Properties without a mortgage, also known as free and clear properties, can be an attractive option for real estate investors.
Less competition: Since free and clear properties are owned outright by the homeowner, there are no mortgage payments to be made. This means the owner may be more flexible and motivated to sell, as they are not under the same financial pressure as someone making monthly mortgage payments.
Potential for seller financing: Owners of free and clear properties may be more open to creative financing options, such as seller financing. This can benefit real estate investors who may not have access to traditional financing options.
More control over the property: With no mortgage to pay, a free and clear property owner may have more control over the property and may be more willing to negotiate terms that work for both parties.
Search for Free & Clear Leads in REIPro, build a direct mail campaign, or skip trace the owner and call them directly. These owners are in a great financial position regarding equity and generally don’t accept lowball offers unless an emergency happens.