“Worry-free” is pretty important when that transaction concerns an asset the size of a house. Maureen Dockrill of TrueTitle Agency has that experience and dedication … and will even deliver it directly to you!
Maureen Dockrill, our Elyria IRN chapter Membership Chair, was our speaker on July 9th. Despite the withering economy and volatile housing market here in Northern Ohio, Maureen had some interesting information about one potential method for turning this difficulty into a profitable opportunity with a relatively small investment.
The market is ripe with good, and even amazing, deals on homes available for sale through foreclosure. If you have the money to invest in purchasing these deals, a steady cash in-flow and significant profit is possible. One of the methods of achieving this is through use of a Purchase Money Mortgage.
Let’s create a scenario and use some nice, easy round numbers: You have $10,000 to invest. You find a house that you can purchase for a mere $2,000 (and note, these deals really DO exist right now). Now, it needs some work and you take the remainder of your monies to do these renovations. You end up with a home valued at about $45,000. (In other words, something decent and livable for a young couple or the like.) You are actually able to find that young couple to rent the home from you for $500 a month. In less than 2 years, your initial investment has been returned to you in full. This is the point that you could offer to sell that house to that young couple. They may run to the bank and get themselves a loan and you have made an easy deal right there, but as they are young and the market has been so poor, the bank really doesn’t want to give them a loan. You could offer them a Purchase Money Mortgage.
Maureen Dockrill, our Elyria IRN chapter Membership Chair, was our speaker on July 9th. Despite the withering economy and volatile housing market here in Northern Ohio, Maureen had some interesting information about one potential method for turning this difficulty into a profitable opportunity with a relatively small investment.
The market is ripe with good, and even amazing, deals on homes available for sale through foreclosure. If you have the money to invest in purchasing these deals, a steady cash in-flow and significant profit is possible. One of the methods of achieving this is through use of a Purchase Money Mortgage.
Let’s create a scenario and use some nice, easy round numbers: You have $10,000 to invest. You find a house that you can purchase for a mere $2,000 (and note, these deals really DO exist right now). Now, it needs some work and you take the remainder of your monies to do these renovations. You end up with a home valued at about $45,000. (In other words, something decent and livable for a young couple or the like.) You are actually able to find that young couple to rent the home from you for $500 a month. In less than 2 years, your initial investment has been returned to you in full. This is the point that you could offer to sell that house to that young couple. They may run to the bank and get themselves a loan and you have made an easy deal right there, but as they are young and the market has been so poor, the bank really doesn’t want to give them a loan. You could offer them a Purchase Money Mortgage.
This is the type of mortgage that occurs when the funds provided for the sale are provided by the owner of the asset. That asset then is used as security for the funds. Either you, as the note holder, will have an on-going cash flow plus interest, or in the event of a foreclosure, you already have your investment return, so you will either take in additional monies through a sheriff’s sale or be the sole owner of your paid-off property again, able to sell it or rent it for income and profit.
Be sure its done right and right on time. Maureen and TrueTitle are available when its time to transfer your property title.
A good referral for Maureen would be:
- Buying a home, especially a first time home buyer;
- Purchasing or selling commercial property;
- Dealing with the possibility of a foreclosure;
- Looking to make investments in real property.
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