Article Directory :: Finance & Investment Articles Real Estate Investors: How to Negotiate No Money Down Deals with Sellers Who Have No Equity! By Michel Lautensack Republish: EasyPublish™ Published: 02Oct2009 Word count: 503 Viewed: 120 time(s) Get Free Content For Your Site Another way to negotiate a "no money down" deal is with a seller who has no equity. The property is worth $130,000 and this time the seller owes $100,000 and he wants $100,000 so no equity above what he owes. Assume the Mortgage In this scenario essentially you would go up and you would offer to assume the existing mortgage. You would say, "Mr. Smith, I will take over your mortgage. I will make the payments going forward. You would deed the house to me and I will make the mortgage payments - but I will not pay off the mortgage." Sellers will do this all the time, again if they're properly motivated. If they're not motivated and they're thinking about selling six months down the road they're not going to entertain these types of no equity offers. You've got to get the right sellers. You could take over that mortgage, have the house deeded over to you, and you would then basically own the property and you would continue to make the mortgage payment. You would not assume the mortgage; you would just make the payments. The mortgage remains in the seller's name. A Few Things to Be Aware Of At that point a couple of things might happen down the road. You might eventually sell the property and you'd pay off the mortgage. The mortgage company may get wind that you've taken it over through whatever mechanism and they're probably going to send some threatening letters and play hard ball a little bit with you. In the end they're probably not going to do very much and there is not much they can do. They could foreclose on the house, but what bank right now wants to foreclose on a house that the payments are being made? Already they have so many foreclosures they don't know what to do. They are not going to foreclose on a house where the payments are getting made. That is the third way of creating an offer on a house that essentially has no equity. You take over the payments. Did you put any money out of your pocket? None. No money down assuming the house is accurate and it's worth $130,000 and you've created $30,000 of equity for yourself. You did not have to go to a bank and apply for a loan. You did not have to put your personal credit at stake. You did not have to wait two or three months for the mortgage company to close your loan. Again, these types of offers are not going to be in the MLS. That's why I really preach and teach that ultimately when you become more advanced in real estate you've got to go out and meet with sellers, interact with them and develop rapport and make offers yourself. You can't do it through realtors. You can't do it through computer websites. All these things are not where the deals are. I invite you to learn more about Private Money Lending and get my new FREE 20-page ebook titled "Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!" by clicking here http://realestatewealthtoday.com/FREE-eBook.html . Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit. EasyPublish™ this article - publishers click here More articles by Michel Lautensack

Free Report! Ten Essential Secrets Of Article Marketing ... Grab Your Free Copy Now: We respect your privacy. Need Content? Regular Top Quality Content for your Blog, Ezine or Website ... Delivered Direct, For Free! Click For Details Arts & Entertainment Automotive Business - General Computers & Technology Finance & Investment Food & Drink Health & Fitness Home & Family Internet Marketing/Online Business Legal Pets & Animals Politics & Government Reference & Education Religion & Faith Self-Improvement/Motivation Social Sports & Recreation Travel & Leisure Writing & Speaking

More finance articles:

• Lucrative Trades in Forex - Finding the Right Forex Trading Software System (Wilson Trat)
  Compared to trading stocks currency trading gives you big rewards. The main genuine advantage is that the sum of money you need to trade is extremely small. If you were ever going to get involved in forex trading, now is the time. However, you're going to have to find the right forex trading software system to be successful.

• Creating a Budget that Works (Molly Wider)
  Budgeting is about sacrificing, right? Wrong. Budgeting is about enjoying the results of a well planned financial strategy. If you think of budgeting as the ultimate cut-the-expenses experience, you'll never make it. Depriving yourself completely of indulgences is not something that will provide financial gain; at the contrary, it may very likely lead you to abandon your budget completely just out of frustration for lack of rewards.

• Here's How Ordinary, Everyday People Are Making Money With Penny Stocks! (Grant Dougan)
  One of my favorite investment types are penny stocks. Some investors stay away from these types of shares since they believe that they are risky. Don't let yourself be nervous though - you will earn incredible cash if you know how to find winners.

• Daytrading Using Mean Reversion Strategies (Scott Cole)
  Mean reversion is just another strategy that daytraders include in their arsenal when attacking markets on a daily basis. The opposite of the momentum type strategies, it is a good way for the daytrader to diversify and be able to find opportunities on a daily basis.

• Fibonaccial Trading Techniques For Forex (John Eather)
  Fibonacci was the great mathematician from Italy. He founded the new sequence of numbers and it was named after him called as fibonacci. The 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377,610 etc are the numbers of this sequence which has the starting of 0 and 1. Each number in this sequence is the sum of the preceding two numbers.

• Forex Trading - The Market Is Not Your Enemy (Jay Meisler)
  Every trader at one time or another has had a bad trading day that makes him feel like the market is his enemy. This article uses an example from a forex trading day to describe some of the conditions when this might occur and what a trader might be going through during this time. The goal is to create an awareness and to emphasize that the market is not the enemy.

• Discovering the Pros and Cons of Using a Prepaid Credit Card (Tara Tiemann)
  Prepaid debit cards are becoming a popular way to pay purchases and bills. It works like a credit card but instead of paying at a later time, a prepaid debit card can only be used if there is a deposited amount of money in your account. This article will enumerate the advantages and disadvantages of using a prepaid debit card.

• Hard Money Lenders - Hard Money Loans (Louis Jeffries)
  Real Estate Investors choose to use hard money loans as a source to purchase and rehab property to make a substantial profit that they may not have without the use of this expensive money.

• Top Ten Reasons Why You Should Buy Multifamily Properties (Lance Edwards)
  When you sit down and examine the advantage of owning multifamily properties, you will be amazed at the multitude of benefits. While other avenues of income generation offer some attractive incentives, owning multifamily properties brings many great things to the table. Let us explore these advantages: