How to Find Fully Financed New Properties
"But," you say, "it's hard to find such offers." That may be true if you're in an area where little or no new construction is taking place. But if you're in an area of rapid home or industrial expansion you may be able to find dozens of pre-sale offers with built-in financing every week.
So what can you do if you're in an area of slow or no new construction? You can:
1. Buy out-of-town Sunday newspapers and look in the real estate for Sale section for pre-sale built-in financing ads for new properties.
2. Contact nationwide real estate agents and tell them you're interested in pre-sale properties with built-in financing in selected areas in which you'd like to own income units. Realtors earn commissions on such sales—even with the built-in financing.
3. Go on the Internet to real estate sites covering new construction and look for properties in areas you like. Download full data on properties that interest you and find out if you can get a pre-sale built-in financing deal for yourself.
4. For residential units, look for apartments or condos near universities or hospitals. Why? Because you'll always have a steady flow of tenants for your units from both types of institutions. Such tenants are reliable and can afford to pay a substantial rent. With university students, be sure to have the parents sign your lease—not the students. The parents have the money—not the students! Today, you should look for a monthly PCF of at least $200 for each residential rental unit of any type you own which you bought on a pre-sale built-in financing basis.
5. For industrial units, look for spaces or suites in areas having lots of light manufacturing, sales reps, and other non-storefront businesses. Why? Because such units are widely needed and rent quickly to reliable tenants. Seek at least $300 per month PCF from every industrial unit you own.
Yes, pre-sale buys with built-in financing can make you rich in real estate. Your main challenge is finding such units in the area you want
to invest in. Just keep looking. Never give up.
Take Advantage of "Financing Available" Offers
Sellers use "Financing Available" offers when they're anxious to sell a property quickly. Or these offers may be used when:
- The seller is an estate—called an estate sale—that is, the owner died and the survivors want a quick sale so they can get their money and do what they enjoy in life.
- The seller has had the property on the market for a long time— often one year or longer—and is worried about selling it to an acceptable buyer.
- The seller has a time deadline to meet and must get rid of the property. To encourage a quick sale, financing is provided to the buyer.
- The seller knows the property needs a lot of repairs, and wants "out" to let someone else do the rehab work.
- The seller is on in years—often the late seventies or early
eighties—and wants out because retirement beckons more strongly than ever.
You may encounter other reasons for a seller to offer financing to a buyer. If you do, good! Work the numbers and grab the property quickly, if you can show a positive cash flow.
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