Explore the World of Real Estate Windfalls
Wednesday, July 19th, 2006A windfall can occur in several different ways. If you know these ways, you can be alert for them when you’re considering an income property you want to buy. The ways you can mortgage out in income real estate include:
•Buy the property at less than the amount of the long-term mortgage you can get on the property. This can happen when the appraisal value is higher than the selling price of the property. Any excess cash is yours.
•Get a second mortgage for more than the required down payment on the property from a lender different from the long-term lender. Again, the excess cash is yours to use as you choose.
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