Invest In Real Estate With No Money Down

Invest In Real Estate With No Money Down
Are you thinking of​ investing in​ real estate? But you do not have enough cash to​ do so .​
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 interested (or even understand) the​ concept outlined .​
Your best bet is​ to​ find a​ property that the​ owner has great interest in​ selling,​ whether because of​ moving,​ divorce or​ frustration with tenants .​
Actually,​ if​ you are currently renting and thinking about using this technique perhaps your landlord would be happy to​ help you out! There are a​ few variations that can be used depending on​ you and your seller .​
Do they want the​ market price or​ are they just eager to​ get out from the​ monthly payments - perhaps facing foreclosure?
The simplest method is​ to​ take over their mortgage payments - called 'assuming' the​ mortgage .​
You will need to​ be approved by the​ original lender to​ assume the​ mortgage .​
If you cannot get approved for an​ assumable mortgage you may also try a​ 'subject to' assumption where you merely make payments while the​ property remains in​ the​ seller's name .​
You take over the​ original 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 period of​ time - 2 or​ 3 years .​
Instead of​ having the​ money sit in​ a​ bank they can be collecting a​ high interest over 2 or​ 3 years with the​ remainder due in​ full at​ the​ end of​ the​ term .​
When the​ term ends you should be able to​ refinance the​ cost,​ or​ you can sell .​
Unless you hit a​ real bad market the​ value of​ the​ property should have risen in​ that time .​
Most mortgage lenders merely want to​ make a​ good investment .​
While your local bank may still shy away there are plenty of​ financial lenders that would love to​ make a​ deal .​
Financiers like 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​ property if​ you default,​ they don't care what kind of​ money you make .​
Complete the​ deal with a​ second mortgage created with the​ seller .​
If you default they can still foreclose on​ the​ property and sell it,​ paying off the​ existing mortgage with the​ proceeds .​
Now you can see the​ whole picture .​
It is​ better that seller and buyer can work together .​
If they can't wait for a​ sale,​ you can still give them their asking price with a​ little flexibility on​ their part.

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