Many people today are looking to become their own personal real estate investor in order to supplement their possibly declining retirement and with property prices in the past typically doubling every decade, this has appealed to many as a sure thing. The problem, however, arises when they do not have sufficient knowledge to make an informed decision.
To help with the decision-making of the new private real estate investor, many companies offer their real estate investment software free of charge. This can help the novice because this software can include things that they did not initially think of.
Previously, with rising property values, especially in the UK, many people raised the funds for their initial purchase by taking advantage of rising house prices and re-mortgaging their personal residential property. It’s not that easy right now, so private real estate financing has dropped dramatically.
Investors now have to work hard to find good deals in the current climate. We used to have instant remortgages with some companies and with a loan to available value up to 90-95% you could buy a property at 25% below market value from a distressed seller, instantly remortgage at 85% loan to value and walk away from the deal with money in the bank. This was after all costs, such as sourcer and attorney fees, were covered.
Nowadays, by using private real estate companies, which structure the whole transaction, one can still obtain very good results, but the costs are generally high for the transaction.
The other alternative is to find your own property below market value, invest your own money (say 25%) in deposit and take out an unsecured mortgage. Then, after six months, as specified by the Council of Mortgage Lenders, you can get a revaluation above your original purchase price, remortgage, and hopefully get all your money out of the deal.
So if you’re looking for early retirement, luxury real estate investors can use their real estate expertise to make it happen. It won’t be an instant fix, but will get closer with every transaction you make.