How to Owner Finance a Property | Make Huge Profits with This Strategy

Grant outlines how to owner finance a free and clear property revealing the tools, numbers and investment basics in the highly profitable real estate strategy. Covering everything from the type of calculator to the amortization schedule, Grant lays out the details in a clear concise way.

#HowToOwnerFinance #OwnerFinanceBasics #OwnerFinancing
How to Owner Finance a Free and Clear Property - Grant Kemp

1:00 - Free and Clear means there is no mortgage. These types of properties take away an entire aspect of our deal analysis.
1:45 - The 10bii Financial calculator is a financial calculator that you must have in order to operate in this industry. It is available as an app. Practice using it. It has several input prompts across the top. N = Number of payments (30-year mortgage has 360 payments). I/YR = Interest per year (If 9% interest, just enter 9). PV = Present Value (Principal Value). PMT = Payment. FV = Final Value (It will always be equal to 0). We will give it 4 of the values and it will give us the other value. Knowing that the FV is always 0, we only need three values. Watch Grant’s video on the 10bii Calculator - youtu.be/s0uy5mOyvaw
5:20 - When you have the deed to the property, you own the property. Some people refer to the title as the deed. Sell the property on payments. The buyer has debt that will be paid to you.
7:20 - Owner finance example. $100,000 house, 9.5% interest rate, a 30-year note, what is the payment? N = 360. I/YR = 9.5. PV = $100,000. PMT = ? = $840.85. FV = 0
This shows our payment to be $840.85 per month.
16:11 - Profit on a $100,000 loan over 30 years. $202,715 profit in interest alone. $302,990 total profit along with the down payment at the beginning of the transaction.
19:40 - Most free and clear sellers are older or can be found from probate leads.
Probate leads.
21:20 - What is the bottom dollar? Motivation should always be your #1 target. You don’t care what the seller wants, find out why they want what they want.
22:20 - Are they willing to finance it? Buying with seller financing is an excellent acquisition model. Are you willing to take your equity in installments?
23:43 - How much “today” money do they need? Today money versus tomorrow money. Wants versus needs. Today: Wholesale, fix and flip, etc. Tomorrow: Passive, long-term income. Determine what they need and what they want. They may want $100,000, but only need $30,000 to pay off the mortgage.
25:56 - Where do we make money? Acquire with owner finance. Exit how you please.
You must start at the end of the scenario and work backwards, which tells you how to make the offer.

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