This is a short transcript excerpt from a YouTube video about creative real estate financing strategies. Speakers discuss buying non-performing loans and working them out (selling a portion of payments up front and placing the remainder into a self-directed IRA), and owner-financing deals structured as two loans (an 80% first mortgage and a 10% second mortgage plus 10% down) so the seller can sell the first mortgage to finance themselves out while retaining the second-position note to hold as ongoing equity/income.
Yeah, One of my favorite.
Strategies was you could, you.
Could buy a loan, you could work it out, you know, like a non performing.
Known loan.
Work it out, sell a portion of the payments on the front end so.
That you recoup.
Your capital and then stick the tail in like your self directed IRA or something like that.
Yeah, yeah. Especially when you're buying out those low, low prices. Yeah, right. You probably refinance yourself out. So as far as like where people get properties to sell or finance, there's like a model, some of them. You know, a lot of the folks that do this are like homevestors, franchisees and you know, cash buyers. Almost like a variation on a fix and flip strategy. And they may not even fix depending on what the condition of the home is. But, but one thing people do, if they can get a property, you know, for a lower price, let's say they make a cash offer, they, they then turn around so the property on owner finance, but Instead of creating one loan, they'll create two. So they might collect the 10% down payment and create an 80% first position mortgage and a second. A 10% second position mortgage. And they'll do a similar thing, I think, to what you might have been doing, where if you buy right and you structure it right. They'll sell the first. And now they basically finance themselves out and also this 10% down payment and then they have this 10 second second they're holding free and clear.
Yeah.
And then they can just kind of pile those up.
Yeah.
Over time.
That's beautiful. And it's, you know, it's a way you can stack these strategies.
