Usually… no. Most of the time, you can wait until the real estate investment is under contract before you order an appraisal. If you’re borrowing money to buy the property, you’ll need one for the lender anyway. If anything fishy pops up on the appraisal, you can usually back out of the deal on the basis of inadequate collateral.
Here are two more reasons for waiting to order an appraisal, along with one exception:
In Part 1 of this series, I outlined three strategies for whittling down the price of foreclosures. In this post, I’m going to give you three more. Where the first three techniques will work for most foreclosure real estate investments, sometimes you need to apply more pressure. Here’s how:
For most beginners, making offers on foreclosures is a miserable experience. When I first started, I crashed and burned 17 times in a row. At the time, I chalked it up to bad luck, but now that I’m older and wiser, I realize that I didn’t know what I was doing.
Now my acceptance ratio is about 1/4 and steadily improving. So far this year, I’m 2/2. The key is understanding how to negotiate with banks. Kind of like learning to dance, you need to learn a set of "moves" and then practice them every day to achieve mastery.
In this article and the one to follow, I’m going to give you six techniques that I use to dance circles around banks. Hopefully, your acceptance ratio will improve, as mine has.
Guaranteed, on-time rent payments. What landlord could resist? The fact is, like any strategy, section 8 rentals have both advantages and disadvantages to think about before basing your future on it. Personally, I avoid the strategy, but I know several landlords that make their living from it. I’ve gathered a short pros and cons list together for you, so you can decide for yourself.
Section 8 is a program for low-income tenants, where the government subsidizes a portion of the rent. You can rent your houses to approved tenants, and the Section 8 program will pick up part or all of the rent every month.
Many landlords enjoy the strategy because it’s guaranteed income. The government pays their portion of the rent on time every month, so you only have to concern yourself with the portion that comes directly from the tenant.
Other landlords hate Section 8 because of the approval process, periodic inspections, and the occasional problem tenant.
In the 21st century, everyone knows the word "gay" refers to people that are homosexual, but back in the 1950s, the meaning was contested. The alternate definition was "full of joy and mirth."
Can you imagine the confusion? Tell one group of people that you’re "gay" and they’ll assume you’re happy. Tell another group and they’ll reach for a cross and a can of gasoline.
Hallelujah, you’ve found a seller willing to owner finance your real estate investment! Now what? Owner financing only benefits you when you can negotiate favorable terms. You need to understand how to structure your payments, interest rates, and term of the loan. Let’s look at each in more detail:
If you saw my father on a normal day, you’d feel sorry for him. His clothes are worn and coated with a mosaic of dirt, paint, and other unidentifiables. His boots are solid blocks of mud. His head is covered with a worn-out baseball cap, usually soaked in sweat.
You’d think he was a beggar. But he’s not. He’s one of the wealthiest and fastest growing landowners in northern Mississippi.
I was a little surprised, but apparently, some of you are wondering what I’m thinking about. You’ve read my answers to dozens of questions, and now you’re ready to hear from a more personal me. I’m flattered, and I gladly acquiesce.
So, here they are, by popular demand (drum roll)… My Musings. Whenever I think of something worth talking about, I’m going to post it here. Not politics or the weather, but things relating to real estate investing.
For example, in a few minutes, I’m going to post an article that I’ve submitted to the Festival of Frugality. It’s a collection of posts about frugal living. Enjoy!
As a general rule of thumb, sellers hate owner financing. They want their money now. So, the question is, how do you go about convincing them to owner finance your real estate investment? It’s not easy. I know dozens of successful investors around the country, and only the best of them can convince sellers to owner finance on a regular basis. When it works out, however, owner financing can add significant value to your real estate investment. Here are three tips for figuring out how to make it happen: