How to buy Investment Property with no Money Down | How to Purchase Investment Property with Little Money Down
How to buy Investment Property with no Money Down? Do you have any answer for this? No? Then my blog will definitely help you resolving this issue. Money is a piece of paper which controls all our lives. It is the basic factor for living. Everyone works to earn money as there is no other thing which can provide them satisfaction in their lives. Money can fulfill all our needs. There is a simple factor that if you have money you will be happy in your life and vice versa.
Specially this real estate game requires money and you can’t participate in it without money. Without a target you won’t get any place. Many of you quit this game because you don’t have this important resource called “Money”.
The most important thing is there is no such thing in this real estate business like “No money down” as the money will be obtained from any source. It is mandatory to have money in this business. Because without money neither you can buy, sell, exchange any resource nor you can afford to take a loan from the bank. Now the question is how you will arrange money if you have no money down?
You should make the decision on how much money you want regardless of how much money you spend. This is why people never get ahead. “The deal is senior to the amount of money you have.” You should focus on your deals not on how much money you have in your pocket. As the deal has a great importance.
You are the creator of your deal and you can only be responsible for it. The things which you should be chasing is your deal not your budget.According to me, A deal needs money to make, it needs guts, courage and enthusiasm.
WAYS TO BUY AN INVESTMENT PROPERTY WITH NO MONEY DOWN:
1. Roll the Down Payment into the Purchase Price:
If you have a good investment and selling records then a financier can finance your investments with an guarantee. Or you can buy a property by giving some appropriate down payment according to the seller and you can ensure him that the rest amount will be deposited soon either the whole amount together or in EMI’s.
2. Negotiate a Separate Installment Plan for the Down Payment:
If you don’t have any money down with you, you can convince the seller to accept the amount in installments either on monthly, quarterly, or on yearly basis. There will be a great relief for you to pay the amount.
3. Apply for a loan assistance program:
You can contact your bank and can take suggestions from them about your investments. They can finance you a loan as well can give you suggestions about the installment process.
4. Get owner financing or a land contract:
You can make your seller your financier and he can lend you his property on the assurance that after 3-5 years you will return all the amount to him along with interest. You should have enough equity and records to qualify the bank loan.
5. Trade something other than cash:
You can trade something other than cash like jewellery, house, car, some valuable monuments, etc. Have you ever heard about barter system? Long back, people used to exchange their things with each other according to their needs. Things were also exchanged with services provided by them. You can give some services like painting, carpentry, mechanics, etc.
6. Get the seller to transfer their mortgage to you:
You can get the seller to transfer their mortgage to you if the seller has to do you a work or if he is eager to work with you. You can also make him transfer his properties to you is he is debt. There should be a contract for such deals to negotiate.
7. Trade houses with the seller: “There are several ways to buy an Investment with no money down.”
One of them are trading houses with the seller. You can trade your property in return for an house or can trade a large property for some small rental houses. It will protect you from any further capital gain.
8. Find an investment partner:
You can find a investment partner who will share the amount price in buying a property. You both either can be partners for the property or you both can negotiate with the deal. In any case, you can also pay the amount to your partner after few years and can sign a contract between you both.
9. Use a home equity line of credit from another property:
If you have an equity on another property than you can use that equity as a guarantee or as a source to pay the amount. You can use that equity as a down payment for purchasing another property.
10. Find a property to rent-to-own or lease with an option to buy:
If you have a lease for five years. Meanwhile, at the end of that time, you will need to purchase the house and can get a bank loan then, you can use that time to save money for your down payments. Some contracts put all their rental income in paying the down payments.
Probably the most common type of “no-money-down” purchase is when investors use credit lines (their own or from a group of lenders ) to cover the entire purchase price of a property.This is what the buyers do when they use a credit liners.
Public Money Mortgage, where the seller can lend you money. In this case, the bank might lend you 80% and the seller 20%. Aside from closing costs, that would make it a no-money-down deal.
For conventional loans (non-government-backed loans), there are also 100% LTV programs. But, again, these are not conventional for investment properties. They only apply to loans for owner-occupied properties.
It is a difficult job to do if you have to buy a property with no money down. But it is not Impossible as most of us has already done such deals. If you are making an plan to purchase a property with no money down then you must consult with some experienced faculties as it will enhance our confidence and will safeguard us from committing any mistakes in future.