Purchasing a home is most likely (especially at a young age) the biggest and often the best investment that you will ever make. Why not make that investment now? I will be trying to explain the differences between know and later.
If you are saving up with the goal of getting your dream home within the next two to five years, the following ideas could help you buy your house sooner than you planned. You will find in some of my early blogs that on a $200k property you would have a difference of $88k in equity and cash verse taken 48 months to save for down payment.
* Buy from a motivated seller. A motivated seller is someone who has a house he or she wants to get rid of quickly. It could be that the owner was unable to sell the house on his or her own or that, even though the house was listed through a real estate agent, it just didn't sell. Because only about 5 percent to 10 percent of sellers are truly motivated, you may need to relax your must-have requirements in a house. The seller might also be facing foreclosure and its better to sale for less rather than let it go back to bank.
* Find a seller who doesn't need cash upfront. Most sellers will need the money from the sale of their home to buy their next home. Instead, look for someone who has already bought his or her next house. Vacant properties or homes that have been rental properties also are good candidates. By looking for properties like these, you'll be working with sellers who are more likely to wait to get their money.
* Structure your offer as a lease purchase. Instead of buying right away, offer to rent the home for four or five years at a set rate. This will help the seller cover the current costs of the property while giving you the ability to live in your home now, continue to save for the down payment or enroll in a reputable credit repair program and then buy the home when you're ready. Make sure you're offered the option to buy the home at or below today's value. If the seller is not willing to go along with this, then look for someone who is more motivated to sell or make sure the property is a desirable place that anyone would buy. Common mistake is buying a property simple because you found terms you could afford this would put you in a property that might be hard for you to sale at a later date as well.
* Other programs are available as well such as contract for deed, Wrap around mortgage, hard money loans, and special government programs. If you have any questions about other programs like this see the rest of my blog or give me call or send an e-mail.
See if you can get the seller to give you a credit toward the purchase of the home for each month that you pay rent. Say $100-$200 per month I like to negotiate the credit based off a standard amortization schedule of say 6.5%-7.5%.
Using these ideas, you'll be able to buy that special house this year rather than waiting another two years or more. If the home you get is worth $200,000 today, then at a 10 percent appreciation rate, you could make an extra $40,000 or more simply by getting into the real estate market years ahead of schedule.
In closing
Purchasing a home is most likely the biggest and often the best investment that you will ever make. Why not make that investment now?
If you are saving up with the goal of getting your dream home within the next two to five years, the following ideas could help you buy your house sooner than you planned. You will find in some of my early blogs that on a $200k property you would have a difference of $88k in equity and cash verse taken 48 months to save for down payment.
* Buy from a motivated seller. A motivated seller is someone who has a house he or she wants to get rid of quickly. It could be that the owner was unable to sell the house on his or her own or that, even though the house was listed through a real estate agent, it just didn't sell. Because only about 5 percent to 10 percent of sellers are truly motivated, you may need to relax your must-have requirements in a house. The seller might also be facing foreclosure and its better to sale for less rather than let it go back to bank.
* Find a seller who doesn't need cash upfront. Most sellers will need the money from the sale of their home to buy their next home. Instead, look for someone who has already bought his or her next house. Vacant properties or homes that have been rental properties also are good candidates. By looking for properties like these, you'll be working with sellers who are more likely to wait to get their money.
* Structure your offer as a lease purchase. Instead of buying right away, offer to rent the home for four or five years at a set rate. This will help the seller cover the current costs of the property while giving you the ability to live in your home now, continue to save for the down payment or enroll in a reputable credit repair program and then buy the home when you're ready. Make sure you're offered the option to buy the home at or below today's value. If the seller is not willing to go along with this, then look for someone who is more motivated to sell or make sure the property is a desirable place that anyone would buy. Common mistake is buying a property simple because you found terms you could afford this would put you in a property that might be hard for you to sale at a later date as well.
* Other programs are available as well such as contract for deed, Wrap around mortgage, hard money loans, and special government programs. If you have any questions about other programs like this see the rest of my blog or give me call or send an e-mail.
See if you can get the seller to give you a credit toward the purchase of the home for each month that you pay rent. Say $100-$200 per month I like to negotiate the credit based off a standard amortization schedule of say 6.5%-7.5%.
Using these ideas, you'll be able to buy that special house this year rather than waiting another two years or more. If the home you get is worth $200,000 today, then at a 10 percent appreciation rate, you could make an extra $40,000 or more simply by getting into the real estate market years ahead of schedule.
In closing
Purchasing a home is most likely the biggest and often the best investment that you will ever make. Why not make that investment now?
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