How to Effectively Communicate with Tenants

Source: https://thinkrealty.com/effectively-communicate-tenants/

Our world today is a 24/7, instant-access world. We bank online, depositing checks using digital pictures. We reach out to family and friends, communicating instantaneously via email, social media, and text without regard to time of day or geographic location. This high-speed world includes everyone, including the residents of your multifamily and single-family properties.

Whether you manage those properties directly or indirectly, your bottom line will benefit from making sure that yo…

To be updated with the latest information in the property investing industry to may visit our real estate latest news. On the other hand if you are new to real estate investing and desire to begin profitable real estate investing today download a copy of our profitable real estate investing ebook.

Are you thinking of investing in real estate? But you don’t 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 better wager is to locate a land that the owner has great interest in selling, whether because they are moving, divorce, or frustration with the people renting the place.

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

The simplest way is to consider taking over their mortgage repayments – called ‘assuming’ the mortgage. You will need to be approved by the first lender to presume the mortgage. If you cannot get approved for an assumable mortgage you could also try a ‘subject to’ assumption where you merely make repayments 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 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 down in a bank they could be getting a high interest over two or three 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 could sell. Unless you hit an actual bad market the value of the home should have risen in that time.

Most mortgage lenders merely want to make a great investment. While your local bank could still shy away there are plenty of financial lenders that would want to make a deal. Financiers prefare real estate. The mortgage is mostly 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 property if you default, they do not care what sort of revenue you make. Complete the deal with a second mortgage done 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 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 initial price with a little overall flexibility on their part.

Share This:

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *