My Main Goal Is Financial Freedom, To Do What I Want, When I Want, And I Can Do That Now

Source: http://joecrumpblog.com/my-main-goal-is-financial-freedom-to-do-what-i-want-when-i-want-and-i-can-do-that-now/

 

Read Transcript

date-page blog---

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 can visit our real estate latest news. On the other hand in case you are starting real estate investing and would like to start 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 do not have enough cash to accomplish this. Here is a tip you may use as long as the property seller is willing to negotiate along.

To be fair, not all sellers will be interested (or even understand) the concept outlined. Your better wager is to locate a land that the owner has great desire for offering it, whether because they are moving, a divorce settlement, or frustration with the people renting the place.

Actually, if you are currently renting and thinking about using this approach perhaps the owner would be happy to assist you! There are a few variations that may be used depending upon you and your owner. 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 take over their mortgage obligations – called ‘assuming’ the mortgage. You will need to be approved by the first lender to assume 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 stays in the seller’s name.

You take over the first mortgage and get 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 three years. Instead of having the money sit down in a bank they can be getting a high interest over two or three years with the rest 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 you could sell. Unless you struck a genuine bad market the value of the property should have risen by then.

A lot of mortgage lenders merely want to make a great investment. While your local bank could still be lacking confidence there are a lot of financial lenders that would wish to make a deal. Financiers like property investing. The mortgage is usually 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 sort of revenue you make. Complete the deal with a 2nd mortgage done with the seller. In case you default they can still foreclose on the property and sell it, paying off the existing mortgage in the proceeds.

Now you can observe the entire picture. It is better that seller and buyer can work together. 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.

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 *