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In this series I'm going to explain the different zero down structures. There's five of them that I'm going to focus on that encompass just about every different type of structure that you can use. And there's a hierarchy based on the type of offer that you're making, whether you're buying or whether you're selling. I'm going to try to explain some of those things in these videos. The first five videos in this series are going to be explaining each of those different structures. So you'll probably want to listen to them all eventually, one after the other. But right now we're going to trickle them out, you know, once a week or whatever, and you're going to be able to listen to them that way.
After that, I'm going to do some example deals and I'm going to show you here is a situation, here's how much they want for the property, here's how much it's worth, what kind of offer can you make on it that would work as a zero down structure that would make you money. So that's how I'm going to go through this next series of about 15 videos or so.
So let's start, first of all, with subject to. What is buying property subject to the existing loan? Essentially, what you're doing is asking the seller who already has a property and has a mortgage on that property to transfer the title to you. Transfer the deed to you. And so they sign over the deed to you, you take over the property, and you start making payments on their existing loan. You're not going to qualify for that loan, you're going to take over that loan payments. You're also going to transfer the insurance into your name and you're going to start making the tax payments as well. So you're going to be paying principal, interest, taxes and insurance on that property. This is the strongest way to buy a property, having control of the title and not having your name on a loan. Now you don't have to qualify for the loan, you don't have to have good credit, you don't have to have any down payment and you have full control over this property. The seller has no control over that property. You now have control over it. If you don't make the payments on that property, you trash their credit. So you're obligation, your ethical obligation is to make sure you make those payments. If you take that property, start collecting rent on it, don't make the payments, that's considered fraud and they can put you in jail for that. So don't do that. We have a whole package of documents that we ask them to sign, you know, disclosures, and you know, giving us the right to have control over the insurance policy, you know, those types of things that we have on every subject to property that comes through. We also have the right to talk to a lender, which we get in writing, we ask them to give us the password to their online account, their bank account that shows the mortgage account so we have access to the mortgage. We can pay it online if we want to and do it that way.
I can't give legal advice. I'm not an attorney, so, take my advice as from my experience, not because I legally have the right to give you legal advice. I don't. I don't even play one on TV. So, anyway, hope that helps. That's subject to. Next time when we come back, I will talk to you about multi-mortgage as the second in the hierarchy. All right. Hope that helps.
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