecting all records;
5. Contingent on the seller agreeing to your specific terms, etc.

DELAYED DOWN PAYMENT CONSIDERATIONS

  If the seller absolutely demands all or part of the down payment in cash, don't exclude the possibility of agreeing on a "Delayed Down Payment." This tactical move should at least be considered, especially if you have already lined up a buyer for a fast resale

DON'T OVERLOOK SELLERS AS A SOURCE OF INVESTMENT CAPITAL

  The same person you are buying property from may also act as your lender. Today, sellers are lending money to buyers in almost half of real estate transactions. The borrowed equity is secuured by either a personal note, or a second or third mortgage. This method amounts to lending money to the buying party.

USE FIRST AND SECOND NOTES INSTEAD OF CASH

  When you are ready to purchase your dream home, think in terms of non-cash ways to obtain it. First and second notes can easily serve as the equivalent of cash money. The advantage of using notes in place of money is that you receive 100% of the value of the note. If you wanted to convert a note to cash by selling the note, chances are you would have to accept a discount price on it. This discount could range anywhere from 10% to 30%, depending on the time left on the note, interest, and the history of payments. When buying real estate, it is wise to substitute notes for cash. In this way you can receive 100% value for your paper.

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