When property investing, pay the seller their asking price but negotiate the terms under which you can buy property. You'd be absolutely surprised when property investing at how many sellers will help fund you into their property. Basically, you're receiving vendor finance from the seller.
Let's take an example of a $300,000 house. The seller wants $300,000 for their property. When property investing what most people will do is they'll negotiate all day long to get the price down from $300,000 to $270,000. Then when buyers have negotiated to get the house for $270,000 they'll get a bank loan and have the liability of a loan. They'll get a 30 year loan and after about 5 years of making payments they will probably owe about $260,000. Instead I'd like you to consider a different strategy when buying: get the seller to vendor finance you into their home.
You can say to the seller, "Listen Mr. Seller, I know you really want your $300,000 but let me do this: why don't you let me make payments on your existing mortgage and in return I'll give you the $300,000 you want and I'll just pay you direct." When property investing, I've always found that if you say to a seller, "I'll give you your asking price of $300,000 if you let me make your payments on the property." You will be surprised how many sellers will let you pay them direct if you're not trying to negotiate them down on the price. This is one of my favorite ways to control property.
Now I know that if I'm paying a seller direct at $300,000 at $2,000 a month, in 5 years time I've only got a balance of $180,000 that I still owe the seller. So when the seller says to me, "I will do this but you've got to pay me off in 60 months." That's okay with me because I didn't have to qualify for a bank loan. When property investing can you see how getting finance from the vendor can be beneficial for both parties?
When property investing and getting vendor finance from the seller, you as the buyer may pay a little bit more for the house but by making payments direct you will owe the seller $180,000 in 5 years time instead of $260,000. You've made a profit of $80,000 with out qualifying for a bank loan.
Rick Otton is the director of We Buy Houses Pty Ltd. He has been property investing full time for 14 years. Rick has completed over 351 property transactions in Australia and the United States.
Rick specialises in creating positive cash flow through a variety of strategies he perfected in the United States and adapted to Australian conditions. He sells home study courses on vendor finance, one year mentoring program as well as a yearly 3 day boot camp on the Gold Coast. Go to http://www.rickotton.com for more property investing information ring 1800 003 588 in Australia.
Alphabet Letters after a person's name seem to bestow some... Read More
San Diego is home to millions of beautiful apartments, condominiums,... Read More
Finding a lotPlanning for your new home is a very... Read More
The Real Estate Settlement Procedures Act (RESPA) is a consumer... Read More
One questions many "for sale by owner" sellers... Read More
We all are thinking about it and some of us... Read More
Over the last two years there has been so much... Read More
If you've just bought a house, you may be able... Read More
The Real Estate Industry is HUGE and is a golden... Read More
Buying a house is the best way you can create... Read More
There has been speculation in the media recently about the... Read More
Repairing a rental home (or your own home) use to... Read More
Properties for sale or to rent on the Costa BlancaAs... Read More
YEEHAW!!!!!! The south will rise again!! Can't you just imagine... Read More
An irate tenant or disgruntled home-buyer, with the help of... Read More
Most people who set out to buy a home, be... Read More
Howard Stern has over 20 property related files in Queens,... Read More
The discount on a foreclosed property is not as great... Read More
Everyone knows that at the end of a home inspection,... Read More
How to make the Real Estate market work for you... Read More
Are you one of a growing number of people considering... Read More
Selling property privately has many advantages over using an estate... Read More
The Traditional FavouritesOver the last five to ten years, UK... Read More
What are the odds that you'll find your dream at... Read More
Property Investing Secrets:How to Sell to 100% of the Market... Read More
The CompromisThis document is the document you will sign agreeing... Read More
Being a real estate investor is not really that hard,... Read More
Florida Investment Property ? Why Investing is a Wise Decision... Read More
Signage, though quite fundamental in nature, plays an important role... Read More
Buying a beach house in New Zealand offers many possibilities.New... Read More
In this article, you're going to discover new techniques for... Read More
Closing costs are often the last thing a person thinks... Read More
Second homes in favourite holiday destinations such as Spain are... Read More
In the United States, less than 10% of all For... Read More
Real estate values rise and fall in cycles. Currently home... Read More
"CMA" is an abbreviation real estate agents use for a... Read More
Most people get involved in Real Estate investing to make... Read More
If you plan on getting the most from the sale... Read More
Investing in real estate is more complex than simply buying... Read More
Are you ready for the lesson that will put you... Read More
HOW TO SELL YOUR HOME FOR TOP DOLLAR1. Make your... Read More
For posting the "Truth" on your website, some FSBO's will... Read More
The Real Estate Settlement Procedures Act (RESPA) is a consumer... Read More
Money in escrow is "dead money". It doesn't earn interest... Read More
With new destinations such as Bulgaria, Slovenia and Croatia offering... Read More
Thinking of trading up on an investment resort property? If... Read More
A lot of buyers think that a new house is... Read More
Leverage: With real estate, people and companies will lend you... Read More
Many people are familiar with the concept of sub-dividing a... Read More
Under Section 1031 of the Internal Revenue Code, owners of... Read More
Homeownership, in any form, is a big step for most... Read More
The Florida housing market has attracted many foreigners to invest... Read More
Most experienced property investors use property managers. Why? Because they... Read More
We have been studying a trend of new home buyers... Read More
Even though its importance is often overlooked, a great sales... Read More
Many people buy a house then have to move within... Read More
Selling your home requires some thought and a clear plan... Read More
Want to know why Strata Title Hotel Investments can be... Read More
Equity lender, hard money lender, private investor or what ever... Read More
Step 1 is always to determine the fair market value(FMV).... Read More
Homebuyers are a curious lot. They routinely ask thought-provoking questions.... Read More
Should you sell your home yourself? Yes and no. Yes,... Read More
Even if you're counting on rising property values to eventually... Read More
European tax haven Andorra enjoys the same fiscal benefits as... Read More
Real estate investing can be a dream career when the... Read More
Resort home ownership, such as condo hotels and fractional shares... Read More
Real Estate |