How To Market Your Rental Property For Sale – P3

Source: https://realestateblog.reiclub.com/landlording-101-part3/

Marketing your rental is one of the most important aspects of being a real estate investor. The price you get determines your ability to refinance, monthly cash flow, and your ability to buy more rental properties. Where to Begin To Market Your Rental? Learning how to market your rental properties can be the difference between […]…

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Are you contemplating investing in property? But you do not have enough cash to accomplish this. Here is a tip you may 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 very best gamble is to find a land that the owner has great desire for offering it, whether because they are moving, a divorce settlement, or frustration with the folks renting the property.

Actually, if you are currently renting and thinking of using this technique perhaps your landlord would be happy to assist you! There are a few variations that could be used depending upon you and your owner. Do they need the market price or are they just desperate to get out from the monthly payments – maybe facing foreclosure?

The easiest method is to consider taking over their mortgage repayments – called ‘assuming’ the mortgage. You will have to be approved by the first lender to assume 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 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. Instead of having the money sit down in a bank they can be collecting a high interest over two or three years with the rest due in full at the end of the term.

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

Most mortgage lenders merely want to make a great investment. While your local bank may still be scared there are plenty of financial lenders that would like to make a deal. Financiers like real estate. The mortgage is usually 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 revenue you make. Complete the deal with a second mortgage created with the seller. In case you default they can eventually foreclose on the property and sell it, paying down the existing mortgage with the proceeds.

Now you can see the entire picture. It is better that seller and buyer can work together. 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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