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Emotion In Investing
Humans are all emotional being. We do not always make decisions
rationally. Emotion is part of us as investors. Investors might
feel better towards stocks at certain point or they might feel
that owning stocks are risky and avoid it at all...
How To Start Investing For Financial Independence, Part 2
Last week, we started a multi-part series about how to go from being a beginning investor to being “financially independent” in a steady and predictable way. Many, many people want to overly complicate this process so let's briefly, let's recap...
Profitable Real Estate Investing Blueprint
Just like most things real estate investing can be broken down into easy to learn step.
Step One - Learn the basics:
Ownership of real estate is evidenced by a valid deed. When you buy property the seller signs a deed that transfers his...
Real Estate Property Tax Lien Investing Caution
Gather around children for a tale of royal power. Far back in
history the king owned everything. (Does that remind you of
Donald Trump?). Occasionally the king would grant property to a
duke. Property ownership meant wealth, so the king would...
Twelve Principles of 21st-Century Retirement Investing
(ARA) - In his new book, “The Grangaard Strategy -- Invest Right During Retirement,” author and teacher Paul Grangaard uses the Twelve Principles of 21st-Century Retirement Investing to offer readers an important new way to look at their financial...
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Property Investing: How to Get Maximum Retail Price in a Falling Market with Vendor Financing
In a falling market, many vendors have been conditioned to lower their price if their property is not selling. That's because they don't know about vendor financing.
If a vendor offers financing to a new buyer, it's called vendor financing. By offering financing, a seller can receive top retail price from their buyer.
Here's how it works, the seller can instruct their agent that they're willing to finance the buyer into all or part of their property. Perhaps, the new buyer will receive 10% vendor financing from the seller, get a bank loan for the remaining 80% and put in 10% themselves.
The seller will not negoiate on price, because they are offering "terms" such as financing to the buyer. The buyer is receiving financing from the vendor as well as the bank.
In this arrangement, the seller benefits because they receive the price they want in exchange they offer vendor financing to the new buyer.
The
buyer benefits because they may not have the necessary deposit saved, but they have the income to make monthly payments to the seller, as well as pay their mortgage to the bank.
If the vendor is willing to take delayed gratification, which means they won't receive all fo their money upfront, instead they may receive their money in payments for 1, 3 or 5 years- depending on how they structure the transaction-it's very fluid.
You can use this strategy when you sell through a real estate agent or when you sell it without an agent.
If you market your property this way, you'll find that buyers will prefer to purchase your property than the one down the street, because your property comes with finanicng and they can leverage their deposit.
About the Author
http://www.rickotton.com offers information for property investing, vendor finance, real estate investment and sandwich leasing
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