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Technique for rental properties - owner financing

Buying houses in the USA with financing from the seller as a way to create high returns on the capital: The real estate market in the USA is a sophisticated market in which there are many tools that can be used - tools that hardly exist in the Israeli real estate market. The American market allows tremendous creativity in the field of real estate and one must know how to take advantage of it. One of the best methods for an Israeli investor starting to build a portfolio...

Portfolio of 5 buildings with 42 apartments in Connecticut $ 2,000,000 - Hartford, Connecticut Date: 1/23/2019…

Portfolio of 5 buildings with 42 apartments in Connecticut $2,000,000 – Hartford, Connecticut Date: 1/23/2019 ? 42 apartments in Connecticut ?️ State ? City ? Neighborhood *********************** Transaction Type ************************** * ?️ Transaction type Property that already has a paying tenant - TurnKey transaction? Is the property under contract? - No, the property is not under contract yet? A multi-family property?…

Responses

  1. Hi my uncle,
    Yossi is right, you can find owner-financed properties by simply searching Craig List and typing the words: owner financing. But the transactions should be carefully examined and see that you do not purchase the property at a higher price than the market price. In addition, think you will have enough positive cash flow after all expenses including the loan payment.
    Another more sophisticated way to locate property for purchase with owner financing is to call rental ads and offer the landlord to purchase the property from it. If in principle agree to offer him a purchase with financing from his seller. The advantage of this approach is that you contact the seller directly and this is a non-market transaction. Also you are the one who pulls the strings and sets the conditions. Successfully !

  2. The Torah is much more complex. In my experience, there are some parameters that significantly increase the likelihood of the seller agreeing to owner financing:

    (1) Transactions that have been on the market for a long time - often the seller starts to despair but does not want to lower the amount and then it can interest him in owner financing even if he has not planned on it.
    (2) Sellers who have owned the property for more than 7 years - for tax reasons it is sometimes better for them to sell with owner financing and not receive the money immediately in order to defer their tax liability.
    (3) Because the seller is asking for the property for a higher price than the market price, it is possible to bargain on the interest rate and reach a much more significant discount than when bargaining on the amount.

    There are, of course, many other aspects of owner financing that help you get a deal and maximize your profit. It's an area worth deepening. Successfully