I want to learn how to invest in home foreclosures.Is there truly a no money down method for this to occur?
Question:
To tell you the truth, all of the stuff that you are hearing on TV is crap. They make it sound so easy, like the average Joe and come in, with no money and get a house for FREE! This is bullspit!
In foreclosures, you'll need money to bring the owners back up to date or to current standings and then try to get the owners sell to you at a DEEP DISCOUNT! Chance in hell?
With the market we are in, it is going to be very difficult to buy foreclosures because most homes are upside down. They owe more on the property than what it is worth!
You should try to learn about abandoned, code violated and condemned properties. I think this is the best way to invest. If you are interested please visit http://www.investinuglyhomes.com...
You can buy a foreclosure with no money down, just like you can buy any other home with no money down.
The ability to buy without putting money down will depend on what kind of mortgage you can obtain. Foreclosures are often listed with real estate agents. You don't have to pay off the former owners bad debt.
But be careful -- you must do your due dilligence when buying property to make sure it truly is a good deal.
Yes I have done it several times but it helps to have money.
It is real easy if it is your first home because you have more options availible.
1. You can buy it as an owner occupied, there are many loan programs that allow you to get into a home for 500 bucks.
2.The most profitable deals are made with pre-forclosures, it is a little tricky but can be done.
There are plenty of possiblities for the creative mind.
Here is one true life example of a no money down deal.
I found a homeowner in the newspaper public records section that was going into foreclosure. I was able to meet with them and discuss possible alternatives that were better than losing their house.
We decided to sell the house to me and they could rent back with a lease purchase until their credit was fixed. They could not catch up their payments and they could not afford the increase in payments from their adjustable rate mortgage. And they did not want to move.
I called the second lien holder, the home was 100% financed with a first and second mortgage company. After a little negotiation they took 6,000 dollars for a 30,000 dollar note.
The seller's quit claimed the property to me. I then refinanced the house using the equity I created to pay the 6000 to the second lien holder and pay off the first mortgage.
I gave the owners a lease option that would allow them to buy the house back from me in one year or more. They paid me a 1500.00 deposit, plus their first months rent. They had this money because they hadn't paid their mortgage for 3 months. They were so happy because they got to stay in their house for the payment (rent) that they could afford. Plus they have the option to buy the house back when their credit improves.
The end result is 2400 in my pocket, better than no money down. A solid renter, that already has a 'feel' for home ownership. And a new investment house that cash flows 200 bucks a month.
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