Buy Real Estate without needing a loan right away and have time to repair your credit.
Creative ways to buy Real Estate
1.) Lease with an option to buy. You basically lease the home for a specified period of time, give the Seller option money (Option money is the amount you will forfeit if you do not buy the home in the specified period of time and its the money that guarantees the price of the home at the time of the lease) If you purchase the property that option money will go towards your down payment.
You can write the lease option to include a portion of the rental rate to go towards your down payment. Example rent is $2000.00 a month and you can ask for the Seller to credit $200.00 a month towards the purchase price. Then when it comes time to buy the house you you have a substantial amount for your down payment and closing costs. If you have a lease with an option its best to have an escrow company record a memorandum with the county to insure the seller does not sell it to anyone else.
2.) Owner financing. This is when you give the Seller a down payment like you would a lender but you don't have to apply for a loan, which means you can save thousand's in lender fees, but the down side is you will pay a higher interest rate with Seller finance. Sellers may carry long term or just for a few years until you can get your credit situation corrected so you can apply for a regular bank loan. Although some Sellers will carry the loan for an extended period of time. Why would a seller do this? The Seller is earning a good interest rate on the money and profiting even more on the sale.
3.) AITD (All Inclusive Trust Deed) This is also known as a wrap. This is when the existing financing stays in place for an agreed period of time, again until you can get your credit corrected so you can get a bank loan in 2-5 years. Usually there is a 3rd party company involved to insure the 1st TD gets paid and then any equity payments would go to the Seller.
4.) Rent to Own is another term for Lease with an option.
5.) REIT ( Real Estate Investment Trust) This is how you can invest in Real Estate almost like the stock market. Talk to your stock broker regarding REITs.
Don't hideaway from your fears, follow your dreams, I am always here to help you with your Real Estate goals. Hire the best Realtor to find you these deals as they are hard to find, but not for the experienced Realtor.
I have invested in Real Estate over 20 years and love helping and educating people on the many ways to buy and sell Real Estate. Please feel free to share this information. If you have any questions please visit my website at www.maryandash.com or email maryzullo1@gmail.com or text 619-987-5291
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