This episode of The Most Dwanderful Real Estate Podcast Ever is all about turning your Subject To deal into real sustainable wealth by offering owner financing to a new homeowner. Many families who fell on hard times during the recession about 10 years ago have still not been able to build up their credit enough for a bank to give them a home loan, so they are eager for owner financing home ownership opportunities to get them back on track. Of course, you will want to check their credit history to see if they have been making their rent, car, and credit card payments on time because if they have been consistently late, they will not pay you on time regardless of what they promise you.
Not only is owner financing a lifesaver for the original homeowners and the new homeowners, but it is a surefire way for you to create wealth. Over the course of 1 owner financing property lifecycle of 5 years, you should be able to make $60,000, so imagine how life-changing doing multiple deals per year could be.
Time Stamped Show Notes:
- 1:49 – Today Dwan is drinking collagen peptides.
- 9:12 – Dwan checks in to see how your week was and introduces you to her dog, Harmony.
- 11:24 – Last week, we talked about Subject To deals, and today the topic of Owner Financing is related to last week. You still find a homeowner in distress who has a home in good condition with a low fixed interest rate and they still deed you the house, but this time you will put it up for sale using owner financing. You put out your bandit signs and just wait for the calls to roll in.
- 14:21 – You treat these prospective buyers the same as you would for a rental: check their credit to see if they make their payments on time. Obviously, their credit is not going to be perfect if they are looking to do owner financing.
- 17:13 – On the Dwanderful.com membership site, you will find a mortgage that you can use for these new buyers which will wrap around the original mortgage. On this new mortgage, you will act as the bank without having to put any money down or even have a credit check. Owner financing is one of the fastest ways to create wealth because you get their original down payment, make a profit every month, and earn the difference between the old and new mortgages when the new homeowners refinance. In 5 years, this one deal can earn you $60,000.
- 22:14 – Dwan is the “Queen of Foreclosures”, so there is nothing she doesn’t know about the process.
- 23:01 – If you do 1 owner financing deal per month, you could make $2.5 million in 5 years.
- 26:21 – Dwan and Bill really like doing owner financing deals because of the wealth they can create.
- 29:24 – It is imperative that the homeowner is rebuilding their credit during this time so they can refinance after 5 years.
- 31:24 – You are giving both sets of homeowners a fresh start and a second chance.
- 32:49 – Your assignment is to sign up for the FREE Dwanderful.com membership site trial.