QUOTE (DianneDachyshyn @ Jun 25 2008, 08:51 PM) We would like to learn how to use VTB when placing offers, but we aren`t too sure how it works. We don`t know how to present the deal, how that affects our calculations and how the banks and lawyers treat the VTB once the offer is accepted. Could some of you who are more experienced in this area help us out?
Thanks,
Dianne Dachyshyn
investing in real estate is a business. It takes time, money and SKILLS. Skills take time to learn, and usually some money to educate yourself using books, tapes, CDs, courses, networks, conferences, seminars .. . Join a group, like REIN, or take a course .. or 7 ...
a VTB is a simple but powerful tool .. write an offer .. add a clause .. simple .. if you know what you are doing.
Don`t expect to get big gains with little skills .. a dentist goes to school for 8+ years .. a car mechanic 2+ years .. a real estate investor ??? 2 minutes ? 2 days ? 2 months ? you can make $100,000`s .. or more .. so INVEST the time and money to learn !
a VTB clause to insert "Seller will grant purchaser a 2nd morgage of XXX $s at YYY % interest per year for up to ZZZ months, fully open, payable at AAA $s per month.
Optional: 1st mortgage to not exceed BBB $s.
Optional 2: 2nd mortgage personally guaranteed by purchaser.
+ cover letter !!
a 2nd mortgage will likely reduce your chances to get a 1st mortgage .. talk to your mortgage broker about it ..