Real Estate Investment Opportunities

One in a million real estate purchase with assured value increase

 

‘’One in a million’’ means either it takes immense efforts to obtain something or may be brought about by just a good stroke of luck. Real estate investment opportunities are significant as these opportunities only come once in a million times and only a one in a million will grab those opportunities.

When a lender decides to grant a loan for a mortgage, the first question that arises is whether or not the condition of a house is adequate for a mortgage. As per a real estate purchase contract, the first thing you will be looking for is the structure and foundation of the house and check if there’s any significant problem. It’s a good thing to note this is not done by licensed appraiser whose main function is to determine the market value of the home. A thorough property inspection will help establish the real condition of a house. This will help you in finding any loopholes in the house that you are about to purchase. A leaky roof and creaking floor can only be discovered when a house inspector checks the house in great detail. If the problems are significant enough, they can stop the deal from being finalized. This is the reason why majority of the lenders do not allow buyers to conduct appraisal unless a prior inspection is done.

But what happens if there are no significant problems but only small concerns on the property? Say, the carpet is almost torn and worn and a replacement is necessary. Or maybe the deck requires a thorough cleaning. Maybe the property that you are about to purchase has been a competition place for drawing cartoon characters on the walls; it would require painting over the whole house. Such minor errors should not become an obstacle between the deal as these real estate investment opportunities do not come every day.

Even, these minor concerns can allow the buyers and sellers to negotiate and bargain their worries. If you haven’t tried negotiating, seek the help of a reliable estate agent to help you in discussing your concerns with the property owner.

If you want everything to be fixed and be in the best condition, the seller must take care of these things. In fact, this stipulation is always included in real estate contracts. If the fence requires an upgrade and you want it done, put this in the contract. Buyers may then state that the value of the property is to be established after the fence has been fixed. This will also alert the lender to note for the fence being installed on closing as per seller and buyer agreement. However, what happens if the seller doesn’t agree to this type of demand? After all, it’s always likely that he would spend extra cash for the fence only to find out that the buyer doesn’t get his mortgage approved. Sellers might find it not practical to spend anything before closing. To remedy this, a seller’s concession can be made that instead of installing carpet upon closing, an amount will be given as an allowance to have a new carpet installed. And this is concession is only given once a mortgage approval is obtained by the buyer.

Then again, to clarify things, an allowance for the carpet is not to be construed as actual cash that will be handed over to the buyer of the property. This is not a usual practice, not even in rare real estate investment opportunities. No lender would allow a seller to hand over certain amount of cash to the buyer as some sort of a seller’s concession. What you can do is to have the seller shoulder the specific amount as part of the closing costs; this would be much acceptable in a real estate agreement. A real estate contract can have certain intricacies that regular people will not have any idea about. It’s best to enlist the help of an expert estate agent to guide you through the process and help you come up with acceptable real estate contracts. As they say, real estate investment opportunities don’t always come knocking at your door. When it does, you have to know how to grab it properly so it won’t slip through your hands. And having a well-drawn contract will always help you ensure that you’ve made a worthwhile investment.