How to Put Deals Together...Without Money Message from Robert
Real Life Story: No money deal
On November 6, 7th and 8th I am presenting a once-in-a-lifetime seminar about doing deals without money. It’s called The Art of a Deal. In these financial times, credit has shriveled up and knowing the art of doing no-money deals is more crucial than ever. At my interactive event, you will experience a new way to think about structuring transactions. I'll show you various forms that “money” can take, other than cash.
Would you like to know an alternative way to make deals happen without cash? Let me show you how I learned the secrets of this business. I’ve surrounded myself with those who know these secrets. It may appear to be more work than just throwing down cash, but it is definitely possible and an indispensible skill in today’s market. To close "no-money deals” takes real creativity - the wealth of the mind. It requires a spirit of cooperation and dedication to finding a win-win solution for all parties. Join my students and learn to look at opportunities from a different perspective - and discover the real gems lurking beneath the surface.
Throughout my years of teaching I’ve learned that examples hold a lot of power. Below is an example from my book, The Real Book of Real Estate, where my creative finance and exchange coach, Wayne Palmer, tells a story about a seller who creatively financed a property for Wayne.
“I purchased a condo from a private party who owned the unit free and clear. They agreed to accept a $20,000 down payment and to carry a note of $78,000 at 7.5 percent for twenty years. The monthly principal and interest payment was to be $628.36. I asked for a clause in the note that provided for all payments made in the first year to be allocated to principal, such that the interest rate for the first year of the note was effectively 0 percent.
The seller would still receive the same monthly income, while I could prepay as much of the balance as I desired, within twelve months, without interest. However, 7.5 percent interest would begin accruing against the unpaid balance on the first anniversary of the loan. That one simple clause, written into the private note, shortened the amortization of the note from 240 months to 205.68 months, a savings of $21,565.76. You might note that the savings exceeded my down payment. In other words, the zero interest clause was, in essence, an agreement by the seller to rebate my down payment .”
– Wayne Palmer from The Real Book of Real Estate
Join me and my advisors November 6-8, 2009 in Scottsdale, Arizona
Register Today: http://www.regonline.com/Checkin.asp?EventId=775900