Real Estate Investing With No Money Down

Real Estate Investing With No Money Down



Real Estate Investing With No Money Down
So you want to​ get into real estate,​ for personal or​ investment purposes,​ but you just do not have the​ cash to​ get you started .​
Purchasing real estate is​ still possible even with out a​ down payment .​

Below are a​ few techniques,​ provided the​ seller is​ willing to​ negotiate and has a​ genuine interest in​ selling the​ property as​ soon as​ possible.
Buying with no money down.
The simplest method for real estate investment is​ to​ take over their mortgage payments .​
This is​ called assuming the​ mortgage .​
Naturally,​ you will need to​ be approved by the​ original lender to​ assume the​ mortgage .​
If you cannot be approved for an​ assumable mortgage,​ you may also try a​ subject to​ assumption mortgage,​ which means that you make the​ monthly payments while the​ property remains in​ the​ seller's name.
What if​ the​ seller asks more than what the​ balance is​ on​ the​ mortgage?
If the​ seller wants a​ higher price than what is​ owed on​ the​ mortgage,​ you can still assume the​ mortgage and then get a​ second mortgage with the​ seller for the​ remaining cost of​ the​ house .​
Offer the​ seller a​ high interest-only payment for a​ short period,​ for example two or​ three years.
At the​ end of​ the​ term on​ the​ second mortgage,​ you should be able to​ refinance the​ property and pay off the​ seller .​
Unless there has been a​ downward trend in​ real estate,​ your real estate investment should have gained value in​ a​ few years.
There is​ no mortgage to​ assume-then what?
A majority of​ mortgage lenders want to​ make a​ good investment .​
While your local bank may still shy away there are plenty of​ financial lenders that would love to​ make a​ deal and finance your loan .​

Finance companies like real estate .​
the​ mortgage is​ usually based on​ 60-70% of​ the​ value of​ the​ property,​ so as​ long as​ they know they will get their money back in​ the​ value of​ the​ property if​ you default .​
Complete the​ deal with a​ second mortgage created with the​ seller .​
As you can see,​ there are ways to​ invest in​ real estate as​ long as​ the​ buyer and seller work together.




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