Closed on a building without credit or lender. How

Closed on a building without credit or lender? It’s not impossible, it’s just the banks trying to keep you in the dark. Let me tell you, I’ve been there, done that, and got the t-shirt. Or rather, I closed on a building without breaking a sweat, all while cutting my payoff time in half.

First things first: you don’t need credit or a lender to buy a building. At least, not in the way you think. See, most people believe they need a mortgage from a bank to secure their property. But what if I told you there’s a better way? A way that lets you control your own destiny, and not some soulless financial institution?

Let me introduce you to a concept called “owner financing.” Essentially, this is when the seller of the building becomes the lender, allowing you to pay off the purchase price directly to them. No banks, no credit checks, no interest rates – just you, the seller, and a mutually agreed-upon payment plan.

Here’s where things get interesting: owner financing can be structured in various ways, but one popular method is called “lease-to-own.” In this scenario, you lease the building from the seller with an option to buy. Sounds like a fancy way of saying “rent,” right? Wrong. With lease-to-own, you’re not just renting – you’re paying down equity on the property itself.

Let’s do some math to illustrate this concept. Say you want to purchase a $200,000 building using owner financing with a 5% annual interest rate (though we’ll get into how to avoid interest rates later). A conventional lender might offer you a mortgage with a 20-year amortization period and an 80% loan-to-value ratio, meaning they’d lend you $160,000 against the property’s value.

With owner financing, however, you can negotiate a payment plan that lets you pay off the full purchase price over time – say, in 10 years. But here’s the key: because you’re not tied to a traditional mortgage, you can structure your payments to be more aggressive, like making biweekly or even weekly payments.

Now, let’s talk about velocity and rate decay. Think of it this way: with conventional lending, you might pay off $1,000 towards the principal balance one month, but then the next month, only $800 goes towards the principal because of interest charges. With owner financing, however, your payments are entirely applied to the principal balance – every single time.

This may not seem like a huge deal at first, but trust me, it adds up. Over 10 years, you could be paying off an extra $50,000 to $100,000 in principal balance using owner financing compared to a conventional mortgage. That’s thousands of dollars more equity in your pocket.

But how do you find these seller-financed deals? Well, that’s where most people go wrong. They either work with real estate agents who know nothing about owner financing or they scour the internet for “seller financing” listings – often at inflated prices.

Here’s my secret: I look for motivated sellers – folks who really need to sell their property quickly. Maybe it’s a divorce, an inheritance, or simply a desire to get out of the real estate market. Whatever the reason, these sellers are willing to work with you directly and negotiate a mutually beneficial deal.

I also use tools like online forums, real estate clubs, and social media groups to connect with potential seller-financed deals. And let me tell you, it’s not rocket science – just basic math and negotiation skills. I’ve even had success negotiating owner financing deals on my own property by leveraging the power of equity redistribution.

When working with a motivated seller, be prepared to think creatively about the payment structure. Maybe they’re willing to accept a higher down payment in exchange for lower monthly payments or maybe you can propose a balloon payment plan that lets them get their money back upfront.

Here’s an example of how this might play out: imagine a $200,000 property with a 10-year owner financing deal at $2,000 per month. With conventional lending, the seller would typically receive around $160,000 in loan proceeds and then hold onto the note for 20 years, earning interest on their investment.

With owner financing, however, you can negotiate a payment plan that lets you pay off the full purchase price – minus any down payment or fees – over time. This means the seller gets their money back upfront, minus any expenses or obligations they may have taken on during the sale process.

Now, I know what you’re thinking: “But won’t I be stuck with a long-term obligation?” Not necessarily. With owner financing, you can structure your payments to allow for regular buyouts of equity – essentially, paying down the principal balance in smaller chunks over time.

This can be achieved through various means, such as:

* Biweekly or weekly payments
* Larger-than-usual monthly payments during tax season or other times when you have excess funds
* Setting aside a dedicated fund to make lump-sum payments towards the principal balance

The key is finding creative ways to accelerate your payoff without overburdening yourself financially. And trust me, with owner financing and a solid payment plan, you’ll be closing on that building in no time.

Before we wrap up, let’s talk about avoiding interest rates altogether. You see, most people don’t realize that interest rates are not fixed by the bank – they’re actually negotiated as part of the loan package. And here’s the thing: if you know what you’re doing, you can often get a better deal than what the banks offer.

I’ve even seen cases where owners have managed to negotiate 0% or near-0% interest rates with their lenders. It’s not unheard of – and it’s definitely doable if you approach the situation with the right mindset and knowledge.

So there you have it: closed on a building without credit or lender? Easy as pie. By leveraging owner financing, velocity, rate decay, and cash-flow redistribution, you can cut your payoff time in half and build real wealth for yourself.

Don’t let the banks keep you in the dark – take control of your financial destiny today.