When you buy a house, I hear alot of people make big deal about the seller helping with Financing. What is Financing? Is it just the cost to move a morgage from one person to another, which costs a fee? How much does this usually cost?
Im only 16, so im not familiar with how things like this go. :beer
Thanks guys.
please go to the library & check out lots of books about real estate & read read read read read read !!! also read RE forum boards. reiplace.com is also a good board to read. to be successful you must learn ALL the terminology. you will only get out of this business what you put into it. in the beginning it takes a lot of learning & research.
later not so much. :bobble.i am in the process of teaching my grand daughter about being a self motivated starter.hopefully she will learn early to not :flush her life away. i wish you lots of success & as for luck ; we make our own !
harriet(fl)
Using financing to buy a property simply means that you borrowed the money you need to complete the purchase.
If the seller participates in the financing, then a portion of the money you use to buy the home is borrowed from the seller himself.
On another note, it is good you are looking into real estate at your age. If I had known at 16 what I know now, 20 years later, I’d be a very successful man. I’d be at my home computer, rather than this computer at my just over broke (j.o.b.) making someone else rich/wealthy.
Your answer was given above, so I’ll just leave with… learn all you can, read everything, talk to everyone, ask lots of questions, so when the time is right (and you are of legal age to sign contracts) and you find the right deal, you jump on the opportunity and don’t look back.
Do not get discouraged and don’t let people who make less than you or who are not smarter than you influence you. Don’t listen to people who are NOT doing what you want to do. People will tell you not to invest in real estate, but those are the same people who will never do anything with their life.
Answers like this draw me to this site everyday. I am primarily a lurker at this point and its nice to see these responses to such a simple question. Most sites the poster would get flamed.
Thank you all for your contributions.
I wish someone told me this 10 years ago and made me listen to it. I’ve always had differant ideas about things than others and always allowed others to talk me out of them. Just to see someone do the same thing as I was thinking.
My mistake : Taking advise from people who have no vision!
Ok, let me see if I got this. Im not sure if im making it more difficult then it really is.
Lets say theres a 50,000 house the seller will not help with financing. Does this mean that the buyer(you) will need to get a 50,000 loan. And thats all financing is, getting a loan?
Lets say theres a 50,000 house and the seller will help with financing, does this mean the seller goes to the bank or w/e with you to help you get the loan?
Im sure im making this alot harder than I should but these are simple questions that not all kids my age know, so I dont feel bad.
I think it is great that you are starting young.
Financing is, very basically, the borrowed money to pay for the property. If someone asks you how you are going to finance the property, they want to know how you are going to pay for it.
In a normal purchase, you will have some money of your own to put it. That is called the down payment.
Unless you have all the cash to pay for the entire thing, you borrow the rest. Your own money down, plus the financing is the total price to pay for the property.
The rest of that money that you need can be borrowed from a bank. Occassionally, if the seller is willing, you can borrow the money from the seller.
Usually, the seller doesn’t want to loan you all of the money, so you will get part of the money from the bank, part of the money from the seller, and part from your own funds.
If the bank is financing the full $50,000, you are getting a $50,000 mortgage (loan) from the bank.
If the seller is helping with the financing, and he is going to carry 10% of the purchase price for you, the bank loans you $45,000 and the seller loans you $5,000 of the purchase price (he takes an IOU from you for $5,000-- only it is a lot more legally binding than just a regular IOU)
Thank you tatertot, I understood it but I just wasnt sure. You really cleared of seller financing for me.
sry wrong forum