While you may believe you are in no position financially to invest in another property, there are several creative ways to achieve the American dream of homeownership. The ultimate in buying is the ability to pay cash for the real estate transaction, saving time, trouble, and interest. Cash buyers stand out among other offers and can typically pay slightly less to the seller for the convenience of an instant deal. If you would like to make a real estate transaction and don’t have the cash on hand now, pay attention to these five tips to help you pay cash for your investment property in Detroit
Save Up
Saving towards pay cash for your investment property in Detroit requires dedication to your budget, but the payoff in savings is well worth the effort. You can use the time you build savings to correct your credit report’s flaws and work to bring your debt to income ratio into balance. Remember to calculate any additional costs of moving in and taking the little extra steps necessary to turn a house into a home, such as throw rugs, curtains, and the like.
Short Term Lenders
While the interest is higher, short-term loans or bridge loans are a solution to making a real estate transaction for many buyers. If you’re ready to purchase a new property and don’t want to miss out on a great deal, you can avoid the contingency of having to wait for your existing home to sell. These loans use your home’s equity to pay cash for your investment property in Detroit. These loans are typically no longer than12 months, and there is no prepayment penalty.
Life Insurance Loan
You can borrow against your whole life or permanent insurance property to pay cash for your investment property in Detroit. With no mortgage process to go through, these funds are quick and easy to access. Typically up to 90 percent of the policy’s value is available. Additionally, the loan will not be reported to the credit bureaus, as is done with typical loans, so it will not affect your credit standing.
Sell Other Assets
While your motorcycle was worth it to you when you were younger, it is now polished to perfection, ready to go, yet there it sits in your storage unit, costing you money to hold. As time has passed and your priorities have changed, you may understand that the money you have tied up in assets that were once desirable to you could be earning you passive income for your retirement. Why not sell other assets that are no longer serving you and pay cash for your investment property in Detroit.
Borrow from Family
By arranging a loan with a family member, you can pay cash for your investment property in Detroit, and they can earn the interest on the loan. You’ll still have the same rights of ownership of the property as if you were dealing with a bank, you will be paying lower interest, and the payment plan can be more flexible. Known as a private loan, the lender will hold a lien on the property on the off chance something should happen, and you are unable to make the payments.
Cash is king! Our experienced agents at Sell Inherited House Detroit are ready to work with you to plan out the best course of action for your investment portfolio. If you would like to learn more about paying cash for your investment property in Detroit, Sell Inherited House Detroit can help you find the best path for you. Why not take advantage of the possibilities to begin today? Send us a message or call Sell Inherited House Detroit at (248) 460-1606 now.