How To Find Motivated Seller Leads For Pennies

Source: http://joecrumpblog.com/how-to-find-motivated-seller-leads-for-pennies/

 

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To stay up to date with the latest information in the property investing industry to may check out our real estate latest news. On the other hand if you’re beginning real estate investing and desire to begin profitable property investing today get a copy of our profitable real estate investing ebook.

Are you contemplating investing in real estate? However, you do not have enough cash to do 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 all sellers will be interested (or even understand) the concept outlined. Your best gamble is to find a property that the owner has great interest in selling, 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 assist you! There are some variations that can be used depending on you and your owner. Do they desire the market price or are they just desperate to get out of the monthly payments – maybe facing foreclosure?

The simplest way is to take 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 repayments while the property stays in the seller’s name.

You take over the original mortgage and create a 2nd mortgage on the remaining cost of the property with the seller. Offer a high, interest-only payment for a short time frame – 2 or three years. Rather than having the money sit in a bank they could be collecting a high interest over two or three years with the remainder due in full at the end of the investment term.

When the term draws to a close you need to be able to refinance the cost, or perhaps you could sell. Unless you hit a real bad market the value of the property should have risen in that time.

A lot of mortgage lenders merely need to make a great investment. While your local bank could still be lacking confidence there are a lot of financial lenders that would want to make a deal. Financiers prefare real estate. The mortgage is usually 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 kind of money you make. Conclude the deal with a second mortgage done with the seller. In case you default they could still 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 can work together. In the event that they can’t wait for a sale, you may still give them their initial price with a little overall flexibility on their part.

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