Probate Question: Getting Personal About the Deceased in Your Letters – Yes or No?

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Probate Question I got a really interesting probate question from a new investor this week I thought I would share.  The question went something like this: Should I take some of the personal information from the obituary published in the newspaper and personalize my letter with that information? This person was thinking specifically about hobbies […]

The post Probate Question: Getting Personal About the Deceased in Your Letters – Yes or No? appeared first on Louisville Gal…

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Are you thinking of investing in real estate? But you don’t have enough money to do so. In this article is a tip you are able to use as long as the person selling the property is willing to negotiate along.

To be fair, not every seller will be interested (or even understand) the concept outlined. Your better gamble is to locate a land that the owner has great desire for selling, whether because they are moving, divorce, or frustration with tenants.

Actually, if you maybe currently renting and thinking of using this technique perhaps your landlord would be happy to assist you! There are a few variations that may be used depending on you and your seller. Do they need the market price or are they just desperate to get out from the monthly payments – perhaps facing foreclosure?

The simplest way is to consider taking over their mortgage obligations – called ‘assuming’ the mortgage. You will need to be approved by the original lender to assume the mortgage. If you can’t get approved for an assumable mortgage you could also try a ‘subject to’ assumption where you merely make payments while the property remains in the seller’s name.

You take over the original mortgage and create a second mortgage on the remaining cost of the house with the seller. Offer a high, interest-only payment for a short time frame – two or three years. Rather than having the money stay in a bank they can be getting a high interest over 2 or 3 years with the remainder due in full at the end of the term.

When the term ends you need to be able to refinance the cost, or you can sell. Unless you hit an actual bad market the value of the house should have risen in that time.

Most mortgage lenders merely need to make a great investment. While your local bank may still shy away there are plenty of financial lenders that would want to make a deal. Financiers like real estate. The mortgage is usually based on 60-70% of the value of the land, so as long as they understand they get their money back in the value of the property if you default, they do not care what kind of money you make. Conclude the deal with a second mortgage done with the seller. If you default they can still foreclose on the property and sell it, paying off the existing mortgage with the proceeds.

Now you can observe the complete picture. It is good that seller and buyer may work together. In the event that they can’t wait for a sale, you could still give them their initial price with a little overall flexibility on their part.

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