My guest today is Ted Thomas. He is the go to authority when it comes to investing in tax liens and tax deeds. Ted is a best-selling author, a speaker, and he has taught thousands of people his tax lien investing strategy. If you want to discover how to invest in secure government certificates […]
The post Earn Double Digit Returns Investing in Tax Liens and Tax Deeds with Ted Thomas – Podcast #101 appeared first on Louisville Gals Real Estate Blog.
To stay updated with the latest in the property investing industry to can check out our property investing latest news. On the other hand in case you’re new to real estate investing and desire to start profitable real estate investing now download a copy of our profitable real estate investing ebook.
Are you contemplating investing in property? However, you do not have enough cash to accomplish this. Right here is a tip you may use as long as the property seller is willing to negotiate along.
To be fair, not every seller will be interested (or even understand) the concept outlined. Your very best gamble is to locate a land that the owner has great desire for offering it, whether because they are moving, divorce, or frustration with the people renting the place.
Actually, if you maybe currently renting and considering using this approach perhaps the owner would be happy to assist you! There are several variations that may be used depending upon you and your seller. Do they desire 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 have to be approved by the original lender to presume the mortgage. If you cannot get approved for an assumable mortgage you may also try a ‘subject to’ assumption where you merely make payments while the property stays in the seller’s name.
You take over the first mortgage and make a second mortgage on the remaining cost of the house with the seller. Offer a high, interest-only payment for a short time frame – 2 or three years. Rather than having the money sit down in a bank they could be getting a high interest over two or three years with the rest due in full at the end of the term.
When the term ceases you should be able to refinance the cost, or you could sell. Unless you hit a real bad market the value of the house should have risen by then.
A lot of mortgage lenders merely want to make a good investment. While your local bank could still be lacking confidence there are plenty of financial lenders that would want to make a deal. Financiers like real estate. The mortgage is usually around 60-70% of the value of the property, so as long as they understand they get their money back in the value of the land if you default, they do not care what kind of revenue you make. Complete the deal with a 2nd mortgage created with the seller. If you default they could still foreclose on the property and sell it, paying off the existing mortgage in the proceeds.
Now you can see the entire picture. It is good that seller and buyer may work together. If they can’t wait for a sale, you can still give them their initial price with a little versatility on their part.