With In Thirty Days I Made $5K

Source: http://joecrumpblog.com/with-in-thirty-days-i-made-5k/

 

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I believe the best way to learn the business of real estate investing is to hear how others have done it. When these interviews were recorded, I asked the interviewer to ask questions that would help the viewer see how these folks got started.

To be updated with the latest in the real estate industry to may visit our property investing latest news. On the other hand in case you are beginning real estate investing and desire to start profitable real estate investing now get a copy of our profitable real estate investing ebook.

Are you thinking of investing in property? However, 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 with you.

To be fair, not every seller will be interested (or even understand) the concept outlined. Your very best wager is to locate a property that the owner has great desire for offering it, whether because of moving, divorce, or they are frustrated with the people renting the place.

Actually, if you are currently renting and thinking of using this strategy perhaps the owner would be happy to assist you! There are some variations that could be used depending on 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 way is to consider taking over their mortgage repayments – 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 may as well try a ‘subject to’ assumption where you merely make repayments while the property remains in the seller’s name.

You take over the original mortgage and get a second mortgage on the remaining cost of the property with the seller. Offer a high, interest-only payment for a short time period – 2 or three years. Instead of having the money stay in a bank they can be collecting a high interest over two or three years with the remainder due in full at the end of the term.

When the term ceases you need to be able to refinance the cost, or you could sell. Unless you hit an actual bad market the value of the property should have risen by then.

Most mortgage lenders merely need to make a good investment. While your local bank could still be scared there are plenty of financial lenders that would like to make a deal. Financiers like property investing. The mortgage is usually based on 60-70% of the value of the property, so as long as they understand they get their money back in the value of the land if you default, they do not care what kind of income you make. Conclude the deal with a 2nd mortgage done with the seller. In case you default they can eventually 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 together. If 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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