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By Richard Massey
Turn the Television on any Sunday morning and you’ll find yourself in the
middle of a “how to buy real estate” infomercial. Can you really buy a house
with no down payment? Can you really make thousands or millions of dollars
buying real estate. Of course the answer is “yes” and “no”. The real question
is, are you willing to pay anywhere from $500 to $5000 for the information,
classes and hotline? Most important are you self disciplined enough to follow
the program.
Before you spend money on these expensive programs, here are my top ten “no
money down” ways to buy real estate. If you’re self disciplined and willing
to hear the word “no” many times before you get a “yes”, then maybe you can
buy a house without a down payment.
1. First is to check out the many new zero down programs now available from
lenders. Especially if you’re a fist time buyer. Also FHA and VA have loans
that may not be zero down, but are very close.
2. Borrow money for the down payment – Borrow the money from family, friends
or a business partner at a high interest rate or a percentage of the profit
when the property is sold
3. Raise the price and lower the terms – Offer the seller more than he is
asking provided he is willing to accept the down payment in the form of a
note. If the seller is asking $150,000 with $15,000 down and willing to carry
the balance of $135,000. Try offering $155,000 in the form of a promissory
not instead of cash. The seller gets a little more money for the additional
risk.
4. Borrow against a life insurance policy – Many life insurance policy’s let
you borrow against the policy for the purpose of investing in real estate or
other investments.
5. Use other property as collateral – Create a note on existing property that
you or a partner own and use it as the down payment for the property you are
buying.
6. Home equity loan – Home equity loans are generally easy to qualify for as
long as there is adequate equity in the property.
7. Seller refinance – Have the seller refinance the property, receiving the
cash he needs from the proceeds of the new loan, the buyer gives the seller a
note for the balance of the seller’s equity.
8. Find an investor – There are many people who have money but no time. Their
current profession keeps them too busy. Work out a deal where they put up the
money and you split the profits when you sell.
9. Lease with option to purchase – Lease a property with the right to buy it
at some future time. Provide for the rental payment to be credited towards
the down payment if you decide to exercise your option.
10. Give them something they need – If the seller is planning to purchase
something in the future that you own or can buy, use it as a trade. This can
be anything such as furniture, boat or motor home.
Richard Massey is a note broker with United Financial Resources and a real
estate investor. You can get more information at http://www.
unitedfinancialresources.com (http://www.unitedfinancialresources.com) or to
read more articles go to http://unitedfinancialresources.com/news.html (http:/
/unitedfinancialresources.com/news.html)
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