As a real estate investor, when there is a deal at hand, there is necessarily a contract involved. While real estate contracts may seem intimidating, taking the time to familiarize yourself with the terminology you’ll encounter is well worth the effort. You’ll want to have a full grasp of contracts or a trusted guide to review everything on your behalf before you enter into any agreements. We buy houses in Mount Holly North Carolina and this knowledge will help you feel confident and assist in making wise choices as your investment business grows. We are local homebuyers in North Carolina and understanding the different purposes of these styles of real estate contracts will be very beneficial to you in the long run. Here is our guide to Mount Holly NC real estate contracts.
Our Guide To Mount Holly NC Real Estate Contracts
While it may sound complicated, Mount Holly NC real estate contracts are often assigned to another buyer. In this way, real estate investors facilitate sales as a wholesaler between the seller and the end buyer. In other words, the original buyer has sold the rights to buy the house to another buyer. The end buyer pays an assignment fee, which is typically very small, and then proceeds with the purchase of the home from the seller.
Selling property as “subject to” an existing loan is yet another way that Mount Holly NC contracts may be written. This clause in a real estate contract allows a distressed seller, who may otherwise lose the property, to assign payments and right of residency to the buyer. Ownership of the property remains with the seller, who is still responsible for the original mortgage with the lender. The buyer is under no obligation to the lender, so should the worst happen and they fail to make the payments, regrettably, it is possible for the property to end up in foreclosure.
A purchase agreement is what may be considered the most common style of Mount Holly NC real estate contracts. This is a fairly simple and straightforward sale between the seller and buyer and contains all the elements of a legally binding contract. If you are working with an agent, it will likely be a state or association contract. If the sale is directly between the seller and the buyer, then the general purchase agreement is typically used. As for properties other than single-family, you may need to make use of a property-specific form.
If your plans involve becoming a landlord, your Mount Holly NC real estate contracts will involve lease agreements. This guarantees the tenant the use of the property, for a specified period, while at the same time providing you with a guaranteed monthly income. These contracts are carefully laid out to avoid any confusion or misunderstanding of any issues that may arise and what exactly is expected from each party involved. You’ll want to be certain that you’re meeting all local, state, and federal guidelines.
Power of Attorney
While not commonly thought of, the power of attorney can be extremely useful in real estate contracts. Through the use of the power of attorney, you can convey your rights to conduct business to someone who is entrusted with your finances, an attorney, or an agent. They come into play when the owner is either not available to conduct business or is incapacitated, has had an accident, or is in seriously declining health and unable to conduct business any longer.
Rent to Own
The rent-to-own strategy is advantageous for real estate contracts for Mount Holly NC investors. As the seller, you collect monthly rent along with additional monies. The buyer has the ability to try the house out for a specified time period. There are two types of these contracts, the option to buy or the agreement to buy. The agreement to buy tends to be much more desirable to sellers, in general, given that the home must be purchased at the end of the agreement period by the renter. This strategy allows buyers time to build savings towards a deposit on a conventional loan and find financing. Should your buyers have chosen the option contract, they are not obligated as in the agreement to buy. Should they be unable to qualify for a mortgage loan the renter can simply walk away at the end of the agreement.
Sell My House In Mount Holly NC
Do not let intimidating contracts stop you from success in your investment business. The professionals at Harmony Home Buyers are the best guide you could have to walk you through real estate contracts, we make your Mount Holly NC real estate investment business easy. At Harmony Home Buyers, we take the time to listen to your dreams and help you make plans, and update plans as your life and goals change over time. We are local North Carolina home buyers and we offer cash for houses in Mount Holly in any situation. If you have any questions whatsoever about to sell your house in NC and the surrounding areas, don’t hesitate to reach out to our team! When a great deal can be yours, you will know you’re using the contract that best suits your long-term investment goals. Why not get started now? Just send us a message or call Harmony Home Buyers at (704) 285-2485 today!