| Investing in real estate can be incredibly exciting, and it | | | | just now, you will have to sign a promissory note and |
| can also be very lucrative. I don't know of any better | | | | pay interest to that real estate agent, but it will allow |
| way to save for your retirement while also building | | | | you to make a down payment without coming up with |
| current income that you can use to live off of. | | | | the money yourself! |
| The problem with real estate investing is that it's | | | | You may ask yourself why in the world any real |
| incredibly expensive and even if you can get a bank | | | | estate agent in their right mind would just give you |
| loan, it doesn't always quite work out financially when | | | | $10,000 but think of it from their point of view. If they |
| you crunch all the numbers... at least not in the short | | | | don't do it they won't sell the house and then they |
| term. One solution to this problem is to purchase a | | | | won't get a commission at all! But this way they get |
| house with no money down. | | | | $2,000 up front when the sale closes and then a |
| I'm sure we've all seen the late-night infomercials | | | | constant stream of income from you over a set |
| promising to teach you how to buy real estate for no | | | | period of time depending on what terms you agree on |
| money down, but is it really possible? The answer is | | | | to pay them back. You can even negotiate the |
| yes and I'm going to talk about it today and you don't | | | | amount of interest you are willing to pay them. Make it |
| even have to send me money like those late-night | | | | a little over prime and they should be more than happy. |
| infomercial guys! | | | | And since you'll be paying interest as well, they'll come |
| Here's a tricky way to do it. Many people use a real | | | | out clearly ahead over time! |
| estate agent to sell their house. When they do so they | | | | Make sure that you make it very clear to the agent |
| have to pay that person sometimes as much as 6% | | | | that the sale of the house depends completely on their |
| of the selling price which can be an awful lot of money. | | | | agreeing to your offer. |
| Imagine a house that sells for $200,000, the agent's | | | | It may seem far-fetched but it's really a pretty good |
| commission would come to $12,000! | | | | plan and could very well be the difference between |
| So here's what you do... go to the real estate agent | | | | you buying a house with no money down or not |
| yourself and make a deal with them. We'll use the | | | | buying a house and waiting months and months where |
| same numbers as above and pretend that their | | | | you save up the down payment and in the end |
| commission would be $12,000. Suggest to the agent | | | | everybody wins; you get the house you want, the |
| that they lend you $10,000 of that $12,000. You then | | | | seller sells the house like they want, and the broker |
| take that $10,000 and use it as your down payment. | | | | receives their fee plus interest. |
| Obviously as somebody who has borrowed money | | | | |