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Finding the Best Home Improvement Loan Rate
If you're looking for a good home improvement loan rate, you might have to take your time and shop around a little bit.
The home improvement loan rate that you get can depend on several factors… your credit history, the amount of the loan...
Home Buyers: Closing Costs You Might Not Know About
If you're home shopping or in the process of buying property, you want to make sure you have all your costs covered.
Home buyer's who purchase a home without a real estate agent (or sometimes purchase through an inexperienced agent) can find out...
Sell Your Home Fast!
Do you have a new job that requires you to move to a new home? Has a divorce or death required you to liquidate your home as soon as possible? Or have bad times turned worse and the only hope of rescuing the investment you've made in your home is to...
Top 5 Emerging Property Markets In Eastern Europe
While the rest of the western world wonders whether domestic real estate investment remains a sensible consideration now that yields and equity growth rates are tumbling and the fast moving property sector slows and even stagnates in certain...
When You Want To Purchase Real Estate, Write An Offer!
Yes, write an offer for the real estate you wish to purchase. Sounds easy, doesn’t it? Well, it is more difficult than you might think. It’s not impossible, but there are a lot of things you have to include in an offer to purchase real estate. Think...
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Understanding Real Estate Lease Options
If you are an investor that sells properties using lease options you no-doubt understand why it can be an appealing avenue for those that need rental history and/or rent credits to help a challenging credit file. But, would YOU consider buying a property using a lease option? You better!
There is a reason that some of the most successful real estate investors, including Donald Trump, use the lease option technique (ok, there are actually several reasons!).
Appreciation: One of the typical advantages of controlling a property using an option is that the buyer retains the right to capture some, if not all, appreciation during the term. The longer the term, the greater the appreciation can be. In the single-family arena, where terms are usually 12-24 months, even moderate amounts of property appreciation can add up. For the buyer, especially, every percentage point of appreciation counts. And, if you're nice enough to offer (or get) a 24-month term in a market increasing at 3% annually, $6,000 on a $100,000 property is significant.
Principle Pay Down: If an option is accompanied by a lease the possibilities are greater for increased equity build up. By applying a portion of the monthly lease payment amount to the purchase price of the property one has the opportunity to widen the gap between the market value and the loan amount. Depending on whether the monthly rent amount is inline with market
rates...this is free money! A 30-year amortized, $100,000 loan at 7% begins at approximately $82 per month of principle payments. A $100 per month rent credit beats that, dollar for dollar, every month for almost 3 years!
No New Loan: Possibly the most noteworthy advantage of using a lease option in the residential market is that when the Optionee begins the purchase process no "new loan" is required. The prerequisite for this may be working with the right and informed mortgage broker but is usually easily accomplished through a refinance. This can mean no additional out-of-pocket monies for closing.
No Down Payment: I know what you're thinking, "I would never offer such a thing!" You don't have to. As a real estate investor rich in tools to find motivated sellers, you could get your next home using this lease option technique with no money down. You don't have to tell the seller that an option fee may be customary!
When you add it all up the numbers are hard to resist, so don't try! If you're in the market for a new (or new to you) home, use your own strategy against you!
About the Author: This article provided courtesy of http://www.1031-exchange-guide.com
Source: www.isnare.com
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