subject: Making Money On A Free And Clear Home [print this page] It seems obvious, right? Making money with your real estate career comes from striking deals on free and clear homes. If its so easy to understand, why arent more people doing it? There are many options to making a free and clear home work for you. Here are just a few ways to help you get started.
1.Free and clear houses are totally flexible. Remember, theres no mortgage to pay on these properties. You can convince the seller to wait for their share of the money, sometimes for long periods of time. For example: you find a house you want to buy thats worth $110,000. Its owned free and clear so you offer the owner $100,000paid when the house sells. That could be as long as 15 years. It may surprise you to know there are people willing to wait for their money.
2.Pay the seller monthly. Some sellers of free and clear homes will want a portion of their money monthly. You can still make a reasonable income this way. Lets say you decide to rent the property for $1,000 a month. The seller wants $600 every month. You still make money. Even if the seller wants the full $1,000 every month, its a good deal for you. Your cash flow is zero, but if you structure the deal in a way that theres no interest, every $1,000 you pay the seller is equity.
3.Assume a mortgage on a current property. OK, so its technically not a free and clear home, but you can still make an assumed mortgage work for you in this circumstance. You can assume a mortgage and take over payments or buy the property subject to seller financing. Over time, the mortgage will get paid offor at least paid down. The more years that go by, the faster it gets paid down. Remember, if you are renting this property, rent always goes up over time. Thats more money to pay down the mortgage quicker. Youre on the path to owning a home free and clear and having cash flow.
Every kind of investing has its pros and cons. Free and clear properties also have their downsides, but these types of properties will help you get cash flow quicker. Marketing to the right buyers will help you find the free and clear properties in your area.
by: Alan Brymer
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