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Your ROCK in Real Estate

A Guide to Purchasing Property Efficiently

Purchasing any kind of property with cash is not a problem and you can do that without any complication but what if you are not having enough cash and you want to purchase some property? This article will guide on some alternatives you can look forward to for the purchasing of property.

Purchasing Property with an Associate

Look for groups in your community or town who basically are investors of real estate. Meetings are held between these groups and there are two kinds of people in there. One group is always in want of something and ready to purchase whereas another group is full of sellers and they sell all kinds of property material. You need to take note of everything you hear about in the meeting and also get their names and number note down.

Here a question arises in your mind. How this information is going to exaggerate my property purchasing power? You just need to play smart here and look for property available for selling and then put your offer on that by mentioning in about someone you are eventually going to give right on that property. After this, call people on your list who are looking for a property you just figured out, and they will then play a part as your partner by financing in the deal or giving in the down payment.

Peoples without having enough money are always looking for associates to finance their deals on the purchase of property and you can earn a lot of money if you are having good deals, profitable for both you and your associates.

The Elegant Two-Note System

This is a technique that seems complicated at first but on the whole it is not at all. With the help of two-note you can purchase property without losing anything and getting a handful. For instance, there is property and seller is selling it for $250,000 or $255,000 and expecting to get around $240,000 for it and it’s a rental property but you are offering $260,000 for this property. Now the question here is why to offer more than the price being asked? The whole deal has been financed by the seller himself because he is in need of cash so here you will be having the advantage of selling one of the notes which are known as loan notes.

Here is the explanation of the above example. You are offering mortgage notes and a total of them are two. One is for $150,000 and second is for $30,000. Now you will get payments on both of these notes and on a note of $150,000 the payment will be around $1000 and $200 on the note of $30,000. Make sure one thing here that you are still having the cash flow with you. Now taking into consideration the part of the offer you made, you have carried on a sale which is for the second note and it is closing for around $22,000. At this instant the seller is getting a total of $22,000 as cash and $1000 for around 30 years on a monthly basis. What about the $200? Well, $200 per month is the note your respective investor is getting as the other payment.

The number of dollar amounts will vary in different types of deals and here what you need to see is that you are making cash from the financing done by the seller and there can be chances that seller is looking for much cash and for that reason, you will need to have higher amount offered on your second mortgage note.