Put the Most Money in Your Pocket
It’s NOT One-Size-Fits-All When It Comes to Real Estate
Most investors only know one way of making offers: low-ball cash offers. And did you know that many times they don’t even have the cash when they make the offer? They rely on another buyer’s cash to pay you. Often, that buyer never shows up—so you’ve wasted valuable time, not to mention the disappointment.
You are left feeling lied to, cheated, and resentful.
Here at Frederik Buys Houses, LLC, we understand your home was one of the most important investments you’ve ever made—and it should be treated that way… even when you find yourself in an unexpected or difficult situation.
Once we understand your specific situation and timeline, we will provide you with at least two options. One option may be a cash offer (which usually requires a discount), and the alternative option(s) can give you a much higher price—while still solving your immediate situation.
Here Are Some of the Ways We Can Buy Your House
1) Taking Over the Payment (Used when there is no or low equity)
• Depending on what is owed in back taxes and other liens, we will bring the existing loan current and pay off all liens, so the title can be “clean”.
• If there is any equity, we issue a promissory note, and you will get paid upon refinancing.
• We create a trust and the deed is transferred to the trust. The mortgage stays in your name.
• We take over the mortgage payments (including taxes and insurance) and keep them current.
• We are liable for all maintenance and repairs.
• The intention is to refinance and cash you out in 2–3 years.
Benefits:
• You no longer have to fear any liens against you (if applicable).
• You are no longer responsible for maintaining and fixing the property.
• You benefit from saving and/or rebuilding your credit.
• You no longer have to worry about any payments.
• You get a fresh start and can move on with your life.
2) Owner Financing (Used when a property is owned free and clear)
• We agree on a sale price based on the fair market value, and you become the bank.
• We give you an up-front deposit (from $10,000 to a max of 5%) and will make agreed-upon principal-only payments for however long you want (minimum 7 years).
• We pay the property taxes and homeowner’s insurance (listing you as additional insured).
• We are liable for all maintenance and repairs.
Benefits:
• You benefit from steady monthly payments secured by the property.
• You benefit from spreading capital gains tax over time, as this is treated as an installment sale.
• You may benefit from lower income tax as follows (*):
Each payment you receive includes:
• A portion of principal → partly taxable capital gain
• A portion of principal → return of seller’s basis (not taxed)
• You are no longer responsible for maintaining and fixing the property.
(*) Please check with your accountant, financial advisor, and/or CPA.
3) Lease Option (Rent-To-Own)
• We agree on a fair price based on the fair market value today + 5%.
• We will rent your house for an agreed period (usually for 3 years with an option to renew).
• The rent amount will cover your mortgage, so you are not “out of pocket”.
• If there is any equity, we issue a promissory note, and you will get paid upon refinancing.
• You are responsible for all maintenance and repairs during the lease period only.
• You pay property taxes during the lease period and therefore all tax deductions are yours until we refinance and cash you out.
Benefits:
• You no longer have to wait months to sell your house while continuing to make payments.
• You do not have damage or vandalism to your property because it is vacant.
• You continue to benefit from property tax deductions and depreciation.
• You get a fresh start and can move on with your life knowing you have steady monthly income.
4) Option Deal (Used when you have a tenant with a lease)
• We agree on a fair price based on the condition of the property today.
• You give us a 3–6 month option (or at a minimum the length of the remaining lease), and we close escrow usually at the end of the current lease and/or the agreed period.
• You keep all the income and pay any expenses during the lease period until we close escrow.
Benefits:
• You know the selling price and don’t have to worry about re-negotiating because of inspections, etc.
• You know the house is sold and don’t have to worry about a buyer backing out at the last minute.
• You don’t have to disturb the tenant with constant showings and/or open houses.
5) Novation (Used when repairs are needed and you still want retail value)
A novation lets us step in, handle everything, and bring you a retail buyer.
• We agree on a fair price based on the condition of the property today.
• You give us the right to fix the property and sell it at the highest price as if it was ours.
• When we find a retail buyer, we replace our agreement with a new one between you and that buyer.
• We take on the work and risk in exchange for the opportunity to earn the difference.
• Most novations close within 30–60 days, depending on the buyer’s financing.
• You get the exact amount we agreed on. We keep anything above that number.
Benefits:
• You get fair retail value for your house (asking price).
• You are completely free from any responsibility. We handle everything.
• You don’t need to deal with repairs, showings, or paying realtor fees.
• You have full control over approval of the final buyer.
• You’re fully released from the original contract.
Quick, Simple, and Stress-Free Home Selling… but made with thoughtfulness.
We understand that selling to us may not be the right fit for everyone, and selling your home is a major decision which should not be taken lightly, but we’ve helped many homeowners find the perfect solution. If you’re looking for a fast, hassle-free sale, we’re here and ready to help.
Meanwhile, to help you along the way, we invite you to download the following guide… called:
