How can a real estate investor profit from an assumable mortgage?
548279
If a person ownes a mortgage which is fixed at 5% and assumable, the option to assume the loan becomes good for people who cannot get the same loan.  For instance, A 5% loan is good for someone with terrible credit or who doesnt qualify normally.  Thus, they get the benefit of a 5% loan AND the property.\n\nLoan now 5%\nLoan for Credit risk 8%\nBenefit 3% of property price.\n\nEmail me if you need more details.\n\nGood Luck
161839
Its simple.  They make more babies but not more real estate.  Most of the big money in the world is tied to real estate.  Keep w/the investments that give you ultimate leverage (real estate)! Contact me if you would like to chat in person.\n\nPaul T. \nFinancialEvolution@comcast.net   PS. I'm a professional loan consultant and I try my best to be a invesment mentor.
41577
As little as possible is often the most popular idea. However, it is wise to put down enough to make sure the property income will service the debt payments and taxes. You don't want to be paying out of pocket evey month unless you really need the loss for tax purposes. \n\nMost banks or savings and loans will require between 20 and 30 percent down payment in the US. The lenders are looking for the property to break-even or have some positive cash flow based on their projections income and expenses. The appraiser is often asked to make these estimates. However, I have purchased investment property with nothing but closing costs out of pocket using hard money lenders. I've even borrowed more than the purchase price when the appraised value was much higher than the purchase price. I have also run across some credit unions that loaned 100% for borrowers who had a good track record with the credit union. It's all in the deal.
1033854
First I would call your mortgage lender and explain your situation and work out a repayment schedule. They rather have you pay your loan than having to foreclose. Since you are back at work I assume you will have enough income to pay them at least something.\n\nIf you have some equity in your house I'm sure you can sell for a lower price than it's worth. There are always real estate investors looking for deals. You give up equity and they get a house they can sell for more, you avoid foreclosure. But again first talk your lender.
830570
As a rule of thumb, the interest you earn, is directly proportional to the risk involved in the investment. \n\nTo take out a loan in order to invest in a bank paper makes no sense. Banks make money (among other things) by lending you money at higher interest rates that they pay on savings accounts, and CDs.\n\nIf your goal is to increase the value of your real estate, you have several options: Remodeling only pays of if it ads to the value of the house  (For instance, putting in new carpet does not) Adding a bedroom or bathroom does. Remodeling the kitchen may.\n\nAnother option is to invest in an additional real property. (Not in time-shares) Some people have been quite successful (depending on location) in buyng distressed property, paying back taxes, and sprucing it up; fixting everything that needs fixing (roof, waterpipe, water heater, etc) putting on a fresh coat of paint, and inexpensive light beige carpet. and reselling it. This works if you're handy at fixing things around the house.
335121
WOW you packed a lot into this question!\n\n1. Real Estate investment in a primary residence is typically a good idea.\n2. You say you have okay credit.  Does that mean you owe a lot or you have some derogatory credit on your profile?  This would affect your ability to qualify for a loan from both a debt ratio situation or challenged credit issue.\n3. A rent to own, lease option, or contract of sale it typically a good way to go if your credit is questionable as you may not be able to obtain traditional financing.  You would need to find a seller willing to cooperate with this type of financing.\n4. If you buy outright a Realtor is always recommended.  There is no cost to the buyer.  The seller bears the burden of all costs incurred.\n5. If you use a Realtor they can assist you in finding a source for financing.  Generally that would be a loan officer the Realtor has an existing relationship with that can cater to your individual needs.\n6. Lastly you say you are starting a new job.  Typically a lender is looking for 2 years in the same line of work with your new earnings similar to your past earnings.  If your new job is a significant increase in pay, the lender will evaluate your ability to secure employment for the same earnings should you lose your new position\n\nI know how overwhelming all this can seem to someone who is unaware of how the process works.  Don't be discouraged.  You may contact me if you need further help and if I know the answers I'd be happy to share my knowledge.  \n\nGood Luck!
229677
There are (actually were) two types of assumable loans.  \n\na) Qualifying assumable\nb) Non-Qualifying assumable\n\nIf a loan is assumable now (which is pretty rare, but they are out there), you still have to qualify like you were getting a new loan.  Then you go through the lending process, etc.  \n\nEven rarer still are the non-qualifying assumable.  These ended in the late 70s to early 80s.  Used to be you could just 'sign over' a loan to someone else.  It was abused by a few people running around grabbing up the properties, then renting the houses out.  Then a number of people doing this committed fraud by grabbing them up, collecting the rent, and not paying the mortgage.  That's why they're not around any more.\n\nIf there are any of these type of loans left, they're almost all paid off since they ended nearly 30 years ago.
