Real Estate Investing With No Money Down
A real estate investment is possible even with limited finances. There are finance companies that would
love to give you a loan and sellers that are ready to work with you to negotiate a contract.
real estate investment,home financing,mortgage
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
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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