Fortunately, we have found someone through our local real estate investment club that knows who we are and knows we are a very good financial risk. He is willing to finance this home for us so we can record a loan and get some “traditional seasoning” on a mortgage. The “signing party” will be the standard mortgage and promissory note – checks transferred. Mortgage filed in the city-county building, then it is off to lunch. Then more searching for the next housing deal. But, with some big lessons learned.
Lease purchase agreement or lease option is basically a contract done for a piece of land or property. This contract is done between the buyer and seller for a fixed period, after which buyer may gain full rights and ownership of the property. Buyers also have the option to not buy the property and forfeit down payment.
The second rule in real estate investing is to always, always be prepared for the deal. Many people buy as a direct result of knee jerk reactions to all the bad news they hear. That’s the natural thing to do when sources around you are pushing nothing but volatile pieces of news. But a wise investor needs to be objective and dispassionate in their decision.
Many are already interested to take part in IRAs. The reason behind this is the wide array of investment choices an investor can make. Investors who have this account can involve himself in traditional investments such as stocks and bonds and even non-traditional investments like real estate.
The financial downturn has its benefits. For instance, if you are a buyer in this market, chances are you will make a handsome profit because it is a buyer’s market out there. For one thing, rates have crashed. So, anyone making a buy today can be assured that they are buying when rates have bottomed out. Secondly, most sellers have come down from their high horses and are willing to sell if they get a genuine buyer with a reasonably good offer. Some are even ready to sell if they break even. So, if you have the money, there’s no reason to hold yourself back.
Third, they have time to repair their credit (you can vouch for their improved credit history) as well as time to accumulate capital for when they finally purchase the home. Fourth, they can begin their lives today. Rather than having to rent for a period and then shifting their whole lives over when they finally purchase a house, they can buy the house of their dreams from day one.
Perhaps one of the most important steps when getting a home loan is comparing costs, fees, features, flexibility options etc. from one lender with others. This helps you understand the complexities and terms better, while giving you scope for negotiation.