Buy Foreclosed Homes and Get Great Discounts
Despite the current economic crisis, there are still those who can apply for a home loan. Ironically, it is because of the current crisis that you may just get your home loan application approved with speed, even if your credit score is below 700.
Financial institutions that were caught holding all the properties that they had no choice but to foreclose lost a lot of money doing so. They also lost more when they could no longer expect to get any monthly payments for the properties they foreclosed. This led the companies to think up of ways to make it easier for the new home buyer to purchase the homes without much fear and at low interest rates.
Today, the foreclosed homes are very affordable and they include large discounts. Whether it is for personal use or to be used as a short term investment, fact is, the purchase of these homes is still considered a sound decision to make. You, as the investor, should take advantage of the low prices to purchase these homes which you can sell when the time is right. The big discount that the lenders offer is not really surprising for their only goal is to rid them of the property and they would do anything to do it, even if it is at a loss.
You can sell the property or you could rent it out. For a fair monthly rental, you will not only be able to earn money out of your investment, but you can also offer good homes for those families who need it most. There are even some investors who would offer up a higher rental but on a rent-to-purchase agreement.
The rent-to-purchase is when you, the investor will act like the lender, and the tenants act like the borrowers. They do not have to apply to a bank to purchase a home, all they need to do is to deal with you and pay their rent which will also be considered as payments for the mortgage.
The only downside to this agreement is if you end up with a tenant who will damage the property and will renege on your agreement, so you should consult with a lawyer to draw up papers which should finalize the deal.