How Did I Ever Get Started in My Home Foreclosures Investing - Part 5

This is the investor's term:
   -  Interest rate:14% (interest only)
   -  Term:  One year, minimum hold of six months
   -  Payment:  $700/month
   -  Downpayment: $1000.00
   -  Only one week to process the paperworks (this is what so good about private investor - quick process)

I know that the rate is high but I have no choice since time is getting shorter for me or else I will lose the deal plus I could also my $100 deposit.  Hey, $100 is still one hundred bucks!

Since I have already got the property appraised when I initially applied loan from a bank, we used the same appraisal.  The investor just want to make sure that he's getting he's money worth.

Homeowner Insurance Surprise
I have to get some quotes for the homeowner insurance while I'm waiting for that one week loan approval.  I decided to use the same homeowner insurance company for my primary residence.   And I was under the impression that it's got to be the best option since I already have my main residence covered by the same company.

I provided all my loan and insurance information to the title company to get all the paperworks in order.  What surprise me was my title company told me that I might want to shop around for another insurance company.  The premium I was getting for the home is outrageously high!  Honestly, I have no ideal if the quote given to me by my primary insurance company was high or low.   I found out that there's a big difference when it comes to insuring an investment property as compared to primary residence.  And I was so thankful that the lady in the title company gave me that hint.  Check this video about homeowner insurance for some other tips.

After shopping around and calling an insurance broker, my new insurance rate was more than half the original quote that was given to me.

The Closing
The nice thing about networking with a real estate agent is the extended relationship working with them.  The agent already given me the key to the house few days after my offer got accepted.  I know it's not officially mine yet not until the papers are signed at the title company.  His main instruction to me was, don't fix anything not until paperworks are signed.

Comes closing day, I showed up at the title company.  The investor sent a representative to hand the check and now officially I got my first foreclosure investment.

Click Here if You missed Part 4 of this Series