10 Mistakes Property Owners Make When Writing their Property Listing

Source: https://thinkrealty.com/10-mistakes-property-owners-make-writing-property-listing/

When it comes to marketing a rental property, many investors (myself included at one point) believe that a compelling set of numbers trumps any other information you might include in your property listing. While this might be the case once a buyer or potential tenant looks at those numbers, if you cannot get them to act on your listing, you will nd your property languishes on the market with little or no interest. We all know what that does to a property’s value!

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Are you thinking of investing in real estate? However you don’t have enough cash to accomplish this. In this article 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 willing (or even understand) the concept outlined. Your very best guess is to locate a land that the owner has great interest in offering it, whether because of moving, a divorce settlement, or they are frustrated with the people renting the place.

Actually, if you maybe currently renting and thinking about using this strategy perhaps the owner would be happy to help you out! There are some variations that can be used depending upon you and your seller. Do they want the market price or are they just eager to get out from the monthly payments – perhaps facing foreclosure?

The simplest method is to consider taking over their mortgage obligations – called ‘assuming’ the mortgage. You will have to be approved by the initial lender to assume the mortgage. If you can’t get approved for an assumable mortgage you may also try a ‘subject to’ assumption where you merely make obligations 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 – two or 3 years. Instead of having the money sit down in a bank they could 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 ends you ought to be able to refinance the cost, or you can sell. Unless you strike a real bad market the value of the house should have risen in that time.

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 real estate. The mortgage is usually around 60-70% of the value of the property, so as long as they know they get their money back in the value of the estate if you default, they don’t care what sort of money you make. Conclude the deal with a second mortgage done with the seller. If you default they can eventually foreclose on the property and sell it, paying off the existing mortgage with the proceeds.

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

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