When property investing what most people will do is they'll negotiate all day long to get the price down from $300,000 to $270,000. Then when buyers have negotiated to get the house for $270,000 they'll get a bank loan and have the liability of a loan. Rick has completed over 351 property transactions in Australia and the United States.Now I know that if I'm paying a seller direct at $300,000 at $2,000 a month, in 5 years time I've only got a balance of $180,000 that I still owe the seller. That's okay with me because I didn't have to qualify for a bank loan. This is one of my favorite ways to control property.Rick specialises in creating positive cash flow through a variety of strategies he perfected in the United States and adapted to Australian conditions.
The seller wants $300,000 for their property. You'd be absolutely surprised when property investing at how many sellers will help fund you into their property. You will be surprised how many sellers will let you pay them direct if you're not trying to negotiate them down on the price. You've made a profit of $80,000 with out qualifying for a bank loan. When property investing, I've always found that if you say to a seller, I'll give you your asking price of $300,000 if you let me make your payments on the property.Rick Otton is the director of We Buy Houses Pty Ltd.You can say to the seller, Listen Mr.Let's take an example of a $300,000 house. Seller, I know you really want your $300,000 but let me do this: why don't you let me make payments on your existing mortgage and in return I'll give you the $300,000 you want and I'll just pay you direct. He sells home study courses on vendor finance, one year mentoring program as well as a yearly 3 day boot camp on the Gold Coast. He has been property investing full time for 14 years.
When property investing, pay the seller their asking price but negotiate the terms under which you can buy property. They'll get a 30 year loan and after about 5 years of making payments they will probably owe about $260,000. Instead I'd like you to consider a different strategy when buying: get the seller to vendor finance you into their home. So when the seller says to me, I will do this but you've got to pay me off in 60 months. Basically, you're receiving vendor finance from the seller. Go to . When property investing can you see how getting finance from the vendor can be beneficial for both parties?When property investing and getting vendor finance from the seller, you as the buyer may pay a little bit more for the house but by making payments direct you will owe the seller $180,000 in 5 years time instead of $260,000
