A 31-year old real-estate investor with a 134-unit portfolio shares the strategy he's using to sidestep high mortgage rates and buy properties with none of his own money
But Osgood and Davis have been able to sidestep all of the turmoil in the market thanks to the strategy they've often used to acquire their properties:Seller-financing is when a property owner agrees to sell their property to the buyer directly instead of using a bank. The deals can take any form agreed upon by the two parties, but usually start with a down payment and are followed by years of monthly payments that include an agreed-upon interest rate.
Osgood said the property had been on the market for a couple of years, and the pair was able to secure the property through a seller-financing deal because they were able to offer the buyer his full asking price.Interest-only payments of 4.5% per year on the remaining $3.5 million principal balance over an eight-year term. That translates to $13,125 per month in interest payments alone for eight years.
For perspective, Osgood said he tries to call about one property owner per day to ask them if they're interested in selling. On average, he nets about one deal every two months, he said. But for the Robin Hood property mentioned above, he found an investor who wanted to contribute the $1 million down payment within two days.
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