To buy investment property, how do you go about it. Can you actually buy investment property without credit check?
Low down payments, no credit check and guarantee approval. This is the convenience for many investment property buyers who choose to shop online. The internet being responsible for dramatically changing the way people do business. It is thus also responsible for revolutionize the way people shop for investment property.
Undertstand buying investment property process
A conventional loan for investment property would entail an application, credit review and complete disclosure of the applicants financial situation. However, an increasing number of real estate developers, owners and brokers are offering investment property. That is with the convenience of owner financing.
A low down payment, which is followed by regular monthly payments, may result in a prime piece of investment property. Most commonly use for purchases of land. The owner financing is extremely popular for investors, first-time home builders with no credit. Or even individuals who have past credit problems and would not otherwise qualify for a conventional loan.
With very low down payments, which are often lower than $1,000.00, many investment property sellers provide competitive interest rates. They also have low monthly payments with absolutely no qualifying, credit check or income verification. As long as consumers continue to make their minimum required monthly payment, they will be approved.
No matter when, where or how these property is purchase, the buyer must perform due diligence prior to signing on the dotted line. The buyer will want to make sure that he/she will receive a warranty deed on any investment property. This means it will be free and clear of any liens, and that the current owner has the full right to sell the property.
In addition, it may be a good idea for the potential buyer to contact the local tax office and inquire about the most recent assessment of the investment property. This will give the buyer a good idea as to whether or not he/she is getting a bargain.
If the property is located in another state, the buyer should request photos and even consider hiring a video professional to make a recording of the immediate area and the land for visual purposes.
Importance of the contract
When agreeing to purchase investment property with owner financing, a signed contract is a must. This is simply a contract that is drawn and signed by both parties, which will indicate the down payment required, full purchase price, monthly payments, number of payments required until payoff. Also, listing of pre-payment penalties (if applicable), the location of the investment property and the size and details of the same.
A valid investment property contract will confirm that the seller agrees to finance the property at a certain amount of interest and will sell the described property after a predetermine number of payments. In return, the buyer agrees to pay a certain amount each month on a specified day each month. The contract shall outline the exact location, street address, size of the lot and parcel number.
In addition, it must include terms regarding late or missed payments, late fees and cancellation options (if any). The contract must sign and date by both parties in order for it to be valid. This is very important.
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