What is the procedure:

1. Find a property. The secret is to find a property that has equity. If it is worth more than what the seller wants to net than it may be a good deal.  THE BIG QUESTION IS: HOW MUCH WILL YOU HAVE LEFT AFTER YOUR GET THE LOAN AND YOU HAVE GIVEN THE SELLER HIS MONEY AND PAID ALL CLOSING COSTS? if the answer is zero then please continue to read how this works.
   
   How do you know if it is a good deal? If you can buy for 60% or better of it's value. I bought a few properties at 31% of it's value. So the bigger the discount the better.

   Example buying at 60% of the value : Value $1,000,000 X 60% of value = $600,000 What seller wants to net. So if you get a loan at 80% LTV ($1,000,000 x 80% loan to value=$800,000) you have $200,000 cash coming to you at closing ($600,000 to seller - $800,000 loan=$200,000 net cash that you can use for anything), I did not add closing costs, but you get the idea.

   LET THE SELLER KNOW WHAT YOU ARE DOING BEFORE YOU SIGN A CONTRACT. YOU ABSOLUTELY NEED TO WORK WITH THE SELLER BUT THERE IS AN ALTERNATIVE IF HE IS NOT COOPERATIVE AND WE CAN HELP YOU STRUCTURE THAT, FOR A FEE OF COURSE.

    

2. Appraisals: Order it in the name of the lender. When ordering appraisal indicate you need an appraisal to determine current market value. It is very important not to let the appraiser know how much you're purchasing the property for if you're flipping it. This is a question the appraiser will most likely ask you. In many cases an appraiser will use the sale price of a property as the market value and if you are purchasing it at a discount due to a distress situation, you don't want your low purchase price to influence the appraiser. Just tell the appraiser that you want to determine to current market value, which will most likely end up being the sale price. This is the truth because you're resale price will be the full appraised value in many cases.

    

3. Secure Financing: We can help you get a loan or you can get it on your own. Before you get the down payment and closing cost assistance you must first secure financing. We will help you get an approval and a commitment to close. We will get the proof of funds or assets required to get the deal closed.
    

4. Complete and notarize the Down Payment Assistance forms.  Seller, buyer and closing agent will sign some of those documents. Make sure you have the seller or his realtor send the one that closing agent has to sign for you instead of you doing it.

   Fax or Email us the forms with the following

   • contact

   • appraisal

   • commitment letter from the lender

5. Get the Seller to pay your closing costs. After we get the forms the investor will send the money to escrow account the day of closing , either by hand delivered cashier check or wire transfer. One of the forms that was included in the package is a letter from the seller that tells the closing agent to pay back the investor who provided you with the money for closing. That money can be paid by the seller to our investor with a fee the day of closing if you negotiated properly. It will be on the seller's side of the closing statement and it will be an expense to the seller. 

6. CASH OUT: You get what ever is left over. Hopefully you gave yourself a nice enough margin. We can help you with that if you don't know how to do it. It's on a case-by-case basis but we can help you structure it. Basically it's your money that you are using and you have to pay it back eventually, so invest wisely.

Here is an example of how it will work:

1. Property Value: $250,000 to $255,000 (You must do the appraisal before you do anything else otherwise the numbers won't work)

2. Contract: $250,000 (This is what seller gets in total)

3. Seller only wants to net = $150,000

4. Loan @ 80% LTV: $200,000

5. Difference between what seller wants to net and Loan Amount: $50,000  ($200,000 - $150,000)

6. What Lender Wants to See in Your Bank Account or Escrow Account Before You Can Close= $50,000 Down

7. Down Payment Needed: $50,000. It will cost for example 20% which is $10,000 for that one day when they transfer to the closing agent. The lender gets a letter from the investor's bank showing available funds if proof of funds is required. If you need proof of funds or seasoned funds you may or may not have to pay 3% of that amount when it is is provided. If that's not required we can wait until the day of closing and then get paid the day of closing.
8. All costs including lender points broker fees, title, insurance and everything else including that Down Payment cost: $12,500 estimated
9. What is Left Over For you to Take HOME After Closing: $37,500 at closing.

Another but basic explanation of what seller must pay at closing. You can put in your own numbers below.

Cost of Obtaining Down Payment

Up-Front Consultation, Deal Structuring, Package Preparation and Processing Fee - Non-Refundable, however, if one of your deals don't work out we can apply this fee to your other deals.

This fee is payable before we do any work on the loan. This is a consultation fee to tell you how to put together the contracts and arrange for the proof of funds that will be used for the down payment and also get pre-approved for the loan. You need to have all that done before you make the offer.

DPA Fee Upon Closing

10% to 20% of amount of the down payment money you receive. If you need to hold the money in the deal for more than one week than it will cost you 10% to 20% per week.  Payable only upon closing. Can come out of loan proceeds on the day of closing from the seller so you don't have to pay it out of pocket.

If you need proof of funds prior to closing there will be an up-front fee of said amount due.

**Property must have enough equity equal to or greater than your down payment or closing cost funding requested from us.

HELP I'M CONFUSED!

You may be a little confused but I am here to help you. If you call me I will help you put together your deals.

Here is a spreadsheet to calculate cash out at closing automatically. (If you don't have excel use this link to Calculate Cash Out At Closing For Creative Deals.) This one can also be used to figure out what kind of a deal you've got on a commercial property.

My valuable information will change your life and how you look at real estate. I will give you a new ability to buy real estate like the rich and those who have become rich off of this proven system. To own something you never thought could be possible and to have cash in your pocket and a new net worth.

BOTTOM LINE: YOU WALK AWAY WITH A PROPERTY AND A NEW NET WORTH and Possibly LOTS OF CASH IN YOUR POCKETS.

Be sure to email me your contact information when you are ready to move forward to do a deal. DownPayment@realbusinessloans.com

This is for everyone: bad credit, no credit or broke, no problem!; They don't care about any of that!

Technical Support, Real Estate Locating and Loan Packaging Assistance:

• We assist you in locating and evaluating properties

• We help you in completing the Down Payment request forms.

• We package the loan for you and place documents online for many lenders to review at the same time. This will save you time instead of faxing or mailing out packages.**

• I can look at your pre-closing documents and help you figure out if the numbers are correct.

*Some Initial Costs Involved.

**As loan brokers we also charge a fee upon closing if we are successful in locating a lender that funds your loan. The fee upon closing is negotiable. You do not have to pay the fee out of pocket, we get this from the loan proceeds. This is in addition to the lender's fees. This would be payable upon closing only.