Name: How To Do Seller Financing Wraps Legally And Ethically With Gary Davidson
Uploaded: 2022-08-27T13:00:06+00:00
Duration: 56 min 37 s
Description: This is a deep dive strategic session with Rockstar attorney and Franchisor of Castle Law Gary Davidson. We are going to get into the deep details of how to lock up a property on a seller financing co

1 year ago

This is a deep dive strategic session with Rockstar attorney and Franchisor of Castle Law Gary Davidson. We are going to get into the deep details of how to lock up a property on a seller financing contract and create win-win-win scenarios for all parties involved. This show is heavily focused on strategies on how to work this model and why it is a great model.

Don’t Forget To Reach Out To Gary Davidson:

815-744-6550
www.castlelaw.com

Ask them about the $300 packet of real estate contracts. They give $300 credit on the first transaction at closing.

Quotes

"Most wholesalers or investors are just one trick ponies. They are solely focused on getting things below market value. For the most part real estate agents and investors do not know how to get creative in the process."

"In real estate we are looking for the inside edge, we are looking for creating a life worth living and that legacy."

"Land sale contract, seller finance, contract for deed articles of agreement for deed all mean exactly the same thing. It means instead of the bank of america financing the purchase of the company it is the bank of (Investor name). So the title stays in the investor name and once the end buyer pays off the loan the title transfers."

"People are always scared of what they don’t understand. The biggest mistake real estate investors and agents make is they do a quick google search and grab a contract off the internet and they start trying to execute. All of these techniques are easy once you figure them out. They are extremely sophisticated though. This stuff is not one size fits all.”

"If someone is starting out and you have the willingness to grind to put in the effort there are plenty of mid-level or larger level people that are wholesaling that you can go work for and learn the strategies to start implementing. New western shout out"

"I always approach everything based on providing value."

Concepts

•Buy it on contract or take over the payments. Getting seller financed notes and selling on contract (wrap) to the end buyer on a balloon payment.
• After COVID there were a lot of people that were out of work and hit challenges in credit, but their credit took a hit. There is an abundance of opportunity here. They can’t go to a traditional bank and get financing.
• Look for scenarios where every party wins. Seller, investor and end buyer.
• Get in contact with a local attorney that knows this stuff so you understand the laws and you are protecting yourself.
• You can’t trust a seller at their word. People don’t realize a line of credit is an encumbrance on title.
• Contract for deed is preferred over subject to
• The biggest mistake realtors/investors make is they listen to something and they just base it off what they hear. Every situation is different and it should be underwritten differently for each individual transaction. This way you can get creative and find win-win-win scenarios.
• When we record a transaction we record it as a commercial transaction which circumvents RESPA and other purchasers rights.
• Interest is tax deductible. The alternative is they are paying rent which they are burning it all away. So they can report that interest as a deduction. That is a far better alternative than lighting their money on fire by paying rent.

Time Stamps

0:00 - Introduction
2:00 - Most interesting story starts
4:00 - Talking about seller financing and wrapping it with rent to own program
9:00 - Question about fears and potential limiting beliefs when approaching this strategy
12:30 - Refinance vs purchase
14-:00 - Talking about Illinois brokerage act
18:40 - What should people do that have little access to money and not the documents to pursue this venture?
21:00 - Join a brokerage in Illinois that does these types of things and get hands-on mentorship.
25:00 - You can’t take the seller's word so you need to use a title company. In Illinois attorneys do the title analysis
27:28 - B-C transaction details. We can get a large down payment
28:30 - What happens if the end buyer defaults?
29:30 - Contract for deed is preferred over subject to
33:36 - How does the investor profit on this deal?
38:00 - What happens if the buyer defaults ?
41:00 - If the C person is not paying, is that an eviction or a foreclosure process?
44:00 - Discussing eviction timelines
44:50 - Is that timeframe on the life of the mortgage
48:00 - Strategies to defer taxes
53:00 - Ethical question
56:00 - How can the audience reach out to you?