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 don’t have the cash on hand now, pay attention to these five tips to help you pay cash for your investment property in Chicago.
Save Up
Saving towards paying cash for your investment property in Chicago requires dedication to your budget, but the payoff in savings is well worth the effort. You can use the time you use for saving up to correct your credit report’s flaws and work to bring your debt to income ratio into balance. Remember to calculate any additional costs of moving in and take the little extra steps necessary to turn a house into a home, such as throw rugs, curtains, and the like.
Short Term Lenders
While the interest is higher, short-term loans or bridge loans are a solution to making a real estate transaction for many buyers. If you’re ready to purchase a new property and don’t 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 your home’s equity to pay cash for your investment property in the local area. These loans are typically no longer than 12 months, and there is no prepayment penalty.
Life Insurance Loan
You can borrow against your whole life or permanent insurance property to pay cash for your investment property in Chicago. With no mortgage process to go through, these funds are quick and easy to access. Typically up to 90 percent of the policy’s value is available. 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 come to realize 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 the Chicagoland area?
Borrow from Family
By arranging a loan with a family member, you can pay cash for your investment property in the city of Chicago, and they can earn the interest on the loan. You’ll 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 investors at Global Abundance 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 the city or your target market anywhere in the United States, Global Abundance LLC can help you find the best path for you. Why not take advantage of the possibilities to begin investing today? Send us a message or call us at (800)953-2124 now.
