Ralph Mark Maupin asks “What are you going to Offer when Buying Investment Property?

When you have found a property, there are a few things to determine before making your offer

Livonia, Mi –How Much Can Investor Pay? This determination is going to be made up from a number of factors, which include True Value (fair market value) of the property after repairs, the cost of repairs, and the cost of holding the property while you are waiting to sell it and the cost of the financing you use to purchase the property.On the topic of what margin to use to purchase the property, there are many different opinions. I will tell you mine and why I have formed it. I generally will not buy property for more than fifty cents on the dollar. I make many purchases for 40% or less than market value. I believe that the profits should be matched by the risks involved with purchasing property for re-sale. There are risks and there can be great rewards.As a rule, I figure that if I purchase a property at 50% of its market value, I will spend about 10% to 12% of its value in repairs and another 10% on holding costs and re-sale costs. That only leaves 30% for me. That's where I draw the line, but investor must decide where to draw their own.Terms and Conditions: We've all heard it many times before and it is still as true as ever, eat on your money and invest someone else's. The best way to structure the deal, when purchasing property, is to either obtain seller financing (such as a land contract) or to get the seller to carry back the mortgage. This, in my experience has always been the cheapest way to finance a purchase.When a seller enters into a land contract (contract for deed) agreement with a buyer, the seller holds title to the property until the buyer pays off the amount of money owed. The seller will deed the property to the buyer, once the seller is paid in full for the property. The buyer secures his interest in the property by recording a copy of the land contract or the “Memorandum of Land Contract” in the public records.When a seller “carries back a mortgage” (also called a private mortgage), the seller deeds the property to the buyer. The seller holds a mortgage note (a promise to pay by the buyer). The seller secures his interest in the property by recording the mortgage note in the public records.For information on Ralph Mark Maupin go to http://www.RalphMaupin.comEmail: Maupin.Mark@gmail.comPhone: 248-939-6232