Cocktail Party Conversation Leads To Mortgage Assignment Discussion
I wanted to share a little story with you this week. I went to a cocktail party and something interesting happened that was very relevant to real estate, so I thought I’d share it with everybody on my blog. I actually went to a cocktail party and I’m sitting there having a drink and somebody walks up and we start chit-chatting. And, you know, I told him I was a real estate investor and he was actually a dentist and we start talking about it.
You know, sometimes when you tell somebody you are a real estate investor it’s kind of like when you tell somebody you’re a doctor and they start showing you their elbow and asking you if they can give you a little advice. Anyway, he had some questions about real estate. It turns out he was selling a home and it was about a $1 Million home here in Austin, Texas. He had this home on the market for about, gosh, almost a year and it hadn’t sold.
cocktail 150×150 Sell An Unsellable House With A Mortgage Assignment
Mortgage Assignment At A Cocktail Party
As he’s telling me this story I look at him and I say ‘well you know you can’t sell your house.’ He looks at me like ‘what are you talking about?’ I tell him ‘your house is unsellable.’ He’s like ‘what do you mean my house is unsellable.’ I say ‘your house, who would buy your house?’ And he says ‘well lots of people, it’s a beautiful house, a doctor or a dentist or some business owner, there’s lots and lots of people that would love to buy my house!” And I said ‘well, okay, what kind of loan would be needed to buy your house?’ He says ‘well I don’t know, a big loan.’ It’s like ‘yeah, from a self-employed person, doctor, dentist, somebody like that.’ And he says ‘exactly.’
‘So in other words, what you are looking for is a buyer that wants a stated income jumbo loan?’ And he goes ‘well I don’t know, I guess so.’ ‘I said there’s no such thing as a stated income jumbo loan, they stopped making those a couple of years ago.’ And he’s like ‘what are you talking about?’ I tell him ‘there’s no loans available right now, and I’m exaggerating only a little, but for the most part it’s virtually impossible to get a loan, to buy a million dollar home right now. Even if you put 20% down, it’s a jumbo loan, and most people that have that kind of income to get that kind of loan are looking for a stated income jumbo loan, but they don’t do stated income jumbo loans anymore.’
And at this point the guy starts turning red and huffing and puffing and getting frustrated, and he’s like ‘you know that makes total sense.’ And I said ‘of course, I know, I’m in the business.’ And then he says something to me that I’ll never forget, he says ‘how come (and I’m paraphrasing because I don’t want to use the language that he was using) how come my REALTOR never told me this? I’ve been trying to sell this house for a year. How come nobody told me this?’ And I say ‘well you are probably talking to the wrong REALTOR.’ I said ‘look here’s what you need to do [he’s all ears] you need to sell your home with owner financing or stop trying so hard to sell your home, because it’s very difficult. I’m only exaggerating a little bit, it is possible to sell million dollar homes, but it’s very, very difficult because the loans don’t exist.’
The way that you can sell these homes is using, essentially owner financing. You can do a wrap-around mortgage or you can do something called a mortgage assignment. A mortgage assignment is something I’m doing a lot of these days because there are a lot of people in a variety of situations that are not able to sell their homes simply because the lending is not available. At this point the light bulbs are going on and he’s engaging me talking about mortgage assignments.
So it was a very interesting conversation. Mortgage assignment, for some of you that have been following my teachings on mortgage assignment on to my other mortgage assignment websites and things like that. Mortgage assignment is a real estate investing strategy that allows you to sell unsellable homes. Now usually an unsellable home is one of the millions and millions of homes that simply don’t have any equity in them. We can take those mortgages and assign the payments in those mortgages to buyers who get to buy those houses because they can’t get loans. A mortgage assignment can also be on luxury homes. We do luxury home mortgage assignments and, frankly, when we do luxury mortgage assignments we’re not talking about $6,000 to $12,000 assignment fees. We could be talking about $40,000 or $50,000 or higher assignment fees.
But all of these problems that exist in the real estate market today, most of them are tied to the fact that the houses are unsellable, because the borrowers are unloanable and a mortgage assignment is all about selling unsellable houses to unloanable buyers. By learning a little bit more about that you can take advantage of this post-bubble real estate strategy and profit as well. I’m Phill Grove, see you next time!