How can we get started investing in real estate with no money down?
Answer:
Look into something called "assignable purchase option contract". You basically find a property that is under valued and tie it up with this contract. Then you sell this contract to another person. For example, you found a house that is worth 100k butthe owner is willing to sell it to you for 60k. You use the contract to tie up the property and sell the contract to another buyer for a 10k option fee. You used none of your money or credit and you made 10k.
Regards
Well you could try to buy a timeshare on Ebay! lol Let's be honest, you need money to buy real estate. If it's a home you'll need a deposit in good faith that you want to purchase, a down payment amount anywhere from 5-20% of purchase price, and then you have loan prepaids and closing costs. While some of the prepaids and closing costs are negotiable, think "fair", it's insulting to the seller when you try to get it all for nothing. Hope that helped!
To be 100% honest with you. Save some money. Work 3 jobs if you have to but save up some cash. Keep the real estate thing in your mind, locked up in that tight little box in the back, and when the time is right to use your hard earned money. Go for it!
How is your credit? There are 100% investment property loans available.
Email me and I will give you me contact information.
If you have REALLY GOOD credit, you can get a 100% loan. Or if you have lots of collateral. You can buy a foreclosed house for cheap (even under $10,000). Best to save money & buy when you are ready. Unless you ave a rich family memeber to loan money?
great credit and higher interest rate. Let me know if i can help
cjkloanguy@yahoo.com
Stop day dreaming. It takes money to make money. The larger the down payment, the lower your mortgage payment and easier to hang on to your property. Zero money down as investment property is very risky. Your rental payment probably will not cover your mortgage. The banks won't finance you. Even if some one does, if the tenant runs out on you, you go belly up in a hurry. We have not even talk about the cost up keep yet.The ones who give you those kind of advice probably has never done it.
I know this may sound crazy but look on eBay. There are several sellers offering 0 or very low down on residential building lots. Most are in retirement communities or subdivisions that have not been fully occupied for awhile. I've seen some lots go for as low as $300 and if your willing to hold on to the them for a few years more than likely you'll come out ahead. You'll want to do a fair amount of research on the areas in which you are buying and the companies you are buying from before actually making a purchase. Watch out for high homeowner association dues or high yearly real estate taxes and high doc prep fees or closing cost. Some of the best sellers will include closing cost and title insurance in the price of the sale. I used to live in one of these subdivisions when lot prices were as low as $600 - $1000, now you can't buy anything there for less than $8000. We bought 1 lot 7 years ago and made $10,000 on it this year. I wish I would have bought more. Live and learn! Good Luck!
Guys Guys are you all morons. I'm sorry but most of you are totally wrong. 1st I am a real estate investor with a credit score right around 600. (not impressive at all) We bought our first house with $686 and the house was $125000 You dont need money open your eyes and look around make some calls to banks and search online.
One of the best suggestions i have is one that alot of people will disagree on is get a mortgage BROKER. they do cost you more in fees (which are usually included into the loan) however they have hundreds of banks they can deal with to find you the least amount down.
Second ask for a 6% sellers assist. Basically that is 6% of the sales price of the home that gets financed into the loan amount that can be used for closing costs example. $100000 dollar house is sales price with 6% sellers assist ontop = 100k to seller, 6k to closing cost, and a 106k loan to you.
Now this is assuming you are a first time buyer of any property. however this can also work for 2 or 3 props. once again this is where your mortgage broker comes into play.
We now are only getting to the level now where we have to put 5% - 10% down and even that can be "negotiated" with the seller
Now lastly in the first paragraph i mentioned $686 down for a 120k property, you had mentioned $0 down, i consider this $0 money down. If you cant come up with $500-$700 money to cover the final closing costs and you want to be a investor then you have no right even trying.
I know this sounds harsh. but the ideas i just read from most of these people is what keeps alot of good people down and in the day to day grind working for someone else, and makes people like me who think outside the box alot of money.Most of these people will say " work 3 jobs and save your money" or real estate is a "get rich quick scheme" this is the menatality of out parents and grand parents.Those are the same people who will tell you to pay the property off(another HUGE mistake) It really makes me mad. If there are any questions send me an email
Buying property with no money down will result a higher interests rate mortgage. Under current market condition, you can not make money unless you hang onto the property for over a couple years. Because the price continues to slide.
If you are paying high interests on the mortgage, and you have to wait for a few years to unload, then your costs is too high. And high costs means no profit.
Why not wait until housing market bottoms out.
This article is teaching buyer how to lowballing.
http://biz.yahoo.com/brn/060909/19463.ht.
These two describe current market.
http://money.cnn.com/2006/09/25/news/eco.
http://money.cnn.com/2006/09/05/real_est.
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