Thieves Target New-Home Construction

Source: https://thinkrealty.com/warning-thieves-target-new-home-construction/

A new construction building boom is usually a good thing these days, but new construction may lead to a booming burglary business as well. The problem is particularly serious in California cities like Roseville, where police are receiving an unusually high volume of reports of theft from new and under-construction neighborhoods.

“The loss could be from a few dollars, to a tool, to thousands of dollars with some of the new appliances,” local police spokesman Rob Baquera told CBS Sac…

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Are you contemplating investing in property? However, you do not have enough cash to accomplish this. In this article is a tip you can use as long as the person selling the property is willing to negotiate along.

To be fair, not all sellers will be interested (or even understand) the concept outlined. Your better guess is to find a land that the owner has great desire for selling, whether because of moving, divorce, or they are frustrated with the people renting the place.

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

The simplest way is to take over their mortgage repayments – called ‘assuming’ the mortgage. You will need to be approved by the original 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 repayments while the property stays in the seller’s name.

You take over the original mortgage and get a 2nd mortgage on the remaining cost of the property with the seller. Offer a high, interest-only payment for a short time frame – two or 3 years. Instead of having the money stay 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 term.

When the term ceases you should be able to refinance the cost, or you could sell. Unless you strike an actual bad market the value of the house should have risen by then.

A lot of mortgage lenders merely need to make a great investment. While your local bank could still shy away there are a lot of financial lenders that would wish to make a deal. Financiers prefare real estate. The mortgage is usually around 60-70% of the value of the land, so as long as they know they get their money back in the value of the property if you default, they do not care what kind of money you make. Conclude the deal with a 2nd mortgage done with the seller. In case you default they could eventually foreclose on the property and sell it, settling the existing mortgage in the proceeds.

Now you can see the entire picture. It is better that seller and buyer may work together. In the event they can’t wait for a sale, you can still give them their asking price with a little versatility on their part.

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