Attendees Gain Unusual Access to Real Estate Rock Star at Triangle-Area Real Estate Event

Source: https://thinkrealty.com/attendees-gain-unusual-access-real-estate-rock-star-triangle-area-real-estate-event/

Ron LeGrand and will join forces with other real estate powerhouses at a two-day event in Raleigh, North Carolina, on August 26-27, 2017, to help bring everything together for area… more

The post Attendees Gain Unusual Access to Real Estate Rock Star at Triangle-Area Real Estate Event appeared first on Think Realty | A Real Estate of Mind.

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Are you thinking of investing in real estate? However you don’t have enough cash to do this. Here is a tip you may use as long as the property seller is willing to negotiate with you.

To be fair, not all sellers will be interested (or even understand) the concept outlined. Your very best gamble is to find a land that the owner has great interest in offering it, whether because they are moving, a divorce settlement, or frustration with tenants.

Actually, if you maybe currently renting and thinking of using this technique perhaps the owner would be glad to help you out! There are several variations that can be used depending on you and your owner. Do they desire the market price or are they just desperate to get out of the monthly payments – perhaps facing foreclosure?

The easiest way is to consider taking over their mortgage obligations – called ‘assuming’ the mortgage. You will need to be approved by the initial lender to presume the mortgage. If you cannot get approved for an assumable mortgage you could also try a ‘subject to’ assumption where you merely make obligations while the property stays in the seller’s name.

You take over the first mortgage and create a 2nd mortgage on the remaining cost of the property with the seller. Offer a high, interest-only payment for a short time frame – 2 or 3 years. Rather than having the money sit down in a bank they can be collecting a high interest over 2 or 3 years with the rest due in full at the end of the investment term.

When the term draws to a close you need to be able to refinance the cost, or you could sell. Unless you struck an actual bad market the value of the property should have risen by then.

A lot of mortgage lenders merely need to make a great investment. While your local bank could still shy away there are lots of financial lenders that would like to make a deal. Financiers like real estate. The mortgage is mostly around 60-70% of the value of the property, so as long as they know they get their money back in the value of the property if you default, they don’t care what sort of revenue you make. Conclude the deal with a 2nd mortgage done with the seller. If you default they could eventually foreclose on the property and sell it, paying off the existing mortgage in the proceeds.

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

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