So how would you like to save $17,776 on your next home purchase? I’ll tell you how today, and it’s so easy it’s actually extremely surprising that more people aren’t doing it. I’ll tell you all the details in just a minute, but first I want to take 30 seconds to mention a “Secret” side of real estate that most people don’t really have any idea exists: something called LOAN BROKERING, where you bring real estate investors (and those investors CAN be you, by the way) and loan money together and charge a fee for being the guy (or gal) in the middle. It sounds easy, but most people get hung up on that “bringing loan money to the table” part. Thanks to an in-depth training provided exclusively to REI Today by a super-successful investor and loan broker, however, I’ve got a pretty key insight into how to get that money to the table and more money in your pocket as well, whether you want to fund your own real estate deals or just play the role of the “middle man” or woman. One investor started using this strategy and generated $42,000 just in brokering fees – he didn’t even do any of his own deals! Get all the information on how to make this strategy work for you in our limited-time training at www.rei.today/42K and find out how the 42K guy’s strategy can be yours, too. That’s www.rei.today/42K.
Now, let’s get back to saving some SERIOUS MONEY on your next home purchase. Here’s the deal. According to a recent report released jointly by RealtyTrac and Down Payment Resource, certain state, local, and federal programs exist that are intended specifically to help you save money on your home purchase. These programs are generally referred to as down payment assistance programs, but they don’t just affect the amount of money you have to put down in order to buy a house. They also have a HUGE impact on the amount of money you’ll pay monthly on that house over the life of the loan. In fact, according to the report, the total savings breaks down to an average of $5,965 savings on the down payment and average savings on monthly house payments over the life of the loan of an additional $11,801.
When you consider that nationally, even making a three percent down payment on a home (and that generally requires a bit of luck to land on its own) requires a would-be homebuyer to save 14 percent of his or her annual salary and in many cities, the number is more like a full fifth of their annual salary, it’s really surprising that more people are not taking advantage of programs that save, on average, more than $17,000 on home purchases for participants. The reality is that these things just are not very well publicized, for starters, and also a lot of people who would like to buy a home simply never explore the option because they think they can’t save enough for a down payment or assume that they’ll never get a mortgage.
So as an investor, how can you leverage this information to your advantage in your business? Well, there are several action steps that you can take:
First, educate yourself on your local homeownership options. This isn’t necessarily for your next home purchase, it’s for your buyers. If you can present a buyer who wants to buy your property but believes he or she cannot do so because of conventional issues like not having enough saved for a large down payment or thinking that monthly payments will be too high, if you can direct them to a local housing advocate who can help them, you just might save that sale.
Second, research creative financing options. You (and your buyers) do not need banks in order to buy and sell homes. There are LOTS of other options out there for people who might never qualify for a traditional 30- or 15-year-fixed mortgage. You could offer lease-options, subject-to financing, seller-financing, and countless other variations on these types of financing to fit your needs and those of your buyers. Just make sure that the creative financing works for YOU as well as your buyers and get a lawyer to review the documents and process before you all sign.
Third, PROMOTE YOUR KNOWLEDGE! Most people who are selling properties, investors, traditional homeowners, or otherwise, do not HAVE the knowledge to help get their buyers into a home outside of maybe referring them to a mortgage originator that they know is successful. Make sure that your potential buyers know that your properties come with YOUR KNOWLEDGE and that viewing one of your properties (and hopefully buying it) comes with some additional assistance. Particularly in areas of the country where down payment assistance programs actually equate to HUGE savings for buyers, (one city actually boasts an average of $80,148 in savings when buyers leverage these programs effectively) you can launch a pretty persuasive ad campaign for working with YOU on the basis of that alone.
Wondering where your city stands in the down payment and mortgage loan savings? I’ve got the top cities for savings according to RealtyTrac all lined up for you in the REI Today Vault at www.rei.today/vault. Not yet a member? No worries! just text REITODAY no spaces no periods to 33444 and I’ll provide you with fast, immediate access to this startling information as well as sending you straight to a treasure trove of trainings, uncut interviews, breaking news coverage, and a lot more timely, insightful information that will help make your real estate investing safer, faster, and more profitable. That’s REITODAY no spaces no periods to 33444 or go to www.rei.today/vault for more information right now.
And remember, when you join us, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country.
REI Nation, thanks for listening in. Now, more than ever, please remember this:
Your best investment is ALWAYS your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.