Hey Everyone,
I know one of the hardest things to do it to buy that first property. Just trying to find sellers to take a second mortgage is hard never mind finding a bank that will do the 1st mortgage for the rest of the loan amount you need. Well it’s really not that hard. Also, remember that you do not need to see in the ad “Owner Financing” most sellers that are motivated will take a second mortgage especially if you explain the benefits such as:
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most people that own and bought income property did so for the monthly income it could generate and by taking a second they would be recieving a monthly payment that is secured by the real estate. Which is alot better than chasing down tenants!!!
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if someone is selling their home most likely they have equity in the property and when they sell will be paying capital gains on their profit. But by taking a second they defer paying uncle sam while earning interest over the years
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by taking a second mortgage for $40,000 for 20 years at 7% they would recieve a total of $74,428.70 which is almost double and a second mortgage from a bank would be in the 10%-11% range so this could easily be greater
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also when holding financing the seller can sell their property for close to, if not, the full market value which if they sold for cash would probably sell for close to the amount that they would walk from the closing table if they had taken a second
I hope the was helpful for all you new investors and anytime someone needs a question anwsered don’t hesistate to ask me. When I was starting I wish I knew all of this because it would saved alot of time from dealing with the wrong people and money from making stupid investments or putting money down when it wasn’t need.
Good Luck to all of you.