The 4 steps to using The Ultimate Strategy™ It all comes down to what you buy… how you fund it and how you sell it… 1) Target houses with lots of equity… Many real estate entrepreneurs have discovered that when there’s more equity in a deal, there are more exits and more ways to create an acceptable offer to the seller. Did you know that 33% of all homes in the U.S. are free and clear? The benefits of targeting houses that are free and clear… or have very little debt… are awesome: First, if you need cash for buying and getting a house occupied, you can borrow against the equity without bank qualifying using hard money loans or private investors. You can raise cash for a down payment, doing repairs or remodeling, paying off liens, paying for your marketing and holding costs PLUS pull out cash profits in advance on the day you buy. Second, sellers with free and clear houses in many cases do not need any of their equity in cash now. These sellers with high equity tend to be older and many times like the idea of receiving a monthly cash flow. This allows you to buy in installments. You can pay the seller off with the income from the property. Next, a lot free and clear houses are ‘non-owner occupied’ and the seller might be facing a big tax bill if they received all their money at once. You can help them defer or stretch out their tax bite by having them finance your purchase. Finally, you’ll find landlords with multiple properties who may want to eliminate all their management hassles… and sell all of their properties to you!   2) Create multiple offers with 0% owner financing… If doesn’t matter what price a seller wants for their free and clear house. You can always pay it. The only question is when. The longer they can wait, the more you can pay. The benefits of creating owner carryback financing at 0% interest include: You can offer a higher purchase price and get more of your offers accepted by having the seller wait for part or all of their equity. You can create a lump sum balloon payment due in 3, 6, 10… even 15 years and then collect all the cash flow from the property during that term. You can give all the positive cash flow to the seller if you want to rapidly pay off the principle balance and build huge equity positions without ever relying on appreciation. This is ideal for post-hot, slow or uncertain markets… which describes most of the nationwide housing markets today! If the seller ever wants to be paid off early you can discount their note. If you ever want to cash out a house early then you can move their mortgage to other properties for many, many years. 3) Ensure you get a 15% net profit on every house… Based on your projected resell price (either now or in the future), make offers that guarantee you at least a 15% net profit on every deal. If that happens to drive the price down so low that it’s unacceptable to the seller, you can now raise the price back up by pushing part (or all) of their equity into the future using the simple deal structuring formulas and spreadsheet tools used with The Ultimate Strategy. 4) Sell or occupy fast with a lease option or owner financing… Since the mortgage market meltdown, sellers are having trouble selling. But buyers are also having trouble buying. Many of the loans for less than A-paper buyers are gone. This is creating a growing demand for rentals and a greater need for creative seller financing. How quickly do you want to pay it off 0% financing? That’s right… never! Then how can you resell? Here’s how: Sell to a tenant buyer and require they close later with “wraparound” owner financing, or… Sell to buyer with a larger down payment and close immediately with wrap financing, or… Don’t sell. Rent your property out and collect a reliable positive cash flow… or give the net income to the seller to own the property free and clear in just 8 to 12 years… without ever relying on any appreciation! What is wraparound financing? On a “wrap” you make a mortgage payment to your seller while collecting a mortgage payment from a buyer. Your junior lien from your buyer wraps (or includes) what you owe on the senor lien to the seller. You get the difference in cash flow and equity.