50 Easy Ways For Investors To Find Motivated Sellers

Source: https://www.reiclub.com/realestateblog/50-ways-real-estate-investors-find-motivated-sellers-2/

Real Estate Investing can be very lucrative when dealing with “MOTIVATED SELLERS“. Working with Motivated Sellers opens up more creative investing possibilities, increases the number real estate investment deals you do, keeps more money in your pockets in terms of upfront costs and profit potential and lastly it is just simply easier to work with […]…

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

To be fair, not every seller will be interested (or even understand) the concept outlined. Your best gamble is to locate a property 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 considering using this strategy perhaps the owner would be happy to help you out! There are several variations that could be used depending upon you and your owner. Do they desire the market price or are they just desperate to get out from the monthly payments – maybe facing foreclosure?

The simplest way is to take over their mortgage payments – 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 remains in the seller’s name.

You take over the first mortgage and get a 2nd mortgage on the remaining cost of the house with the seller. Offer a high, interest-only payment for a short time period – two or 3 years. Instead of having the money sit down 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 draws to a close you need to be able to refinance the cost, or else you can sell. Unless you strike an actual bad market the value of the property should have risen by then.

Most mortgage lenders merely want to make a good investment. While your local bank could still shy away there are plenty of financial lenders that would like to make a deal. Financiers prefare real estate. The mortgage is mostly 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 estate if you default, they don’t care what kind of revenue you make. Complete the deal with a second mortgage done with the seller. In case you default they could still foreclose on the property and sell it, paying down the existing mortgage with the proceeds.

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

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