3 Ways to Use Technology to Improve Efficiency in Your Real Estate Business

Source: https://thinkrealty.com/3-ways-to-use-technology-to-improve-efficiency-in-your-real-estate-business/

Real estate investing continues to change as modern technology evolves. I personally have seen real estate education evolve from cassette tapes to CDs to flash drives to now being purely online. The wise real estate and note investor will take advantage of technology to improve their business processes and systems.

Email-List-Management-Systems

To stay updated with the latest information in the property investing industry to may visit our real estate latest news. On the other hand if you’re new to real estate investing and desire to begin profitable real estate investing now get a copy of our profitable real estate investing ebook.

Are you thinking of investing in real estate? However you do not have enough money to do so. In this article is a tip you are able to use as long as the property seller is willing to negotiate with you.

To be fair, not all sellers will be interested (or even understand) the concept outlined. Your better guess is to find a property that the owner has great desire for selling, whether because of moving, divorce, or frustration with tenants.

Actually, if you maybe currently renting and thinking about using this technique perhaps your landlord would be happy to assist you! There are several variations that can be used depending upon you and your owner. Do they need the market price or are they just eager to get out of 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 first lender to presume the mortgage. If you cannot get approved for an assumable mortgage you could also try a ‘subject to’ assumption where you merely make payments while the property remains in the seller’s name.

You take over the original mortgage and make 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. Instead of having the money sit in a bank they can 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 ceases you ought to be able to refinance the cost, or you can sell. Unless you hit an actual bad market the value of the house should have risen by then.

Most mortgage lenders merely need to make a good investment. While your local bank may still be scared there are lots of financial lenders that would wish to make a deal. Financiers like property investing. The mortgage is usually based on 60-70% of the value of the land, so as long as they understand they get their money back in the value of the land if you default, they don’t care what kind of revenue you make. Complete the deal with a 2nd mortgage created with the seller. In case you default they could eventually foreclose on the property and sell it, settling the existing mortgage with the proceeds.

Now you can observe the complete 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.

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 *