Telemarketing Scam Targeted Investors

Source: https://thinkrealty.com/telemarketing-scam-targeted-investors/

The U.S. attorney for the Southern District of Illinois recently indicted two California residents on charges related to a national telemarketing scam targeting real estate investors. The charges included conspiracy to commit wire fraud and mail fraud, and result from the two individuals’ participation in a scheme that involved selling fake lists of potential investment properties to would-be real estate investors and home-buyers for about $200. The indictment alleges that the two placed ad…

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Are you thinking of investing in real estate? But you do not have enough money to do so. Here is a tip you can use as long as the person selling the property 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 land that the owner has great desire for offering it, whether because they are moving, divorce, or they are frustrated with tenants.

Actually, if you are currently renting and considering using this strategy 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 want the market price or are they just desperate to get out of the monthly payments – maybe facing foreclosure?

The easiest way is to take over their mortgage obligations – called ‘assuming’ the mortgage. You will have to be approved by the initial lender to presume the mortgage. If you can’t get approved for an assumable mortgage you could as well try a ‘subject to’ assumption where you merely make obligations while the property remains 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 3 years. Rather than having the money sit down in a bank they can be getting a high interest over two or three years with the remainder due in full at the end of the term.

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

Most mortgage lenders merely want to make a great investment. While your local bank could still be scared there are a lot of financial lenders that would wish 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 2nd mortgage done with the seller. If you default they could still foreclose on the property and sell it, paying down the existing mortgage with the proceeds.

Now you can see the whole picture. It is good that seller and buyer may work hand in hand. In the event they can’t wait for a sale, you can still give them their initial price with a little versatility on their part.

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