Mortgage Assignment Case Study

The reason this case is memorable is because this was the first time we interviewed both the buyers and the sellers at the time of the closing.

My husband’s sister referred us to the sellers who were a complete delight to work with. We instantly developed a common ground of understanding with the sellers as the husband is studying to become an attorney, and had done his homework on owner financing beforehand. This made the discussions about their financial options a breeze for us.

The understanding we developed with the sellers made it easier to interact with them and provide them with the various alternatives they could consider. The sellers were well aware of their selling alternatives. Hence, they agreed to our advice for considering owner financing/mortgage assignment as one of the alternatives they should look into.

Mortgage Assignment Tip
Always be ready to get creative when working with buyers and sellers who need your help. Not every deal is “black and white”! The best way to learn how to be creative is to surround yourself with investors who think creatively in their deals. Each experience or case study will teach you something new that you can apply later down the road.

Thanks to the research & planning the sellers did on their own regarding their financial standing and various options available, they were timely on their mortgage and were not experiencing any kind of financial crunch. As they were planning for their other expenses, schooling in particular, they wanted to downsize to save on their current expenses and support their future plans.

We understood their requirements and started marketing the house for them. As with most of our deals, we were able to find them a buyer within the first three weeks!

The buyer was a Pastor who instantly fell in love with the house. The only hitch was that he was unable to get a bank loan. Being self-employed, he could not prove his income. Moreover, he was recently divorced and had some financial issues that needed some time to settle.

Initially, when our buyer was looking for a suitable house, he had a good amount of down payment, but due to an unexpected business expense, he had to invest that amount. Therefore, the financial parts of the transaction changed and in order to get the deal done, we had to jump into creative mode.

However, we felt that the buyer and the sellers could work out some kind of a flexible financial solution and so we talked with the sellers about the Pastors financial situation to see what we could all come up with.

After some brain-storming and calculations, both of the parties agreed that the buyer would provide an initial down payment to the sellers and could pay the remaining amount over the next six months.

After it was all said and done, we made a profit of almost $12,000 ($11,996) from this deal, and were thrilled to help another homeowner sell a house they were having trouble selling traditionally and we helped another buyer find his dream home when no banks would approve him for a loan.

The deal left us with some important lessons:

Flexibility: Being flexible on the financial front is beneficial for both parties. By being flexible, the sellers enhance the chances of a quicker sale, while for the buyer, it means he still has the opportunity to buy the house of his dreams, even if he has to make his down payment over time.

Mortgage Assignment Tip
Don’t be afraid to tell people what you do!! You help sellers who can’t sell and you help buyers who can’t buy!! You’re a saint, right??!! The more people who know what you do and how you can help people, the more business you’ll do from warm sources like referrals.

Referrals: Yes, we admit, we get a lot of referrals. This is another benefit of being in the mortgage assignment business. We can provide solutions that not many others are either aware of or proficient in getting the deal closed while protecting all parties in the process. With a greater number of people needing these types of solutions, getting the word out that this is what you do fills a great need in today’s marketplace.

Indeed, Mortgage Assignments offers you many advantages…

We help sellers who have no better options available
We take pride in converting buyers into homeowners
We provide innovative solutions to a lot of investors, brokers, and realtors who are in the learning phase. Many of them readily pass on their deals to us because we know how to make them work.

If you’d like to learn more about mortgage assignments or wholesaling, then check out our very affordable REI Rockstars Back Stage Access Coaching Series for both new and seasoned investors!

If you prefer building passive income by buying and selling real estate for a profit with no money down using strategies like subject to and wrap around mortgages, we teach that in our coaching series as well! For under $100/mth, you’ll learn Four (4) No Money Down Real Estate Investing Strategies so that you can better evaluate the deals you come across in order to make maximum profit!