While you may believe you are in no position financially to invest in another property, there are several creative ways to achieve the American dream of homeownership. The ultimate in buying is the ability to pay cash for the real estate transaction, saving time, trouble, and interest. Cash buyers stand out among other offers and can typically pay slightly less to the seller for the convenience of an instant deal. If you would like to make a real estate transaction and do not have the cash on hand now, pay attention to these five tips to help you pay cash for your investment property in Pittsburgh
Save Your Cash Up
Saving towards paying cash for your investment property in Pittsburgh requires dedication to your budget, but the payoff in savings is well worth the effort. You can best utilize the time it takes to build up your savings account and correct any erroneous data found within your credit report and focus on insuring you have a strong debt to income ratio. Remember to calculate any additional costs of moving in and taking the extra steps necessary to turn a house into a home, such as throw rugs, curtains, and the like.
Short Term Lenders
While you will pay higher interest rates, short-term loans or bridge loans are a great solution to making a real estate transaction for many buyers. If you are ready to purchase a new property and do not want to miss out on a great deal, you can avoid the contingency of having to wait for your existing home to sell. These loans use the equity in your home to pay cash for your investment property in Pittsburgh. These loans are typically no longer than 12 months, and there is no prepayment penalty.
Whole Life Insurance Loan
You can borrow against your whole life or permanent insurance property to pay cash for your investment property in Pittsburgh. With no mortgage process to go through, these funds are quick and easy to access. Typically around 80-90 percent of the policy’s value is available for cash. Additionally, the loan will not be reported to the credit bureaus, as is done with typical loans, so it will not affect your credit standing.
Sell Other Assets
While your motorcycle was worth it to you when you were younger, it is now polished to perfection, ready to go, yet there it sits in your storage unit, costing you money to hold. As time has passed and your priorities have changed, you may understand that the money you have tied up in assets that were once desirable to you could be earning you passive income for your retirement. Why not sell other assets that are no longer serving you and pay cash for your investment property in Pittsburgh.
Borrow from Family
By arranging a loan with a family member, you can pay cash for your investment property in Pittsburgh, and they can earn the interest on the loan. You will still have the same rights of ownership of the property as if you were dealing with a bank, you will be paying lower interest, and the payment plan can be more flexible. Known as a private loan, the lender will hold a lien on the property on the off chance something should happen, and you are unable to make the payments.
Cash is king! Our experienced agents at Pittsburgh Cash Home Buyers LLC are ready to work with you to plan out the best course of action for your investment portfolio. If you would like to learn more about paying cash for your investment property in Pittsburgh, Pittsburgh Cash Home Buyers LLC can help you find the best path for you. Why not take advantage of the possibilities to begin today? Send us a message or call Pittsburgh Cash Home Buyers LLC at (412) 900-8261 now.