Real Estate: Closing Successfully and Making Money at the Same Time.

Installment #17

From the previous articles, we have covered the whole buying process from beginning to end. We are now going to appeal to a more difficult task, how to purchase property, and walk away with money in your pocket. No, I am not referring to money you save, but money that is given to you at closing that you otherwise would not have. Some of the ways to get cash back are easier to arrange than others, however it is highly unlikely that each strategy will apply to each closing you participate in.

Strategy #1. Financing and Wise Planning. This strategy revolves around finding property that is appraised for a much higher value than the seller is asking for. This would involve making an offer for the property that is less than the appraised value, so that the remaining amount over the appraisal can be put in your pocket.

Strategy #2. Negotiating Credits and Costs. This method works a bit with Strategy #1, in that a house with 100% financing. To enhance the effectiveness of the method you want to negotiate for the seller to pay 100% of the tax bill that will be due on the property in the next year, as well as increase the amount of the tax bill as much as possible. For example, the taxes on the property in 2007 were 100% at 2,000 you would want to increase the amount to 125% so that it would cover any increase in property taxes that can be anticipated.

Strategy #3. Using Land Contracts. This is basically a nice term for a lease purchase option. Once you have put some time and effort into the property, you will have some equity built up into it. This will enable you to refinance the loan later to pay off the land contract, as well as put some money into your pocket to either keep for profit, or use to make improvements in the property, and once again increase the equity in the property.