Here S How You Can Get Paid When You Buy A Piece Of Property

Category: Finance, Real Estate.

If you ve ever had insomnia and watched late night television you may have seen the infomercials telling you that you can buy real estate no money down. The answer is, "yes! ".

But can you really purchase investment property without having any cash? Anyone can purchase property without having any cash, but it s not nearly as easy as the gurus proclaim. Yes, but it s a whole lot easier to do it if you have good credit. Can you do it even if you have bad credit? ? In fact, with good credit it s easy to get cash when you buy. Example: Property is for sale for$ 100, 00 You ask the owner of the property to give you a note for$ 30, 000 secured by other property you own or even as an unsecured note( you can put a VA clause in the note allowing it to be moved back to the subject after the closing) .

Here s how you can get paid when you buy a piece of property. You get a conventional loan for 75% of the sales price. You ask the seller for a carpeting allowance of$ 200 Here s how the deal works; - You buy the property for$ 100, 00- You pay the bank on a$ 75, 000 mortgage. - You pay the owner on a$ 30, 000 mortgage. - The seller pays your closing costs. You ask the seller to pay your closing costs. It seems like new information is discovered about something every day. Keep reading to get more fresh news about finance. - The seller pays you$ 2000 for carpeting.

And the topic of finance is no exception. If the property is rented out for$ 1000, you collect the rents and security deposits. That s a total of$ 9000 for buying a piece of investment property. In the above example the buyer would walk away from the closing with a$ 100, 000 property, $5000 from the over finance, $2000 for the carpeting, and$ 2000 for the rent and security deposit. NOT TOO BAD. No, maybe only one seller in ten or twenty will be willing to do this deal.

Will every seller be willing to do this deal with you? But there are sellers who will do this deal. What makes a motivated seller? - An owner who is in foreclosure. - An owner who got the property as part of an estate. - An owner who no longer wants to deal with tenants. - An owner who is in divorce. - An owner who has been transferred out of state. What you have to find is a motivated seller. Now that you ve bought a property and put money in your pocket be prepared to deal with the tenants. Then you ll be glad you took the time to learn more about finance.

The day will come when you can use something you read about here to have a beneficial impact.