You do not need a huge amount of money for buying houses. You can always purchase the property if you have the eligibility of borrowing money or if your credit history is good. But that does not mean that you should have no cash at all. There are different ways of buying rentals without having to make any down payment. However, it is important for you to note that it is important for you to establish proper reserves. There are different ways you can do this, and the ways have been provided below:
Owner finance means different things. Here, the seller of the property is motivated and has this strong desire of selling the property simply for the sale of getting away from the mortgage payments. The entire procedure is called subject-to-transaction because the buyer, that is you will take the title subject to other liens in place. This means that you get the ownership of the property, but the seller is still on the lookout for a loan. As a buyer, you agree to either make mortgage payments or pay off the loan completely on behalf of the seller. This transaction type is quite risky for the seller, and therefore it is important for the seller to be motivated.
This procedure works in a way where you as a buyer negotiate with the seller of the property for leasing the property for a given period. This period could be anything that you find comfortable. Rent amount is set for this period, and you will agree on a certain price for buying the property for some time during the lease period. Post this; you can sublease the property for more than the rent payment and only wait for an increase in the value of the property. In case there is no increase in the value of the property, you have the option of either letting the property go or re-negotiating the deal. You do not have the obligation of buying the property, so you are not running the risk of any market fluctuations. There is the right choice available for you.read more executivesuitesinn.com