Market is variable. The price of two real estate properties can vary a great deal, provided you keep other factors such as time and location, constant. No two real estate properties can have exact. There always exists kind of variation and this need to be taken into account. Though, you do have the existing rule of thumbs and set strategies, but all these are workable, if tried in combination. Individually, they become worthless math.
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However, in order to have a financially rewarding experience, you must be knowledgeable with the ins and outs of the real estate invesment. Ask your self: Is the business deal you are about to enter into a good deal? How do you know if it is?
If it’s the seller making you the loan (or secondary loan), ask yourself this: Why would the seller allow me to purchase this property without coughing up one penny of my own cash? Unless the seller has a slate loose, chances are that the price you end up paying for the property is inflated and the seller counts the financing as a wind fall.
Well, it’s not that strict. When I say a formula I am more talking about the information that you need to get across to the investor. But i have found this specific template pretty successful in the past.
So there you have it. Option 1 is going with a realtor. It will cost you 6% and you’ll have to work with them to get the house sold — if they can sell it. Is it worth it? Well, what’s your time worth? If you have no time to spare or don’t want to put in the effort, then yes go find a quality realtor. A good one will be worth it and there are good ones out there. They might even get you more for the house than you could get yourself.
Motivated sellers are what you want to find. Someone with a need to sell not just a desire. We’re not talking about someone who is desperate to take advantage of here but a flexible seller who is willing to listen and negotiate with you. look for the sale signs or newspaper adds with things like “owner take back” or ” low down”, so you know these people are willing to do some creative financing with you. Also “no qualifying” means the financing is assumable and you won’t have to qualify for the existing mortgage. “Owner take back” means the owner will take back a part of the down payment as an extra mortgage instead of cash. FHA mortgages may be assumable and the cost is only a small fee with no additional points added.