A recent report from ATTOM Data Solutions about national flipping trends stated that about one in every 10 homes in Phoenix, Arizona metro area market is a flip. Only five markets posted higher numbers than this.
Even though Phoenix is a hot spot for flippers, it is not necessarily a hot spot for high returns. Homes flipped in Phoenix grossed an average of 22%, while the national flipping average is 48%. Daren Blomquist, vice president of communications at ATTOM Data Solutions, attri…
To stay updated with the latest in the real estate industry to can check out our property investing latest news. On the other hand if you’re starting real estate investing and would like to begin profitable property investing now download a copy of our profitable real estate investing ebook.
Are you thinking of investing in real estate? However you do not have enough cash to accomplish this. Right here is a tip you can use as long as the person selling the property is willing to negotiate with you.
To be fair, not every seller will be interested (or even understand) the concept outlined. Your best gamble is to find a land that the owner has great interest in offering it, whether because of moving, a divorce settlement, or frustration with tenants.
Actually, if you are currently renting and thinking about using this strategy perhaps your landlord would be happy to help you out! There are several variations that may be used depending upon you and your vendor. Do they desire the market price or are they just desperate to get out from the monthly payments – perhaps 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 assume the mortgage. If you cannot get approved for an assumable mortgage you could as well 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 property with the seller. Offer a high, interest-only payment for a short time period – two 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 remainder due in full at the end of the investment term.
When the term ends you ought 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 by then.
A lot of mortgage lenders merely need to make a good investment. While your local bank may still be lacking confidence there are plenty of financial lenders that would wish to make a deal. Financiers like property investing. The mortgage is mostly based on 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 income you make. Conclude the deal with a 2nd mortgage created with the seller. In case you default they could still foreclose on the property and sell it, paying down the existing mortgage in the proceeds.
Now you can see the entire picture. It is better that seller and buyer may work hand in hand. In the event that they can’t wait for a sale, you could still give them their asking price with a little versatility on their part.