Using Social Media to Grow Your REI Business with Lyndsay Phillips – Podcast #136

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I have a great show for you today. My guest is Lyndsay Phillips from Smart Sailing Business Growth. Today we’re going to dive into using social media in a strategic way to grow your REI business. Have you ever found yourself hopping on Facebook to post something that will build your brand and (hopefully) benefit […]

The post Using Social Media to Grow Your REI Business with Lyndsay Phillips – Podcast #136 appeared first on Louisville Gals Real Estate Blog.

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Are you contemplating investing in real estate? However you do not have enough cash to accomplish this. Here is a tip you can use as long as the property seller is willing to negotiate with you.

To be fair, not every seller will be willing (or even understand) the concept outlined. Your better wager is to locate a property that the owner has great desire for offering it, whether because they are moving, a divorce settlement, or they are frustrated with the folks renting the property.

Actually, if you maybe currently renting and thinking of using this technique perhaps the owner would be glad to help you out! There are a few variations that can be used depending on you and your vendor. Do they desire the market price or are they just desperate to get out of the monthly payments – perhaps facing foreclosure?

The easiest way is to take over their mortgage obligations – called ‘assuming’ the mortgage. You will need to be approved by the initial lender to presume the mortgage. If you cannot get approved for an assumable mortgage you may as well try a ‘subject to’ assumption where you merely make repayments 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 house with the seller. Offer a high, interest-only payment for a short time frame – two or 3 years. Rather than having the money sit down 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 investment term.

When the term ceases you should be able to refinance the cost, or else you could sell. Unless you struck a genuine 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 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 land, so as long as they know they get their money back in the value of the land if you default, they don’t care what sort of income you make. Conclude the deal with a second mortgage done with the seller. In case you default they can eventually foreclose on the property and sell it, paying down the existing mortgage in the proceeds.

Now you can see the whole picture. It is good 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.

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