Well if you made it through Part 1 and have returned you must want additional information on Real Estate Investing. I trust you have come up with your Criteria on what you will buy, in this section we will discuss another Criteria you will have to decide on. That is How You Will Buy.
This is a very important section and will give you some ideas on how you to can be a Real Estate Investor. While there are the traditional avenues on buying property the most Successful Investors are those that have many options to purchase properties and we will mention a few here.
The easiest way to Purchase Real Estate is with a Cash Purchase, this can be the best option if you can afford it because it gives you much better buying power. You can usually close quickly and get the seller on to their next chapter. However this also takes your cash and may slow your options on other properties.
A great way to Purchase Real Estate is to have the Owner Finance all or part of the price. If you choose this option be sure your Real Estate Agent is versed in this type of purchase. Your Agent will be looking to protect you, that meaning getting the required information about the property. This includes but not limited to the research to be sure if there is a mortgage that it is current. Also your Agent can help structure the deal so that if there is a Mortgage Payment required that it is paid prior to the seller getting their portion of the payment. You would not believe how many people have purchased a home with Owner Financing and find out in a few months that the Sheriff is at the door with a Foreclosure Notice. Don't let that happen to you,
You can always get a Mortgage for your Investment Properties, The requirements are usually 20% down and absolutely great credit scores. This can help you maintain your on hand cash for repairs etc to the Investment Properties you are buying. The only issue on this is if the bank will finance the property you are trying to purchase. Depending on the condition of the property they may not want to take that risk. Contact your Lender first and see what they require. Always let them know what your plans are, they could become a great partner.
I hope this information helps. In our next Part we will discuss the option of Wholesaling Homes VS Buying them straight out. We will also touch on Buying to Sell and Buying to Hold and what some of the advantages are of each. If you have an Immediate Need just drop us a line. Thanks