Winterize Your Properties Before It’s Too Late

Source: https://thinkrealty.com/winterize-your-properties/

With the winter season approaching, property owners and managers should make sure their rentals and properties are ready for some bad weather. Freezing temperatures along with cold rain and snow… more

The post Winterize Your Properties Before It’s Too Late appeared first on Think Realty | A Real Estate of Mind.

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Are you contemplating investing in property? However, you don’t have enough cash to do this. Right here is a tip you are able to use as long as the property seller is willing to negotiate along.

To be fair, not every seller will be willing (or even understand) the concept outlined. Your better wager is to locate a land that the owner has great desire for selling, whether because of moving, divorce, or they are frustrated with the folks renting the property.

Actually, if you maybe currently renting and considering using this strategy perhaps your landlord would be happy to help you out! There are several variations that may be used depending upon you and your seller. Do they need the market price or are they just desperate to get out of the monthly payments – perhaps facing foreclosure?

The simplest method is to consider taking over their mortgage payments – called ‘assuming’ the mortgage. You will have to be approved by the initial lender to assume the mortgage. If you cannot get approved for an assumable mortgage you could as well try a ‘subject to’ assumption where you merely make repayments while the property stays in the seller’s name.

You take over the original 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 three years. Instead of having the money sit 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 ends you need to be able to refinance the cost, or perhaps you can sell. Unless you hit a genuine bad market the value of the property should have risen in that time.

Most mortgage lenders merely need to make a good investment. While your local bank could still shy away there are lots of financial lenders that would wish 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 don’t care what kind of income you make. Complete the deal with a second mortgage created with the seller. If you default they can eventually foreclose on the property and sell it, settling the existing mortgage with the proceeds.

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

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