Real estate investing is a hot market right now! People are cashing in on other people’s homes. With the unemployment rate as high as it is right now people can’t afford the home they are currently in. Foreclosures are an everyday thing right now. Most people can’t afford to have a foreclosure on their credit report. They are trying everything to get out of the loan. Desperate sale prices, cash sales and some even try false insurance claims to get home paid off.
You ask “How can this benefit me?” Well let me tell you something, people want out of their mortgage quick. If their home is valued at $100,000 and they owe $50,000 on their mortgage they would most likely be willing to sell their house between $50,000 and $60,000 to save their credit and put some money back in their pocket. If they don’t sell their house and the bank forecloses on them they will lose everything. People are giving away their houses right now for an unbelievable all time low. It is time you cashed in on these deals before the banks foreclose and everybody loses money.
Offering to buy their house at a fraction of the cost can feel shady for the beginning real estate investor. This is because you are going to make thousands from someone’s house that they have lived in for years and just can’t afford it anymore. This will make any honest person feel like a crook. Well let me tell you first that you are helping them. The home owner wants nothing more than to just get rid of the burden of the banks calling everyday and the foreclosure letters. You are doing them a favor as well as putting thousands in your pocket per deal.
“I don’t have the credit or money to buy a house!” you say? Well everything is not black and white. There are creative ways to purchase houses which does not require money out of your pocket or a bank mortgage. One of these ways is called a lease option, in this method to purchase a house you agree with the seller to buy their house for let’s say $60,000 you tell them you will give them a thousand in month and pay them $600 a month until you cash them out of their house for the remainder of the balance with in 2 years. Granted the $600 a month is if they have a $500 dollar mortgage payment which would put a hundred in cash in their pocket making the deal more appealing to the seller.
During that first month you advertise your house as “No Bank Qualifying”, “Lease option” or “Rent to own” making this an attractive house for people with bad credit. You should get multiple people interested in buying the house within a month. When you go to sell or rent out the house you ask how much they have to put down, find someone with at least $2,500 to put down on the house you are selling for $100,000 with a monthly payment of $800. Things starting to add up for you right now? When you find a buyer get their $2,500 and pay the seller the promised $1,000 which puts $1,500 in your pocket. When you collect your monthly payment of $800 and pay the seller their promised $600 that leaves $200 in your pocket.
During the first two years of renting out the house you will be helping the buyer with their credit and putting cash in your pocket. When they built up their credit enough to qualify for the house they will purchase the house for $100,000. The rent and down payment will not count towards the purchase price. The down payment and monthly payments you’re paying the seller will. Let’s do the math on this one. Money from the buyer to date will be $2,500 plus 24 payments of $800 which totals $21,700; money paid to the seller is $1000 down plus 24 payments of $600 which totals $15,400 leaving a difference of $6,300 which is in your pocket. When your buyer qualifies for the mortgage you will get $100,000 and then you will cash your seller out at a total of $60,000 minus the down payment and monthly payments leaving a balance of $44,600 so you will be pocketing another $55,400 that plus the money you collected over the two years will total $61,700 off one deal! Most of the work you do on this deal with happen in the first month and that is no more than 4 hours a week, after that all you do is spend 10 minutes a month collecting a check from your buyer and writing a check to your seller. If you invest 20 hours a week you can have time for 10 deals going on at once. Get the picture? You can make an executive income from home with a little bit of time out of your day. Learn more about programs like this at [http://realestatepowerinvesting.com].