151599
Most investors don't have a problem spending, at most, $30 to $50 a month (until cancelled) to get a list of properties where every single one of those properties can be purchased for tens of thousands of dollars less than other houses on the market. By the way, what do you consider 'useless'? If you are unable to purchase the property that you want, it's not the fault of the person who sold you the list. But, if they flat out scam you by providing you with a bogus list, you can always take it up with your credit card company or law enforcement. I suggest that if that amount of money is a problem for you, avoid auctions. Good luck!\n\nSomeone mentioned sites that list foreclosed properties. We are one of them, although we typically charge for those lists because we verify everything ourselves.
1121572
I'm a licensed mortgage Banker in NY & NJ. I can do 100% financing on investment properties up to $1 Million. If the property is located in NY or NJ, feel free to email me with questions. bianca@slkmortgage.com\n\nGood Luck!
1148604
1.  Get property appraised first.  You may be off on your calculations, but get it appraised first to see if your deal is viable.\n\n2.  Next if the valuation is high enough, contact a bank to get a reconstruction loan.  This will be a loan for aquisition wrapped with a construction loan.   The construction loan part will be variable and paid out of a drawing account payable at stages of the reconstruction.  The stages and estimated costs will be estimated at the beginning of the loan process defining what defines completion of a stage and how much money will be released.\n\n3.  Upon completion the loan will convert to a permanent with the entire amount amortized over the target period ie 25yr.\n\nYou will want to get a good flag and mgmt company, but more importantly you are going to need to carry some working capital as you should not expect to break even the 1st year especially considering the size of loans.\n\nIf you are interested you can contact me directly as I've consulted on similar deals.  I can arrange Gen Contractors as well as permits and financing as well as help you with some techniques to minimize your exposure in the deal and maximize your ROI.\n\n\nGood luck either way.  Remember 90% preparation in these types of complex deals.  Your financial structure will dictate your success.
329174
Our bank even offers 100% loans on Investment Properties.\n\nThey are a little more difficult to qualify for, but they are there.\n\nAlso, the interest rates start going up after the 80% mark, so if you are looking for a "cash flow" property, the 100% loans may not work well for you.  It depends on what area you are in and how much you are buying the house for.\n\nIf you are looking to flip the property in a short time, then who cares about the rate.  Just get in, get out and take your profit.\n\nThanks,\nGreg
1091650
The best option for you would be to find others with 30k to invest and see about setting up a REIT (real estate investment trust). Think about it, get 10 people together and now you've got 300k to work with. At that point, you can put the money down on a strip mall, apt complex, etc... Commercial real estate is very lucrative and often you will walk in cash positive. In fact, you can't buy the place (conventionally) unless you are cash positive. You get to see the previous owners 3yrs of financial records to tell you if it's going to yeild you a return or not and so on.
339953
Call a random mortgage company and ask them this question.
1132441
There are a couple of trains of thought here.\n\nYou did not state your age so it is sort of difficult to say with certainly how to solve or answer question.\n\nIf you are not close to retirement and not worried about being on a fixed income and worried about making your current mortgage payment, then this is my suggestion.\n\nKeep your current mortgage as it is, it is mostly a tax write off with your interest.\n\nPurchase additional income properties either with a guy that need money to find fix-up and repair distress properties and place them back on the market for  sale.  This is a good way for you to earn money without doing a lot of the work yourself.  Make sure this person has  experience, so have him show you some of his work he has done in the last 2-3 months. Find out his volume, investment amount needed per deal and the return you can expect for your investment.\n\nThe other way is for you to find distress properties, foreclosures, For sale by owners, fix them and put them back on the market for sale. If you decide to go this route for every 3 houses you come across I would keep 1 for a rental property and income tax write off. If you are doing an average of 3 per month that would give you 12 properties at the end of your 12 month cycle. You should conservatively be earning approximately $10,000- $20,000 per month easily. \n\nAnother way is just to purchase property for rental through bank REO that are already for move in. At this rate it would take a lot longer to accumulate.\n\nYou can lend your money out to others using their homes as collatral for 2nd trust deed investment. 2nd trust deeds are averaging about 10-12% annual. They are normally interest only with a call date of 5 years or less.\n\nI hope this has been of some use to you, good luck.\n\n"FIGHT ON"
716153
Am I missing the rest of this question?\n\nWell, either way there is a lot to know about this aspect of real estate.  Are you in foreclosure?  Do you want to invest in a foreclosure?  HMMMMmmmm.\n\nHere's another helpful site:\nforeclosure.com\n\nGood luck Mr. Mystery Foreclosure
1166672
Talk to the bank to take a business loan. If the profits are great, you'd be crazy to give away the share of the profits to an investor, just keep it to yourself.
1118954
you might want to get your real estate license first this will help you understand your local market better and the more you know the less risk you will have when making investment decisions. look at the city and state tax repossessed homes that will be a good place to start. i don't know where you live but if it is on the coast or the gulf this ship has sailed for a while but if you are in the middle somewhere you can still turn a profit. look for run down places that look deserted look for land on the out skirts if the good side of town this is a great place to invest for the long term.