Probate Investing Part 4: Overview of Marketing to Probates Podcast + Video

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    *** My Probate Investing Masterclass is TODAY, Thursday May 17th at 2:00 Eastern.*** If you’re not signed up JUST CLICK HERE to get in! Overview of Marketing to Probates Today’s show is last part in my 4 part series on probate investing, and the topic is a quick overview of marketing to probates.  […]

The post Probate Investing Part 4: Overview of Marketing to Probates Podcast + Video appeared first on Louisville Gals Real Estate Blog.

To be up to date with the latest information in the property investing industry to can visit our real estate latest news. On the other hand if you’re new to real estate investing and would like to start profitable real estate investing today get a copy of our profitable real estate investing ebook.

Are you contemplating investing in real estate? However, you do not have enough cash to do so. Right here is a tip you can use as long as the person selling the property is willing to negotiate along.

To be fair, not every seller will be willing (or even understand) the concept outlined. Your better guess is to locate a property that the owner has great interest in selling, whether because they are moving, divorce, or they are frustrated with the people renting the place.

Actually, if you are currently renting and thinking about using this technique perhaps the owner would be happy to help you out! There are a few 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 – perhaps facing foreclosure?

The easiest method is to consider taking over their mortgage repayments – called ‘assuming’ the mortgage. You will have to be approved by the first lender to presume the mortgage. If you can’t get approved for an assumable mortgage you may as well try a ‘subject to’ assumption where you merely make repayments while the property stays in the seller’s name.

You take over the first mortgage and create a 2nd mortgage on the remaining cost of the house with the seller. Offer a high, interest-only payment for a short time frame – 2 or 3 years. Rather than having the money sit in a bank they could 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 ends you need to be able to refinance the cost, or perhaps you can sell. Unless you strike a real bad market the value of the home should have risen in that time.

A lot of mortgage lenders merely need to make a good investment. While your local bank may still be scared there are plenty of financial lenders that would wish to make a deal. Financiers prefare property investing. The mortgage is mostly 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 do not care what sort of revenue you make. Complete the deal with a 2nd mortgage done with the seller. If you default they can still foreclose on the property and sell it, paying down the existing mortgage in the proceeds.

Now you can observe the whole picture. It is better that seller and buyer may work together. In the event 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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