Cash and borrowing

You find a piece of property on the web being sold via a neighborhood property company for $18,000 money. The property is 5 acres, with phone and power installed, on the highway. With some research, you learn that the vendor’s dad owned the land for twenty years and left it to her three decades ago when he passed away. The vendor does not want the property and the hassles of managing it, like the $120 a year in property taxes for land that she does not visit. Because of family financial issues (unemployment, debt, etc.) she’s eager to sell. By buying this property as an investor, you’re potentially earning a profit while helping the seller along with her family limit or even eliminate concerns. In addition, you observe the property continues to be on the MLS (Multiple Listing Service) for more than 8 months, which might be the result of many things. It may be that the cost is too high. Given that the agent used the assessor’s amounts to value and price the territory for record, this is possible, because an assessor’s land value is subjective. It may also indicate that buyers in the region are not interested in land having just phone and power. Another great reason that the property hasn’t sold might be that the vendor is asking cash and hardly any individuals have $18,000 in cash available for a semi-improved property one hour outside of town. You do not have the $12,000 in the bank, but you do have $5,000 accessible from a Christmas gift a parent gave you last year, and you know that you can borrow the remaining $7,300 bucks (the extra $300 will be required for buyer’s closing costs) from the credit card money line.

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