Monday, January 7, 2008

Buying Real Estate Property in Today's World

Starting a home-based business of buying and selling houses for profit can be a huge success should you take the proper steps to get started. It is possible to start buying houses for just a little money and within a few days.

You do not need perfect credit and a lot of cash to get started in buying and selling real estate. You also do not need a real estate license in this business.

Here are the beginning methods behind almost all starting real estate investors who use little or no money to get started buying properties:

Join your local real estate investment organization or club for valuable help and resources you will need for long-term business success. Your education in real estate investing should be your largest cost in this business.

To succeed in a real estate investment atmosphere for a sustained time, a business marketing plan must be formed. A good business plan maps out activities that will lead to success. It lets you form clear paths for your business, and set goals with every step. A business plan allows you to own a business that is profitable on purpose, and not by accident.

Here is the foundation for almost all unconventional real estate transactions performed today:
Just about all mortgage loans used to be assumable, where the buyer and seller would come to an agreement. With a simple form filled out, the buyer agrees with the seller to take over payments on the existing mortgage.

Today most mortgage loans contain a "due on sale" clause, where the mortgage lender has the right to demand payment in full should the ownership of the property be transferred.
This clause is not a law, but a piece added to many of today's mortgage contracts. This clause is intended to limit the risks to the lender.

The costs associated with the exercise of this clause are substantial. Therefore, if payments are regularly made, lenders almost never take action to stop this type of transfer. Many times the lender will never even notice the transfer took place.

Today's current form of real estate transfer is what is called the "Agreement For Deed" and is the foundation for current property transfers today.

By forming a clear business plan and by properly using real estate contracts, an individual or small business can purchase virtually "unlimited" properties using little or no money down.

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