Use Real Estate To Pay Off Your Mortgage Early

Use Real Estate To Pay Off Your Mortgage Early



Use Real Estate to​ Pay Off Your Mortgage Early
If you​ live in​ an​ average market and paid $200,​000 for your home just four years ago,​ it​ is​ now likely to​ be worth more than $292,​000 .​
And if​ you​ were able to​ purchase just three more houses,​ then in​ four years,​ you​ could have sold those three homes and made enough money to​ pay off your mortgage .​
If you​ think this is​ impossible because you​ are worried about finding the​ money to​ use as​ a​ down payment or​ qualifying for a​ loan,​ or​ are apprehensive about becoming a​ landlord,​ read on​ to​ learn about the​ everyday secrets used by investors to​ overcome these hurdles.
The easiest way to​ buy a​ house without a​ down payment is​ with a​ lease purchase .​
Search online to​ find lists of​ out-of-state landlords who may be looking to​ sell their houses once their tenants move out,​ and contact them by mail .​
Out-of-state landlords typically are motivated to​ sell because they live far away from the​ properties they own .​
Offer to​ lease the​ home for an​ amount that is​ high enough to​ cover the​ seller's entire house payment including principal,​ interest,​ taxes and insurance .​
Make sure that you​ also get an​ option to​ purchase the​ home at​ or​ below today's value at​ any time during the​ next five years .​
Try to​ arrange for your payments to​ begin after 60 to​ 90 days so that you​ will have time to​ find someone who is​ willing to​ buy the​ home on​ a​ rent-to-own basis .​
To find this person,​ who is​ called a​ tenant buyer,​ put up plenty of​ rent-to-own signs in​ the​ neighborhood .​
Your tenant buyer will typically pay a​ little more in​ rent each month than you​ are paying to​ the​ seller .​
Set your tenant buyer's purchase price at​ around 75 percent of​ the​ amount the​ home will be worth four years from now .​
In addition,​ your tenant buyer should be responsible for any maintenance or​ repairs to​ the​ home while living there on​ a​ rent-to-own basis .​
Encourage him or​ her to​ have the​ home professionally inspected .​
If three of​ your tenant buyers purchase their homes after four years,​ you​ should be able to​ make enough in​ profits to​ pay off your own mortgage 20 to​ 25 years before other people .​
The best part is​ that you​ can accomplish this without needing any money for a​ down payment or​ qualifying for a​ loan.




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