I hear people say all the time that they want to invest in real estate - but they are not sure if now is a good time to start investing. I am here to tell you that now is not a good time to buy ... it is a GREAT time to buy! I have several investors that run those "we buy homes for cash" advertisements in the local papers. They have brought me people who need to sell their homes because of financial hardships - some have equity - some do not - but many of them are willing to keep the existing loans in place and do a wrap around mortgage!
Now many people out there will try to tell you that you can not keep existing loan in place without triggering the due on sale clause - but there are ways around this. One of the most common ways of doing this is to put the home in a trust. Now - just because the loan is not in your name does not mean that you can be irresponsible and not pay the loan on time -- this will get you in big trouble.
Another important thing to remember if you are going to invest in real estate is that you DO NOT take advantage of someone that is having a hardship. In order to work a deal, please be sure it is a win/win for both parties. I have heard horror stories of people who have literally stolen properties from people or tied up a property with false promises and never complete the deal. This is not nice and there are laws out if you are caught doing this you can face some stiff penalties. I recently have heard of several tasks forces being set up to go after people who have unfairly targeted seniors promising that they can stay in their homes and then either evict the senior or not pay their bills as promised.
Sellers are motivated and Palmdale is a great place to buy homes. We are one of the most affordable places to purchase a new home in Los Angeles County. Call me today and let me know how I can help you built your real estate portfolio.
Remember as a real estate investors price is not always the main concern - many times terms are more important then price. I currently have two sellers with a lot of equity that are willing to carry paper on the homes they would like to sell. This is a great way to pick up property as well. Again - a win win - it may be easier to qualify for the loan for the buyer and the seller will make extra money for holding the note!