The Stock Market: What You Need to Know

Source: https://thinkrealty.com/stock-market-correction-need-know/

Last week, Wall Street went a little crazy. After more than a year of steady growth, the time was certainly ripe for a correction in the market, and that is… more

The post The Stock Market: What You Need to Know 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 accomplish this. Right here is a tip you may use as long as the person selling the property is willing to negotiate along.

To be fair, not all sellers will be interested (or even understand) the concept outlined. Your better guess is to find a property that the owner has great interest in offering it, whether because they are moving, divorce, or they are frustrated with the folks renting the property.

Actually, if you are currently renting and thinking about using this approach perhaps your landlord would be glad to help you out! There are some 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 of the monthly payments – perhaps facing foreclosure?

The easiest method is to take over their mortgage repayments – called ‘assuming’ the mortgage. You will have to be approved by the first 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 payments while the property remains in the seller’s name.

You take over the first mortgage and create 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 3 years. Rather than having the money stay in a bank they can be collecting 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 need to be able to refinance the cost, or else you could sell. Unless you hit an actual bad market the value of the house should have risen by then.

Most mortgage lenders merely want to make a good investment. While your local bank could still be scared there are plenty of financial lenders that would wish to make a deal. Financiers prefare real estate. The mortgage is usually around 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 sort of revenue you make. Complete the deal with a second mortgage created with the seller. If you default they could still foreclose on the property and sell it, paying down the existing mortgage in the proceeds.

Now you can see the entire picture. It is good 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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