Ways Of Buying Commercial Property
When it comes to acquiring properties there are many ways to go about it. There are also more creative ways of doing it.
Bret Sanya
These ways are the following;
- Get a real estate license.
Immediately after acquiring a real estate license, start finding and making deals and you can also help others buy and sell property while also looking for deals. As you do all this also expand your network by looking for investors who may be interested in buying properties. The moment you help investors buy properties you will be entitled to a commission just like any other real estate agent. If for example you will be entitled to a 5% commission you may decide to turn this into a stake in the property you helped acquire and therefore giving you equity in the said property.
- Lease with a purchase option.
If a property is vacant at a particular time you may lease it from the landlord and then offer a sub-lease to other tenants. You may at this point decide to convert the monthly payments you get from the tenants into a down payment that may enable you to purchase that particular building from the landlord.
- Subject to the mortgage
When the owner of a particular property is in distress you may purchase that particular property subject to the mortgage that is already in play. Before deciding to pursue this technique ensure to go through the mortgage agreement and ensure you agree with the conditions.
- Seller financing
This entails convincing the seller to be able to take on the debts of that property when you buy it. Therefore what happens is that instead of going to banks to ask for loans etc, you may simply be paying the property owner.
- Have the seller pay your down payment.
This also entails convincing the seller to pay your down payment for you. This will require you to pay way above the asked price but this will not be an issue as you will not be paying for that.
This is how this works, for example the seller of the house may be asking for 1.5M shillings for their property and to be able to acquire this property you may be needed to put down 15% of the asking price as the down payment i.e.225,000/=. Let’s say you are able to convince the seller to finance the down payment, therefore they may increase the asking price to about 2M and finance the down payment which will be 300,000/=.in this case the seller will get an additional 500,000/= and you get the property with no money down. This scenario whoever will lead you to paying a larger loan than you anticipated.
