Over The Year I’ve Made Four Deals And In Each One I Made $5k

Source: http://joecrumpblog.com/over-the-year-ive-made-four-deals-and-in-each-one-i-made-5k/

 

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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 up to date with the latest in the property investing industry to can check out our property investing latest news. On the other hand in case you are beginning real estate investing and desire to begin profitable real estate investing today get a copy of our profitable real estate investing ebook.

Are you thinking of investing in property? However you do not have enough cash to do so. Here is a tip you may use as long as the person selling the property is willing to negotiate along.

To be fair, not all sellers will be willing (or even understand) the concept outlined. Your better gamble is to locate a property 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 about using this approach perhaps the owner would be happy to assist you! There are some variations that may be used depending on you and your owner. Do they want the market price or are they just eager to get out of the monthly payments – maybe facing foreclosure?

The simplest way is to consider taking over their mortgage payments – called ‘assuming’ the mortgage. You will need to be approved by the initial lender to presume the mortgage. If you can’t get approved for an assumable mortgage you could also 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 make a second mortgage on the remaining cost of the property with the seller. Offer a high, interest-only payment for a short time frame – two or three years. Instead of having the money stay in a bank they could be collecting a high interest over 2 or 3 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 you can sell. Unless you struck a real bad market the value of the property should have risen by then.

A lot of mortgage lenders merely want to make a good investment. While your local bank could still shy away there are lots of financial lenders that would want to make a deal. Financiers prefare property investing. The mortgage is mostly based on 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 don’t care what kind of income you make. Conclude the deal with a second mortgage created with the seller. In case you default they can 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 hand in hand. In the event they can’t wait for a sale, you could still give them their initial price with a little overall flexibility on their part.

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