Top 25 Zip Codes for Buying Single Family Homes

Source: https://thinkrealty.com/top-25-zip-codes-buying-single-family-homes/

ATTOM Data Solutions, released its Q3 2017 Single Family Rental Market report, identifying the top 25 U.S. ZIP codes for buying single family rental homes based on potential rental yields… more

The post Top 25 Zip Codes for Buying Single Family Homes appeared first on Think Realty | A Real Estate of Mind.

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Are you contemplating investing in property? However you do not have enough cash to do so. In this article is a tip you can use as long as the property seller is willing to negotiate along.

To be fair, not all sellers will be willing (or even understand) the concept outlined. Your very best guess is to find a property that the owner has great interest in selling, whether because of moving, divorce, or frustration with tenants.

Actually, if you maybe currently renting and considering using this approach perhaps your landlord would be happy to help you out! There are a few variations that may be used depending on you and your owner. Do they want the market price or are they just eager to get out of the monthly payments – maybe facing foreclosure?

The simplest method is to consider taking over their mortgage payments – called ‘assuming’ the mortgage. You will need to be approved by the initial lender to assume the mortgage. If you can’t get approved for an assumable mortgage you may as well 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 make a 2nd mortgage on the remaining cost of the property 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 investment term.

When the term ends you need to be able to refinance the cost, or else you can sell. Unless you hit a genuine bad market the value of the home should have risen by then.

A lot of mortgage lenders merely want 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 based on 60-70% of the value of the land, so as long as they know they get their money back in the value of the land if you default, they do not care what kind of revenue you make. Conclude the deal with a second mortgage done with the seller. In case you default they can still foreclose on the property and sell it, paying down the existing mortgage with the proceeds.

Now you can observe the entire picture. It is better that seller and buyer may work hand in hand. 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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